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ANNUAL REPORT 2011
VITIS LIFE S.A. I annual report 2011 2 I 21
The Company 3 Management report 4-5
Key figures 6
Product range 7
Independent auditor’s report 8
Balance sheet 9-10
Profit and loss account 11-12
Notes 13-20
Content
VITIS LIFE S.A. I annual report 2011 3 I 21
The Company
PETERS Jacques
DAEMEN Johan
JACQUEMIN Bernard
de JAMBLINNE Olivier
LIMBOURG Nicolas
PAQUAY Philippe
ROMBOUTS Luc
STEVENS Marc
VAN LIEMPT Dirk
Chairman
Director
Director
Director
Director
Director
Director
Director
Director
BOARD OF DIRECTORS
STEVENS Marc
LIMBOURG Nicolas
MANAGEMENT
General Manager
Legal & Administrative Manager
VITIS LIFE is part of the KBC Group
THE COMPANY
KBL European Private Bankers S.A.
VITIS LIFE S.A.
DATA Office N.V.
KBC Group S.A.
The Company
Management report
Key figures
Product range
Independent auditor’s report
Balance sheet
Profit and loss account
Notes
VITIS LIFE S.A. I annual report 2011 4 I 21
201l, A SPECIAL YEAR FOR VITIS LIFE
After two years of growth and good results, 201l was a year during which several crises hit the insurance sector and in particular VITIS LIFE.
The global economy remained under pressure, with even emerging markets suffering from the crisis. Economic growth in some emerging markets reached its limits and the growth of those countries’ stocks slowed or even became negative.
The EU Member States were impacted by the spread of the global economic crisis. The high level of debt of several countries and the consequent pressure from the financial markets caused interest rates to rise to exorbitant levels. Greece, Italy, Spain and Belgium all found themselves in this situation in 201l. On the other hand, the strong European countries paid lower interest rates for their government bonds so they were able to finance their debt cheaply: e.g. Germany and the Netherlands.
The EU and the euro were strongly impacted by this situation. The European Commission even decided to “ask” financial institutions to support the saving of the Greek government. The fall in the market price of Greek bonds hit VITIS LIFE hard, causing the Company’s P&L to turn negative: EUR -24.312.234,50 (LuxGaap).
Nevertheless, there were also positive events and developments within VITIS LIFE.
The operational result, excluding one-offs, remained strong. The recurrent gross income on the unit-linked portfolio more than covers the company’s operational expenses. This means that the financial basis of operations is clean and that the cost/income ratio is performing well.
Another important and positive point is the solvency of the Company. At the end of 201l, VITIS LIFE still had a Solvency I ratio above 170%. This means that the Company is in good shape, stable and well capitalized. The Solvency II project is developing well. The Company will carry out this project and be able to apply the future Solvency II requirements imposed by the supervisory authority.
AND THE FUTURE
The future of the Company within the KBL epb Group looks promising and inspiring.
On 10 October 201l an agreement was signed between Precision Capital S.A. and KBC Group N.V. for the purchase of KBL epb Group, to whom VITIS LIFE belongs. The agreement must first be approved by the Luxembourg supervisory authorities and also by the regulators in the various countries in which KBL epb is active. The complexity of the KBL epb Group and the legal deadlines of each regulator has the effect of prolonging the approval process. The closing of the operation is expected in the first half of 2012.
The Company’s strategy will be strengthened. New markets within the EU and also outside Europe are being looked at.
VITIS LIFE will develop further as the preferred international partner in life insurance dedicated to High Net Worth Individuals and Families: exploring and developing more and new markets, focusing on conventional and non-conventional products, reaching new customers and creating new distribution concepts that will inspire all stakeholders.
Management report of the Board of Directors to the Annual General Meeting of 14 March 2012
The Company
Management report
Key figures
Product range
Independent auditor’s report
Balance sheet
Profit and loss account
Notes
VITIS LIFE S.A. I annual report 2011 5 I 21
VITIS LIFE is ready to meet these challenges in the future. In 201l, VITIS LIFE prepared a new branding and baseline and an IT-linked project to upgrade the policy administration system. This project has already improved certain contract-handling procedures and work-flows that have become less sensitive to human error. Data security has also increased.
RISK MANAGEMENT: RISK-AVERSE
In the past eleven years VITIS LIFE has realized a turn-around with the objectives to grow the Company and to reduce risk. In its first five years of existence, the Company was only active on the Belgian market (mono-market) with a mono-distribution strategy focused on retail customers. Those customers were served with vertically integrated products.
