Fatum A nnua l R e po rt 2 0 1 1
Quality of Life
“ Ch a mpio ns aren’t made in the gyms.
Champions are made from something
they h av e deep ins ide them - - a des ire,
a drea m , a vis io n.” Muhammad Ali
Contents
A m e s s ag e fro m t h e S u p e rv i s o ry Boa r d o f D i r ecto rs
Meet the members of the Supervisory Board
A m e s s ag e fro m t h e E x e c u t i v e Boa r d o f D i r e cto rs
Meet the members of the Executive Board
Fat u m H o l d i n g N . V. Abbr e v i at e d C o n s o l i dat e d
F i n a n c i a l S tat e m e n t s 3 1 D e c e m b e r 2 0 1 1
Consolidated Statement of Financial Position
31 December 2011
Consolidated Statement of Comprehensive Income 2011
Significant Accounting Policies
Independent Auditors’ Report 2011
Q ua l i t y o f L i f e
C o m pa n y i n f o r m at i o n
Fatum Annual Report 2011 Page 3
A Message from
the Supervisory
Board of Directors
On behalf of the Supervisory Board of Directors, I am pleased to present this annual
report to you.
The year 2011 once again showed the strength and resilience of Fatum and its parent
company, Guardian Holdings Limited (GHL). The results of GHL for 2011 showed a
profit after tax from continuing operations of $465 million. This compares to 2010’s
profit after tax from continuing operations of $495 million, marking two consecutive
years of excellent results for our core businesses. In 2011 the balance sheet was
further strengthened, which is a key factor in the Group’s ability to meet the long
term obligations to the policy holders as well as to support the strategic plans of
GHL. Following a thorough strategic review of the company, the decision was made
to exit our significant shareholding of 39% in Jubilee Managing Agency Limited at
the Lloyd’s of London business in the third quarter of 2011.
All GHL operating companies remained well capitalized in 2011. The focus on underwriting discipline, profit maximization and cost containment was clearly noticeable
in the technical ratios for the different lines of business. Shareholders’ equity increased
by 4% to $3.154 billion, which produced a return on equity of 14.5%. GHL’s total
assets grew by $515 million and now total $21.503 billion. All of GHL’s insurance
companies operate well in excess of all statutory minimum required capital levels.
The Supervisory Board of Directors
The Board is well aware of the importance of its responsibilities. A majority representation of independent non-executive directors on its supervisory board of directors is
regulatory required. In 2011 the Board consisted of 7 members including 4 nonexecutive directors.
All the powers of the Board have been duly exercised. The Board met four times in
2011. Major issues requiring an active engagement of the Board were the initiatives
for keeping the company performance in line with shareholders’ expectations. The
Economic Value Added (EVA) methodology is being used since 2009, and is focused
on an enhancement of the value of the company’s strategic initiatives. The Board is
pleased with the opportunities for sustainable growth in the Netherlands which
were initiated in 2009.
Meet the
members of the
Supervisory
Board
On December 31, 2011
Fatum Annual Report 2011 Page 4
Mr. J. Mack
Chairman
Mr. H.P. Ganteaume
Mr. O. van der Dijs
The Audit, Compliance and Risk Committee
The Audit, Compliance and Risk Committee resides under the Supervisory Board
and is governed by a charter which sets out its responsibilities in respect of the financial statements, internal controls, the internal audit function, external audit,
compliance and risk matters.
The Committee is satisfied that the Internal Audit function as well as the Compliance function have been discharged in an objective and transparent manner and
are not subject to management’s undue influence. The ongoing assessment of the
adequacy and effectiveness of the Group’s internal control systems is the primary
responsibility of Internal Audit. During 2011, weaknesses in internal controls noted
by the internal and external auditors and management’s risk corrective actions were
presented to the Committee at its quarterly meetings. The Committee members
have satisfied themselves that approved risk corrective actions have remedied the
weaknesses. Important subjects receiving attention from the Audit, Compliance
and Risk Committee in 2011 were Compliance, Anti Money Laundering and Risk
Management.
The Audit, Compliance and Risk Committee met four times in 2011 to discharge its
responsibilities. All meetings were attended by representatives of the Supervisory
and Executive Board and by the Fatum internal auditor and compliance officer.
Ernst & Young, the external auditors, have a standing invitation to all Audit, Compliance, and Risk Committee meetings.
The Supervisory Board would like to thank the Executive Board members for the
solid performance in 2011. The Executive Board’s focus on prudent Group investment principles proved to be of great value in the challenging circumstances of the
post financial crisis era. The Supervisory Board would also like to express special
words of appreciation to the employees of Fatum, the customers, shareholders and
all other Fatum and GHL stakeholders.
In closing we would like to reconfirm our core strategy to be the wealth management and protection champion of the Caribbean. We are well positioned to take
advantage of the myriad opportunities that lie ahead of us. Fatum is a solid company, active in the Dutch Caribbean for almost 108 years. As a Group we are looking
forward to the future, well prepared to compete and grow our business profitably.
Jeffrey Mack
Chairman
Mr. J. Richters
Mrs. E. Croes-Marugg
Mr. R. Tewari
Mr. R. Espinet
A Message from
the Executive
Board of Directors
We are proud to present our 2011 annual report.
The year 2011 has been remarkable, from an operational as well as a strategic
perspective. Fatum has successfully managed to deliver tangible value for its
customers. Our 200 employees continued to boost our business, expressed through
a strong customer focus, sustained commercial activity and reasonable investment
opportunities. These are the main factors behind the leadership role of Fatum. Key
elements such as operational excellence, quality above expectations and transparency will enable us to continue to successfully compete in our economies while
delivering the requested profit for the shareholder.
