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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

7.11 Unexpired risk reserve
Unexpired risk reserve is calculated using an actuarial method, based on a best estimate of the
claims expected to incur over the remaining term of the insurance. Estimating the reserve
requires the management to exercise judgment, with reference to historical data and the best
estimates available at the time.
7.12 Liability adequacy test

At the end of each reporting period, the company assesses the adequacy of insurance liabilities
recognised in the financial position by comparing to the present value of the estimated future
cash flows from insurance contracts. If the assessment shows that the carrying amount of insurance
liabilities less related deferred acquisition cost is inadequate when compared to the estimated
future cash flows. The liabilities is increased by the deficiency and it is charged to profit or loss.

8 Cash and cash equivalents

2023 2022
Thousand Thousand
Baht Baht
Cash on hand 71,549 48,060
Deposit at banks without fixed maturity date 471,371 885,211
Cash and cash equivalents 542,920 933,271

9 Premium receivable, net

The balances as at 31 December 2023 and 2022 of premium receivables are classified by aging from
the maturity date under the stipulated law of the premium collection as follows:
Premium received
from direct insurance
2023 2022
Thousand Thousand
Baht Baht
Not yet due 2,053,441 1,960,375
Overdue under 30 days 387,234 315,329
Overdue over 30 days to 60 days 151,623 164,011
Overdue over 60 days to 90 days 45,984 45,568
Overdue over 90 days to 1 year 135,846 336,366
Overdue over 1 year 15,301 17,290

Total premium receivables 2,789,429 2,838,939
Less Allowance for doubtful accounts (11,015) (10,314)

Premiums receivable, net 2,778,414 2,828,625

The normal credit term of insureds, agents and brokers granted by the Company ranges 0 - 60 days and
15 - 60 days, respectively.

For premium receivables due form agents and brokers, the Company has stipulated the collection guideline
in accordance with the law of the premium collection. For overdue premium receivables, the Company
has the legal process with such agents and brokers.

150 | รายงานประจำาปี 2566 | ANNUAL REPORT 2023 33