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AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) Unaudited Interim Financial Statements For the 6-Month Financial Period From 1 January 2014 to 30 June 2014
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia)
Contents
Page
Statements of Financial Position
1
Statements of Income
2
Statements of Comprehensive Income
2
Statements of Changes in Equity
3
Statements of Cash Flows
4-5
Notes to the Financial Statements
6-9
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2014
Note
Assets Property, plant and equipment Intangible asset - software Goodwill Investment in a subsidiary Other investments Available-for-sale financial assets Loans and receivables Reinsurance assets Insurance receivables Other receivables Deferred tax asset Tax recoverable Cash and cash equivalents Total assets
10
11
Equity and liabilities Share capital Share premiums Retained earnings Available-for-sale reserve Revaluation reserve Share option reserve Total equity Insurance contract liabilities Deferred tax liabilities Borrowings Insurance payables Other payables Tax payable Total liabilities Total equity and liabilities
12
30.06.2014
31.12.2013
Group RM'000
Company RM'000
Group RM'000
Company RM'000
17,569 2,624 165,822 1,637,270 1,077,354 559,916 242,359 180,944 75,843 4,040 31,023 2,357,494
17,569 2,624 165,822 170,261 1,637,270 1,077,354 559,916 242,359 180,944 75,843 4,040 30,980 2,527,712
17,955 3,544 165,822 1,512,844 815,937 696,907 214,690 140,632 69,050 4,477 19,849 2,148,863
17,955 3,544 165,822 170,261 1,512,844 815,937 696,907 214,690 140,632 69,050 4,477 19,717 2,318,992
119,048 71,597 444,144 17,143 10,292 3,050 665,274
119,048 71,597 446,823 14,776 10,292 3,050 665,586
119,048 71,597 409,954 15,833 10,292 3,050 629,774
119,048 71,597 412,632 13,466 10,292 3,050 630,085
1,293,701 151,987 179,020 56,660 10,851 1,692,220 2,357,494
1,293,701 151,987 179,020 226,700 10,718 1,862,126 2,527,712
1,128,805 151,987 185,937 47,890 4,470 1,519,089 2,148,863
1,128,805 151,987 185,937 217,849 4,329 1,688,907 2,318,992
The accompanying notes form an integral part of the financial statements.
1
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF INCOME FOR THE 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014 30.06.2014 Group RM'000
30.06.2013
Company RM'000
Group RM'000
Company RM'000
Gross written premiums Change in unearned premiums provision Gross earned premiums
577,667 (82,325) 495,342
577,667 (82,325) 495,342
468,457 (25,141) 443,316
468,457 (25,141) 443,316
Gross written premiums ceded to reinsurers Change in unearned premiums provision Premiums ceded to reinsurers
(99,673) 6,953 (92,720)
(99,673) 6,953 (92,720)
(106,496) (21,824) (128,320)
(106,496) (21,824) (128,320)
Net earned premiums
402,622
402,622
314,996
314,996
29,514 2,017
29,514 2,017
23,005 164
23,005 164
19,784 72 51,387
19,784 72 51,387
19,610 42,779
19,610 42,779
Gross claims paid Claims ceded to reinsurance Gross change to contract liabilities Change to contract liabilities ceded to reinsurance Net claims incurred
(222,442) 35,094 (82,571) 20,716 (249,203)
(222,442) 35,094 (82,571) 20,716 (249,203)
(180,141) 32,994 (69,977) 13,137 (203,987)
(180,141) 32,994 (69,977) 13,137 (203,987)
Commission expense Management expenses Finance costs Other operating expenses Other expenses
(69,413) (79,492) (5,984) (250) (155,139)
(69,413) (79,492) (5,984) (250) (155,139)
(58,577) (64,994) (5,984) (368) (129,923)
(58,577) (64,980) (5,984) (368) (129,909)
49,667 (15,476) 34,191
49,667 (15,476) 34,191
23,865 (5,970) 17,895
23,879 (5,970) 17,909
28.72
28.72
15.03
15.04
Investment income Realised gains and losses Fair value gains and losses Reinsurance commission income Other operating revenue Other revenue
Profit before taxation Taxation Net profit for the financial period Basic earnings per share (sen)
UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014 30.06.2014
Net profit for the financial period
30.06.2013
Group RM'000
Company RM'000
Group RM'000
Company RM'000
34,191
34,191
17,895
17,909
Other comprehensive income Available-for-sale reserve: Net gain/(loss) arising during the financial period Net realised gain transferred to income statement Tax effect thereon
Total comprehensive income for the financial period
(315) 2,061 (437) 1,310
(315) 2,061 (437) 1,310
35,501
35,501
The accompanying notes form an integral part of the financial statements.
