AMMETLIFE INSURANCE BERHAD (15743-P) Unaudited Condensed Interim Financial Statements for the six months ended 30 September 2016
CONTENTS PAGE Unaudited Interim Statements of Financial Position 1 Unaudited Interim Income Statements 2 Unaudited Interim Statements of Comprehensive Income 3 Unaudited Interim Statements of Changes in Equity 4-5 Unaudited Interim Statements of Cash Flows 6-7 Notes to the Unaudited Interim Financial Statements 8-43
UNAUDITED INTERIM STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2016 ---------- Group ---------- -------- Company -------- Note 30.9.2016 31.3.2016 30.9.2016 31.3.2016 RM'000 RM'000 RM'000 RM'000 Assets Property and equipment 43,323 46,475 43,323 46,475 Investment properties 10 88,353 88,353 88,353 88,353 Intangible assets 30,774 28,613 30,774 28,613 Investments 11 2,961,038 2,803,052 2,963,404 2,808,253 Reinsurance assets 12-4,616-4,616 Insurance receivables 46,988 80,460 46,988 80,460 Other receivables 41,697 57,607 39,309 49,082 Cash and bank balances 35,603 89,000 35,603 89,000 Total assets 3,247,776 3,198,176 3,247,754 3,194,852 - - - - Equity Share capital 200,000 200,000 200,000 200,000 Retained profits 278,380 256,257 273,555 257,512 Available-for-sale fair value reserves 1,661 1,272 5,340 323 Total equity 480,041 457,529 478,895 457,835 Liabilities Insurance contract liabilities 13 2,554,735 2,532,087 2,554,735 2,532,087 Deferred tax liabilities 40,385 33,653 41,547 33,353 Insurance payables 48,569 39,343 48,569 39,343 Reinsurance liabilities 12 13,329-13,329 - Provision for taxation 719 746 719 746 Other payables 109,998 134,818 109,960 131,488 Total liabilities 2,767,735 2,740,647 2,768,859 2,737,017 Total equity and liabilities 3,247,776 3,198,176 3,247,754 3,194,852 - - - - The Unaudited Interim Statements of Financial Position of the Group and the Company by funds are disclosed in Note 18. The accompanying notes form an integral part of these financial statements. 1
UNAUDITED INTERIM INCOME STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016 ---------- Group ---------- -------- Company -------- 6 months 6 months 6 months 6 months ended ended ended ended Note 30.9.2016 30.9.2015 30.9.2016 30.9.2015 RM'000 RM'000 RM'000 RM'000 Gross earned premiums 202,956 187,471 202,956 187,471 Premiums ceded to reinsurers (23,936) (19,972) (23,936) (19,972) Net earned premiums 179,020 167,499 179,020 167,499 Investment income 74,408 73,933 74,215 73,909 Realised losses (6,933) (990) (5,269) (1,147) Fair value gains and losses 29,099 (41,811) 21,355 (37,847) Other operating income 435 38 435 38 Other revenue 97,009 31,170 90,736 34,953 Gross benefits and claims (151,637) (196,544) (151,637) (196,544) Claims recoveries from reinsurers 14,910 17,912 14,910 17,912 Gross change to contract liabilities (3,530) 89,674 (3,530) 89,674 Change in contract liabilities ceded to reinsurers (15,099) (1,085) (15,099) (1,085) Net benefits and claims (155,356) (90,043) (155,356) (90,043) Fee and commission expenses (18,841) (19,703) (18,841) (19,703) Management expenses 14 (66,948) (68,692) (66,755) (68,510) Taxation of life insurance business (7,054) (1,998) (7,054) (1,998) Other expenses (92,843) (90,393) (92,650) (90,211) Profit before taxation 27,830 18,233 21,750 22,198 Taxation (5,707) (6,013) (5,707) (6,013) Net profit for the period 22,123 12,220 16,043 16,185 - - - - Earnings per share (sen) Basic and diluted 11 6 8 8 The Unaudited Interim Income Statements of the Group and the Company by funds are disclosed in Note 18. The accompanying notes form an integral part of these financial statements. 2
UNAUDITED INTERIM STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS PERIOD ENDED 30 SEPTEMBER 2016 ---------- Group ---------- -------- Company -------- 6 months 6 months 6 months 6 months ended ended ended ended 30.9.2016 30.9.2015 30.9.2016 30.9.2015 RM'000 RM'000 RM'000 RM'000 Net profit for the period 22,123 12,220 16,043 16,185 Other comprehensive income/(loss): Available-for-sale fair value reserves: Net gain/(loss) arising during the period 743 (1,018) 6,834 (4,985) Net realised loss transferred to Income Statement (232) (577) (232) (577) 511 (1,595) 6,602 (5,562) Tax effects thereon (122) 399 (1,585) 1,390 389 (1,196) 5,017 (4,172) Total comprehensive income for the period 22,512 11,024 21,060 12,013 The accompanying notes form an integral part of these financial statements. 3
UNAUDITED INTERIM STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS PERIOD ENDED 30 SEPTEMBER 2016 -------------------------Non-Distributable--------------------------- Distributable Share Available-for-sale Total Capital Fair Value Reserves Retained Earnings Equity Non- Non- Shareholders' participating participating Shareholders' Fund Funds Sub-total Funds Fund Sub-total Group RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At 1 April 2015 200,000 1,463 (704) 759 95,400 159,526 254,926 455,685 Total comprehensive (loss)/income for the period - (347) (849) (1,196) 12,856 (636) 12,220 11,024 Executive share scheme - - - - - (69) (69) (69) At 30 September 2015 200,000 1,116 (1,553) (437) 108,256 158,821 267,077 466,640 At 1 April 2016 200,000 1,415 (143) 1,272 93,927 162,330 256,257 457,529 Total comprehensive income for the period - 10 379 389 11,514 10,609 22,123 22,512 Executive share scheme - - - - - - - - At 30 September 2016 200,000 1,425 236 1,661 105,441 172,939 278,380 480,041 The accompanying notes form an integral part of these financial statements. 4
UNAUDITED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONT'D.) FOR THE SIX MONTHS PERIOD ENDED 30 SEPTEMBER 2016 -------------------------Non-Distributable--------------------------- Distributable Share Available-for-sale Total Capital Fair Value Reserves Retained Earnings Equity Non- Non- Shareholders' participating participating Shareholders' Fund Funds Sub-total Funds Fund Sub-total Company RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At 1 April 2015 200,000 (1,279) (704) (1,983) 95,400 163,173 258,573 456,590 Total comprehensive (loss)/income for the period - (3,323) (849) (4,172) 12,856 3,329 16,185 12,013 Executive share scheme - - - - - (69) (69) (69) At 30 September 2015 200,000 (4,602) (1,553) (6,155) 108,256 166,433 274,689 468,534 At 1 April 2016 200,000 466 (143) 323 93,927 163,585 257,512 457,835 Total comprehensive income for the period - 4,638 379 5,017 11,514 4,529 16,043 21,060 Executive share scheme - - - - - - - - At 30 September 2016 200,000 5,104 236 5,340 105,441 168,114 273,555 478,895 - - - - The accompanying notes form an integral part of these financial statements. 5
