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22. RELATED PARTY TRANSACTIONS

From time to time, the Company enters into transactions in the normal course of business, which are measured at the exchange amounts, with certain directors, senior officers and companies with which it is related. Management has established procedures to review and approve transactions with related parties and reports annually to the Corporate Governance Committee of the Board of Directors, on the procedures followed and the results of the review.

The compensation of key management personnel, defined as the Company’s directors, president and chief executive officer and senior vice-presidents, is as follows:

2016 Compensation of key management personnel
(in thousands of dollars) 2016 2015
Salaries and severance $ 3,590 $ 5,260
Short-term and medium-term incentive plans   3,582   4,302
Post-employment defined benefit pension benefits   29   25
Post-employment defined contribution pension benefits   409   334
Other post-employment benefits   1   45
Other short-term employment benefits   79   106
Directors’ fees*   1,340   1,298
  $ 9,030 $ 11,370

* Directors’ fees disclosed above include fees accrued in respect of all controlled entities in the group.

Employment benefit plans

The Company makes contributions to employment benefit plans on behalf of its employees, including both defined contribution and defined benefit plans. Information regarding transactions with the plans is included in note 17.

Associates

At the reporting date, commercial loans of $17.4 million (2015: $7.1 million) are due from companies subject to significant influence. The loans are included in “Investments” in the consolidated balance sheet and are initially measured at the exchange amount. The loans are subsequently measured in accordance with the accounting policy for loans and receivables (note 2).

The Company participates in a quota share reinsurance treaty of a company subject to significant influence under terms consistent with the other reinsurers. The Company’s share of reinsurance assumed from the associate, including reinsurance assumed contracts (note 9), is as follows:

2016 Share of reinsurance assumed
(in thousands of dollars) Notes 2016 2015
Premiums written 9,16 $ 3,520 $ 4,224
Premiums earned 7,9   4,310   3,853
Claims and adjustment expenses 7,9   1,984   3,883
Commissions 9   1,676   1,496

Reinsurance assumed assets:

2016 Reinsurance assumed assets
(in thousands of dollars) Notes 2016 2015
DPAE 9 $ 565 $ 718
Reinsurance assumed receivables 9   113   82
    $ 678 $ 800

Reinsurance assumed liabilities:

2016 Reinsurance assumed liabilities
(in thousands of dollars) Notes 2016 2015
UPR 9 $ 1,472 $ 2,261
Claim liabilities 9   5,657   5,851
    $ 7,129 $ 8,112