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Tokio Marine Safety Insurance (Thailand) Public Company Limited
Notes to the Financial Statements

Tokio Marine Safety Insurance (Thailand) Public Company Limited
For the year ended 31 December 2023
Notes to the Financial Statements
For the year ended 31 December 2023

5.1.3 Liquidity risk

Liquidity risk, is the risk that the insurance company will encounter difficulty to settle the obligation
related to financial liabilities which must be settled in cash or other financial assets.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet
obligations when due and to close out market positions. At the end of the reporting period the
Company held deposits at call of Baht 471,371,300 (2022 : Baht 885,210,637) that are expected
to readily generate cash inflows for managing liquidity risk. Due to the dynamic nature of the
underlying businesses, the Company Treasury maintains flexibility in funding by maintaining
availability under committed credit lines.

a) Financing arrangements
The Company’s policy is to ensure that sufficient financial assets are available to meet
financial commitments by performing cash flow analysis regularly to ensure that cash
flows generated are sufficient so that financial commitments are met.
The Company’s financial assets mainly comprises of cash and deposits at financial
institutions and investment in securities. The management believes that such financial
assets will be able to be sold quickly at close to their fair value.
b) Maturity of financial liabilities

The tables below analyse the maturity of financial liabilities grouping based on their contractual
maturities. The amounts disclosed are the contractual undiscounted cash flows. Balances due
within 12 months equal their carrying balances as the impact of discounting is not significant.

Within Over
1 year 1 - 5 years 5 years Total
Thousand Thousand Thousand Thousand
Baht Baht Baht Baht
Maturity of financial liabilities
As at 31 December 2023
Commissions and
brokerage payables 428,733 - - 428,733
Other financial liabilities (Notes 21)
- Lease liabilities 41,584 200,991 - 242,575
- Accrued operating expenses 434,617 17,140 10,303 462,060
- Other payables 238,736 - - 238,736
Total other financial liabilities 714,937 218,131 10,303 943,371

Total 1,143,670 218,131 10,303 1,372,104
Within Over
1 year 1 - 5 years 5 years Total
Thousand Thousand Thousand Thousand
Baht Baht Baht Baht
Maturity of financial liabilities
As at 31 December 2022
Commissions and
brokerage payables 468,224 - - 468,224
Other financial liabilities (Notes 21)
- Lease liabilities 38,016 107,136 - 145,152
- Accrued operating expenses 379,523 17,437 7,973 404,933
- Other payables 169,601 - - 169,601
Total other financial liabilities 587,140 124,573 7,973 719,686

Total 1,055,364 124,573 7,973 1,187,910

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