UNAUDITED INTERIM STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS PERIOD ENDED 30 SEPTEMBER 2016 ---------- Group ---------- -------- Company -------- 6 months 6 months 6 months 6 months ended ended ended ended 30.9.2016 30.9.2015 30.9.2016 30.9.2015 RM'000 RM'000 RM'000 RM'000 Profit before taxation 27,830 18,233 21,750 22,198 Adjustment for non-cash items: Taxation of life fund 7,054 1,998 7,054 1,998 Investment income (74,408) (73,933) (74,215) (73,909) Realised losses recorded in income statement 6,933 990 5,269 1,147 Fair value (gains)/losses recorded in income statement (29,099) 41,811 (21,355) 37,847 Purchases of FVTPL financial investments (157,211) (70,736) (43,906) (27,900) Purchases of AFS financial investments (161,522) (58,659) (169,910) (66,251) Maturities of FVTPL financial investments 84,665 25,268 45,165 20,264 Maturities of AFS financial investments 92,112 15,198 92,112 15,198 Proceeds from sale of FVTPL financial investments 127,492 58,318 33,483 28,397 Proceeds from sale of AFS financial investments 186,964 60,977 186,964 60,977 Increase in LAR 1,052 1,492 1,051 1,492 Non-cash items: Accretion of discounts - net (3,041) 24,921 (3,491) 6,369 Depreciation of property and equipment 2,962 2,627 2,962 2,627 Amortisation of intangible assets 7,609 7,313 7,609 7,313 Fair value adjustments (19,248) 8,945 (17,583) 8,787 Allowance for impairment on insurance receivables (3,301) (335) (3,301) (335) Changes in working capital: Reinsurance assets 4,616 (68) 4,616 (68) Insurance receivables 36,773 29,342 36,773 29,342 Other receivables 8,354 5,903 2,967 2,158 Insurance contract liabilities 21,848 (91,285) 21,848 (91,285) Insurance payables 9,226 5,350 9,226 5,312 Reinsurance liabilities 13,329-13,329 - Other payables (24,820) 22,364 (21,528) 22,398 Cash used in operating activities 166,169 36,034 136,889 14,076 6
UNAUDITED INTERIM STATEMENT OF CASH FLOWS (CONT'D.) FOR THE SIX MONTHS PERIOD ENDED 30 SEPTEMBER 2016 ---------- Group ---------- -------- Company -------- 6 months 6 months 6 months 6 months ended ended ended ended 30.9.2016 30.9.2015 30.9.2016 30.9.2015 RM'000 RM'000 RM'000 RM'000 Operating activities Cash used in operating activities 166,169 36,034 136,889 14,076 Interest received 69,860 71,278 60,825 71,339 Dividend received 2,680 129 10,772 129 Rental received 4,049 1,130 4,049 1,130 Income tax paid - 1,036 - (6,444) Net cash flows from operating activities 242,758 109,607 212,535 80,230 - - - - Investing activities Proceeds from disposal of property and equipment 190 178 190 178 Purchase of property and equipment - (5,317) - (5,317) Purchase of intangible assets (9,770) (7,447) (9,770) (7,447) Net cash flows from investing activities (9,580) (12,586) (9,580) (12,586) - - - - Financing activities Employee share based payment transaction - (72) - (72) Net cash flows from financing activities - (72) - (72) - - - - Net increase in cash and cash equivalents 233,178 96,949 202,955 67,572 Cash and cash equivalents at beginning of period 281,521 326,068 279,182 324,050 Cash and cash equivalents at end of period 514,699 423,017 482,137 391,622 Cash and cash equivalents comprise: Short term deposits 479,096 209,041 446,534 177,646 Cash and bank balances 35,603 213,976 35,603 213,976 514,699 423,017 482,137 391,622 0.00 0.00 0.00 0.00 The accompanying notes form an integral part of these financial statements. 7
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS - 30 SEPTEMBER 2016 1. CORPORATE INFORMATION The Company is a public limited liability company, incorporated and domiciled in Malaysia. The principal place of business of the Company is located at 24th Floor, Menara One Sentrum, No. 201 Jalan Tun Sambanthan, 50470 Kuala Lumpur. The principal activities of the Company are the underwriting of life and investment-linked insurance. The principal activity of the subsidiary is set out in Note 11 (b) to the unaudited interim financial statements. There has been no significant changes in the nature of the principal activities of the Company and its subsidiary during the six months period from 1 April 2016 to 30 September 2016. The shareholders of the Company are AMAB Holdings Sdn Bhd ("AMAB"), a company incorporated in Malaysia and wholly-owned subsidiary of AMMB Holdings Berhad, a public listed company incorporated in Malaysia and MetLife International Holdings LLC. ("MetLife"), a wholly owned subsidiary of MetLife Inc., a public listed company incorporated in the United States of America. 2. SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of Preparation The unaudited interim financial statements of the Group and of the Company for the six months ended 30 September 2016 are unaudited and have been prepared in accordance with Malaysian Financial Reporting Standard ("MFRS") 134 - Interim Financial Reporting. The unaudited interim financial statements of the Group and of the Company have been prepared under the historical cost basis, unless otherwise stated in the accounting policies. The unaudited interim financial statements are presented in Ringgit Malaysia ("RM"), which is the Group's and the Company's functional currency, and all values are rounded to the nearest thousand ('RM'000") unless otherwise stated. The unaudited interim financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's audited financial statements for the year ended 31 March 2016. As at the reporting date, the Company has met the minimum capital requirements as prescribed by the Risk-Based-Capital ("RBC") Framework issued by Bank Negara Malaysia ("BNM"). 8
