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Diaranson, 28 October 2020 AWEMainta 9

Financial Highlights
NAGICO LIFE INSURANCE ARUBA N.V.

STATEMENT OF (In Thousands of AWG ) Management remains steadfast with its strategy and is further N I F A N A I C A L S T E S S 2019 2018
FINANCIAL POSITION NAGICO Life Insurance (Aruba) N.V. encouraged by the excellent result to date. Our strategic pillars include A a l i a v n i f e l a s - r o f - e l b a s t e s s a l a i c n 0 5 0 5
A S T E S S 2019 2018 superior customer service, competitive pricing, and a comprehensive H - o t - d l e m n i f y t i r u t a a s t e s s a l a i c n 3 6 4 , 6 3 8 3 , 3
product o ering delivered through a focused, innovative and agile team.
Property, plant and equipment 756 646 Fair value through pro t or loss nancial assets 2,470 1,981
T n i f l a t o a n n I l a i c v t s e m e s t n 9 , 8 8 3 4 , 5 1 4
Investment properties - - In addition, there has been a concerted focus on building the Life
Intangible assets 24 43 operations in a way that would be easily scalable and allow us to capitalize Loans and receivables, including insurance receivables
Financial assets 9,983 6,224 on future market opportunities. With a 30% growth in premium income • Loans and receivables are financial assets with fixed or determinable
Loans and receivables, including insurance receivables 1,016 596 compared to the previous year while still producing reliable bottom-line payments that are not quoted in an active market. These investments are
Cash and cash equivalents 1,173 297 results, proves our formula is working. This result was achieved by taking a initially recognized at cost, being the fair value of the consideration paid
Other assets 2,319 2,257 two-pronged approach. for the acquisition of the investment. All transaction costs directly attribut-
TOTAL ASSETS 15,271 10,063 able to the acquisition are also included in the cost of the investment. After
1) Focusing on the products with high volume demand and catering to this initial measurement, loans and receivables are measured at amortized
EQUITY AND LIABILITIES demand with accurately and competitively priced solutions; cost, using the E ective Interest Rate (EIR), less impairment. Amortized cost
Stockholders’ equity 2) Remaining competitively priced while providing high-quality service is calculated by taking into account any discount or premium on
Share capital 200 500 through continuous process improvement and creating substantial value acquisition and fee or costs that are an integral part of the EIR. The EIR
Share premium - - in everything we do. amortization is included in investment income in the consolidated
Other reserves - - statement of pro t or loss. Gains and losses are recognized in the
Retained earnings 9,582 7,454 The 2020 outlook is uncertain given the global pandemic that continues to consolidated statement of pro t or loss when the investments are derecog-
Total equity 9,782 7,654 disrupt communities around the world. Management remains con dent in nized or impaired, as well as through the amortization process.
Liabilities the robust fundamentals of the Aruba Life operations and is ready to adapt • Insurance receivables are carried at their original invoice amounts less a
Insurance liabilities 3,981 1,761 its strategy where needed. provision for doubtful debts. The provision is determined in line with the
Financial liabilities 484 266 guidelines established by the Central Bank of Aruba.
Other liabilities 1,024 382 It is challenging to provide a credible prediction on the developments for
Total Liabilities 5,489 2,409 the year. However, management is operating at heightened alertness and LOANS AND RECEIVABLES, INCLUDING 2019 2018
TOTAL EQUITY AND LIABILITIES 15,271 10,063 continues to monitor the environment to anticipate on any favorable or INSURANCE RECEIVABLES
adverse trends that can fundamentally impact the business. Insurance receivables 959 541
STATEMENT OF (In Thousands of AWG ) Policy loans 73 58
COMPREHENSIVE INCOME NAGICO Life Insurance (Aruba) N.V. Management is cognizant of the challenging environment in which it Loans receivable 1,000 810
operates and the competitive landscapes that characterize most of our
2019 2018 Total loans and receivables 2,032 1,409
Insurance activities markets. We remain cautiously optimistic that the organization is able to Less: allowances for doubtful accounts 16 3
a r u s n I e r p e c n m u i o c n i m m e 9 4 5 , 6 2 5 0 , 5 successfully navigate through these turbulent and unprecedented times NET LOANS AND RECEIVABLES 2,016 1,406
with the solid foundations in place together with the strength of the
a r u s n I e r p e c n m u i m s r e r u s n i e r o t d e d e c s 0 2 2 - 9 4 1 - NAGICO brand, the backing of the Peak Re Group, and our team of dedicat-
a r u s n i e R o c e c n m m o i s s i o c n i n m e - - ed professionals. Other Assets
N U t e n d r e w n i t i r e r g v e n u e 3 , 6 2 9 9 , 4 0 3 • Reinsurance assets represent balances due from reinsurance companies.