2
2,854 162 (754) 2,262 20,157
2,854 162 (754) 2,262 20,171
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CHANGES IN EQUITY FOR THE 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014
Share capital RM'000
Share premiums RM'000
Revaluation reserve RM'000
Share option reserve RM'000
AFS reserve RM'000
Retained earnings RM'000
Total RM'000
At 1 January 2014 Total comprehensive income for the financial period At 30 June 2014
119,048
71,597
10,292
3,050
15,833
409,954
629,774
119,048
71,597
10,292
3,050
1,310 17,143
34,190 444,144
35,500 665,274
At 1 January 2013 Total comprehensive income for the financial period At 30 June 2013
119,048
71,597
9,342
2,271
14,015
341,058
557,331
119,048
71,597
9,342
2,271
2,262 16,277
17,895 358,953
20,157 577,488
Share capital RM'000
Share premiums RM'000
Non-distributable Revaluation Share option reserve reserve RM'000 RM'000
AFS reserve RM'000
At 1 January 2014 Total comprehensive income for financial year At 30 June 2014
119,048
71,597
10,292
3,050
13,466
412,632
630,085
119,048
71,597
10,292
3,050
1,310 14,776
34,191 446,823
35,501 665,586
At 1 January 2013 Total comprehensive income for financial year At 30 June 2013
119,048
71,597
9,342
2,271
11,648
343,821
557,727
119,048
71,597
9,342
2,271
2,262 13,910
17,909 361,730
20,171 577,898
GROUP
COMPANY
The accompanying notes form an integral part of the financial statements. 3
Distributable Retained earnings RM'000
Total RM'000
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOWS FOR THE 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014 30.06.2014 Group Company RM'000 RM'000 Operating Activities Net profit for the financial period Investment income Realised gains and losses Finance costs Fair value gains and losses Taxation Purchase of AFS financial assets Proceeds from disposal of AFS financial assets Proceeds from maturity of AFS financial assets Share-based compensation Non-cash items: Depreciation of property, plant and equipment Amortisation of intangible asset software Allowance for/(write-back of) impairment of insurance receivables
34,191 (29,514) (2,017) 5,984 15,476 (383,841)
34,191 (29,514) (2,017) 5,984 15,476 (383,841)
30.06.2013 Group Company RM'000 RM'000 17,895 (23,005) (164) 5,984 5,970 (26,697)
17,909 (23,005) (164) 5,984 5,970 (26,697)
5,000
5,000
587
587
123,000 -
123,000 -
36,000 -
36,000 -
862
862
893
893
1,034
1,034
1,213
1,213
(542)
(542)
-
-
136,431 (27,669) (39,770) (6,793) 164,896 (6,917) 8,771
136,431 (27,669) (39,770) (6,793) 164,896 (6,917) 8,851
Cash used in operating activities
(1,418)
(1,338)
Dividend income received Interest income received Interest paid on borrowings Income tax paid Net cash inflows from operating activities
660 27,644 (5,984) (9,095)
660 27,644 (5,984) (9,086)
571 24,683 (5,984) (11,740)
571 24,683 (5,984) (11,671)
11,807
11,896
8,528
8,443
Changes in working capital: Decrease/(increase) in loans and receivables (Increase)/decrease in reinsurance assets (Increase) in insurance receivables (Increase)/decrease in other receivables Decrease in insurance contract liabilities (Decrease)/increase in insurance payables Increase/(decrease) in other payables
The accompanying notes form an integral part of the financial statements.