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 2.2 Standards issued but not yet effective The accounting policies and presentation adopted by the Group and the Company for the unaudited interim financial statements are consistent with those adopted by the Company's audited financial statements for the financial year ended 31 March 2016, except for the adoption of the following MFRSs, Amendments to MFRSs and IC Interpretations: Effective for financial periods beginning on or after 1 January 2016 Annual Improvements to MFRSs 2012-2014 Cycle: Amendments to MFRS 5 Non-current Assets Held for Sale and Discontinued Operations Annual Improvements to MFRSs 2012-2014 Cycle: Amendments to MFRS 7 Financial Instruments: Disclosures Annual Improvements to MFRSs 2012-2014 Cycle: Amendments to MFRS 119 Employee Benefits Annual Improvements to MFRSs 2012-2014 Cycle: Amendments to MFRS 134 Interim Financial Reporting Amendments to MFRS 116 and MFRS 138 Clarification of Acceptable Methods of Depreciation and Amortisation Amendments to MFRS 116 and MFRS 141 Agriculture: Bearer Plants Amendments to MFRS11 Accounting for Acquisitions of Interests in Joint Operations Amendments to MFRS 127 Equity Method in Separate Financial Statements Amendments to MFRS 101 Disclosure Initiatives Amendments to MFRS 10, MFRS 12 and MFRS 128 Investment Entities: Applying the Consolidation Exception MFRS 14 Regulatory Deferral Accounts The adoption of the above did not have any significant effects on the interim condensed financial statements upon their initial application. 9
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 2.2 Standards issued but not yet effective (cont'd.) Effective for financial periods beginning on or after 1 January 2018 MFRS 9: Financial Instruments MFRS 15: Revenue from Contracts with Customers Effective for financial periods beginning on or after 1 January 2019 MFRS 16: Leases Deferred Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. The management expects that the adoption of the above Standards, Amendments to MFRSs and improvements to published standards will have no material impact on the financial statements in the period of initial application except as described below: MFRS 9 Financial Instruments In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments which reflects all phases of the financial instruments project and replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application permitted. Retrospective application is required, but restatement of comparative information is not compulsory. Early application of previous versions of IFRS 9 (2009, 2010 and 2013) is permitted if the date of initial application is before 1 February 2015. MFRS 9 is issued by the MASB in respect of its application in Malaysia. It is equivalent to IFRS 9 as issued by IASB, including the effective and issuance dates. The areas with expected significant impact from application of MFRS 9 are summarized below: 10
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 2.2 Standards issued but not yet effective (cont'd.) (a) Classification and measurement The classification and measurement of financial assets is determined on the basis of the contractual cash flow characteristics and the objective of the business model associated with holding the asset. Key changes include: The held-to-maturity ( HTM ) and available-for-sale ( AFS ) asset categories will be removed; A new asset category measured at fair value through other comprehensive income ( FVOCI ) is introduced. This applies to debt instruments with contractual cash flow characteristics that are solely payments of principle and interest and held in a model whose objective is achieved by both collecting contractual cash flows and selling financial assets; A new asset category for non-traded equity investments measured at FVOCI is introduced; and Classification of financial liabilities will remain largely unchanged, other than the fair value gains and losses attributable to changes in own credit risk for financial liabilities designated and measured at fair value through profit or loss to be presented in other comprehensive income. The adoption of MFRS 9 will have an effect on the classification and measurement of the Group's and Company's financial assets, and may have no impact on the classification and measurement of the Group's and Company's financial liabilities. (b) Impairment The MFRS 9 impairment requirements are based on an expected credit loss model ( ECL ) that replaces the incurred loss model under the current accounting standard. The Group and Company will be generally required to recognise either a 12-month or lifetime ECL, depending on whether there has been a significant increase in credit risk since initial recognition. The ECL model will apply to financial assets measured at amortised cost or at FVOCI, irrevocable loan commitments and financial guarantee contracts, which will include loans, advances and financing and debt instruments held by the Group and Company. MFRS 9 will change the Group s and Company's current methodology for calculating allowances for impairment, in particular for individual and collective assessment and provisioning. 11
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 2.2 Standards issued but not yet effective (cont'd.) (c) Hedge Accounting The requirements for general hedge accounting have been simplified for hedge effectiveness testing and may result in more designations of hedged items for accounting purposes. However, it is not practicable to provide a reasonable estimate of the effect of MFRS 9 until the Group and Company undertakes a detailed review. 3. STATUS OF AUDIT QUALIFICATION The auditor's report on the audited annual financial statements for the financial year ended 31 March 2016 does not contain any qualification. 4. SEASONALITY OR CYCLICALITY OF OPERATIONS The business of the Group and of the Company was not materially affected by any seasonal or cyclical factors during the six months period ended 30 September 2016. 5. UNUSUAL ITEMS There were no unusual items affecting assets, liabilities, equity, net income or cash flows for the six months period ended 30 September 2016. 6. CHANGES IN ESTIMATES There were no changes in basis used for the accounting estimates in respect of amounts reported in prior financial periods that would have a material effect on the unaudited interim financial statements. 7. DIVIDENDS PAID No dividend has been paid or declared by the Group and the Company since the end of the previous financial period. 12