VITIS LIFE is now an international and multi-distribution life insurance company that is servicing High Net Worth Individuals and Families with a product offer in open architecture. During this re-design of the Company, unit-linked products became more important in the product offer and now represent nearly 82% of the mathematical reserves. By using this strategy, VITIS LIFE achieved growth and a lower risk-profile, because it was no longer dependent on one market and/or one distribution partner.
In 201l, the KBL epb Group internal audit carried out a comprehensive audit review of VITIS LIFE activities. Since Q4 201l, recommendations have been implemented, thereby reducing company risk further.
During the book year 201l, VITIS LIFE was exposed to the following financial risks:Insurance risk I The ‘death coverage’ risk is very limited for VITIS LIFE considering that this risk is entirely reinsured within a company rated ‘A’ by S&P.Interest rate risk I This risk is managed throughout the duration of assets and liabilities and by predefined stress tests. Particular stress tests are implemented within the ‘Reporting Value & Risk Management’ framework before each meeting of the Board of Directors and before each meeting of the Audit, Compliance and Risk Committee.Equity risk I The Company respected the investment constraints set by the Group.Credit risk I Investments are only authorized for loans with an ‘investment’ grade rating and minimum limits defined in order to benefit from a diversification among issuers. The VITIS LIFE portfolio is regularly monitored by specialists from the Credit Risk Management department.
Considering the problems on the financial markets and the risk linked to government bonds, the Company is/was exposed to the credit risk of the following countries: Portugal, Italy, Greece and Spain.
The currency risk is minor for the Company. Investments in currencies other than the euro are marginal and they serve primarily to cover commitments in the same currency.
The Company did not use derivatives to hedge certain risks during 201l.VITIS LIFE does not, and did not, have any branches.To our knowledge, no material events occurred after the end of the 201l financial year.
The Company
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Profit and loss account
Notes
Mr Jacques PETERS Chairman of the Board of Directors
VITIS LIFE S.A.
VITIS LIFE S.A. I annual report 2011 6 I 21
Key figures
* including subordinated liabilities** profit after tax divided by capital and reserve
The Company
Management report
Key figures
Product range
Independent auditor’s report
Balance sheet
Profit and loss account
Notes
2011 2010 2009 2008 2007
Premiums 167.19 744.98 567.10 174.64 238.73
Technical provisions 2,214.24 2,287.31 1,587.95 1,092.70 1,526.52
Total balance sheet 2,285.60 2,383.00 1,699.33 1,158.98 1,631.74
Net results (24.31) 9.31 12.47 (3.44) 8.19
Capital and reserves* 40.60 74.21 64.90 52.43 63.76
ROE** (37.46)% 14.35% 23.78% (6.16)% 14.73%
figures expressed in EUR million
VITIS LIFE S.A. I annual report 2011 7 I 21
GUARANTEED LIFE INSURANCE PRODUCTS
Insurance bonds I • guaranteed rate • fixed maturity • capitalisation • multi-currency
Saving-insurance I • no fixed maturity (life) • guaranteed rate and bonuses • capitalisation
Annuity I • fixed maturity • regular income
Capitalisation products I • fixed maturity • guaranteed rate and bonuses • capitalisation
NON-GUARANTEED LIFE INSURANCE PRODUCTS
External funds I • multi-fund • multi-currency
Internal funds I • internal fund linked to a multi-fund (Sicavs, bonds, equities, ...)
Dedicated funds I • dedicated funds (equities, bonds, ...) • multi-currency
VITIS Optimum I • retirement provision product • in accordance with Article 111(a) L.I.R. (Luxembourg) • multi-fund (investing in Sicavs)
→ Asset management For these kinds of policies, the assets are managed according to risk profiles agreed with policyholders. Such policies are managed separately to optimise individual services.
VITISICURA I • internal fund linked to a structured product • return linked to the underlying stock indices of the structured product
SERVICES • optional death covers • tailored beneficiary clauses
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Notes
VITIS LIFE S.A. I annual report 2011 8 I 21
REPORT ON THE ANNUAL ACCOUNTS
Following our appointment by the General Meeting of the Shareholders dated 9 March 201l, we have audited the accompanying annual accounts of VITIS LIFE S.A., which comprise the balance sheet as at 31 December 201l and the profit and loss account for the year then ended, and a summary of significant accounting policies and other explanatory information.