4
(105,028) 8,687 (21,995) 3,957 95,119 1,993 (411) 998
(105,028) 8,687 (21,995) 3,957 95,119 1,993 (579) 844
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOWS FOR 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014 (CONTINUED) 30.06.2014 Group Company RM'000 RM'000 Investing Activities Proceeds from disposals of property, plant and equipment Purchase of property, plant and equipment Purchase of intangible asset software Net cash outflows from investing activities Financing Activities Dividends paid to shareholders Net cash (outflows)/inflows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year Cash and cash equivalents comprise: Cash and bank balances
-
30.06.2013 Group Company RM'000 RM'000
-
(520)
(520)
(113)
(113)
(633)
(633)
2 (1,098) 27
2 (1,098) 27
(1,069)
(1,069)
-
-
-
-
-
-
-
-
11,174
11,263
7,459
7,375
19,849
19,717
21,507
21,476
31,023
30,980
28,966
28,851
31,023
30,980
28,965
28,850
The accompanying notes form an integral part of the financial statements.
5
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2014 1.
Basis of preparation The interim financial statements of AXA Affin General Insurance Berhad (“the Company”) are unaudited and have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards and the provisions of the Companies Act, 1965 in Malaysia. They do not include all information required for full annual financial statements, and should be read in conjunction with the Company’s annual financial statements for the year ended 31 December 2013.
2.
Comments on seasonality or cyclicality The business operations of the Company were not significantly affected by seasonality or cyclical factors for the current interim period ended 30 June 2014.
3.
Unusual item affecting assets, liabilities, equity, net income or cash flows There were no items affecting assets, liabilities, equity, net income, or cash flows which are unusual because of their nature, size, or incidence for the current interim period ended 30 June 2014.
4.
Changes in estimates There were no material changes in the basis used for accounting estimates for the current interim period ended 30 June 2014.
5
Issues, repurchases and repayments of debt and equity securities There were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities by the Company for the current interim period ended 30 June 2014.
6
Dividend paid No dividend was paid during the current interim period ended 30 June 2014.
7
Events after the interim period There were no material events after the interim period that had not been reflected in the financial statements for the interim period.
8
Effect of changes in the composition of the Company There were no changes in the composition of the Company during the period under review.
9
Changes in contingent liabilities or contingent assets The Company does not have any contingent assets or liabilities at or arisen after the balance sheet date.
6
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 10
OTHER INVESTMENTS
Available-for-sale ("AFS") financial assets Loans and receivables ("LAR")
30.06.2014 Group Company RM'000 RM'000
31.12.2013 Group Company RM'000 RM'000
1,077,354 559,916 1,637,270
1,077,354 559,916 1,637,270
815,937 696,907 1,512,844
815,937 696,907 1,512,844
701,164
701,164
504,956
504,956
326,165
326,165
270,863
270,863
49,525 250
49,525 250
39,644 250
39,644 250
250 1,077,354
250 1,077,354
224 815,937
224 815,937
128,584 948,770 1,077,354
128,584 948,770 1,077,354
143,527 672,410 815,937
143,527 672,410 815,937
643 559,273 559,916
643 559,273 559,916
870 696,037 696,907
870 696,037 696,907
105 538 643
105 538 643
(a) AFS financial assets: At fair value Malaysian Government Securities - unquoted in Malaysia Corporate debt securities - unquoted in Malaysia Equity securities - quoted in Malaysia - unquoted in Malaysia REITs/unit trusts - quoted in Malaysia
Maturing within 12 months Maturing after 12 months (b) LAR At amortised cost Loans Fixed and call deposits Loans maturing within 12 months Loans maturing after 12 months
482 388 870
(c) Carrying value of financial instruments
Group and Company At 1 January 2013 Purchases Maturities Disposals Net gain recorded in other comprehensive income Net realised gain transferred to income statement Movement in impairment allowance Amortisation adjustment Movement in interest income accrued At 31 December 2013 Purchases Maturities Disposals Net gain recorded in other comprehensive income Net realised gain transferred to income statement Movement in impairment allowance Amortisation adjustment Movement in interest income accrued At 30 June 2014