N a r u s n i t e i a l c e c n m a s n s t i f e n e b d 9 4 1 , 2 2 3 1 - We look forward to building on the 2019 accomplishments and setting our Amounts recoverable from reinsurers are estimated in a manner
consistent with the outstanding claims provision on settled claims
a e e F n o c d m m o i s s i s e s n e p x e s n 5 0 7 5 3 4 sights on higher heights in 2020 and beyond.
U n d r e w n i t i r e g x p e n s e s 8 , 2 5 4 3 0 3 associated with the reinsurer’s policies and are in accordance with the
N s e r t e o r f t l u m n i s a r u n s e i t i v i t c a e c 4 , 3 7 5 6 , 4 0 0 Detlef J.G. Hooyboer related reinsurance contract.
N o c n i t e m o r f e n i t s e v n i m s e i t i v i t c a g 9 3 7 1 2 1 Managing Director • Deferred tax assets are recognized for unused tax losses, unused tax
credits and deductible temporary di erences to the extent that it is
o c n i r e h t O m e 6 4 1 probable that future taxable pro ts will be available against which they
N n i t e c o m o r f e m n i v n i t s e s e i t i v i t c a g 7 8 5 1 2 2 can be used. Deferred tax assets are reviewed at each reporting date and
N n i t e c o m o r f e m s e i t i v i t c a l l a 2 , 4 6 0 7 , 4 2 2 are reduced to the extent that it is no longer probable that the related tax
o r e h t O n i t a r e p s e s n e p x e g 4 3 9 , 1 4 5 6 , 1 bene t will be realized; such reductions are reversed when the probability
(Loss)/Profit for the year (before taxation) 2,326 3,068 of future taxable pro ts improves.
o i t a x a T n 7 9 1 - 4 3 1 - • Those direct and indirect costs incurred during the financial year arising
L ( o h t r o f t i f o r P / ) s s y e e n , r a a t f o t e x 1 , 2 2 9 9 , 2 3 4 from the writing or renewal of insurance contracts are deferred to the
extent that these costs are recoverable out of future premiums.
NOTES TO THE FINANCIAL HIGHLIGHTS
Other comprehensive income • Other assets are stated at cost unless otherwise stated.
u l a v e R o i t a a l f o n n a d n b d n i d l i u s g - -
T h t o l a t o c r e o m e r p h e n v i s n i e c o m e - - Statement of Compliance O T H A R E S T E S S 2019 2018
The nancial highlights have been prepared pursuant to article 3b of
Total Comprehensive income (loss) for the year 2,129 2,934 Reinsurance assets - -
Directive II.4 on the publication of the Audited Annual Financial
Statement, issued by the Central Bank of Aruba (“CBA”. The nancial Due from a liated companies 338 509
INDEPENDENT AUDITORS’ REPORT highlights have been derived from the life insurance audited nancial Right-of-use assets - -
Opinion statements of Nagico Life Insurance (Aruba) N.V. which have been Deferred tax asset - -
The accompanying nancial highlights of Nagico Life Insurance (Aruba) N.V., prepared in accordance with International Financial Reporting Standards Deferred acquisition cost 1,179 933
which comprise the statement of nancial position as at December 31, 2019, (IFRS) as issued by the International Accounting Standards Board (IASB), Prepayments and other current assets 802 815
the statement of comprehensive income for the year then ended, and related under the historical cost convention unless otherwise stated. T O T A O L T H E A R S S E T S 3 , 2 1 9 2 , 2 5 7
notes, are derived from the audited nancial statements of Nagico Life
Insurance (Aruba) N.V., respectively (“the audited nancial statements”), for Basis of Preparation
the year ended December 31, 2019. Items included in the nancial statements of the companies are stated in Insurance Liabilities
Aruban Guilders (AWG). The functional currency of Nagico Life Insurance • Life Insurance: The policy premium method is used to value the policy
In our opinion, the accompanying nancial highlights are consistent, in all (Aruba) N.V. is U.S. dollars (USD). liabilities. This is a cash ow valuation method that explicitly identi es all
material respects, with the audited nancial statements, in accordance with revenues and expenditures related to a company’s policy liabilities. The
the Supervisory Directive II.4 “Directive on the publication of the Audited Basis of Estimates policy cash ows consist of the policy premiums and payments. The policy
Annual Financial Statement” as issued by the Central Bank of Aruba (“CBA”). The preparation of the nancial statements requires the entities to make payments are death and maturity bene ts, expenses to service and
estimates and assumptions that a ect items reported in the Statement of administer the policies, reinsurance premiums, reinsurance bene ts and
Financial Highlights Financial Position and Statement of Income. Notably the insurance commission payable. The projected cash ows are discounted to present
The nancial highlights do not contain all the disclosures required by liabilities are prone to estimates and assumptions. Although these value. Policy liability for supplementary bene ts and Group life insurance
International Financial Reporting Standards. Reading the nancial estimates and assumptions are based on management’s best knowledge are valued using the unearned net premium reserve method.
