PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
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26. Accounts Payable
2011 2010
Rp 000,000 Rp 000,000
Related parties Note 54 Reinsurance payable
19,108 7,181
Commissions payable 8,064
3,216 Insurance claims payable
3,354 1,868
Premiums payable 929
181 Total
31,455 12,446
Third parties Reinsurance payable
126,426 54,769
Insurance claims payable 99,531
98,605 Premiums payable
26,014 8,073
Commissions payable 18,001
22,844 Others
1,637 2,115
Total 271,609
186,406 Total
303,064 198,852
The details of accounts payable based on currency: 2011
2010 Rp 000,000
Rp 000,000 Rupiah
Insurance claims payable 87,609
97,584 Reinsurance payable
96,269 10,481
Commissions payable 19,330
21,604 Premiums payable
20,755 3,482
Others 1,637
2,115 Total
225,600 135,266
Foreign currency Note 59 Reinsurance payable
49,265 51,469
Insurance claims payable 15,275
2,889 Commissions payable
6,736 4,456
Premiums payable 6,188
4,772 Total
77,464 63,586
Total 303,064
198,852 Reinsurance payables represent insurance premiums due to the reinsurance companies based
on the reinsurance contract treaty for certain amount of insurance policies. Commissions payable represent commissions due to brokers and insurance agencies while
insurance claims payable represent liabilities to policyholders in relation to claims which have been approved but the payments of which are still in process.
Premiums payable represent co-insurance premium payable to co-insurance member arising from life insurance transaction.
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
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27. Premiums Received in Advance
This account represents premiums received in advance by ASM, a subsidiary, in relation to insurance policies issued with coverage period of more than one 1 year.
Premiums received in advance by type of insurance are as follows:
2011 2010
Rp 000,000 Rp 000,000
Motor Vehicles 627,611
714,536 Fire
54,423 43,345
Enginnering 574
346 Marine Hull
141 179
Marine Cargo 135
75 Health
32 32
Miscellanous 16,213
12,174 Total
699,129 770,687
As of December 31, 2011 and 2010, balance of premium in advance in foreign currency amounted to US 2,187,046 and US 2,193,827, respectively Note 59.
28. Liability for Future Policy Benefits
a. Liability for future policy benefits represents the amount set aside to provide the benefits promised to policyholders under the terms of life insurance policies in force, which are stated
in the policies and determined in accordance with the actuarial calculation. b.
The details of liability for future policy benefits based on type of coverage are as follows:
2011 2010
Rp 000,000 Rp 000,000
Individual: Combined endowment
7,295,590 2,111,871
Whole life 226,997
216,970 Endowment
8,624 8,471
Non-Traditional 5,070 4,988
Death 414
710 Subtotal
7,536,695 2,343,010
Group: Death
159,659 138,227
Endowment 38
43 Others
5 -
Subtotal 159,702
138,270 Total
7,696,397 2,481,280
c. As of December 31, 2011 and 2010, balance of liability for future policy benefits in foreign currency amounted to US 97,767,275 and US 58,851,009, respectively Note 59.
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
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As of December 31, 2011 and 2010, AJSM, a subsidiary, liability for future policy benefits is recorded by AJSM based on actuarial calculation of Herman Sulistyo, FSAI. The
assumptions used in the computation are as follows:
For the insurance policies issued since 1994:
Mortality Method of Reserve
Table Ac tuarial Interest
Computation a. Individual:
Death CSO 1958
4, 8 Net level premium
TMII 1993 2, 8
Net level premium Endowm ent
CSO 1958 5
Net level premium TMI 1993
8 Net level premium
Reins urance 9
Net level premium Combined endowment
CSO 1958 4, 5, 8
Net level premium TMII 1993
2, 3, 4 , 5 , 7 , 8 Net level premium
CSO 1980 7
Net level premium 8, 5
Net level premium TMII 1999
9 Zilmer
W hole life CSO 1958
4, 7, 8 Net level premium
TMII 1993 5, 8, 9
Net level premium Reins urance
8, 5 Zilmer
b. Group: Death
CSO 1958 4, 8
Net level premium Type of Insurance
For the insurance policies issued before 1994:
Mortality Method of Reserve
Table Actuarial Interest
Computation a. Individual:
Endowment CSO 1958
8 Zilmer
Combined Endowment CSO 1958
4, 6, 7 Zilmer
W hole life CSO 1958
6 Zilmer
b. Group: Death
CSO 1958 6
Zilmer Type of Insurance
The above liability for future policy benefits are prospective with linear interpolation. e.
The changes in liability for future policy benefits are as follows:
2011 2010
Rp 000,000 Rp 000,000
Balance at the beginning of the year 2,481,280
3,372,899 Increase decrease in liability for
future benefits Note 47 5,215,117
891,619 Balance at the end of year
7,696,397 2,481,280
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
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29. Unearned Premiums and Estimated Own Retention Claims
2011 2010
Rp 000,000 Rp 000,000
Unearned premiums 593,813
477,159 Estimated own retention claims
220,949 197,210
Total 814,762
674,369 a.
Unearned Premiums
Unearned premiums by type of insurance are as follows:
2011 2010
Rp 000,000 Rp 000,000
Motor vehicles 317,363
249,835 Health
208,107 180,043
Fire 28,266
18,169 Miscellaneous
23,243 17,298
Marine cargo 7,507
5,286 Marine hull
5,756 3,661
Accident 2,027
1,739 Engineering
1,137 743
Death 407
385 Total
593,813 477,159
The changes in unearned premiums are as follows:
2011 2010
Rp 000,000 Rp 000,000
Balance at the beginning of the year 477,159
357,697 Increase in unearned premiums Note 43
115,723 116,724
Increase in unearned premiums tabarru fund 931
2,738 Balance at the end of year
593,813 477,159
Calculation method for Premium Reserve was based on regulation of KMK No. 424KMK.062003 Article 28 about Calculation of Unearned Premiums.