AFS RM'000
LAR RM'000
Total RM'000
736,010 134,918 (53,000) (963) 2,717 (292) (298) (4,335) 1,180 815,937 383,841 (123,000) (2,939) (315) 2,061 (1,788) 3,557 1,077,354
544,871 2,337,903 (2,186,750) 883 696,907 524,713 (661,145) (559) 559,916
1,280,881 2,472,821 (2,239,750) (963) 2,717 (292) (298) (4,335) 2,063 1,512,844 908,554 (784,145) (2,939) (315) 2,061 104 (1,788) 2,998 1,637,270
7
482 388 870
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 11 REINSURANCE ASSETS 30.06.2014 Group RM'000 Claims liabilities Premium liabilities
31.12.2013 Company RM'000
195,912 46,447 242,359
195,912 46,447 242,359
Group RM'000
Company RM'000
175,196 39,494 214,690
175,196 39,494 214,690
12 INSURANCE CONTRACT LIABILITIES GROUP AND COMPANY Gross RM'000 Provision for claims reported by policyholders Provision for IBNR claims Claims liabilities Premium liabilities
30.06.2014 Reinsurance RM'000
Net RM'000
Gross RM'000
31.12.2013 Reinsurance RM'000
Net RM'000
537,243 306,229 843,472 450,229 1,293,701
(139,618) (56,294) (195,912) (46,447) (242,359)
397,625 249,935 647,560 403,782 1,051,342
511,724 249,177 760,901 367,904 1,128,805
(137,213) (37,983) (175,196) (39,494) (214,690)
374,511 211,194 585,705 328,410 914,115
Gross RM'000 760,901
30.06.2014 RI RM'000 (175,196)
Net RM'000 585,705
Gross RM'000 616,919
31.12.2013 RI RM'000 (146,448)
Net RM'000 470,471
291,115
(46,418)
244,697
538,754
(106,578)
432,176
7,542
(7,779)
(237)
(25,478)
12,754
(12,724)
5,236 1,120 (222,442) 843,472
(1,613) 35,094 (195,912)
3,623 1,120 (187,348) 647,560
9,013 1,732 (380,039) 760,901
(2,135) 67,211 (175,196)
6,878 1,732 (312,828) 585,705
367,904 577,667 (495,342) 450,229
(39,494) (99,673) 92,720 (46,447)
328,410 477,994 (402,622) 403,782
324,670 963,233 (919,999) 367,904
(59,846) (220,444) 240,796 (39,494)
264,824 742,789 (679,203) 328,410
(i) Claims liabilities GROUP AND COMPANY
At 1 January Claims incurred in the current accident year before provision of risk margin for adverse deviation ("PRAD") and claims handling expenses ("CHE") Movement in claims incurred in prior accident years before PRAD and CHE Movement in PRAD of claims liabilities at 75% confidence level Movement in claims handling expenses Claims paid during the financial year At 30 June/31 December (ii) Premium liabilities GROUP AND COMPANY At 1 January Premiums written in the financial period Premiums earned during the financial period At 30 June/31 December
8
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 13 OPERATING LEASE REQUIREMENTS The Group and Company (as lessee) have entered into non-cancellable operating lease agreements on the rental of offices for branch operations. These leases have remaining non-cancellable lease terms not later than 5 years. 30.06.2014 Group Company RM'000 RM'000 Not later than 1 year Later than 1 year and not later than 5 years
Group RM'000
31.12.2013 Company RM'000
4,619 6,033
4,619 6,033
4,541 7,921
4,541 7,921
10,652
10,652
12,462
12,462
14 CAPITAL COMMITMENTS 30.06.2014 Group Company RM'000 RM'000 Capital expenditure approved and contracted for: Property, plant and equipment
6,789
6,789
Group RM'000
31.12.2013 Company RM'000
5,102
5,102
15 CAPITAL STRUCTURE The capital structure of the Company as at 30 June 2014, as prescribed under the RBC Framework is provided below:
30.06.2014 RM'000 Eligible Tier 1 capital Share capital (paid up) Share premium Retained earnings
Tier 2 capital AFS reserve Revaluation reserve Share option reserve Subordinated loan
Deductions Goodwill Deferred tax assets
31.12.2013 RM'000
119,048 71,597 446,823 637,468
119,048 71,597 412,632 603,277
14,776 10,292 3,050 150,000 178,118
13,466 10,292 3,050 150,000 176,808
(165,822) (4,040) (169,862)
(165,822) (4,477) (170,299)
9
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) STATEMENT BY CHIEF FINANCIAL OFFICER I, Sylvain Ducros, the officer primarily responsible for the financial management of AXA Affin General Insurance Berhad, do hereby state that, the unaudited interim financial statements for the six-month financial period ended 30 June 2014, as set out on pages 1 to 9 are drawn up so as to show a true and fair view of the financial position of the Group and Company as at 30 June 2014 and of the financial performance of the Group and Company for the period ended on that date, in accordance with the Malaysian Financial Reporting Standards, being the MASB Approved Accounting Standards in Malaysia for Entities Other than Private Entities, the provisions of the Companies Act, 1965 and the Insurance Act, 1996.
