Page 83 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
25. Financial instruments, continued
(a) Credit risk, continued
Based on past experience, NIB believes that no impairment allowance is necessary with respect to contributions receivable for less than 30 days. The majority of this balance includes amounts owed by NIB’s contributors who have a good payment record with NIB.
If outstanding contributions are prolonged, contributions are provided for using the following scale:
Past due:
Not later than one month
Later than one month but not later than two months Later than two months but not later than three months Later than three months
2013 2012
10% 10% 20% 20% 40% 40% 90% 90%
Contributions receivable with pending legal matters that are past due for more than 90 days are 50% provided for (2012 – 10%).
The credit quality of available-for-sale financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (Standard & Poor’s Ratings Services and Moody's Investor Services, Inc.) or to historical information about counterparty default rates:
UBS Financial Services Inc. Merrill Lynch, Pierce
Fenner & Smith Incorporated Morgan Stanley Smith Barney LLC Wells Fargo Advisors, LLC
UBS Financial Services Inc. Merrill Lynch, Pierce
Fenner & Smith Incorporated Morgan Stanley Smith Barney LLC Wells Fargo Advisors, LLC
Credit Rating A; A2 A-; Baa2
A-; Baa1 A+; A2
Credit Rating A; A2
A-; Baa1 A-; A2 A+; A2
US$ US$ US$ US$
2013
84,649,552
27,112,168 13,012,321 9,096,819 133,870,860
2012
70,335,312
25,623,448 12,925,354 8,885,579 117,769,693
2013 & 2014 ANNUAL REPORT | 79 58