highlights, therefore, is not a substitute for reading the audited nancial of current facts, circumstances and, to some extent, future events and
statements of the companies from which they have been derived. actions, actual results ultimately may di er, possibly signi cantly from N I S U R A N C A I L E S E I T I L I B 2019 2018
those estimates. Provision for unearned premium 1,808 1,366
The audited financial statements and our reports thereon Outstanding claims provision - 18
We expressed an unmodi ed audited opinion on the audited nancial Financial Assets IBNR - -
statements of Nagico Life Insurance (Aruba) N.V. in our report dated October • Available-for-sale (AFS) financial assets include equity and debt Policy liabilities 2,014 278
7, 2020. These nancial highlights do not re ect the e ects of events that securities. Equity investments classi ed as AFS are those, which are not Due to reinsurers 159 99
occurred subsequent to the date of our reports on the audited nancial designated at fair value through pro t or loss. Debt securities in this TOTAL INSURANCE LIABILITIES 3,981 1,761
statements.
category are those that are intended to be held for an inde nite period and
which may be sold in response to needs for liquidity or in response to
Management’s responsibility for the financial highlights changes in the market conditions. After initial measurement, available-for Technical Information on Risk Coverage and Reinsurance
Management is responsible for the preparation of the nancial highlights sale nancial assets are subsequently measured at fair value with The entity’s risk exposure is managed through geographic and product
derived from the audited nancial statements in accordance with the diversi cation and through the purchase of reinsurance externally. Claims
Supervisory Directive II.4 “Directive on the publication of the Audited Annual unrealized gains or losses recognized as other comprehensive income in are payable on a claims-occurrence basis. The entity is liable for all insured
the fair value reserve until the asset is derecognized, at which time, the
Financial Statement” as issued by the CBA. events that occur during the term of the contract, even if the loss is
cumulative gain or loss is recognized in other operating income, or
determined to be impaired, or the cumulative loss is recognized in the discovered after the end of the contract term. As a result, claims may be
Auditors’ responsibility settled over a long period of time. The entity’s reinsurance program
Our responsibility is to express an opinion on whether the nancial consolidated statement of pro t or loss in nance costs and removed from includes catastrophe, excess of loss and quota-share treaties, all purchased
highlights are consistent, in all material respects, with the audited nancial the fair value reserve. from leading reinsurers. The level of coverage bought annually is in
statements based on our procedures, which were conducted in accordance • Financial assets with fixed or determinable payments and fixed maturities relation to the level of risks being carried by the entity, loss experiences and
with International Standards on Auditing (ISA) 810 (Revised), Engagements are classified as held-to-maturity when the entity has the positive intention catastrophe models developed by reinsurers.
to Report on Summary Financial Statements. and ability to hold until maturity. These investments are initially
recognized at cost, being the fair value of the consideration paid for the Contingent Liabilities
Deloitte Dutch Caribbean acquisition of the investment. All transaction costs directly attributable to There are no contingent liabilities other than those that have been
drs. A.J. Kernkamp RA the acquisition are also included in the cost of the investment. After initial disclosed in the 2019 audited nancial statements of Nagico Life Insurance
October 21, 2020 measurement, held to maturity nancial assets are measured at amortized (Aruba) N.V.
Ref.: 1892/BK/om cost, using the e ective interest rate method, less impairment. Gains and
losses are recognized in the consolidated statement of pro t or loss when
the investments are derecognized or impaired, as well as through the Capital and/or Surplus Commitments
MANAGEMENT REPORT There are no surplus or capital commitments
amortization process.
NAGICO Life Insurance (Aruba) N.V. • Financial assets at fair value through profit or loss include financial assets
In 2019 management continued focusing on capitalizing on the held for trading and those designated upon initial recognition at fair value
investments made and the foundation laid in previous years. With a through pro t or loss. These investments are initially recorded at fair value.
premium growth of 30% to AWG 6,5 million and a net pro t of AWG 2,1 Subsequent to initial recognition, these investments are remeasured at fair
million, the Aruba Life operation continues to trend favorably and re ects value. Fair value adjustments and realized gains and losses are recognized Fast, Fair & Always There
the strategic choices made and implemented. in the statement of pro t or loss.