SYLVAIN DUCROS CHIEF FINANCIAL OFFICER 25 August 2014
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia)
Contents
Page
Statements of Financial Position
1
Statements of Income
2
Statements of Comprehensive Income
2
Statements of Changes in Equity
3
Statements of Cash Flows
4-5
Notes to the Financial Statements
6-9
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2014
Note
Assets Property, plant and equipment Intangible asset - software Goodwill Investment in a subsidiary Other investments Available-for-sale financial assets Loans and receivables Reinsurance assets Insurance receivables Other receivables Deferred tax asset Tax recoverable Cash and cash equivalents Total assets
10
11
Equity and liabilities Share capital Share premiums Retained earnings Available-for-sale reserve Revaluation reserve Share option reserve Total equity Insurance contract liabilities Deferred tax liabilities Borrowings Insurance payables Other payables Tax payable Total liabilities Total equity and liabilities
12
30.06.2014
31.12.2013
Group RM'000
Company RM'000
Group RM'000
Company RM'000
17,569 2,624 165,822 1,637,270 1,077,354 559,916 242,359 180,944 75,843 4,040 31,023 2,357,494
17,569 2,624 165,822 170,261 1,637,270 1,077,354 559,916 242,359 180,944 75,843 4,040 30,980 2,527,712
17,955 3,544 165,822 1,512,844 815,937 696,907 214,690 140,632 69,050 4,477 19,849 2,148,863
17,955 3,544 165,822 170,261 1,512,844 815,937 696,907 214,690 140,632 69,050 4,477 19,717 2,318,992
119,048 71,597 444,144 17,143 10,292 3,050 665,274
119,048 71,597 446,823 14,776 10,292 3,050 665,586
119,048 71,597 409,954 15,833 10,292 3,050 629,774
119,048 71,597 412,632 13,466 10,292 3,050 630,085
1,293,701 151,987 179,020 56,660 10,851 1,692,220 2,357,494
1,293,701 151,987 179,020 226,700 10,718 1,862,126 2,527,712
1,128,805 151,987 185,937 47,890 4,470 1,519,089 2,148,863
1,128,805 151,987 185,937 217,849 4,329 1,688,907 2,318,992
The accompanying notes form an integral part of the financial statements.
1
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF INCOME FOR THE 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014 30.06.2014 Group RM'000
30.06.2013
Company RM'000
Group RM'000
Company RM'000
Gross written premiums Change in unearned premiums provision Gross earned premiums
577,667 (82,325) 495,342
577,667 (82,325) 495,342
468,457 (25,141) 443,316
468,457 (25,141) 443,316
Gross written premiums ceded to reinsurers Change in unearned premiums provision Premiums ceded to reinsurers
(99,673) 6,953 (92,720)
(99,673) 6,953 (92,720)
(106,496) (21,824) (128,320)
(106,496) (21,824) (128,320)
Net earned premiums
402,622
402,622
314,996
314,996
29,514 2,017
29,514 2,017
23,005 164
23,005 164
19,784 72 51,387
19,784 72 51,387
19,610 42,779
19,610 42,779
Gross claims paid Claims ceded to reinsurance Gross change to contract liabilities Change to contract liabilities ceded to reinsurance Net claims incurred
(222,442) 35,094 (82,571) 20,716 (249,203)
(222,442) 35,094 (82,571) 20,716 (249,203)
(180,141) 32,994 (69,977) 13,137 (203,987)
(180,141) 32,994 (69,977) 13,137 (203,987)
Commission expense Management expenses Finance costs Other operating expenses Other expenses
(69,413) (79,492) (5,984) (250) (155,139)
(69,413) (79,492) (5,984) (250) (155,139)
(58,577) (64,994) (5,984) (368) (129,923)
(58,577) (64,980) (5,984) (368) (129,909)
49,667 (15,476) 34,191
49,667 (15,476) 34,191
23,865 (5,970) 17,895
23,879 (5,970) 17,909
28.72
28.72
15.03
15.04
Investment income Realised gains and losses Fair value gains and losses Reinsurance commission income Other operating revenue Other revenue
Profit before taxation Taxation Net profit for the financial period Basic earnings per share (sen)
UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014 30.06.2014
Net profit for the financial period
30.06.2013
Group RM'000
Company RM'000
Group RM'000
Company RM'000
34,191
34,191
17,895
17,909
Other comprehensive income Available-for-sale reserve: Net gain/(loss) arising during the financial period Net realised gain transferred to income statement Tax effect thereon
Total comprehensive income for the financial period
(315) 2,061 (437) 1,310
(315) 2,061 (437) 1,310
35,501
35,501
The accompanying notes form an integral part of the financial statements.
