UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR ?· unaudited condensed interim financial statements…

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  • Company No.

    457556 X

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2017

  • Company No.

    457556 X

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia) CONTENTS PAGE UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION 1 UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME 2 - 3 UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY 4 UNAUDITED CONDENSED STATEMENT OF CASH FLOWS 5 - 6 NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS 7 - 25

  • Company No.

    457556 X

    1

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 Note 30.06.2017 31.12.2016 RM000 RM000 ASSETS Property, plant and equipment 160,648 163,228 Investment properties 149,526 149,599 Intangible assets 84,027 97,711 Financial investments Available-for-sale financial assets 8a 5,234,677 5,016,202 Fair value through profit or loss financial assets 8b 701,069 643,610 Held-to-maturity financial assets 8c 956,821 931,497 Loans and receivables 8d 498,039 508,383 Insurance receivables 41,093 43,323 Other receivables 14,569 7,051 Cash and cash equivalents 357,444 318,198

    TOTAL ASSETS 8,197,913 7,878,802

    EQUITY, POLICYHOLDERS FUNDS AND LIABILITIES Share capital 226,000 226,000 Retained earnings 519,431 493,354 Available-for-sale reserve 12,329 (536) Asset revaluation reserve 2,889 2,889

    TOTAL EQUITY 760,649 721,707

    Insurance contract liabilities 9 6,700,263 6,449,420 Insurance payables 478,173 473,479 Other payables 45,291 53,308 Provision for agency long association benefits 27,725 27,486 Current tax liabilities 10,435 6,363 Deferred tax liabilities 175,377 147,039

    TOTAL POLICYHOLDERS FUNDS AND LIABILITIES 7,437,264 7,157,095

    TOTAL EQUITY, POLICYHOLDERS FUNDS AND LIABILITIES 8,197,913 7,878,802

    The accompanying notes form an integral part of the condensed interim financial statements.

  • Company No.

    457556 X

    2

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2017 6 months 6 months ended ended 30.06.2017 30.06.2016 RM000 RM000 Gross earned premium revenue 537,560 490,536 Premiums ceded to reinsurers (39,431) (36,933)

    Net earned revenue 498,129 453,603

    Investment income 161,035 151,189 Net realised gains 7,299 9,210 Net fair value gains 60,281 5,377 Fee and commission income - 13 Other operating income net 677 2,214

    Other income 229,292 168,003

    Gross benefits and claims paid (491,631) (456,310) Claims ceded to reinsurers 30,661 27,315 Gross/net change to insurance contract liabilities (72,932) (37,373)

    Net insurance benefits and claims (533,902) (466,368)

    Commission and agency expenses (57,644) (56,251) Management expenses (80,186) (76,663)

    Other expenses (137,830) (132,914)

    Profit before taxation 55,689 22,324 Taxation (24,612) (18,761)

    Net profit for the financial period 31,077 3,563

  • Company No.

    457556 X

    3

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2017 (CONTINUED) 6 months 6 months ended ended 30.06.2017 30.06.2016 RM000 RM000 Other comprehensive income: Items that may be subsequently recycled to profit or loss Fair value change on available-for-sale financial assets: Net gains arising during the financial period 204,038 66,980 Net realised gains transferred to profit or loss (7,019) (9,210) Tax effects thereon (16,078) (5,014)

    Fair value gains, net of tax 180,941 52,756 Change in insurance contract liabilities arising from net fair value gains (168,076) (39,249)

    Net fair value change 12,865 13,507

    Total other comprehensive income 12,865 13,507

    Total comprehensive income for the financial period 43,942 17,070

    Basic earnings per share (sen) 13.75 1.58

    The accompanying notes form an integral part of the condensed interim financial statements.

  • Company No.

    457556 X

    4

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2017

    Available- Asset

    Share for-sale revaluation Retained capital reserve reserve earnings* Total RM000 RM000 RM000 RM000 RM000 At 1 January 2016 226,000 (4,434) 2,799 417,989 642,354 Total comprehensive income for the financial period - 13,507 - 3,563 17,070

    At 30 June 2016 226,000 9,703 2,889 421,552 659,424

    At 1 January 2017 226,000 (536) 2,889 493,354 721,707 Total comprehensive income for the financial period - 12,865 - 31,077 43,942 Dividend paid for the financial year ended 31 December 2016 - - - (5,000) (5,000)

    At 30 June 2017 226,000 12,329 2,889 519,431 760,649

    * Included in the retained earnings as at 30 June 2017 is unallocated surplus in the Non-participating Life Fund (net of deferred tax) of

    RM 509,032,000 (30 June 2016: RM 432,792,000). These amounts are only distributable upon the actual recommended transfer from Non-participating Life Fund to the Shareholders Fund by the Appointed Actuary.

    The accompanying notes form an integral part of the condensed interim financial statements.

  • Company No.

    457556 X

    5

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    UNAUDITED CONDENSED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2017 6 months 6 months ended ended 30.06.2017 30.06.2016 RM000 RM000 CASH FLOWS FROM OPERATING ACTIVITIES Net profit for the financial period 31,077 3,563 Investment income (158,318) (151,189) Realised gain of AFS financial assets (7,303) (9,210) Fair value (gains)/losses of FVTPL financial assets (68,471) 16,181 Depreciation of property, plant and equipment 2,570 2,330 Loss on disposal of property, plant and equipment 3 490 Amortisation of intangible assets 15,782 13,047 Impairment/(write back of impairment) of AFS financial assets 8,190 (21,558) Write back of impairment loss of insurance receivables - (2,270) Provision for agency long association benefits 1,175 961 Taxation 24,612 18,761 Changes in working capital: Purchase of financial assets (507,841) (598,877) Proceeds from maturity or disposal of financial assets 471,779 570,609 Decrease in fixed and call deposits - 17,899 Decrease in loans 10,344 10,169 Decrease/(increase) in insurance receivables 2,230 (7,126) (Increase)/decrease in other receivables (3,319) 1,112 Increase in insurance contract liabilities 82,768 38,984 Increase in insurance payables 4,694 16,425 Decrease in other payables (11,907) (2,119)

    (101,935) (81,808) Dividend income received 27,664 25,801 Interest income received 129,666 122,140 Rental income received 645 1,747 Agency long association benefits paid (936) (3,045) Income tax paid (8,280) (12,671)

    Net cash inflows from operating activities 46,824 52,164

  • Company No.