Board of Directors’ responsibility for the annual accountsThe Board of Directors is responsible for the preparation and fair presentation of these annual accounts in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the annual accounts and for such internal control as the Board of Directors determines is necessary to enable the preparation and presentation of annual accounts that are free from material misstatement, whether due to fraud or error.
Responsibility of the ‘réviseur d’entreprises agréé’Our responsibility is to express an opinion on these annual accounts based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the ‘Commission de Surveillance du Secteur Financier’. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts. The procedures selected depend on the judgment of the ‘réviseur d’entreprises agréé’, including the assessment of the risks of material misstatement of the annual accounts, whether due to fraud or error. In making those risk assessments, the ‘réviseur d’entreprises agréé’ considers internal control relevant to the entity’s preparation and fair presentation of the annual accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the annual accounts.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the annual accounts give a true and fair view of the financial position of VITIS LIFE S.A. as at 31 December 201l, and of the results of its operations for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the annual accounts.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
The management report, which is the responsibility of the Board of Directors, is consistent with the annual accounts.
Independent auditor’s report
To the Shareholders of VITIS LIFE S.A. 7, boulevard Royal L-2449 Luxembourg
The Company
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Notes
ERNST & YOUNGSociété Anonyme
Cabinet de révision agréé
Jean-Marie GISCHERLuxembourg, 28 February 2012
VITIS LIFE S.A. I annual report 2011 9 I 21
Balance sheet as at 31 December 2011
The Company
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Profit and loss account
Notes
ASSETS notes 2011 2010
INTANGIBLE ASSETS 3b, 4 729,937.15 594,862.33
shares in affiliated undertakings 3d, 5 10,275,858.15 10,275,858.15
Other financial investmentsshares and other variable-yield securities
and units in unit trusts
debt securities and other fixed income securities 3f, 7 389,787,718.39 475,141,799.99
deposits with credit institutions 26,050,000.00 17,500,000.00
other 1,200.00 0.00
Investments for the benefit of life insurance policyholders who bear the investment risk
Life insurance provision 302,533.36 193,263.08
DEBTORS 3h
Debtors arising out of reinsurance operations 10,506.75 0.00
Other debtors 8 14,369,423.81 5,296,423.40
Tangible assets 3c 23,766.40 25,608.23
Cash at bank and in hand 9,947,475.12 5,435,297.57
Accrued interest 7,470,627.32 9,476,844.44
Other prepayments and accrued income 74,651.06 81,721.19
TOTAL ASSETS 2,285,604,591.60 2,383,004,436.18
Investments in affiliated undertakings
REINSURERS' SHARE OF TECHNICAL PROVISIONS
OTHER ASSETS
PREPAYMENTS AND ACCRUED INCOME
INVESTMENTS
and participating interests
3e, 6 36,355,196.69 37,353,240.12
3g 1,790,205,697.40 1,821,629,517.68
figures expressed in EUR
VITIS LIFE S.A. I annual report 2011 10 I 21
The Company
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Key figures
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Independent auditor’s report
Balance sheet
Profit and loss account
Notes
LIABILITIES notes* 2011 2010
CAPITAL AND RESERVES 9
Subscribed capital 25,202,025.00 25,202,025.00
Reserves
legal reserve 10 2,520,202.50 2,520,202.50
other reserves 11 37,185,762.07 37,173,936.50
Result of the financial year (24,312,234.50) 9,311,825.57
TECHNICAL PROVISIONS 3j
Provision for unearned premiums 46,922.27 147,872.86
Life insurance provision 423,861,176.22 465,344,804.17
Provision for bonuses 173,235.04 331,139.26
TECHNICAL PROVISIONS FOR LIFE INSURANCE