2
2,854 162 (754) 2,262 20,157
2,854 162 (754) 2,262 20,171
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CHANGES IN EQUITY FOR THE 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014
Share capital RM'000
Share premiums RM'000
Revaluation reserve RM'000
Share option reserve RM'000
AFS reserve RM'000
Retained earnings RM'000
Total RM'000
At 1 January 2014 Total comprehensive income for the financial period At 30 June 2014
119,048
71,597
10,292
3,050
15,833
409,954
629,774
119,048
71,597
10,292
3,050
1,310 17,143
34,190 444,144
35,500 665,274
At 1 January 2013 Total comprehensive income for the financial period At 30 June 2013
119,048
71,597
9,342
2,271
14,015
341,058
557,331
119,048
71,597
9,342
2,271
2,262 16,277
17,895 358,953
20,157 577,488
Share capital RM'000
Share premiums RM'000
Non-distributable Revaluation Share option reserve reserve RM'000 RM'000
AFS reserve RM'000
At 1 January 2014 Total comprehensive income for financial year At 30 June 2014
119,048
71,597
10,292
3,050
13,466
412,632
630,085
119,048
71,597
10,292
3,050
1,310 14,776
34,191 446,823
35,501 665,586
At 1 January 2013 Total comprehensive income for financial year At 30 June 2013
119,048
71,597
9,342
2,271
11,648
343,821
557,727
119,048
71,597
9,342
2,271
2,262 13,910
17,909 361,730
20,171 577,898
GROUP
COMPANY
The accompanying notes form an integral part of the financial statements. 3
Distributable Retained earnings RM'000
Total RM'000
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOWS FOR THE 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014 30.06.2014 Group Company RM'000 RM'000 Operating Activities Net profit for the financial period Investment income Realised gains and losses Finance costs Fair value gains and losses Taxation Purchase of AFS financial assets Proceeds from disposal of AFS financial assets Proceeds from maturity of AFS financial assets Share-based compensation Non-cash items: Depreciation of property, plant and equipment Amortisation of intangible asset software Allowance for/(write-back of) impairment of insurance receivables
34,191 (29,514) (2,017) 5,984 15,476 (383,841)
34,191 (29,514) (2,017) 5,984 15,476 (383,841)
30.06.2013 Group Company RM'000 RM'000 17,895 (23,005) (164) 5,984 5,970 (26,697)
17,909 (23,005) (164) 5,984 5,970 (26,697)
5,000
5,000
587
587
123,000 -
123,000 -
36,000 -
36,000 -
862
862
893
893
1,034
1,034
1,213
1,213
(542)
(542)
-
-
136,431 (27,669) (39,770) (6,793) 164,896 (6,917) 8,771
136,431 (27,669) (39,770) (6,793) 164,896 (6,917) 8,851
Cash used in operating activities
(1,418)
(1,338)
Dividend income received Interest income received Interest paid on borrowings Income tax paid Net cash inflows from operating activities
660 27,644 (5,984) (9,095)
660 27,644 (5,984) (9,086)
571 24,683 (5,984) (11,740)
571 24,683 (5,984) (11,671)
11,807
11,896
8,528
8,443
Changes in working capital: Decrease/(increase) in loans and receivables (Increase)/decrease in reinsurance assets (Increase) in insurance receivables (Increase)/decrease in other receivables Decrease in insurance contract liabilities (Decrease)/increase in insurance payables Increase/(decrease) in other payables
The accompanying notes form an integral part of the financial statements.
