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4 AWEMainta .com Diabierna, 01 October 2021

Best Doctors Insurance VBA
Best Doctors Insurance VBA
Summary Financial Statements

March 31, 2021

Balance Sheet Statement of Income
March 31, 2021 and March 31, 2020 Year ended March 31, 2021 and March 31, 2020
(Expressed in United States Dollars) (Expressed in United States Dollars)
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
ASSETS UNDERWRITING INCOME
Cash and cash equivalents $ 456,896 $ 545,198 Gross premiums written-direct $ 30,343 $ 72,189
Long-term investment $ 492,598 $ 492,598 Movement in unearned premiums $ 16,317 $ 131,558
Accrued interest receivable $ 2,450 $ 2,692 Net premiums earned $ 46,660 $ 203,747
Premiums receivable $ 16,640 $ 23,327 Transaction fee income - $ 150
Deferred acquisition costs $ 5,421 $ 9,512 Total underwriting income $ 46,660 $ 203,897
Total assets $ 974,005 $ 1,073,327
UNDERWRITING EXPENSES
LIABILITIES
Losses and loss expenses incurred ($ 14,624) $ 17,838
Reserve for outstanding losses and loss expenses $ 5,483 $ 15,301 $ 6,782 $ 94,094
Excess of loss reinsurance premium
Unearned premium reserve $ 21,685 $ 38,002 Sales and Commission fees $ 11,761 $ 49,277
Due to related companies $ 447,418 $ 464,071 Total underwriting expenses $ 3,919 $ 161,209
Accounts payable and accrued expenses $ 49,996 $ 51,997
Total liabilities $ 524,582 $ 569,371 Net underwriting income $ 42,741 $ 42,688
SHAREHOLDER'S EQUITY OTHER INCOME (EXPENSES)
Share capital $ 113,000 $ 113,000 Net investment income $ 9,075 $ 8,515
Additional paid in capital $ 1,246,000 $ 1,246,000 General and administrative expenses ($ 106,349) ($ 107,528)
Retained earnings ($ 909,577) ($ 855,044) Net loss ($ 54,533) ($ 56,325)
Total shareholder’s equity $ 449,423 $ 503,956