POLICIES WHERE THE POLICYHOLDERS BEAR
THE INVESTMENT RISK 3k 1,790,205,697.40 1,821,629,517.68
Provisions for taxation 35,031.12 2,724,124.34
Other provisions 17 1,770,233.61 2,072,029.49
CREDITORS 3l, 8
Creditors arising out of direct insurance operations 21,289,755.30 10,549,381.90
Creditors arising out of reinsurance operations 548,434.34 260,118.73
Amount owed to credit institutions 7 5,100,413.44 5,069,050.51
Other creditors, including tax and social security 15 1,977,937.79 668,407.67
TOTAL LIABILITIES 2,285,604,591.60 2,383,004,436.18
PROVISIONS FOR OTHER RISKS AND CHARGES
LIABILITIES 2011 2010notes
figures expressed in EUR
VITIS LIFE S.A. I annual report 2011 11 I 21
Profit and loss account for the year ended 31 December 2011
The Company
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Notes
TECHNICAL ACCOUNT – LIFE INSURANCE
BUSINESS2011 2010
EARNED PREMIUMS, NET OF REINSURANCE
Gross premiums written 12 167,193,505.06 744,982,600.74
Outward reinsurance premiums 14 (508,490.45) (277,483.53)
Income from participating interests 5 0.00 72,667.90
Income from other investments 25,056,545.85 27,961,063.72
Value re-adjustments on investments 284,144.43 70,371.69
Gains on the realisation of investments 7,518,904.61 9,381,134.49
UNREALISED GAINS ON INVESTMENTS 0.00 60,135,199.10
CLAIMS INCURRED, NET OF REINSURANCE
Gross amount paid (154,781,352.15) (108,006,999.79)
CHANGE IN OTHER TECHNICAL PROVISIONS,
NET OF REINSURANCE
Life insurance provision
gross amount 73,231,291.10 (699,026,522.48)
reinsurers’ share 14 109,270.28 114,625.53
BONUSES AND REBATES, NET OF REINSURANCE (165,938.65) (331,139.26)
NET OPERATING EXPENSES
Acquisition costs 3m, 13 (1,431,976.20) (1,539,255.58)
Administrative expenses 3n (3,368,144.41) (3,227,322.31)
INVESTMENT CHARGES
Investment management charges, incl. interest (5,698,085.27) (6,481,144.86)
Value adjustments on investments 3o, 7 (23,416,780.78) (2,083,695.05)
Losses on the realisation of investments (17,096,245.79) (6,562,563.87)
UNREALISED LOSSES ON INVESTMENTS (91,428,497.20) (3,447,880.46)
BALANCE ON THE TECHNICAL ACCOUNT
(24,400,898.99) 11,885,879.12LIFE INSURANCE BUSINESS
Change in the provision for unearned premiums, 100,950.59 152,223.14
net of reinsurance
INVESTMENT INCOME
notes
figures expressed in EUR
VITIS LIFE S.A. I annual report 2011 12 I 21
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Notes
NON-TECHNICAL ACCOUNT notes 2011 2010
(24,400,898.99) 11,885,879.12
Other income 404,094.14
Tax on profit or loss of ordinary activities (1,599.65) (2,574,053.55)
PROFIT OR LOSS ON ORDINARY ACTIVITIES
AFTER TAX
EXTRAORDINARY INCOME 30,000.00 0.00
OTHER TAXES (343,830.00) 0.00
(24,312,234.50) 9,311,825.57PROFIT OR LOSS FOR THE FINANCIAL YEAR
BALANCE ON THE TECHNICAL ACCOUNT
LIFE INSURANCE BUSINESS
(23,998,404.50) 9,311,825.57
figures expressed in EUR
VITIS LIFE S.A. I annual report 2011 13 I 21
Notes to the annual accounts as at 31 December 2011
NOTE 1 GENERAL
VITIS LIFE S.A. (‘the Company’) is a life insurance company founded in Luxembourg on 9 January 1995 as a limited liability company (‘Société Anonyme’).
The Company’s objectives are to conduct life insurance operations, capitalisation operations and the management of life insurance or capitalisation companies.
On 2 July 1998, AlmaLife Luxembourg S.A. transferred all its assets and liabilities to the Company.
On 3 May 2007, the Company changed its name from VITIS Life Luxembourg S.A. to VITIS LIFE S.A.
NOTE 2 BASIS OF PRESENTATION
The annual accounts of the Company have been prepared in accordance with the Law of 8 December 1994 on the annual accounts of insurance and reinsurance companies, and with the significant accounting policies generally accepted within the insurance and reinsurance industry in the Grand Duchy of Luxembourg. Accounting principles and valuation methods are, besides the obligations laid down by law and the Commissariat aux Assurances, defined by the Board of Directors.
NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company’s significant accounting policies are as follows:
a I Currency conversion The share capital of the Company is expressed in euros (EUR), the same
currency is applied to express the balance sheet and the profit and loss account. Assets and liabilities denominated in currencies other than EUR are converted at the average exchange rate applicable at the closing date of the balance sheet (year end). Income and charges in foreign currencies are converted into EUR at the official exchange rate applicable on the transaction date.
b I Intangible assets Intangible assets are recorded at the acquisition cost and depreciated on
a straight line basis at 20% per year.
c I Tangible assets Tangible assets are recorded at the historical acquisition cost. The acquisition
cost contains the purchase price and any ancillary expenses. Tangible assets for which the useful economic life is limited in time are depreciated as follows:
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Tangible assets Depreciation method
Computer equipment 33.33% straight line basis
Office equipment 30% reducing balance method
Houseware 20% reducing balance method
Furniture 30% reducing balance method
VITIS LIFE S.A. I annual report 2011 14 I 21
d I Shares in affiliated undertakings Shares in affiliated companies are recorded at the historical acquisition cost. If the impairment in value is of a permanent nature, the shares in affiliated
companies are valued at the lower of acquisition cost or market at the balance sheet date. Such value adjustments may not be continued if the reasons for which they were made have ceased to apply.
e I Shares and other variable-yield securities and units in unit trusts Equities and other variable income transferable securities and units in unit
trusts are valued at the lower of acquisition cost or market value.
f I Debt securities and other fixed-income securities Debt securities and other fixed-income transferable securities are valued at
the acquisition cost or redemption value by using the following methods: • Premium paid over the redemption value is charged equally over the
remaining life up to the repayment of the securities. • Discounts received in comparison with the redemption value of securities are taken to the profit and loss account in equal instalments
over the remaining period up to maturity.
g I Investments for the benefit of life insurance policyholders who bear the investment risk
Investments for the benefit of life insurance policyholders who bear the investment risk are valued at the market value at the balance sheet date.
Market value represents the quoted market at the date of drawing up the annual accounts or establishing the estimated realisable value.
h I Debtors Debtors are disclosed on the balance sheet at the lowest figure of the nominal
value and the expected repayment value. Value adjustments are recorded when there is any doubt of their ability to recover. Such value adjustments may not be continued if the reasons for which they were made have ceased to apply.
i I Purchase price of assets of the same category The Company values assets of the same category using the ‘weighted average
price’ method.
j I Technical provisions Sufficient technical provisions are made to enable the Company to meet its
commitments resulting from insurance contracts. The reinsurers’ share of technical provisions is included in the asset side of the balance sheet.
Value adjustments are also made with regard to tangible assets, so that they
are valued at the lower figures to be attributed to them at the balance sheet date, if it is considered that the reduction in their value will be permanent. Such value adjustments may not be continued if the reasons for which they were made have ceased to apply.
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VITIS LIFE S.A. I annual report 2011 15 I 21
•Provisionforunearnedpremiums Premiums earned represent premiums received or receivable for
•Lifeinsuranceprovision Life insurance provision, which comprises the actuarial value of the
Company’s liabilities after deducting the actuarial value of future premiums, is estimated separately for each insurance policy on the basis of mortality tables accepted in Luxembourg. Life insurance provision is calculated on the basis of a prospective actuarial method.
•Provisionforbonuses The provision for bonuses is estimated separately for each contract.
k I Technical provisions for life insurance policies where the policyholders bear the investment risk
This item represents the technical provisions set up to cover liabilities relating to investments in the context of life policies, for which the policyholder bears the investment risk.
l I Creditors Creditors are stated at their nominal value.
m I Acquisition costs Acquisition costs are taken into the profit and loss account when they occur
and charges relating to life insurance contracts are therefore not taken into account in the calculation of the life insurance provision.
n I Administrative expenses Administrative expenses include costs arising from premium collection,
portfolio administration, handling of bonuses and rebates, and inward and outward reinsurance. In particular they include staff costs and depreciation provisions with regard to tangible assets in so far as they are not shown under acquisition costs, claims incurred or investment charges.
o I Value adjustments Value adjustments are deducted from the related assets.