4
(105,028) 8,687 (21,995) 3,957 95,119 1,993 (411) 998
(105,028) 8,687 (21,995) 3,957 95,119 1,993 (579) 844
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOWS FOR 6-MONTH FINANCIAL PERIOD ENDED 30 JUNE 2014 (CONTINUED) 30.06.2014 Group Company RM'000 RM'000 Investing Activities Proceeds from disposals of property, plant and equipment Purchase of property, plant and equipment Purchase of intangible asset software Net cash outflows from investing activities Financing Activities Dividends paid to shareholders Net cash (outflows)/inflows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year Cash and cash equivalents comprise: Cash and bank balances
-
30.06.2013 Group Company RM'000 RM'000
-
(520)
(520)
(113)
(113)
(633)
(633)
2 (1,098) 27
2 (1,098) 27
(1,069)
(1,069)
-
-
-
-
-
-
-
-
11,174
11,263
7,459
7,375
19,849
19,717
21,507
21,476
31,023
30,980
28,966
28,851
31,023
30,980
28,965
28,850
The accompanying notes form an integral part of the financial statements.
5
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2014 1.
Basis of preparation The interim financial statements of AXA Affin General Insurance Berhad (“the Company”) are unaudited and have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards and the provisions of the Companies Act, 1965 in Malaysia. They do not include all information required for full annual financial statements, and should be read in conjunction with the Company’s annual financial statements for the year ended 31 December 2013.
2.
Comments on seasonality or cyclicality The business operations of the Company were not significantly affected by seasonality or cyclical factors for the current interim period ended 30 June 2014.
3.
Unusual item affecting assets, liabilities, equity, net income or cash flows There were no items affecting assets, liabilities, equity, net income, or cash flows which are unusual because of their nature, size, or incidence for the current interim period ended 30 June 2014.
4.
Changes in estimates There were no material changes in the basis used for accounting estimates for the current interim period ended 30 June 2014.
5
Issues, repurchases and repayments of debt and equity securities There were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities by the Company for the current interim period ended 30 June 2014.
6
Dividend paid No dividend was paid during the current interim period ended 30 June 2014.
7
Events after the interim period There were no material events after the interim period that had not been reflected in the financial statements for the interim period.
8
Effect of changes in the composition of the Company There were no changes in the composition of the Company during the period under review.
9
Changes in contingent liabilities or contingent assets The Company does not have any contingent assets or liabilities at or arisen after the balance sheet date.
6
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 10
OTHER INVESTMENTS
Available-for-sale ("AFS") financial assets Loans and receivables ("LAR")
30.06.2014 Group Company RM'000 RM'000
31.12.2013 Group Company RM'000 RM'000
1,077,354 559,916 1,637,270
1,077,354 559,916 1,637,270
815,937 696,907 1,512,844
815,937 696,907 1,512,844
701,164
701,164
504,956
504,956
326,165
326,165
270,863
270,863
49,525 250
49,525 250
39,644 250
39,644 250
250 1,077,354
250 1,077,354
224 815,937
224 815,937
128,584 948,770 1,077,354
128,584 948,770 1,077,354
143,527 672,410 815,937
143,527 672,410 815,937
643 559,273 559,916
643 559,273 559,916
870 696,037 696,907
870 696,037 696,907
105 538 643
105 538 643
(a) AFS financial assets: At fair value Malaysian Government Securities - unquoted in Malaysia Corporate debt securities - unquoted in Malaysia Equity securities - quoted in Malaysia - unquoted in Malaysia REITs/unit trusts - quoted in Malaysia
