Homologación de la normativa de las inversiones de una compañía de seguros de República Dominicana y su impacto financiero

Abstract

Through this work we intend to homologate the standards of an insurance company in the Dominican Republic and its financial impact on negotiable debt securities investments by means of the effect on the valuation methodology. To do this, it was necessary to acknowledge the rules of the Dominican Republic, which are based on the International Financial Reporting Standards (IFRS) and those used in Colombia, established by the Financial Superintendence of Colombia. Subsequently, for investments on negotiable debt securities, we use the exponential valuation from the Internal Rate of Return, methodology supported by the Financial Superintendence of Colombia. This allowed us to quantify the impact between the different methodologies, knowing that the linear causation method is the one used in the Dominican Republic. Taking into account that the functional currency of the insurance company in the Dominican Republic is the Dominican Peso (RD $), it was necessary to restate the amount of investments to the presentation currency which in our case is the Colombian peso (COP).