8. MATERIAL EVENTS SUBSEQUENT TO THE END OF INTERIM PERIOD There were no material events subsequent to the end of the interim reporting that have not been reported in the unaudited interim financial statements for the six months period ended 30 September 2016. 9. CHANGES IN THE COMPOSITION OF THE COMPANY There is no change in the composition of the Company from the previous audited financial statements. 10. INVESTMENT PROPERTIES 30.9.2016 31.3.2016 Group and Company RM'000 RM'000 At 1 April 88,353 84,345 Fair value adjustments - 4,008 At 30 September/ 31 March 88,353 88,353 Investment properties consist of the following: Leasehold land and buildings 29,240 29,240 Freehold land and buildings 59,113 59,113 88,353 88,353 Included in investment properties of the Life Fund are land and building with a total fair value amounting to RM12,060,000 (31 March 2016: RM12,060,000), for which the title deeds were still in progress of being transferred to the Company at the end of the financial period. Investment properties are stated at fair value, which has been determined based on valuations performed by IVPS Property Consultant Sdn Bhd, an accredited independent valuer. IVPS Property Consultant Sdn Bhd is a specialist in valuing these types of investment properties. The valuation model is in accordance with that recommended by the International Valuation Standards Council and Malaysian Valuation Standards and meets the requirements of MFRS 13. The valuations were based on the Market Approach which makes reference to comparable properties which have been sold or are being offered for sale. 13
10. INVESTMENT PROPERTIES (CONT'D.) The Market Approach entails comparing the subject property with comparable properties which have been sold or are being offered for sale and making adjustments for factors which affect value such as location and accessibility, market conditions, size, shape and terrain of land, tenurial interest and restrictions (if any), occupancy status, built-up area, building construction, finishes and services, age and condition of building and other relevant characteristics. The Group has determined that the highest and best use of the properties are its current use. Fair value hierarchy disclosures for investment properties have been provided in Note 16. The amount of rental income and expenses recorded in the Income Statement are as follows: 30.9.2016 30.9.2015 RM'000 RM'000 Rental income derived from investment properties 3,627 3,832 Direct operating expenses (including repairs and maintenance) generating rental income (1,656) (606) Profit arising from investment properties 1,971 3,226 14
11. INVESTMENTS ----------------------------- 30.9.2016 ------------------------------ ------------------------------ 31.3.2016 ----------------------------- Shareholders' Shareholders' Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total Group RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Corporate bonds 323,796 1,751,382 19,665 2,094,843 336,707 1,709,450 16,368 2,062,525 Equity securities - 2,147 54,810 56,957-113,661 51,853 165,514 Unit and property trust funds - 9,016 14,139 23,155-11,782 12,630 24,412 Negotiable instruments of deposit - - - - - 50,054-50,054 Loans - 198,612-198,612-199,664-199,664 Deposits with licensed banks 41,579 537,327 191 579,097 20,376 271,999 146 292,521 Seed capital - Investment-linked funds 8,374 - - 8,374 8,362 - - 8,362 373,749 2,498,484 88,805 2,961,038 365,445 2,356,610 80,997 2,803,052 Loans and receivables ("LAR") 41,579 735,939 191 777,709 20,376 471,663 146 492,185 Available-for-sale financial assets ("AFS") 8,374 775,852-784,226 8,362 879,208-887,570 Fair value through profit or loss ("FVTPL") 323,796 986,693 88,614 1,399,103 336,707 1,005,739 80,851 1,423,297 373,749 2,498,484 88,805 2,961,038 365,445 2,356,610 80,997 2,803,052 15
11. INVESTMENTS (CONT'D.) ----------------------------- 30.9.2016 ------------------------------ ------------------------------ 31.3.2016 ----------------------------- Shareholders' Shareholders' Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total Company RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Corporate bonds - 1,751,382 19,665 1,771,047-1,709,450 16,368 1,725,818 Equity securities - 2,147 54,810 56,957-113,661 51,853 165,514 Unit and property trust funds - 9,016 14,139 23,155-11,782 12,630 24,412 Investment in subsidiary - Wholesale unit trust fund (Note 11(b)) 358,724 - - 358,724 344,247 - - 344,247 Negotiable instruments of deposit - - - - - 50,054-50,054 Loans - 198,612-198,612-199,664-199,664 Deposits with licensed banks 9,017 537,327 191 546,535 18,037 271,999 146 290,182 Seed capital - Investment-linked funds 8,374 - - 8,374 8,362 - - 8,362 376,115 2,498,484 88,805 2,963,404 370,646 2,356,610 80,997 2,808,253 Loans and receivables ("LAR") 9,017 735,939 191 745,147 18,037 471,663 146 489,846 Available-for-sale financial assets ("AFS") 367,098 775,852-1,142,950 352,609 879,208-1,231,817 Fair value through profit or loss ("FVTPL") - 986,693 88,614 1,075,307-1,005,739 80,851 1,086,590 376,115 2,498,484 88,805 2,963,404 370,646 2,356,610 80,997 2,808,253 16