Fatum is operating in the Dutch Caribbean since 1904. Our company has been
a solid part of the common history of the former Netherlands Antilles and Aruba.
Having our roots firmly embedded in the Dutch Caribbean communities, we expect
to be part of the future endeavors of these promising islands while exploring
sustainable opportunities for crossing the borders as well.
Financial performance
A number of achievements and key priorities stood out in 2011. First of all, Fatum’s
business performance in 2011 was strong despite the fragile economic situation.
Fatum closed the year 2011 with a net profit of ANG 27.1 million, as compared with
ANG 22.4 million in 2010. The results were positively influenced by fair value gains
of ANG 19.6 million. The gross yield on investments was 6.1%.
The Life business showed a net profit of ANG 14.4 million, as compared with ANG
24.3 in 2010. The Health business showed a net profit of ANG 4.9 million, as compared with ANG 3.0 million in 2010. The net profit of the General Insurance business
was ANG 12.1 million, while in 2010 we registered a net profit of ANG -.971 million.
The 2010 results were affected by hurricane Thomas. In 2009 Fatum started with
P&C insurance activities in the Netherlands. In 2011 the Dutch business contributed
positively to the outstanding performance of the General Insurance business.
Fatum’s solvency position continued to be exceptionally strong and above the local
requirements of the Central Bank of Curaçao and Sint Maarten (the former Central
Bank of the Netherlands Antilles) and the Central Bank of Aruba.
Operational excellence and enhanced customer services
Fatum firmly believes in the importance of creating and maintaining a lasting
relationship of trust with the customer. Our business units focus on continuously
improving their standards for a timely, flawless and efficient execution of customer
services. Helping our customers understand their exposure to risk in order to make
the right decisions about the required level of cover and how to reduce their risks is
one of the strongest benefits we can deliver. At the beginning of 2010 the outsourced
claims handling for general insurance was insourced, enabling us to service our
customers even better and more directly in the event of a claim. The results of the
insourcing were clearly noticeable throughout 2011.
The continued building on a customer-centric organization was a main priority in
2011 in order to align our products, services and processes with the needs of our
customers. We aim at ensuring that customers get the right products and services,
through the right distribution channels, and at the right prices. We are currently
evaluating our product portfolio and at the same time working on the implementation of a new savings product based on sharpened criteria for good customer care.
Employee care
Our employees are our human capital. Motivated and engaged colleagues are central
to our success as they are the main point of contact with our customers and hence
determine the quality of service and of our success. Our strong results are the outcome
of the hard work and dedication of our employees. Fatum encourages an active
participation of our employees with regard to business matters, and information
sessions are held with all staff on a periodic basis on all islands. Fatum has a very
active personnel association and frequently after work social activities are organized for employees and their family as well. Training courses are being organized
to further strengthen the level of knowledge of our staff and also based on our belief
in a continuous personal development. Particular emphasis has been given in 2011
on trainings related to the Life and Pension business.
Our focus on optimization of results is being enhanced by our everlasting attention
for engagement and performance management in the organization. Fatum firmly
believes in the role of leadership to facilitate the achievement of business results.
We embedded financial and non-financial targets as well as behavioral targets in
our performance management approach for senior executives. Fatum will proceed
with deploying the newly developed performance assessment system into the whole
organization, in order to establish a solid guideline for assessing performance in a
clear and transparent way.
Fatum has a good understanding with the labor union Beba which is representing
the Fatum staff since 2010 and meets periodically with union delegates.
Corporate Governance and Risk Management
Fatum is committed to comply with regulations, internal policies and standards of
Fatum Annual Report 2011 Page 7
A Message from the Executive Board of Directors
good practice. We have a clear vision on ethical, social and environmental issues for
our insurance operations. We are a responsible financial service provider, which
means that we provide high quality products and services that meet the needs and
expectations of our customers. It also implies that we do not want our company
being used for illegal, harmful or unethical purposes.
Risk is a reality of doing business, primarily because of the increasingly risky external
environment in which we operate, but also because we are in a business of risk taking.
Adequate management of risk is critical in fulfilling our obligations to stakeholders.
Anti Money Laundering guidelines and measures for combatting the financing of
terrorism have been firmly incorporated in our company. A compliance report with
the progress in this respect is being prepared on a monthly basis. In addition, transparency in our entrepreneurial decisions and an appropriate risk management system
are viewed as indispensable. Risks are being assessed periodically and the remediation of the risks considered of vital importance is being closely monitored.
Fatum continued to be actively involved in a GHL project to implement a group-wide
Enterprise Risk Management Framework, a process by which we systematically
identify, measure, and manage the various types of risk inherent to our operations.
Corporate citizenship
Social responsibility is highly valued at Fatum. In all our activities, we carefully weigh
the interests of our various stakeholders: business relations and suppliers, customers,
employees, society at large and shareholders. We aim at being a good corporate
citizen; this means that we want to contribute to positive changes in our communities
by establishing solutions that address the “quality of life” challenges our customers face.
Throughout the years we have supported a large range of community programs and
activities on a consistent basis. Some activities financially supported by Fatum have
attained a ‘classic” character, for instance the road assistance in the event of a motor
accident, offered to the public since 1996, the annual Pension Seminar in Curaçao,
Aruba and St. Maarten and the annual Fatum fitness event promoting healthy activity.
Other important events sponsored by Fatum include the annual Fatum Christmas
lunch for less privileged school children and the annual Golf Tournament. Fatum
also supports several groups participating in cultural parades such as carnival and
the traditional annual harvest celebration.
The Executive’s Board concluding remarks
Throughout 2011 we have achieved several goals and gained satisfactory results.