Total liabilities and shareholder’s equity $ 974,005 $ 1,073,327

EXPLANATORY NOTES TO THE SUMMARY FINANCIAL STATEMENTS AS AT MARCH 31, 2021

The principal accounting policies adopted in the preparation of 2. Summary of significant accounting policies management will need to revise this estimate significantly. Summary financial statements
the Summary Financial Statements of Best Doctors Insurance The company has consistently applied the following accounting Any subsequent differences arising are recorded in The summary financial statements do not contain all the
VBA are set out below. These explanatory notes are an extract policies to all periods presented in these financial statements. the year in which they are determined. The reserve for disclosures required by the accounting principles generally
of the detailed notes included in the financial statements and outstanding losses and loss adjustment expenses is accepted in the United States of America. Reading the
consistent in all material respects with those from which they (a) Basis of accounting not discounted. summary financial statements and our report thereon,
have been derived. The audited financial statements of Best The accompanying financial statements are prepared in therefore, is not a substitute for reading the audited financial
Doctors Insurance VBA are available on the Company’s website. (g) Long-term investment statements of the Company and the auditor’s report thereon.
conformity with accounting principles generally accepted
in the United States of America (“US GAAP”) which The long-term investment represents a time deposit The summary financial statements and the audited financial
1. General require management to make estimates and assumptions with maturity of more than one year when purchased. statements of the Company do not reflect the effects of events
that occurred subsequent to the date of our report on the
The time deposit is classified as held-to-maturity and
that affect amounts reported in the financial statements and
Best Doctors Insurance VBA (the “Company”) was incorporated accompanying notes. Management believes that the carried at amortized cost based on management’s audited financial statements..
under the laws of Aruba on November 29, 2011. The registered estimates utilized in preparing these financial statements intention to hold the investments to maturity.
business address of the Company is Seroe Lopes 5C-1, Paradera, are reasonable. Actual results could differ from those
Aruba. The Company obtained their permit to operate as a (h) Cash and cash equivalents The audited financial statements and our auditor’s
general insurance company on February 1, 2013. The Company estimates. The financial statements of the Company are report thereon
commenced writing business in March 2013. presented in United States dollars (USD or $), which is the Cash and cash equivalents comprise of current deposits We expressed an unmodified audit opinion on the audited
functional currency of the Company and rounded to the with banks. Cash equivalents are short-term highly financial statements in our report dated September 17, 2021.
The Company is a wholly owned subsidiary of Best Doctors nearest USD. liquid investments that are readily convertible to known That report also includes:
Insurance (“BDIL”), a company incorporated in Bermuda. The amounts of cash.
ultimate parent of the company is Primary Group Limited, a (b) Functional and presentation currency A Material Uncertainty Related to Going Concern section that
Bermuda Company. The Company insures the healthcare risks Assets and liabilities denominated in currencies other than (i) Income taxes draws attention to Note 1 in the audited financial statements.
of individuals and corporations, located in Aruba, on claims- the U.S. dollar are translated into USD at year-end exchange The Company is subject to income taxes. Income tax on Note 1 of the audited financial statements indicates that
made and occurrence bases. rates. The Aruban Florin (“AWG”) is pegged to the US dollar the taxable income for the year, if any, is comprised of since July 1, 2018, the Company has been in the process of
at a fixed exchange rate of 1.79 and therefore its value current tax and is recognized in the statement of income. winding down the activities of the Company. The Company
The Company currently provides cover to a limit of $5,000,000 versus other currencies fluctuates with the US dollar. Current tax, if any, is expected tax payable on the taxable has requested the Central Bank of Aruba to approve the
or less per person per policy year depending on the policy Transactions denominated in foreign currencies are income for the year, using tax rates enacted or transfer of the final active policies to its parent company. Once
agreements. The Company retains the first $1,000,000 of its translated at the foreign currency exchange rates on the substantially enacted at balance sheet date, and any the approval is granted, management can proceed with the
gross liability per covered person per contract year. closure of the Company. These events or conditions, along with
transaction date. adjustment to tax payable in respect of previous years.
other matters as set forth in Note 1 of the audited financial
Uncertainty Related to Going Concern (c) Written premiums and net premium earned The tax jurisdiction where the Company files income tax statements, indicate that a material uncertainty exists that may
Effective from July 1, 2018, the Company ceased writing new returns is Aruba. cast significant doubt on the Company’s ability to continue as
business. After evaluation of the results of the Company for the Premiums written are recorded on the accrual basis. a going concern. These matters are addressed in Note 1 of the
year ended March 31, 2018 and taking into consideration the Premiums are recognized as income on a pro-rata basis summary financial statements.
lack of significant commercial opportunities that could provide over the terms of the underlying contracts with the 3. Use of judgements and estimates
an increase in the Company’s business volume, the Company unearned portion deferred in the balance sheet. The preparation of financial statements in compliance with
has decided to discontinue operations in the near future. On US GAAP requires management to make estimates and Management’s responsibilities for the summary
April 5, 2019, the Company requested the CBA for approval (d) Commission fees and deferred acquisition costs assumptions that affect amounts reported in the financial financial statements
to discontinue its operations. As of the date of these financial Commissions are paid to sales agents and agencies once statements and accompanying notes. Management believes Management is responsible for the preparation of the summary
statements, the Company has not received feedback on its the contract is effective and premium is paid. The financial statements on the basis as described in the summary
request to the CBA approving to the discontinuation of the commission payment is entered as deferred acquisition that the estimates utilized in preparing these financial of significant accounting policies of the financial statements.
operations. Hence the financial statements for the years ended costs. Deferred acquisition costs are reclassified to statements are reasonable. Actual results could differ from
March 31, 2021, and March 31, 2020, have been prepared under those estimates. Estimates and underlying assumptions are
a going concern basis. commission expense as the revenue from the underlying reviewed on an ongoing basis. Revisions to estimates are Auditor’s responsibilities
insurance contract is earned. recognized prospectively.
Our responsibility is to express an opinion on whether the
Since July 1, 2018, the Company continued to renew policies The Company complies with the minimum solvency margin it summary financial statements are consistent, in all material
of existing clients for both private and group policies unless (e) Transaction fee income must have conform its license of a general insurance business respects, with the audited financial statements of the Company
canceled by the client. During the year ended March 31, 2021, Transaction fee income is recognized on each policy at a as at March 31, 2021. The minimum solvency margin that based on our procedures, which were conducted in accordance
the Company stopped renewing individual policies. Currently, fixed rate once the policy is written. the Company must have at its disposal is equivalent to USD with International Standard on Auditing (ISA) 810 (Revised),
the Company has two active group policies. In a letter dated
February 11, 2021 the Company requested the CBA to approve (f) Reserve for outstanding losses and loss 168,539 (AWG 300,000). Engagements to Report on Summary Financial Statements.
the transfer of these final policies to its Parent. Upon receipt of adjustment expenses
the approval from the CBA, the Company’s management will Report of the Independent Auditor Aruba, September 30, 2021
start the procedure to liquidate the Company. The Company’s The reserve for outstanding losses and loss adjustment
management is unable to assess the timing of the response of expenses is estimated on a total basis for the parent Opinion For Ernst & Young Accountants
the CBA with regards to their request. As a result, it is unclear company including the Company. Due to the size of The summary financial statements, which comprise the Original has been signed by Garrick de Cuba, MSc, RA
whether the discontinuation of the operations and initiation of Aruba, the data is not enough to apply traditional summary of the balance sheet as at March 31, 2021, the
the liquidation procedures will take place within twelve months statistical methods. Subsequently the total estimated summary of the statement of income for the year then ended,
from the date of signing the financial statements as of and for reserve is divided for the parent company and the
the year ended March 31, 2021. Company based on their respective insurance premiums. and related notes are derived from the audited financial
The reserve is provided on the basis of current estimates statements of Best Doctors Insurance VBA (“the Company”)
Primary Group Limited provided a comfort letter asserting made by the parent company’s actuary (BDIL). for the year ended March 31, 2021.
adequate financial support to Best Doctors Insurance Company Management believes that the reserve for outstanding In our opinion, the accompanying summary financial
VBA when required to maintain the Company as a going losses and loss adjustment expenses will be adequate to statements are consistent, in all material respects, with
concern for at least twelve months from the date of signing of cover the ultimate net cost of losses incurred to the the audited financial statements of the Company, on the Ernst & Young is a partnership of limited liability companies (‘professional
the financial statements as of and for the year ended March balance sheet date. This reserve is an estimate and actual basis described in the explanatory notes to the summary corporations’) established in Aruba. Our services are subject to the general
31, 2021. The Company’s outlook until the operations are losses may be significantly greater or lesser than the financial statements. terms and conditions, which contain a limitation of liability clause.
discontinued is to break even.
amount recorded. It is reasonably possible that