11. INVESTMENTS (CONT'D.) (a) LAR ----------------------------- 30.9.2016 ------------------------------ ------------------------------ 31.3.2016 ----------------------------- Shareholders' Shareholders' Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total Group RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At amortised cost: Deposits with licensed banks 41,579 537,327 191 579,097 20,376 271,999 146 292,521 Loans - 198,612-198,612-199,664-199,664 Malaysian government guaranteed loans - 101,435-101,435-101,435-101,435 Policy loans - 96,399-96,399-97,347-97,347 Mortgage loans - 747-747 - 835-835 Vehicle loans - 31-31 - 47-47 41,579 735,939 191 777,709 20,376 471,663 146 492,185 - At fair value: Deposits with licensed banks 41,579 537,327 191 579,097 20,376 271,999 146 292,521 Loans - 198,612-198,612-199,664-199,664 Malaysian government guaranteed loans - 101,435-101,435-101,435-101,435 Policy loans - 96,399-96,399-97,347-97,347 Mortgage loans - 747-747 - 835-835 Vehicle loans - 31-31 - 47-47 41,579 735,939 191 777,709 20,376 471,663 146 492,185 - The carrying values of the LAR are reasonable approximations of fair value due to the insignificant impact of discounting. Included in deposits with licensed banks are short term deposits with maturity periods of less than 3 months amounting to RM479,096,000 (31 March 2016: RM192,521,000) which have been classified as cash and cash equivalents for the purpose of the statement of cash flows. 17
11. INVESTMENTS (CONT'D.) (a) LAR (cont'd.) ----------------------------- 30.9.2016 ------------------------------ ------------------------------ 31.3.2016 ----------------------------- Shareholders' Shareholders' Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total Company RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At amortised cost: Deposits with licensed banks 9,017 537,327 191 546,535 18,037 271,999 146 290,182 Loans - 198,612-198,612-199,664-199,664 Malaysian government guaranteed loans - 101,435-101,435-101,435-101,435 Policy loans - 96,399-96,399-97,347-97,347 Mortgage loans - 747-747 - 835-835 Vehicle loans - 31-31 - 47-47 9,017 735,939 191 745,147 18,037 471,663 146 489,846 - At fair value: Deposits with licensed banks 9,017 537,327 191 546,535 18,037 271,999 146 290,182 Loans - 198,612-198,612-199,664-199,664 Malaysian government guaranteed loans - 101,435-101,435-101,435-101,435 Policy loans - 96,399-96,399-97,347-97,347 Mortgage loans - 747-747 - 835-835 Vehicle loans - 31-31 - 47-47 9,017 735,939 191 745,147 18,037 471,663 146 489,846 - The carrying values of the LAR are reasonable approximations of fair value due to the insignificant impact of discounting. Included in deposits with licensed banks are short term deposits with maturity periods of less than 3 months amounting to RM446,534,000 (31 March 2016: RM190,182,000) which have been classified as cash and cash equivalents for the purpose of the statement of cash flows. 18
11. INVESTMENTS (CONT'D.) (b) AFS ----------------------------- 30.9.2016 ------------------------------ ------------------------------ 31.3.2016 ----------------------------- Shareholders' Shareholders' Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total Group RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At fair value: Equity securities: Quoted in Malaysia - - - - - 111,513-111,513 Unquoted in Malaysia - 2,147-2,147-2,147-2,147 Corporate bonds: Unquoted in Malaysia - 764,689-764,689-703,712-703,712 Unit and property trust funds: Quoted in Malaysia - 9,016-9,016-11,782-11,782 Negotiable instruments of deposit - - - - - 50,054-50,054 Seed Capital - Investment - linked funds 8,374 - - 8,374 8,362 - - 8,362 8,374 775,852-784,226 8,362 879,208-887,570 19
11. INVESTMENTS (CONT'D.) (b) AFS (cont'd.) ----------------------------- 30.9.2016 ------------------------------ ------------------------------ 31.3.2016 ----------------------------- Shareholders' Shareholders' Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total Company RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At fair value: Equity securities: Quoted in Malaysia - - - - - 111,513-111,513 Unquoted in Malaysia - 2,147-2,147-2,147-2,147 Corporate bonds: Unquoted in Malaysia - 764,689-764,689-703,712-703,712 Unit and property trust funds: Quoted in Malaysia - 9,016-9,016-11,782-11,782 Investment in subsidiary - Wholesale unit trust fund (Note 11(b)) 358,724 - - 358,724 344,247 - - 344,247 Negotiable instruments of deposit - - - - - 50,054-50,054 Seed Capital - Investment - linked funds 8,374 - - 8,374 8,362 - - 8,362 367,098 775,852-1,142,950 352,609 879,208-1,231,817 20
11. INVESTMENTS (CONT'D.) (b) AFS (Cont'd.) Investment in subsidiary - Wholesale unit trust fund: In July 2013, the Company invested RM300 million in a collective investment scheme in Malaysia, namely AmIncome Institutional 5 ("the Fund"). The Funds' investment strategy is to invest 40%-100% of its Net Asset Value ("NAV") in fixed income securities and up to 60% of its NAV in money market instruments. As at 30 September 2016, the investments of the Fund are mainly in fixed income instruments. The Fund Manager invests in a portfolio of assets which is adequately suited to potentially achieve the expected return objective of the Fund, while at the same time minimising the risk of portfolio of assets through careful asset allocation or security selection and diversification. The Fund manager invests into permitted investments and adhere to the investment limits set for the Fund under the Trust Deed. The Company has determined that it has control over the Fund, based on the following rationale: By virtue to clause 17.1.2. of the Master Deed signed between the Deutsche Trustees Malaysia Berhad ("the Trustee") and AmInvestment Management Sdn. Bhd. ("the Fund Manager"), the Unitholders of the Fund may apply to the Fund Manager to summon a meeting for any purpose, without limitation, for the purpose of requiring the retirement or removal of the Fund Manager. As at 30 September 2016 and 31 March 2016, all units in the Fund are held by the Company. Being the sole holder of the units in the Fund, the Company is entitled to all the distributions by the Fund, when the Fund Manager declares the distributions. The distributions of the Fund is based on performance and market value i.e. Net Asset Value ("NAV") of the Fund. The Company has determined that it is able to exert its power in order to influence returns from its investment in the Fund by virtue of clause 17.1.2 as previously disclosed. 21