Fatum will proceed in building its future on sustainable profit based on sound busi-
Fatum Annual Report 2011 Page 8
ness ethics and respect for all stakeholders.
We firmly believe that by acting with professionalism and integrity, we’ll be able to maintain our stakeholders’ trust and preserve our
reputation.
We honor the commitment of our staff, the
dedication of our distribution network, the
backing of our shareholders and, overall, the
trust of our customers. It gives us the conviction
that we are on the right track to remain a leader
and a benchmark for the Dutch Caribbean insurance market while expanding our services
to the Dutch market as well. We would like to
thank each one of you for your much appreciated contribution to our high quality achievements. We trust that our endeavors in 2011
will remain reflected in our quality of life while
we continue moving forward.
I.S. (Steven) Martina
President & CEO Fatum Holding
Fatum Annual Report 2011 Page 9
Meet the members of the Executive Board
Francis Gijsbertha
Managing Director Operations
Diego Fränkel
Managing Director Aruba, Bonaire, Sint Maarten
Steven Martina
President & CEO Fatum Holding
“The art of living is to
be able to appreciate good
health, to produce in
corporate life and to enjoy
private life to the fullest.”
Dorothy Romero-Sprockel
Managing Director Finance
Marten O’Niel
Managing Director Commerce
“If you want to make this
world a better place, take
a look at yourself and start
making that change.”
Michael Jackson
Fatum Annual Report 2011 Page 10
“Quality of life to me, is the
journey of life transforming
opportunities in life into realities
we can enjoy and be proud of
every day again and again.”
“Quality of life does not
necessarily mean to have
the best of everything but
more to make the best
of everything that comes
along your way.”
“Quality of Life, is like
a balanced budget,
It’s all been taken
care of... and beyond.”
Consolidated Statement
of Financial Position
31 December 2011
(Expressed in thousands of Antillean Guilders)
Assets
2011
2010
Property, plant and equipment
32,216
1,245
Investment properties
Intangible assets
Investment in associated companies
Financial assets
Financial assets of mutual fund unit holders
Loans and receivables including
insurance receivables
Pension plan assets
Deferred tax assets
Re-insurance assets
Due from parent and affiliated companies
Deferred acquisition costs
Taxation recoverable
Cash and cash equivalents
Total Assets
30,889
2,813
1,034
33,481
1,010,889
120
169,897
84
22,512
19,082
2,333
5,817
265
74,360
2,914
31,313
972,101
168,693
84
3,169
21,439
29,366
3,900
23,753
265
58,846
1,373,576
1,349,304
25,001
25,001
7,099
7,018
Shareholder’s Equity and Liabilities
Shareholder’s Equity
Share capital
Share premium
Reserves
Retained earnings
Total Equity
Liabilities
Insurance contracts
Financial liabilities
Post-retirement medical benefit obligations
Deferred tax liabilities
Due to affiliates
Provision for taxation
Other liabilities
Total liabilities
Total Equity and liabilites
74,029
41,942
148,071
1,052,922
90,587
16,998
4,393
431
4,095
56,079
1,225,505
1,373,576
74,029
111,594
1,006,561
217,642
2,944
22,081
4,482
31,476
49,244
14,874
1,131,662
1,349,304
Consolidated Statement
of Comprehensive
Income 2011
(Expressed in thousands of Antillean Guilders)
2011
2010
Insurance premium income
186.859
198.815
Reinsurance commission income
3.982
3.245
Policy acquisition expenses
Insurance activities
Insurance premium ceded to re-insurers
Net underwriting revenue
166.046
(19.908)
Net insurance benefits and claims
Underwriting expenses
(24.795)
(155.797)
(23.109)
178.951
(19.931)
(155.850)
3.170
(175.705)
Investment income
64.200
65.410
Net fair value gains on financial instruments
13.714
8.561
Other operating income
8.942
1.093
Net result from insurance activities
Investing activities
(9.659)
(175.781)
Net realized losses on financial instruments
(23)
Fee income
Investment contract benefits
Net income from all activities
78.220
78.781
Operating expenses
(43.233)
(48.129)
Operating profit
32.543
30.652
1.214
(168)
(72)
787
(168)
Finance charges
Share of profit of associated companies
34.711
30.652
Taxation
(7.635)
(8.167)
Profit after taxation
27.076
22.485
54
(106)
54
(106)
27.130
22.379
27.130
22.379
27.130
22.379
Profit before taxation
Other comprehensive income (loss)
Other reserve movements
Other comprehensive income /
(2.444)
(loss) for the period, net of tax
2.168
Total comprehensive income /
(loss) for the period, net of tax
Attributable to
Owners of the parent
Non-controlling interests
-
-
-
Fatum Annual Report 2011 Page 13
Significant Accounting Policies
The consolidated Statement of Financial Position
and consolidated Statement of Comprehensive
Income as presented on page 12 and 13 have been
derived from the consolidated financial statements
of Fatum Holding N.V. These explanatory notes
are an extract of the detailed notes included in
the consolidated financial statements.
2.1 Basis of preparation
These consolidated financial statements are prepared in accordance with International Financial
Reporting standards (IFRS). They have been prepared under the historical cost convention, as
modified by the revaluation of land and buildings, investment properties and financial assets
and financial liabilities at fair value through profit
or loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgment in the process of
applying the Group’s accounting policies.
(a) New standards and amendments/revisions
to published standards and interpretations
effective in 2011
- IAS 24 Related Party Disclosures (Revised)
The amendment clarified the definition of a
related party without changing the fundamental approach to related party disclosures.
