TSC Annual Report 2024 final - Flipbook - Page 56
Notes - Financial statements
Cash and bank balances
Cash and bank (with the exception of minor cash amounts)
consists of bank accounts and funds that have been transferred
to asset management but not yet invested in assets.
For the Club’s most important currencies, the following rates
(prevailing on 31 December) have been used:
Currency (equals 1 USD)
2024
2023
Swedish kronor (SEK)
11.0018
9.9830
The item includes allocated commissions associated with
the signing of insurance contracts.
British pound (GBP)
0.7958
0.7843
Euro (EUR)
0.9597
0.9031
These costs are allocated in the same way as the allocation
of unearned premiums.
Hong Kong dollar (HKD)
7.7620
7.8120
Norwegian kroner (NOK)
11.3608
10.1836
Singapore dollar (SGD)
1.3566
1.3170
Prepaid acquisition costs
Provision for unearned premiums
The provision for unearned premiums is calculated strictly
pro rata. In accordance with technical guidelines pertaining
to insurance, testing is performed on a regular basis to
determine whether a provision needs to be made for
remaining risks.
Note 2. Risk management
and risk analysis
Provision for claims outstanding
The provision for incurred and reported claims is based on
individual, realistic assessments of individual claims using
information that is available on the reporting date. Incurred
but not reported claims, IBNR, is calculated using statistical
methods that are based on experience of the number and
extent of claims reported for prior accounting years. The
provision for outstanding claims also includes a reserve for
operating costs associated with settling outstanding claims.
The provision for outstanding claims has been reported using
undiscounted values.
Pensions costs and pensions commitments
The pension obligations are comprised of pension plans that
are regulated through collective agreements and national
insurance laws. The obligations consist of both defined
contribution and defined benefit plans.
The Club’s obligations concerning contributions to
defined-contribution plans have been reported as an
expense in the income statement at the rate they are
earned by employees performing services during the period.
The Club has older obligations for a few prior employees,
and this is reported as a liability in the balance sheet.
Leasing contracts
Because the Club reports leasing in accordance with RFR 2
Accounting for Legal Entities, it is granted an exemption from
the principles contained in IFRS 16. As such, there will be no
change in how the Club reports leases.
The Club has operating leases consisting of leases for
premises, cars and of昀椀ce machines for the duration stated in
the agreement for each of these. Leasing fees are expensed
over the contracted period based on utilisation. See Note 8.
Assets and liabilities in foreign currency
Assets and liabilities in foreign currency are translated to
USD at the closing day rates of exchange. However, shares in
subsidiaries are valued using the rate of exchange prevailing on
the acquisition date. For translation from a foreign currency to
USD, the difference is reported in the income statement under
the heading “Investment income or Investment costs”.
56 The Swedish Club | Annual Report 2024
Overall risk management
The Swedish Club (TSC or the Club) manages risks in an
integrated system that is a key part of operations. The goal is
to identify, measure, manage, control, monitor and report the
risks that the company is, or could be, exposed to. The risk
management system is aligned with the directives adopted
by the Board of Directors, and it ensures that these efforts
are carried out in a structured and ef昀椀cient way.
The Swedish Club uses an Internal Capital Model (ICM) to
quantify the risks, which are supplemented with a system
for managing the operational risks. The model functions as
a control tool for management. It also supports the Swedish
Club’s Own Risk and Solvency Assessment (ORSA) process
and optimises the reinsurance programme. These efforts
reduce the likelihood of unfavourable operational and
昀椀nancial results. It also facilitates achievement of the Club’s
business goals.
Risk awareness is promoted at all levels of the
organisation, where every department is responsible
for identifying, documenting and reporting its risks, along
with implementing preventive or corrective measures.
Corporate governance and allocation of responsibilities
Annual General Meeting
The Annual General Meeting is TSC’s highest decision-making
body and it consists of all members. The AGM elects the
Board of Directors along with members of the Nomination
Committee. It also adopts the income statement and balance
sheet contained in the annual report, elects the external
auditors and addresses other matters that fall within its realm
of responsibility.
Board of Directors
The Board has the ultimate responsibility for ensuring that
the company complies with laws and regulations and that
appropriate internal instructions for risk management and
risk control are in place. The Board continually monitors
the operations, 昀椀nancial result and asset management. It
maintains regular contact with all of its committees, the
senior management team and other key functions, always
striving to work in a proactive and constructive way.