11. INVESTMENTS (CONT'D.) (c) FVTPL - Held for trading purposes ----------------------------- 30.9.2016 ------------------------------ ------------------------------ 31.3.2016 ----------------------------- Shareholders' Shareholders' Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total Group RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At fair value: Equity securities: Quoted in Malaysia - - 54,810 54,810 - - 51,853 51,853 Corporate bonds: Unquoted in Malaysia 323,796 986,693 19,665 1,330,154 336,707 1,005,739 16,368 1,358,814 Unit and property trust funds: Quoted in Malaysia - - 521 521 - - - - Unquoted in Malaysia - - 13,618 13,618 - - 12,630 12,630 323,796 986,693 88,614 1,399,103 336,707 1,005,739 80,851 1,423,297 22
11. INVESTMENTS (CONT'D.) (c) FVTPL - Held for trading purposes (Cont'd.) ----------------------------- 30.9.2016 ------------------------------ ------------------------------ 31.3.2016 ----------------------------- Shareholders' Shareholders' Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total Company RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At fair value: Equity securities: Quoted in Malaysia - - 54,810 54,810 - - 51,853 51,853 Corporate bonds: Unquoted in Malaysia - 986,693 19,665 1,006,358-1,005,739 16,368 1,022,107 Unit and property trust funds: Quoted in Malaysia - - 521 521 - - - - Unquoted in Malaysia - - 13,618 13,618 - - 12,630 12,630-986,693 88,614 1,075,307-1,005,739 80,851 1,086,590 (d) Fair Value Hierarchy An analysis of the different fair value measurement bases used in the determination of the fair values of investments are further disclosed in Note 16. 23
12. REINSURANCE (LIABILITIES) / ASSETS 30.9.2016 31.3.2016 Group and Company RM'000 RM'000 Reinsurance of insurance contracts (Note 13) (13,329) 4,616 - - This relates to reinsurers' share of insurance contract liabilities. 13. INSURANCE CONTRACT LIABILITIES Group and Company --------------------- 30.9.2016 --------------------- --------------------- 31.3.2016 --------------------- Gross Re-insurance Net Gross Re-insurance Net RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Actuarial liabilities 2,225,640 18,924 2,244,564 2,221,054 3,825 2,224,879 Provision for outstanding claims 223,503 (5,595) 217,908 213,600 (8,441) 205,159 Unallocated surplus (11,126) - (11,126) (10,985) - (10,985) Available-for-sale fair value reserve* 17,505-17,505 8,290-8,290 Net asset value attributable to unitholders 99,213-99,213 100,128-100,128 2,554,735 13,329 2,568,064 2,532,087 (4,616) 2,527,471 - - 24
13. INSURANCE CONTRACT LIABILITIES (CONT'D.) Gross Reinsurance With DPF Without DPF Total With DPF Without DPF Total Net Group and Company RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At 1 April 2016 1,028,585 1,503,502 2,532,087 (3,177) (1,439) (4,616) 2,527,471 Premiums received 73,713 129,243 202,956 (207) (23,729) (23,936) 179,020 Liabilities paid for death, maturities, surrenders, benefits and claims (75,290) (76,347) (151,637) 812 14,098 14,910 (136,727) Benefits and claims experience variation 12,640 13,796 26,436-894 894 27,330 Adjustments due to changes in assumptions: Loss Ratio/Month Lag/Mortality (1,713) (26,703) (28,416) - 12,660 12,660 (15,756) Expenses (2,853) (8,654) (11,507) - - - (11,507) Lapse and surrender rates (4,109) (1,114) (5,223) - 1,332 1,332 (3,891) Asset Share (2,155) - (2,155) - - - (2,155) Discount rate 4,646 29,040 33,686-212 212 33,898 Model Enhancement (4,611) (3,624) (8,235) - - - (8,235) Other Expenses (41,416) - (41,416) - 11,873 11,873 (29,543) Net asset value surplus to unitholders - (915) (915) - - - (915) Deficit for the period (141) - (141) - - - (141) Available-for-sale fair value reserve 10,015-10,015 - - - 10,015 Deferred tax effects: Available-for-sale fair value reserve (800) - (800) - - - (800) At 30 September 2016 996,511 1,558,224 2,554,735 (2,572) 15,901 13,329 2,568,064 - * The Available-for-sale fair value reserve of the Participating fund is treated as part of insurance contract liabilities because it is held in respect of assets backing the insurance contract liabilities of the Participating fund. 25
13. INSURANCE CONTRACT LIABILITIES (CONT'D.) Gross Reinsurance With DPF Without DPF Total With DPF Without DPF Total Net Group and Company RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At 1 April 2015 1,000,932 1,519,053 2,519,985 (3,367) (6,808) (10,175) 2,509,810 Premiums received 169,050 268,660 437,710 (656) (38,568) (39,224) 398,486 Liabilities paid for death, maturities, surrenders, benefits and claims (157,076) (244,419) (401,495) 846 34,963 35,809 (365,686) Benefits and claims experience variation 5,013 (55,351) (50,338) - 1,517 1,517 (48,821) Adjustments due to changes in assumptions: Mortality/morbidity/month lag/loss ratio 41 3,472 3,513 - - - 3,513 Expenses 15,178 5,349 20,527 - - - 20,527 Lapse and surrender rates (9,316) 7,286 (2,030) - (711) (711) (2,741) Asset Share 2,128-2,128 - - - 2,128 Discount rate 1,033 (180) 853-8 8 861 Model Enhancement 32,641 425 33,066-7,898 7,898 40,964 Other Expenses (2,004) - (2,004) - 262 262 (1,742) Net asset value refunded to unitholders - (793) (793) - - - (793) Deficit for the year (29,595) - (29,595) - - - (29,595) Available-for-sale fair value reserve 409-409 - - - 409 Deferred tax effects: Available-for-sale fair value reserve 151-151 - - - 151 At 31 March 2016 1,028,585 1,503,502 2,532,087 (3,177) (1,439) (4,616) 2,527,471 - * The Available-for-sale fair value reserve of the Participating fund is treated as part of insurance contract liabilities because it is held in respect of assets backing the insurance contract liabilities of the Participating fund. 26