The amendment also provides for an exemption to related party disclosures for government related-entities. The adoption did not
have any impact on the financial position,
performance or disclosures of the Group.
- IFRIC 14 Prepayments of a Minimum Funding
Requirement (Amendment)
The amendment was made to remove an unintended consequence when an entity is
subject to minimum funding requirements
and makes an early payment of contributions
to cover those requirements. The amendment
permits a prepayment of future service cost
by the entity to be recognized as a pension
asset. The Group is not subject to minimum
funding requirements, therefore the amendment of the interpretation has no effect on
the financial position or performance of the
Group.
- IFRIC 19 Extinguishing Financial Liabilities with
Equity Instruments
IFRIC 19 clarifies that equity instruments
issued to a creditor to extinguish a financial
liability are consideration paid. The equity
instruments issued are at their fair value and
any gain or loss is recognized immediately in
profit or loss. This amendment is effective for
annual periods beginning on or after 1 July
2010. This policy is currently being applied
by the Group and did not have any impact on
the financial position of the Group.
- Improvements to IFRS (issued 2010)
The improvements to IFRS project is an
annual process that the IASB has adopted to
deal with non-urgent but necessary amendments to IFRS (The ‘annual improvement
process’). In May 2010, the IASB issued its
third omnibus of amendments to its standards,
primarily with a view to removing inconsistencies and clarifying wording.
- IFRS 3 Business Combinations
The measurement options available for noncontrolling interest (NCI) were amended.
Only components of NCI that constitute a
present ownership interest that entitles their
holder to a proportionate share of the entity’s
nets assets in the event of a liquidation
should be measured at fair value or at the
present ownership instruments’ proportionate
share of the acquiree’s identifiable net assets.
- IFRS 7 Financial Instruments - Disclosures
The amendment was intended to simplify the
disclosures provided by reducing the volume
of disclosures around collateral held and im-
Fatum Annual Report 2011 Page 15
proving disclosures by requiring qualitative
information to put quantitative information in
context.
- IAS 1 Presentation of Financial Statements
The amendment clarifies that an entity may
present an analysis of each component of
other comprehensive income in the statement of changes in equity or in the notes to
the financial statements.
•IAS 19 Employee Benefits (Revised) - Effective
1 January 2013
•IFRS 9 Financial Instruments - Classification
and Measurement - Effective 1 January 2013
•IFRS 10 Consolidated Financial Statements,
IAS27 Separate Financial Statements Effective 1 January 2013
•IFRS 11 Joint Arrangements, IAS 28 Investments in Associates and Joint Ventures Effective 1 January 2013
•IFRS 12 Disclosure of Interests in Other
Entities - Effective 1 January 2013
•IFRS 13 Fair Value Measurement - Effective
1 January 2013
(b) New standards and amendments/revisions
to published standards and interpretations
effective in 2011 but not applicable to the Group
•IFRS 3 Business Combinations (Contingent Consolidation
consideration arising from business combinations prior to adoption of IFRS 3 (as revised in a) Subsidiaries
2008))
Subsidiaries are all entities over which the
•IFRS 3 Business Combinations (Un-replaced
Group has the power to govern the financial
and voluntarily replaced share-based payment
and operating policies, generally accompanyawards)
ing a shareholding of more than one half of the
•IAS 34 Interim Financial Statements
voting rights. The existence and effect of
•IFRIC 13 Customer Loyalty Programs
potential voting rights that are currently exer•IFRS 1 First-time Adoption of International
cisable or convertible are considered when
Financial Reporting Standards - Limited
assessing whether the Group controls another
Exemption from Comparative IFRS 7 Discloentity. Subsidiaries are fully consolidated from
sures for First-time Adopters
the date on which control is transferred to the
•IAS 27 Consolidated and Separate Financial
Group. They are de-consolidated from the date
Statements - Group reorganizations in sepaon which control ceases.
rate financial statements
(c) New interpretations and revised or amended standards that are not yet effective and
have not been early adopted by the Group
•IFRS 1 First-time Adoption of International
Financial Reporting Standards (Amendment)
- Severe Hyperinflation and Removal of Fixed
Dates for First-time Adopters - Effective 1 July
2011
•IFRS 7 Financial Instruments: Disclosures
(Amendment) - Effective 1 July 2011
•IAS 12 Income taxes (Amendment) Deferred Taxes : Recovery of Underlying Assets - Effective 1 January 2012
•IAS 1 Presentation of Items of Other Comprehensive income - Amendments to IAS 1Effective 1 July 2012
The Group uses the purchase method of
accounting for the acquisition of subsidiaries.
The cost of an acquisition is measured as the
fair value of the assets given, equity instruments issued and liabilities incurred or
assumed at the date of exchange, plus costs
directly attributable to the acquisition.
Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business
combination are measured initially at their fair
values at the acquisition date, irrespective of
the extent of any non-controlling interest. The
excess of the cost of acquisition over the fair
value of the Group’s share of the identifiable
net assets acquired is recorded as goodwill.
If the cost of acquisition is less than the fair
value of the net assets of the subsidiary acquired, the difference is recognized in the consolidated income statement.
holders of the associates and therefore is profit
after tax and non-controlling interests in the
subsidiaries and associates.
All inter-company transactions and balances
are eliminated on consolidation. Subsidiaries’
accounting policies have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The consolidated financial statements of the
associates are prepared for the same reporting
period as the parent company. Where necessary,
adjustments are made to bring its accounting
policies in line with the Group.
The following subsidiaries have been included
in the consolidation:
After application of the equity method, the
Group determines whether it is necessary to
recognize an additional impairment loss on the
Group’s investment in associates. The Group
determines at each reporting date, whether
there is any objective evidence that the investment in associates is impaired. If this is the
case, the Group calculates the amount of
impairment as the difference between the
recoverable amount of the associates and its
carrying value and recognizes the amount in
the consolidated income statement.