NOTE 4 INTANGIBLE ASSETS
The changes in intangible assets, corresponding to software licenses, are as follows:
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figures expressed in EUR
all insurance policies issued prior to the end of the year. The part of the premiums earned which relates to subsequent accounting
this means the entrance fee the company is entitled to - is deferred by the transfer to the provision for unearned premium, calculated
individually pro rata temporis for each contract with fixed duration.
periods -
2011 2010
Net book value at the beginning of the year 594,862.33 527,743.82
Additions 357,283.72 220,833.17
Depreciation for the year (222,208.90) (153,714.66)
NET BOOK VALUE AT THE END OF THE YEAR 729,937.15 594,862.33
VITIS LIFE S.A. I annual report 2011 16 I 21
NOTE 7 DEBT SECURITIES AND OTHER FIXED-INCOME SECURITIES
Debt securities and other fixed income transferable securities are analysed as follows:
Premiums (acquisition cost in excess of nominal value) not yet depreciated as at 31 December 2011 were EUR 6,666,092.25 (2010: EUR 9,323,287.99)
NOTE 6 SHARES AND OTHER VARIABLE-YIELD SECURITIES AND UNITS IN UNIT TRUSTS
Equities and other variable-yield transferable securities and units in unit trusts are analysed as follows:
As at 31 December 2011, the unaudited shareholders’ equity of this company, including the result for the year, amounted to EUR 12,717,308.87 (2010: EUR 12,642,892.40). The unaudited result for the year is a profit of EUR 74,416.47 (2010: Loss of EUR 409,190.24).
The Company also took a holding amounting to EUR 6,247.34 in the company KBC Life Fund Management, a limited liability company incorporated under Luxembourg law. This holding was sold in 2010, with a gain of EUR 72,385.81.The Company
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NOTE 5 SHARES IN AFFILIATED UNDERTAKINGS
The Company holds 99.99% of DATA Office N.V., a limited liability company incorporated under Belgian law, amounting to EUR 10,275,858.15.
2010
Book value 37,353,240.12
Acquisition cost 41,078,346.26
Market value 46,612,234.21
figures expressed in EUR
2011 2010
Book value 389,787,718.39 475,141,799.99
Acquisition cost 422,374,681.02 488,628,792.81
Nominal value 415,238,051.33 469,898,830.64
Market value 386,539,578.30 471,958,585.87
figures expressed in EUR
Name Registered office Holding % Capital &
reserveLast financial year’s result
Book value at 31.12.11
Data Office N.V. Belgium 99.99% 12,642,892.40 (409,190.24) 10,275,858.15
figures expressed in EUR
2011
36,355,196.69
42,150,505.79
42,329,162.13
VITIS LIFE S.A. I annual report 2011 17 I 21
NOTE 8 BALANCES WITH AFFILIATED COMPANIES
As the redemption value is uncertain both in amount and delay, the Board of Directors has decided not to credit the discount on Greek Bonds acquired during
book value than their fair value. For those items, the book value has not been adjusted because the decline in value was not estimated to be of a permanent nature. (Net book value EUR 124,150,034.40 – Fair value EUR 110,970,136.25)
the Board of Directors has estimated that a correction of EUR 22,128,611.12 (2010: EUR 750,000.00) is of a permanent nature and has been formally accounted for.
from 15 July 2011 to 16 January 2012. The nominal value of the debt security sold with a repurchase agreement is EUR 4,200,000.00.
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2011 2010
575,060.69 637,218.24
2,512,809.16 3,328,135.43
2011 2010
Creditors arising out of direct insurance operations 29,891.77 18,874.55
Creditors arising out of reinsurance operations 0.00 260,118.73
Amounts owed to credit institutions 36.43 0.00
Other creditors 191,450.68 234,808.24
Discounts (nominal value in excess of acquisition cost) are divided as follows into
VITIS LIFE S.A. I annual report 2011 18 I 21
NOTE 12 PREMIUMS
Gross premiums written are analysed as follows:
NOTE 11 OTHER RESERVES
In accordance with the tax laws, the Company deducts the wealth tax from the amount of income tax until 31 December 2001 and from the wealth tax itself from 1 January 2002 with a maximum amount corresponding to income tax. For this reason, the shareholders’ General Meeting allocates to a reserve, unavailable for distribution for at least five years, a sum corresponding to at least five times the amount of the wealth tax deducted.
NOTE 10 LEGAL RESERVE
The Company is required under Luxembourg law to allocate annually a minimum of 5% of its statutory net profit to a legal reserve until the aggregate reserve equals 10% of the subscribed share capital. Such reserve is not available for distribution, except in the case of dissolution. No amount is required to be transferred to the legal reserve with regard to 201l, as the aggregate reserve has reached 10% of the subscribed share capital.
