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Diabierna, 30 September 2022 AWEMainta Local

Best Doctors Insurance VBA
Best Doctors Insurance VBA
Summary Financial Statements

March 31, 2022

Balance Sheet Statement of Income
March 31, 2022 and March 31, 2021 Year ended March 31, 2022 and March 31, 2021
(Expressed in United States Dollars) (Expressed in United States Dollars)
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
ASSETS UNDERWRITING INCOME
Cash and cash equivalents $ 360,123 $ 456,896 Gross premiums written-direct $ 38,482 $ 30,343
Long-term investment $ 492,598 $ 492,598 Movement in unearned premiums ($ 1,604) $ 16,317
Accrued interest receivable $ 2,652 $ 2,450 Net premiums earned $ 36,878 $ 46,660
Due from related companies $ 27,267 -- Transaction fee income - -
Premiums receivable $ 17,888 $ 16,640 Total underwriting income $ 36,878 $ 46,660
Deferred acquisition costs $ 5,817 $ 5,421
Total assets $ 906,345 $ 974,005 UNDERWRITING EXPENSES
Losses and loss expenses incurred ($ 1,599) ($ 14,624)
LIABILITIES
Excess of loss reinsurance premium $ 548 $ 6,782
Reserve for outstanding losses and loss expenses $ 3,880 $ 5,483
Sales and Commission fees $ 9,210 $ 11,761
Unearned premium reserve $ 23,289 $ 21,685
Total underwriting expenses $ 8,159 $ 3,919
Due to related companies $ 441,797 $ 447,418
Accounts payable and accrued expenses $ 116,650 $ 49,996
Net underwriting income $ 28,719 $ 42,741
Total liabilities $ 585,616 $ 524,582
SHAREHOLDER'S EQUITY OTHER INCOME (EXPENSES)
Net investment income $ 9,526 $ 9,075
Share capital $ 113,000 $ 113,000
General and administrative expenses ($ 166,939) ($ 106,349)
Additional paid in capital $ 1,246,000 $ 1,246,000
Net loss ($ 128,694) ($ 54,533)
Retained earnings ($ 1,038,271) ($ 909,577)
Total shareholder’s equity $ 320,729 $ 449,423
Total liabilities and shareholder’s equity $ 906,345 $ 974,005