• Fatum Health N.V.
• Fatum General Insurance N.V.
• Fatum Life N.V.
• Homes and Properties N.V.
• Fatum General Insurance Aruba N.V.
• Fatum Life Aruba N.V.
b) Associated Companies
The Group’s investment in its associated comThe Group acquired its investments in Guardian
panies is accounted for using the equity method
Resort International Inc.
of accounting. An associate is an entity in
which the Group has significant influence and
which is neither a subsidiary nor a joint venture. Financial Assets
Under the equity method, the investment in
associates is carried in the consolidated statement of financial position at cost plus post
acquisition changes in the Group’s share of net
assets of the associates. Goodwill relating to
associates is included in the carrying amount
of the investment and is not amortized. The
consolidated income statement reflects the
share of the results of operations of the associates. When there has been a change recognized directly in the equity of the associates,
the Group recognizes its share of any changes
and discloses this, when applicable, in the
statement of changes in equity. Profits or losses
resulting from transactions between the Group
and the associates are eliminated to the extent
of the interest in the associates.
The Group classifies its investments into the following categories: financial assets at fair value
through profit or loss, loans and receivable and
held-to-maturity financial assets. The classification
depends on the purpose for which the investments were acquired. Management determines
the classification of its investments at initial recognition and re-evaluates this at every reporting date.
(a) Financial assets at fair value through
profit and loss
This category has two sub-categories: financial assets held for trading and those designated at fair value through profit and loss at
inception. A financial asset is classified into
this category at inception if acquired principally for the purpose of selling in the short term, if
it forms part of a portfolio of financial assets in
which there is evidence of short term profitThe share of profit of associated companies is
taking, or if so designated by management.
shown on the face of the consolidated income
Financial assets designated as at fair value
statement. This is profit attributable to the equity
Fatum Annual Report 2011 Page 17
through profit or loss at inception are those
that are:
a.Held in internal funds to match insurance
and investment contracts liabilities that are
linked to changes in fair values of these
assets. The designation of these to be at fair
value through profit or loss eliminates or
significantly reduces a measurement or
recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on
them on different bases.
b.Managed and whose performance is evaluated on a fair value basis. Information about
these financial assets is provided internally
on a fair value basis to the Group’s key management personnel. The group’s investment
strategy is to invest in equity and debt securities, and to evaluate them with reference to
their fair values. Assets that are part of these
portfolios are designated upon initial recognition at fair value through profit or loss.
(b) Loans and receivables
are recognized on settlement date – the date
on which there is a cash outflow or inflow.
Investments are initially recognized at fair value
plus, in the case of all financial assets not carried at fair value through profit and loss, transaction costs that are directly attributable to
their acquisition. Investments are derecognized when the rights to receive cash flows
from the investments have expired or where
they have been transferred and the Group
has also transferred substantially all risks and
rewards of ownership.
Financial assets at fair value through profit and
loss are subsequently carried at fair value.
Loans and receivables and held-to-maturity
financial assets are carried at amortized cost
using the effective interest method. Realized
and unrealized gains and losses arising from
changes in the fair value of the ‘financial assets
at fair value through profit and loss’ category
are included in the income statement in the
period in which they arise.
The fair value of publicly traded instruments is
based on quoted market values. Market values
were determined on the basis of available information at the end of the financial year, and
therefore did not take into account subsequent
movements. Where market value is not available, cost is used to approximate the fair value.
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market other
than those that the Group intends to sell in the
short term or that it has designated as at fair
value through profit and loss or available-for- Insurance contracts/Net insurance premium
sale. Receivables arising from insurance con- revenue/Net insurance benefits and claims
tracts are also classified in this category and
The Group issues contracts that transfer insurare reviewed for impairment as part of the imance risk or financial risk or both. Insurance
pairment review of loans and receivables.
contracts are those contracts that transfer significant insurance risk. Such contracts may
(c) Held-to-maturity financial assets
also transfer financial risk.
Held-to-maturity financial assets are nonderivative financial assets with fixed or deter- • Short-term insurance contracts
minable payments and fixed maturities other
These contracts are principally property, motor,
than those that meet the definition of loans and
casualty (employers’ liability, public liability),
receivables that the Group’s management has
marine and health insurance contracts. Health
the positive intention and ability to hold to
insurance contracts include both group and
maturity.
individual health insurance.
Property insurance contracts indemnify the
Regular purchases and sales of investments
Group’s customers in the event of a loss from • Long-term insurance contracts
a specified insured peril such as fire, wind- without fixed terms
storm or earthquake (not limited to these perils)
up to the insured amount and within the terms
These contracts insure human life events (for
of the policy conditions.
example death or survival) over a long duration.
These contracts are issued for both private
Insurance premiums are recognized directly as
and commercial risks. Customers who underliabilities whereas the change in the liabilities is
take commercial activities on their premises
reflected in the consolidated income statement.
could also receive compensation for conseThese liabilities are increased by credited interquential loss/business interruption caused by
est or change in the unit prices and are dethe insured perils.
creased by policy administration fees, mortality
and surrender charges and any withdrawals.
• Long-term insurance contracts
with fixed and guaranteed terms
For all these contracts, premiums are recognized as revenue (earned premiums) proporThese contracts insure events associated with
tionally over the period of coverage.
human life (for example death, or survival) over
a long duration. Premiums are recognized as
Claims and loss adjustment expenses are
revenue when they become payable by the
charged to income as incurred based on the
contract holder. Premiums are shown before
estimated liability for compensation owed to
deduction of commission.
contract holders.