    457556 X

    6

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    UNAUDITED CONDENSED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2017 (CONTINUED) 6 months 6 months ended ended 30.06.2017 30.06.2016 RM000 RM000 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (1,101) (5,774) Proceed from disposal of property, plant and equipment 45 - Purchase of intangible assets (1,522) (4,679)

    Net cash outflows from investing activities (2,578) (10,453)

    CASH FLOW FROM FINANCING ACTIVITIES Dividend paid (5,000) -

    Net cash outflows from financing activities (5,000) -

    Net increase in cash and cash equivalents 39,246 41,711 Cash and cash equivalents at 1 January 318,198 310,981

    Cash and cash equivalents at 30 June 357,444 352,692

    Cash and cash equivalents comprise: Cash and bank balances 39,510 43,527 Fixed and call deposits with maturity of less than three months 317,934 309,165

    357,444 352,692

    The accompanying notes form an integral part of the condensed interim financial statements.

  • Company No.

    457556 X

    7

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS - 30 JUNE 2017

    1 SIGNIFICANT ACCOUNTING POLICIES The accounting policies and presentation adopted by the Company for the condensed interim financial statements are consistent with those adopted by the Companys audited financial statements for the financial year ended 31 December 2016.

    1.1 Basis of Preparation The condensed interim financial statements of the Company are unaudited and have been prepared in accordance with the Malaysian Financial Reporting Standards (MFRS) 134 Interim Financial Reporting, issued by the Malaysian Accounting Standards Board (MASB). The condensed 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 Companys audited financial statements for the year ended 31 December 2016.

    1.2 Standards, amendments to published standards and interpretations to existing standards that are

    relevant to the Company but not yet effective and have not been early adopted

    The Company will apply the new standards, amendments to published standards and interpretations in the following financial period:

    Financial year beginning on/after 1 January 2018

    MFRS 9 Financial Instruments will replace MFRS 139 Financial Instruments: Recognition and Measurement.

    MFRS 9 retains but simplifies the mixed measurement model in MFRS 139 and establishes three primary measurement categories for financial assets: amortised cost, fair value through profit or loss and fair value through other comprehensive income (OCI). The basis of classification depends on the entitys business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are always measured at fair value through profit or loss with an irrevocable option at inception to present changes in fair value in OCI (provided the instrument is not held for trading). A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. For liabilities, the standard retains most of the MFRS 139 requirements. These include amortised cost accounting for most financial liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entitys own credit risk is recorded in other comprehensive income rather than profit or loss, unless this creates an accounting mismatch. MFRS 9 introduces expected credit losses model on impairment for all financial assets that replaces the incurred loss impairment model used in MFRS 139. The expected credit losses model is forward-looking and eliminates the need for a trigger event to have occurred before credit losses are recognised.

  • Company No.

    457556 X

    8

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS - 30 JUNE 2017 (CONTINUED)

    1.2 Standards, amendments to published standards and interpretations to existing standards that are relevant to the Company but not yet effective and have not been early adopted (continued)

    Financial year beginning on/after 1 January 2018 (continued)

    The amendments to MFRS 4 (Insurance Contracts) allows two alternatives to address the transitional challenges from different effective dates of MFRS 9 and the proposed new standard on insurance contracts. The amendment introduced two additional voluntary options, namely an overlay approach and a deferral approach to be applied subject to certain criteria being met, which help to address temporary volatility in reported results of entities dealing with insurance contracts. The overlay approach involves option to recognise the possible volatility in other comprehensive income, instead of profit or loss, whilst the deferral approach provides temporary exemption from applying MFRS 9 for entities whose activities are predominantly connected with insurance contracts until the earlier of the effective date of the proposed new standard on insurance contracts and the annual reporting periods beginning on or after 1 January 2021.

    Amendments to MFRS 140 Transfer of Investment Properties clarify that to transfer to, or from investment properties there must be a change in use. A change in use would involve an assessment of whether a property meet, or has ceased to meet, the definition of investment property. The change must be supported by evidence that the change in use has occurred and a change in managements intention in isolation is not sufficient to support a transfer of property.

    The amendments also clarify the same principle applies to assets under construction.

    MFRS 15 Revenue from Contracts with Customers replaces MFRS 118 Revenue and MFRS 111 Construction Contracts and related interpretations. The core principle in MFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognised when a customer obtains control of goods or services, i.e. when the customer has the ability to direct the use of and obtain the benefits from the goods or services. A new five-step process is applied before revenue can be recognised: (i) identify contracts with customers;

    (ii) identify the separate performance obligations;

    (iii) determine the transaction price of the contract;

    (iv) allocate the transaction price to each of the separate performance obligations; and

    (v) recognise the revenue as each performance obligation is satisfied.

  • Company No.

    457556 X

    9

    TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. (Incorporated in Malaysia)

    NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS - 30 JUNE 2017 (CONTINUED)

    1.2 Standards, amendments to published standards and interpretations to existing standards that are relevant to the Company but not yet effectiv...

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