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2011 2010
Individual premiums 167,193,505.06 744,982,600.74
Single premiums 167,192,315.17 744,985,129.25
Regular premiums 1,189.89 (2,528.51)
167,193,505.06 744,982,600.74
Premiums from non-bonuses contracts 0.00 0.00
Premiums from bonuses contracts 2,170,132.47 4,644,163.92
Premiums from contracts where the policy-holders bear the investment risk 165,023,372.59 740,338,436.82
167,193,505.06 744,982,600.74
figures expressed in EUR
NOTE 9 CAPITAL AND RESERVES
Changes for the year are as follows:
The subscribed capital is represented by 9,981 shares without nominal value.
Subscribed capital
Legal reserve
Unavailable reserves for
wealth tax
Other reserves
Dividend paid
Profit for the year
As at 31.12.2010 25,202,025.00 2,520,202.50 11,009,973.22 26,163,963.28 9,311,825.57
Allocation of result 2010 11,825.57 9,300,000.00 (9,311,825.57)
Result 2011 (24,312,234.50)
As at 31.12.2011 25,202,025.00 2,520,202.50 11,009,973.22 26,175,788.85 (24,312,234.50)
figures expressed in EUR
VITIS LIFE S.A. I annual report 2011 19 I 21
NOTE 14 REINSURANCE RESULT
The reinsurance result is composed as follows:
NOTE 13 COMMISSIONS
Total commissions paid to insurance intermediaries with regard to direct insurance business amount to 87,687.14 (2010: EUR 241,822.33) and are included in the acquisition costs.
All contracts are issued in the Grand Duchy of Luxembourg.
Premiums result from contracts with policyholders resident in the following countries:
The Company
Management report
Key figures
Product range
Independent auditor’s report
Balance sheet
Profit and loss account
Notes
2011 2010
Grand Duchy of Luxembourg 7,032,718.92 9,407,065.31
Other Member States of the European Union 160,148,156.14 721,250,470.74
Other countries 12,630.00 14.325,064.69
167,193,505.06 744,982,600.74
2011 2010
Outward reinsurance premiums (508,490.45) (277,483.53)
Change in life insurance provision 109,270.28 114,625.53
NOTE 15 OTHER CREDITORS INCLUDING TAX AND SOCIAL SECURITY
The other creditors for a total amount of EUR 760,630.80 (2010: EUR 668,407.67)
(2010: EUR 234,808.24) and 139,843.54 for social security (2010: EUR 112,908.56).
(195,212.31) (162,858.00)
Claims paid, reinsurer’ share 204,007.86 0.0
VITIS LIFE S.A. I annual report 2011 20 I 21
NOTE 17 FEES’ EXPENSES OF THE AUDITOR
Fees’ expenses related to the year of account (excl. VAT):
NOTE 18 INFORMATION RELATING TO CONSOLIDATION
In accordance with Article 96 of the Law of 8 December 1994 on the annual accounts and consolidated accounts of insurance and reinsurance companies, the Company is exempt from the obligation to issue consolidated accounts and a consolidated management report.
KBL European Private Bankers S.A. prepares consolidated accounts for the largest body of companies, which includes the Company as a subsidiary company.
The consolidated accounts may be obtained from the registered office of this company at 43, boulevard Royal, L-2955 Luxembourg.
Employees’ costs for the year consist of:
NOTE 16 STAFF
The average number of employees in the company in 2011 was 46, divided as follows:
The Company
Management report
Key figures
Product range
Independent auditor’s report
Balance sheet
Profit and loss account
Notes
Categories 2011 2010
Management 2 2
Senior employees 5 5
Junior employees 39 38
46 45
figures expressed in number of persons
2011 2010
Salaries 3,451,262.09 3,692,493.05
Other staff costs 100,597.25 93,103.12
Social security costs * 581,473.26 488,722.64
* of which pensions 172,637.45 139,949.66
4,133,332.60 4,274,318.81
figures expressed in EUR
2011 2010
Legal audit of the financial statements 56,547.04 55,935.00
figures expressed in EUR
21 I 21
VITIS LIFE S.A. 2, boulevard Emmanuel Servais
L-2535 LuxembourgR.C.S. LUX B 49 922
tel +352 262 046 300 fax +352 262 046 399
www.vitislife.com [email protected]
“VITISLIFEisready to meet these challenges in the future”
Mr. Jacques PETERS