A liability for policyholders’ benefits that are
expected to be incurred in the future is recorded
when the premiums are recognized. Typically,
the liability is determined as the sum of the
expected discounted value of the benefit
payments less the expected discounted value
of the theoretical premiums that would be
required to meet the benefits based on the
valuation assumptions used (the valuation
premiums). In particular, the liability is based
on assumptions as to mortality and investment
income. A margin for adverse deviations is
included in the assumptions.
The liabilities are recalculated at each reporting
date and the change in the liability is recognized
as an expense in the consolidated income
statement.
The reserves for the long-term life insurance
contracts are calculated on a Modified Net Premium Method in accordance with the requirements of the Central Bank of Curaçao and Sint
Maarten and the Central Bank of Aruba.
Benefits are recorded as an expense when
they are incurred.
A liability for contractual benefits that are expected to be incurred in the future is recorded
when the premiums are recognized.
Typically, the liability is determined as the sum
of the expected discounted value of the benefit
payments less the expected discounted value
of the theoretical premiums that would be required to meet the benefits based on the valuation assumptions used (the valuation premiums).
Solvency Margin
20112010
Regulatory required margin 52,924 51,207
Available margin
148,071 217,642
Surplus
95,147 166,435
Fatum Annual Report 2011 Page 19
Independent Auditors’ Report
We have audited whether the accompanying 2011 abbreviated consolidated financial statements of Fatum Holding N.V., Curaçao, (as set out
on pages 12 to 19) have been derived consistently from the audited 2011
consolidated financial statements of Fatum Holding N.V. In our auditors’
report dated 30 March 2012 we expressed an unqualified opinion on these
consolidated financial statements. Management is responsible for the
preparation of the abbreviated consolidated financial statements in accordance with the accounting policies as applied in the 2011 consolidated
financial statements of Fatum Holding N.V. Our responsibility is to express
an opinion on these abbreviated consolidated financial statements.
Scope
We conducted our audit in accordance with International Standards on
Auditing. These standards require that we plan and perform the audit to
obtain reasonable assurance that the abbreviated consolidated financial
statements have been derived consistently from the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the 2011 abbreviated consolidated financial statements
have been derived consistently, in all material respects, from the 2011
consolidated financial statements.
Curaçao,
60563863
for Ernst & Young Accountants
drs. P.W. Aberson RA
Fatum Annual Report 2011 Page 20
28 June 2012
109/19667
Fatum Annual Report 2011 Page 22
Quality of life
(with thanks to the Quality of Life Research Unit,
University of Toronto and the University of the West Indies)
Quality of Life is tied to the meaning we give to our life. It can be defined as the
degree in which we manage to enjoy the important possibilities of our life. This
enjoyment makes us experience a certain level of satisfaction and also allows
us to feel glad about our achievements. We can distinguish a subjective and an
objective quality of life. The subjective quality of life is about feeling good and
being satisfied with things in general. The objective quality of life is related to
the extent to which we fulfill the societal and cultural demands for material
wealth, social status and physical well-being.
We all have different opportunities facing us, which may be enhanced through
our interaction with environmental factors. Studies of people all over the world
strengthened the understanding of the three main domains which contribute
to our overall assessment of our quality of life: the Being domain, the Belonging domain and the Becoming domain.
“Being”
The Being domain of our quality of life
includes the basic aspects of who we are.
It may be divided into three subdomains.
Our Physical Being includes aspects such
as our physical health, physical appearance,
our personal hygiene, our nutrition, what we
eat, how much we exercise, the types of
clothes we choose to wear.
Our Psychological Being covers the health of
our mind, our cognitions and feelings, and
our evaluations concerning the self, as well
as self-control. It is typified by the extent to
which we are free of worries and by the
mood we are usually in.
Our Spiritual Being reflects our personal
values, personal standards of conduct, and
also our spiritual beliefs. It is among others
expressed by the extent to which we have
hope for the future and also by our own
ideas of right and wrong.
“Belonging”
The Belonging domain of our quality of life
refers to the extent to which we fit within
and are connected to our environments.
This domain also has three sub-domains.
In the first place our Physical Belonging,
which can be defined as the connections
we have with our physical environments
such as the house or apartment we live in,
how safe we feel, our workplace, the school
our children attend, the neighborhood we
live in and our overall community.
Our Social Belonging is related to the extent
in which we feel accepted by our dear ones,
family, friends, colleagues, the neighborhood and our community. It is expressed by
the extent to which we are close to people
in our family and whether or not we have a
spouse or persons considered “special” on
whom we can rely.
Our Community Belonging gives an indication of the extent to which we have access
to resources that should be basically available to any member of a community. For
example, having enough money to enjoy at
least the basics of life, being able to make
use of professional services such as medical
and social services, the availability of employment, our participation in educational
and recreational programs, and in community activities in general.
“Becoming”
The Becoming domain of our quality of life
refers to the purposeful activities we carry
out in order to achieve our personal goals
and aspirations. This domain too can be
divided into three subdomains.
Our Practical Becoming describes our dayto-day actions such as domestic activities,
doing things around the house, work
against payment, hobbies, attendance of
school, participation in volunteer activities.
Our Leisure Becoming includes activities
that enhance our level of relaxation and
facilitates the reduction of stress. These
activities may include family games, walks,
family visits, but also activities with a longer
duration such as holidays, vacations and
other outdoor activities (cycling, etc.) as
well as other indoor activities such as
watching TV, communicating through social
media, etc.