14. MANAGEMENT EXPENSES 30.9.2016 30.09.2015 Group RM'000 RM'000 Salaries cost including employee benefit expense, CEO and Directors' remuneration 29,273 38,147 Depreciation of property and equipment 2,962 2,627 Amortisation of intangible assets 7,609 7,313 Establishment cost and marketing expenses 11,564 8,490 Administration and general expenses 15,540 12,115 66,948 68,692 Company Salaries cost including employee benefit expense, CEO and Directors' remuneration 29,273 38,147 Depreciation of property and equipment 2,962 2,627 Amortisation of intangible assets 7,609 7,313 Establishment cost and marketing expenses 11,564 8,490 Administration and general expenses 15,347 11,933 66,755 68,510 15. CAPITAL COMMITMENTS As of 30 September 2016, capital expenditure approved by Directors but not provided for in the unaudited interim financial statements are as follows: 30.9.2016 31.3.2016 Group and Company RM'000 RM'000 Authorised and contracted for: Computer hardware and software 14,454 35,633 14,454 35,633 Authorised but not contracted for: Computer hardware and software 2,074-2,074-16. FAIR VALUE HIERARCHY The Group uses the following hierarchy for determining and disclosing the fair value of its assets by valuation techniques: Level 1: Level 2: Level 3: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. 27
16. FAIR VALUE HIERARCHY (CONT'D.) The following tables show an analysis of financial instruments recorded at fair value by level of the fair value hierarchy: ----------------------- 30.9.2016 -------------------------- ----------------------- 30.3.2016 -------------------------- Group Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Assets measured at fair value: Financial Assets: AFS: Equity securities: Quoted in Malaysia - - - - 111,513 - - 111,513 Unquoted in Malaysia - 2,147-2,147-2,147-2,147 Corporate bonds: Unquoted in Malaysia - 764,689-764,689-703,712-703,712 Unit and property trust funds: Quoted in Malaysia 9,016-9,016 11,782 - - 11,782 Negotiable instruments of deposit - - - - - 50,054-50,054 Seed Capital - Investment-linked funds - 8,374-8,374-8,362-8,362 9,016 775,210-784,226 123,295 764,275-887,570 28
16. FAIR VALUE HIERARCHY (CONT'D.) ----------------------- 30.9.2016 -------------------------- ----------------------- 30.3.2016 -------------------------- Company Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Assets measured at fair value: Financial Assets: AFS: Equity securities: Quoted in Malaysia - - - - 111,513 - - 111,513 Unquoted in Malaysia - 2,147-2,147-2,147-2,147 Corporate bonds: Unquoted in Malaysia - 764,689-764,689-703,712-703,712 Unit and property trust funds: Quoted in Malaysia 9,016 - - 9,016 11,782 - - 11,782 Wholesale fund - 358,724-358,724-344,247-344,247 Negotiable instruments of deposit - - - - - 50,054-50,054 Seed Capital - Investment-linked funds - 8,374-8,374-8,362-8,362 9,016 1,133,934-1,142,950 123,295 1,108,522-1,231,817 29
(Incorporated In Malaysia) 16. FAIR VALUE HIERARCHY (CONT'D.) ----------------------- 30.9.2016 -------------------------- ----------------------- 30.3.2016 -------------------------- Group Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Assets measured at fair value: Financial Assets: FVTPL - Held for trading purposes: Equity securities: Quoted in Malaysia 54,810 - - 54,810 51,853 - - 51,853 Corporate bonds: Unquoted in Malaysia - 1,330,154-1,330,154-1,358,814-1,358,814 Unit and property trust funds: Quoted in Malaysia 521 - - 521 - - - - Unquoted in Malaysia - 13,618-13,618-12,630-12,630 55,331 1,343,772-1,399,103 51,853 1,371,444-1,423,297 Non Financial Assets: Investment properties - - 88,353 88,353 - - 88,353 88,353 30
(Incorporated In Malaysia) 16. FAIR VALUE HIERARCHY (CONT'D.) ----------------------- 30.9.2016 -------------------------- ----------------------- 30.3.2016 -------------------------- Company Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Assets measured at fair value: Financial Assets: FVTPL - Held for trading purposes: Equity securities: Quoted in Malaysia 54,810 - - 54,810 51,853 - - 51,853 Corporate bonds: Unquoted in Malaysia - 1,006,358-1,006,358-1,022,107-1,022,107 Unit and property trust funds: Quoted in Malaysia 521 - - 521 - - - - Unquoted in Malaysia - 13,618-13,618-12,630-12,630 55,331 1,019,976-1,075,307 51,853 1,034,737-1,086,590 Non Financial Assets: Investment properties - - 88,353 88,353 - - 88,353 88,353 31
(Incorporated In Malaysia) 17. REGULATORY CAPITAL REQUIREMENTS The total capital available of the Company as at 30 September 2016, as prescribed under the RBC framework is provided below: 30.9.2016 31.3.2016 Company RM'000 RM'000 Eligible Tier 1 Capital Share capital (paid up) 200,000 200,000 Reserves, including retained earnings 593,650 559,333 793,650 759,333 Tier 2 Capital Eligible reserves 21,509 7,198 Amount deducted from capital (30,774) (28,613) Total capital available 784,385 737,918 32
18. INSURANCE FUNDS The Group's and the Company's activities are organised by funds and segregated into the Shareholders', Life and Investment Linked funds in accordance with the Financial Services Act, 2013. The Statements of Financial Position and Income Statements by funds are presented as follows: Unaudited Interim Statements of Financial Position by Funds As at 30 September 2016 Shareholders' Fund Life Fund Unit-Linked Elimination* Total 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 Group RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Assets Property and equipment - - 43,323 46,475 - - - - 43,323 46,475 Investment properties - - 88,353 88,353 - - - - 88,353 88,353 Intangible assets - - 30,774 28,613 - - - - 30,774 28,613 Investments 373,749 365,445 2,498,484 2,356,610 88,805 80,997 - - 2,961,038 2,803,052 Reinsurance assets - - - 4,616 - - - - - 4,616 Insurance receivables - - 46,988 80,460 - - - - 46,988 80,460 Other receivables 16,149 25,949 24,930 31,011 618 647 - - 41,697 57,607 Cash and bank balances - (2,516) 23,778 70,797 11,825 20,719 - - 35,603 89,000 Interfund balances - - 12,186 10,111-285 (12,186) (10,396) - - Total assets 389,898 388,878 2,768,816 2,717,046 101,248 102,648 (12,186) (10,396) 3,247,776 3,198,176 33