EXPLANATORY NOTES TO THE SUMMARY FINANCIAL STATEMENTS AS AT MARCH 31, 2022

The principal accounting policies adopted in the preparation of in the United States of America (“US GAAP”) which (g) Long-term investment summary financial statements and our report thereon,
the Summary Financial Statements of Best Doctors Insurance require management to make estimates and assumptions The long-term investment represents a time deposit therefore, is not a substitute for reading the audited financial
VBA are set out below. These explanatory notes are an extract that affect amounts reported in the financial statements and with maturity of more than one year when purchased. statements of the Company and the auditor’s report thereon.
of the detailed notes included in the financial statements and accompanying notes. Management believes that the The time deposit is classified as held-to-maturity and
consistent in all material respects with those from which they estimates utilized in preparing these financial statements carried at amortized cost based on management’s The audited financial statements and our
have been derived. The audited financial statements of Best are reasonable. Actual results could differ from those intention to hold the investments to maturity. report thereon
Doctors Insurance VBA are available on the Company’s website. estimates. The financial statements of the Company are We expressed an unmodified audit opinion on the audited
presented in United States dollars (USD or $), which is the (h) Cash and cash equivalents financial statements in our report dated September 28, 2022.
functional currency of the Company and rounded to the
1. General nearest USD. Cash and cash equivalents comprise of current deposits That report also includes A Material Uncertainty Related to
Best Doctors Insurance VBA (the “Company”) was incorporated with banks. Cash equivalents are short-term highly Going Concern section that draws attention to Note 1 in the
under the laws of Aruba on November 29, 2011. The registered (b) Functional and presentation currency liquid investments that are readily convertible to known audited financial statements. Note 1 of the audited financial
business address of the Company is Seroe Lopes 5C-1, Paradera, Assets and liabilities denominated in currencies other than amounts of cash. statements indicates that since July 1, 2018, the Company
Aruba. The Company obtained their permit to operate as a has been in the process of winding down the activities of
general insurance company on February 1, 2013. The Company the U.S. dollar are translated into USD at year-end exchange (i) Income taxes the Company. The Company has requested the Central Bank
commenced writing business in March 2013. rates. The Aruban Florin (“AWG”) is pegged to the US dollar The Company is subject to income taxes. Income tax on of Aruba to approve the transfer of the final active policies
at a fixed exchange rate of 1.79 and therefore its value the taxable income for the year, if any, is comprised of to its parent company. Once the approval is granted,
The Company is a wholly owned subsidiary of Best Doctors versus other currencies fluctuates with the US dollar. current tax and is recognized in the statement of income. management can proceed with the closure of the Company.
Insurance (“BDIL”), a company incorporated in Bermuda. The Transactions denominated in foreign currencies are Current tax, if any, is expected tax payable on the taxable These events or conditions, along with other matters as
ultimate parent of the company is Primary Group Limited, a translated at the foreign currency exchange rates on the income for the year, using tax rates enacted or set forth in Note 1 of the audited financial statements,
Bermuda Company. The Company insures the healthcare risks transaction date. substantially enacted at balance sheet date, and any indicate that a material uncertainty exists that may cast
of individuals and corporations, located in Aruba, on claims- significant doubt on the Company’s ability to continue as
made and occurrence bases. (c) Written premiums and net premium earned adjustment to tax payable in respect of previous years. a going concern. These matters are addressed in Note 1 of
Premiums written are recorded on the accrual basis. The tax jurisdiction where the Company files income tax the summary financial statements.
The Company currently provides cover to a limit of $5,000,000
or less per person per policy year depending on the policy Premiums are recognized as income on a pro-rata basis returns is Aruba. The summary financial statements and the audited financial
agreements. The Company retains the first $1,000,000 of its over the terms of the underlying contracts with the statements of the Company do not reflect the effects of events
gross liability per covered person per contract year. unearned portion deferred in the balance sheet. 3. Use of judgements and estimates that occurred subsequent to the date of our report on the
Uncertainty Related to Going Concern (d) Commission fees and deferred acquisition costs The preparation of financial statements in compliance with audited financial statements.
US GAAP requires management to make estimates and
Effective from July 1, 2018, the Company ceased writing new Commissions are paid to sales agents and agencies once
business. After evaluation of the results of the Company for the the contract is effective and premium is paid. The assumptions that affect amounts reported in the financial Management’s responsibility for the summary
year ended March 31, 2018 and taking into consideration the commission payment is entered as deferred acquisition statements and accompanying notes. Management believes financial statements
lack of significant commercial opportunities that could provide costs. Deferred acquisition costs are reclassified to that the estimates utilized in preparing these financial Management is responsible for the preparation of the summary
an increase in the Company’s business volume, the Company commission expense as the revenue from the underlying statements are reasonable. Actual results could differ from
has decided to discontinue operations in the near future. On insurance contract is earned. those estimates. Estimates and underlying assumptions are financial statements on the basis as described in the summary
April 5, 2019, the Company requested the CBA for approval reviewed on an ongoing basis. Revisions to estimates are of significant accounting policies of the financial statements.
to discontinue its operations. As of the date of these financial recognized prospectively.
statements, the Company has not received feedback on its (e) Transaction fee income Auditor’s responsibility
request to the CBA approving to the discontinuation of the Transaction fee income is recognized on each policy at a The Company complies with the minimum solvency margin it
operations. Hence the financial statements for the years ended fixed rate once the policy is written. must have conform its license of a general insurance business Our responsibility is to express an opinion on whether the
March 31, 2022, and March 31, 2021, have been prepared under a as at March 31, 2022. The minimum solvency margin that summary financial statements are consistent, in all material
going concern basis. (f) Reserve for outstanding losses and loss the Company must have at its disposal is equivalent to USD respects, with the audited financial statements of the Company
adjustment expenses 168,539 (AWG 300,000). based on our procedures, which were conducted in accordance
Since July 1, 2018, the Company continued to renew policies The reserve for outstanding losses and loss adjustment with International Standard on Auditing (ISA) 810 (Revised),
of existing clients for both private and group policies unless Independent Auditor’s Report Engagements to Report on Summary Financial Statements.
canceled by the client. During the year ended March 31, 2021, expenses is estimated on a total basis for the parent
the Company stopped renewing individual policies. Currently, company including the Company. Due to the size of
the Company has two active group policies. In a letter dated Aruba, the data is not enough to apply traditional Opinion Aruba, September 29, 2022
February 11, 2021 the Company requested the CBA to approve statistical methods. Subsequently the total estimated The summary financial statements, which comprise the
the transfer of these final policies to its Parent. Upon receipt of reserve is divided for the parent company and the summary of the balance sheet as at March 31, 2022, the For Ernst & Young Accountants
Garrick de Cuba, MSc, RA
the approval from the CBA, the Company’s management will Company based on their respective insurance premiums. summary of the statement of income for the year then ended, Associate Partner
start the procedure to liquidate the Company. The Company’s The reserve is provided on the basis of current estimates and related notes are derived from the audited financial
management is unable to assess the timing of the response of made by the parent company’s actuary (BDIL). statements of Best Doctors Insurance VBA (“the Company”)
the CBA with regards to their request. As a result, it is unclear Management believes that the reserve for outstanding for the year ended March 31, 2022.
whether the discontinuation of the operations and initiation of losses and loss adjustment expenses will be adequate to
the liquidation procedures will take place within twelve months cover the ultimate net cost of losses incurred to the In our opinion, the accompanying summary financial
from the date of signing the financial statements as of and for balance sheet date. This reserve is an estimate and actual statements are consistent, in all material respects, with
the year ended March 31, 2022. the audited financial statements of the Company, on the
losses may be significantly greater or lesser than the basis described in the explanatory notes to the summary
amount recorded. It is reasonably possible that financial statements.
2. Summary of significant accounting policies management will need to revise this estimate significantly.
The company has consistently applied the following accounting Any subsequent differences arising are recorded in
policies to all periods presented in these financial statements. the year in which they are determined. The reserve for Summary financial statements
outstanding losses and loss adjustment expenses is The summary financial statements do not contain all the
(a) Basis of accounting not discounted. disclosures required by the accounting principles generally
The accompanying financial statements are prepared in accepted in the United States of America. Reading the
conformity with accounting principles generally accepted

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