Our Growth Becoming refers to activities
which promote the improvement and the
maintenance of our knowledge and skills
such as courses, trainings and other personal
development endeavors. It is expressed by
the extent to which we are able to further
improve our physical health and fitness as
well as our ability to cope with minor as
well as mayor changes in our life.
Quality of life, as valued
by Fatum colleagues
People differ in many ways and also in the way in which “quality of life” is
being valued. Each one of us tends to accentuate those domains which make
us feel good by enhancing our quality of life. In the following we highlight the
meaning given to “quality of life” by five Fatum colleagues. Five different
messages, each narrated to us with the utmost passion, and with one
common conclusion in the end: we all have the means to positively influence
and optimize our quality of life. Let’s honor this!
“Quality of life = Continuous education”
When thinking about quality of life,
it is important to determine your
targets and to do anything to accomplish them.
“Happiness lies not in the mere
possession of money it lies in the
joy of achievement; in the thrill of
creative effort”
(Franklin D. Roosevelt)
When I was living in the Netherlands, I got the opportunity to work
for Fatum in Curaçao. At that
Rafael Boersma
moment it was quite a challenge
Senior Actuarial Officer at Fatum Curaçao
for me. I had everything in Holland.
My family, my friends and my own
apartment in Amsterdam. However, in the back of my head I wanted to go abroad.
Perhaps, I could broaden my mind this way. I decided to pack my suitcases and
took the first plane heading for Curaçao. Up until now, I enjoy my decision every
day. For me that is quality of life.
Fatum Annual Report 2011 Page 25
“What the mind of man can conceive, the focused, dedicated hard work of man
can achieve” (Napoleon Hill, adapted by Steven Martina)
Before I attended university, I enjoyed doing math and economics. A practical solution
for me was to combine these studies and do ‘econometrics’. Before I started,
I was asked to reconsider my choice. It appeared that econometrics was a very
tough study to do. Looking backwards, I’m glad that I was asked to rethink my
choice. Because of that question my mind was focused. The rest was simple, just
work hard and continue until you get your papers. My degree in econometrics
made it possible for me to enjoy my work. For me that is quality of life.
“Be forever a student. He and he alone is an old man who feels
that he has learnt enough and has need for no more knowledge”
(Sivananda (1887-1963) Indian physician, sage)
At the moment I am studying to become an actuary. I’m frequently asked why I am
still studying. The truth is, that I like studying. I am aware that everybody has his
responsibilities and therefore studying might seem impossible. In that case try to
study at least a bit. Like accumulated interest all small bits will count in the end.
Eventually, you will get there. Quality of life for me is to apply the knowledge you
have learned.
“The hardest arithmetic to
master is that which enables
us to count our blessings”
(Eric Hoffer, reflections
on the Human condition)
Being thankful for the accomplished targets, but also for the
countless other blessings I had, is
for me quality of live.
Fatum Annual Report 2011 Page 26
“Quality of life = Health and well-being”
Vivien Senior has been working at
Fatum since 1978. Although she
has already reached retirement
age, Vivian is still working with the
same vitality, energy and drive to
which her clients and colleagues
are accustomed. Fatum actively
promotes several forms of healthy
living, like exercise and sports.
One of the most prominent events
is the Fatumloop which the company has been organizing annually
for the past years. Since the first
Fatumloop, Vivian has volunteered
with the organizational and administrative planning for the event.
“I strongly believe that the way in
which you take care of your body
Vivien Senior
is of utmost importance to your
Call Center Agent at Fatum Curaçao
quality of life. For a healthy mind
and body, you have to exercise,
ensure that you exercise daily and participate in sports’. That is the best recipe for
a good quality of life. For almost my entire life I have participated in sports. I was a
member of several volleyball teams, and also part of the Road Runners’ Club (running team) and Jolly Walkers (walkers’ organization). Aside from volunteering to
help out with the organization of the Fatumloop, I participated in the actual walk for
many years.
“What is also crucial for a good quality of life is to always work towards eliminating
stress and to try to live a relaxed lifestyle. Stress causes untold amounts of damage
to your mind and body. I have worked for many years attending to clients’ claims
and complaints. It is understandable that a client who has just lost something of
value to him/her, or was involved in an accident, is not in the best mood. It is my
duty to try to lend as much understanding as possible to the client, to calm him/her
down and let him/her feel that we care and are there to help as much as we can. By
doing so, I contribute to the quality of life of our clients.”
“I do my work with great passion and love, and believe that if everybody does their
work with the same approach it will improve their own quality of life and in turn,
that of others.”
I have observed that our community is gradually becoming more conscious of the
importance of all of these things that I’ve just mentioned. We have not reached the
finish line as yet, but are definitely on the right track.”
Fatum Annual Report 2011 Page 28
“Quality of life = Relationships and feelings of belonging”
Having lost my mother at a young
age, gave me a better view of the
meaning of life and the importance
of each person in my life. (Greatest
lesson ever learned.)
My family is the greatest blessing
life could give me. I have the best
parents ever, the prettiest sisters,
the most handsome brother of the
whole world, a very caring motherin-law, a lot of crazy friends, the
most wonderful and loving daughters, and last but definitely not
‘Hmichaelline Bekker
least the kindest, most patient,
Customer Service Representative at Fatum Bonaire
comprehensible, intelligent and
loving man.
Knowing that my family loves me the way I love them is for me Quality of Life.
“In family life, love is the oil that eases friction, the cement that binds closer together, and the music that brings harmony” (Eva Burrows)
Almost a year ago we (my husband, our two kids and I) decided to move to Bonaire.