18. INSURANCE FUNDS (CONT'D.) Unaudited Interim Statements of Financial Position by Funds As at 30 September 2016 (Cont'd.) Shareholders' Fund Life Fund Unit-Linked Elimination* Total 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 Group (Cont'd) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Equity Share capital 200,000 200,000 - - - - - - 200,000 200,000 Retained profits 172,939 162,330 105,441 93,927 - - - - 278,380 256,257 AFS fair value reserves 1,425 1,415 236 (143) - - - - 1,661 1,272 Total equity 374,364 363,745 105,677 93,784 - - - - 480,041 457,529 Liabilities Insurance contract liabilities - 2,031 2,455,522 2,429,928 99,213 100,128 - - 2,554,735 2,532,087 Deferred tax liabilities 450 447 39,819 33,216 116 (10) - - 40,385 33,653 Insurance payables - - 48,569 39,343 - - - - 48,569 39,343 Reinsurance liabilities - - 13,329 - - - - - 13,329 - Provision for taxation - - - - 719 746 - - 719 746 Other payables 3,300 12,259 105,900 120,775 798 1,784 - - 109,998 134,818 Interfund balances 11,784 10,396 - - 402 - (12,186) (10,396) - - Total liabilities 15,534 25,133 2,663,139 2,623,262 101,248 102,648 (12,186) (10,396) 2,767,735 2,740,647 Total equity and liabilities 389,898 388,878 2,768,816 2,717,046 101,248 102,648 (12,186) (10,396) 3,247,776 3,198,176 * Refers to elimination of interfund balances. 34
(Incorporated In Malaysia) 18. INSURANCE FUNDS (CONT'D.) Unaudited Interim Statements of Financial Position by Funds As at 30 September 2016 (Cont'd.) Shareholders' Fund Life Fund Unit-Linked Elimination* Total 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 Company RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Assets Property and equipment - - 43,323 46,475 - - - - 43,323 46,475 Investment properties - - 88,353 88,353 - - - - 88,353 88,353 Intangible assets - - 30,774 28,613 - - - - 30,774 28,613 Investments 376,115 370,646 2,498,484 2,356,610 88,805 80,997 - - 2,963,404 2,808,253 Reinsurance assets - - - 4,616 - - - - - 4,616 Insurance receivables - - 46,988 80,460 - - - - 46,988 80,460 Other receivables 13,761 17,424 24,930 31,011 618 647 - - 39,309 49,082 Cash and bank balances - (2,516) 23,778 70,797 11,825 20,719 - - 35,603 89,000 Interfund balances - - 12,186 10,111-285 (12,186) (10,396) - - Total assets 389,876 385,554 2,768,816 2,717,046 101,248 102,648 (12,186) (10,396) 3,247,754 3,194,852 35
(Incorporated In Malaysia) 18. INSURANCE FUNDS (CONT'D.) Unaudited Interim Statements of Financial Position by Funds As at 30 September 2016 (Cont'd.) Shareholders' Fund Life Fund Unit-Linked Elimination* Total 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 30.9.2016 31.3.2016 Company (Cont'd) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Equity Share capital 200,000 200,000 - - - - - - 200,000 200,000 Retained profits 168,114 163,585 105,441 93,927 - - - - 273,555 257,512 AFS fair value reserves 5,104 466 236 (143) - - - - 5,340 323 Total equity 373,218 364,051 105,677 93,784 - - - - 478,895 457,835 Liabilities Insurance contract liabilities - 2,031 2,455,522 2,429,928 99,213 100,128 - - 2,554,735 2,532,087 Deferred tax liabilities 1,612 147 39,819 33,216 116 (10) - - 41,547 33,353 Insurance payables - - 48,569 39,343 - - - - 48,569 39,343 Reinsurance liabilities - - 13,329 - - - - - 13,329 - Provision for taxation - - - - 719 746 - - 719 746 Other payables 3,262 8,929 105,900 120,775 798 1,784 - - 109,960 131,488 Interfund balances 11,784 10,396 - - 402 - (12,186) (10,396) - - Total liabilities 16,658 21,503 2,663,139 2,623,262 101,248 102,648 (12,186) (10,396) 2,768,859 2,737,017 Total equity and liabilities 389,876 385,554 2,768,816 2,717,046 101,248 102,648 (12,186) (10,396) 3,247,754 3,194,852 * Refers to elimination of interfund balances. 36
(Incorporated In Malaysia) 18. INSURANCE FUNDS (CONT'D.) Unaudited Interim Income Statements by Funds For the six months ended 30 September 2016 Shareholders' Fund Life Fund Unit-Linked Total 6 months 6 months 6 months 6 months 6 months 6 months 6 months 6 months ended ended ended ended ended ended ended ended 30.9.2016 30.9.2015 30.9.2016 30.9.2015 30.9.2016 30.9.2015 30.9.2016 30.9.2015 Group RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Gross earned premiums - - 189,432 172,884 13,524 14,587 202,956 187,471 Premiums ceded to reinsurers - - (23,936) (19,972) - - (23,936) (19,972) Net earned premiums - - 165,496 152,912 13,524 14,587 179,020 167,499 Investment income 8,477 7,837 64,323 64,478 1,608 1,618 74,408 73,933 Realised losses and gains (1,664) 157 (4,189) (1,674) (1,080) 527 (6,933) (990) Fair value gains and losses 7,744 (3,964) 20,979 (32,983) 376 (4,864) 29,099 (41,811) Other operating income 391-27 20 17 18 435 38 Other revenue 14,948 4,030 81,140 29,841 921 (2,701) 97,009 31,170 Gross benefits and claims - - (143,998) (186,424) (7,639) (10,120) (151,637) (196,544) Claims recoveries from reinsurers - - 14,910 17,912 - - 14,910 17,912 Gross change to contract liabilities - - (4,445) 85,836 915 3,838 (3,530) 89,674 Change in contract liabilities ceded to reinsurers - - (15,099) (1,085) - - (15,099) (1,085) Net benefits and claims - - (148,632) (83,761) (6,724) (6,282) (155,356) (90,043) 37
(Incorporated In Malaysia) 18. INSURANCE FUNDS (CONT'D.) Unaudited Interim Income Statements by Funds For the six months ended 30 September 2016 (Cont'd.) Shareholders' Fund Life Fund Unit-Linked Total 6 months 6 months 6 months 6 months 6 months 6 months 6 months 6 months ended ended ended ended ended ended ended ended 30.9.2016 30.9.2015 30.9.2016 30.9.2015 30.9.2016 30.9.2015 30.9.2016 30.9.2015 Group (Cont'd) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Fee and commission expenses - - (11,246) (13,856) (7,595) (5,847) (18,841) (19,703) Management expenses (1,876) (2,711) (65,044) (65,925) (28) (56) (66,948) (68,692) Taxation of life insurance business - - (6,956) (2,297) (98) 299 (7,054) (1,998) Other expenses (1,876) (2,711) (83,246) (82,078) (7,721) (5,604) (92,843) (90,393) Profit from operations 13,072 1,319 14,758 16,914 - - 27,830 18,233 Transfer from Shareholder Fund (391) - 391 - - - - - Profit from operations after transfer 12,681 1,319 15,149 16,914 - - 27,830 18,233 Transfer from Life Insurance Funds* 15,149 16,914 (15,149) (16,914) - - - - Profit before taxation 27,830 18,233 - - - - 27,830 18,233 Taxation (5,707) (6,013) - - - (5,707) (6,013) Net profit for the period 22,123 12,220 - - - - 22,123 12,220 * The amount transferred from the Life Fund's Revenue Accounts to the Shareholders' Fund's Income Statement is net of tax. 38