This was not an easy decision for me since my family and friends are in Curaçao
and the only person I knew on Bonaire by then was my mother-in-law. But I knew it
was a very important move for my husband. What made this process less stressful
was knowing that only a distance of 82 kilometers or 15 minutes by plane separates
me from my family and earlier lifestyle. Even though I do not see nor speak with my
family and friend as often as before when we were together it feels like I never left.
Knowing that I have friends I can rely on as well as they can rely on me is for
me Quality of Life.
“No distance of place or lapse of time can lessen the friendship of those who are
thoroughly persuaded of each other’s worth” (Robert Southey)
Bonaire is a small island with a small population which made it very easy to quickly
get acquainted. It gives the feeling of a family community. Also working in a small
office with only 2 other colleagues makes the working environment very “homey”.
So it was not difficult at all to adjust to the way of living on Bonaire.
Knowing that I live in a community where my family and I feel safe and secure
is for me Quality of Life.
If you know where to look for, you would know “Happiness is everywhere”
(May S. Sittikraisorn)
Quality of life is to love, accept and respect your fellow creature. Give good
and it will automatically come back to you.
“Quality of life = Caring across generations”
Since January 2012 the government of Aruba has introduced a pension law for employees of the private sector. Nowadays young and elderly are becoming aware that
someday they will reach the pension age. Humans grow and age through various
stages in their life, the so called human life cycle. Building up your pension means
going through various stages in life.
“The first step to getting the things you want out of life is this:
Decide what you want” (Ben Stein)
Last year my mother celebrated 35 years of working at the same company. Since
1982 the company started a pension plan for its employees. At that time my mother
was 24 years old and had to purchase two years of her pension. As a young adult
she was aware that she had to take care of her own pension.
“There are some who start their retirement long before they stop working”
(Robert Half)
Last year my mother got very sick and the doctors told us
that she had 2% chance of life. Hearing from the doctors
that anything could happen to her wasn’t easy. But our
faith was high that she would get better. After being abroad
for 1 month she returned home. That was the happiest
moment of my life and my family. After 3 months we got
the news that she was detected with breast cancer. Our
life was turned upside down again with the news. She was
determined to stay positive and to fight for her life. But
after all she is looking forward to reach the pension age.
“He who has a why to live can bear almost any how”
(Friedrich Nietzsche)
Since last year my priority is taking care of her. It is a joy to
have her with us after going through so many things. We
have one life to live and we have to enjoy it to the fullest.
The biggest lesson that I learned from my mother was to
take care of my pension at a young age. Prepare yourself
for the future.
Marcia Chirino
Employee Benefit Consultant
at Fatum Aruba
“Don’t simply retire from something;
have something to retire to”
(Harry Emerson Fosdick).
“Quality of life = Citizenship and community services”
“I have been volunteering as the treasurer of the board of
the parent teacher association of my son’s school for a
couple of years now. What I do is related to optimizing
the communication between school, parents and the
students. After all, the kids are what really matters. We
do many fund raising activities throughout the year. In
August 2012 we’ll start with the second part of our
school. We’ll use the proceeds from our last fund raising
to buy furniture for this new part of the school. We do
many other activities as well, such as working on a further improvement of the daily school program. We are
very happy that we managed to fill a need with our
breakfast program for the students of our school. Our
computer lab is another achievement we are proud of.
“If you see someone without a smile...
give them one of yours”
Angela Colli
Fatum Sint Maarten
I enjoy doing this voluntary work! It is great to notice how
we get things done for the benefit of the kids, including
our own kids. I value the contacts with the other board
members and with the school management and all teachers. What I also like is that in
this way I am well informed about what is going on at the school of my son. And I can
contribute to positive changes in the school environment. I learn a lot everyday about
myself by doing these activities, and it definitely has enhanced my quality of life!
Through my efforts in the board of the PTA I reach the whole school population. We
are able to work on solutions for obstacles. For instance, we removed plants which
were considered dangerous from the school square. The school consists of 650
students. We want the school to be a pleasant experience for each of these students.
“No act of kindness, no matter how small, is ever wasted” (Aesop)
I want to do this work for many more years. And to continue to learn as much as
possible while moving forward. Volunteer work is very challenging. You learn so
much. On the other hand, you need to be able to balance between your job, the
volunteer work and your social life. Especially when we are organizing time consuming school events such as sports activities, year end dinners etcetera.
My son is proud of his mom and enjoys what I am doing at his school. He experiences it as quite interesting and actively participates in part of the decision taking.
I can say that the school management highly values our work as the PTA board.
That gives me satisfaction and encourages me to go on with this work. These voluntary activities surely add value to my quality of life.
Fatum Annual Report 2011 Page 31
Colofon
Editorial Staff
Richeline Martina-Joe
Marketing Team Fatum
Design
Ervina Design
Company information
Office Aruba
L.G. Smith Boulevard 162
P.O. Box 510
Aruba
Tel.: (297) 582 1111
Fax: (297) 582 6138
Office Curaçao
Cas Coraweg 2
P.O. Box 3002
Curaçao
Tel.: (599-9) 777 7100
Fax: (599-9) 736 6333
Office Bonaire
Kaya Gobernador N. Debrot 35
P.O. Box 152
Bonaire
Tel.: (599) 717 8811
Fax: (599) 717 5222
Office Sint Maarten
A.J.C. Brouwers Road 6
P.O. Box 201
Sint Maarten
Tel.: (1-721) 542 2248
Fax: (1-721) 542 3127
Photography
Terry van Ommen
(cover, 9, 10/11, 22, 25, 26, 27)
Staysly Goilo (28, 29)
Roberto Moentadj (21)
Eric Boeldak (30)
Dreamstime (2/3, 14)
Printing
Drukkerij Interpress
[email protected]
www.fatum.com