Maturing within 12 months Maturing after 12 months (b) LAR At amortised cost Loans Fixed and call deposits Loans maturing within 12 months Loans maturing after 12 months
482 388 870
(c) Carrying value of financial instruments
Group and Company At 1 January 2013 Purchases Maturities Disposals Net gain recorded in other comprehensive income Net realised gain transferred to income statement Movement in impairment allowance Amortisation adjustment Movement in interest income accrued At 31 December 2013 Purchases Maturities Disposals Net gain recorded in other comprehensive income Net realised gain transferred to income statement Movement in impairment allowance Amortisation adjustment Movement in interest income accrued At 30 June 2014
AFS RM'000
LAR RM'000
Total RM'000
736,010 134,918 (53,000) (963) 2,717 (292) (298) (4,335) 1,180 815,937 383,841 (123,000) (2,939) (315) 2,061 (1,788) 3,557 1,077,354
544,871 2,337,903 (2,186,750) 883 696,907 524,713 (661,145) (559) 559,916
1,280,881 2,472,821 (2,239,750) (963) 2,717 (292) (298) (4,335) 2,063 1,512,844 908,554 (784,145) (2,939) (315) 2,061 104 (1,788) 2,998 1,637,270
7
482 388 870
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 11 REINSURANCE ASSETS 30.06.2014 Group RM'000 Claims liabilities Premium liabilities
31.12.2013 Company RM'000
195,912 46,447 242,359
195,912 46,447 242,359
Group RM'000
Company RM'000
175,196 39,494 214,690
175,196 39,494 214,690
12 INSURANCE CONTRACT LIABILITIES GROUP AND COMPANY Gross RM'000 Provision for claims reported by policyholders Provision for IBNR claims Claims liabilities Premium liabilities
30.06.2014 Reinsurance RM'000
Net RM'000
Gross RM'000
31.12.2013 Reinsurance RM'000
Net RM'000
537,243 306,229 843,472 450,229 1,293,701
(139,618) (56,294) (195,912) (46,447) (242,359)
397,625 249,935 647,560 403,782 1,051,342
511,724 249,177 760,901 367,904 1,128,805
(137,213) (37,983) (175,196) (39,494) (214,690)
374,511 211,194 585,705 328,410 914,115
Gross RM'000 760,901
30.06.2014 RI RM'000 (175,196)
Net RM'000 585,705
Gross RM'000 616,919
31.12.2013 RI RM'000 (146,448)
Net RM'000 470,471
291,115
(46,418)
244,697
538,754
(106,578)
432,176
7,542
(7,779)
(237)
(25,478)
12,754
(12,724)
5,236 1,120 (222,442) 843,472
(1,613) 35,094 (195,912)
3,623 1,120 (187,348) 647,560
9,013 1,732 (380,039) 760,901
(2,135) 67,211 (175,196)
6,878 1,732 (312,828) 585,705
367,904 577,667 (495,342) 450,229
(39,494) (99,673) 92,720 (46,447)
328,410 477,994 (402,622) 403,782
324,670 963,233 (919,999) 367,904
(59,846) (220,444) 240,796 (39,494)
264,824 742,789 (679,203) 328,410
(i) Claims liabilities GROUP AND COMPANY
At 1 January Claims incurred in the current accident year before provision of risk margin for adverse deviation ("PRAD") and claims handling expenses ("CHE") Movement in claims incurred in prior accident years before PRAD and CHE Movement in PRAD of claims liabilities at 75% confidence level Movement in claims handling expenses Claims paid during the financial year At 30 June/31 December (ii) Premium liabilities GROUP AND COMPANY At 1 January Premiums written in the financial period Premiums earned during the financial period At 30 June/31 December
8
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 13 OPERATING LEASE REQUIREMENTS The Group and Company (as lessee) have entered into non-cancellable operating lease agreements on the rental of offices for branch operations. These leases have remaining non-cancellable lease terms not later than 5 years. 30.06.2014 Group Company RM'000 RM'000 Not later than 1 year Later than 1 year and not later than 5 years
Group RM'000
31.12.2013 Company RM'000
4,619 6,033
4,619 6,033
4,541 7,921
4,541 7,921
10,652
10,652
12,462
12,462
14 CAPITAL COMMITMENTS 30.06.2014 Group Company RM'000 RM'000 Capital expenditure approved and contracted for: Property, plant and equipment
6,789
6,789
Group RM'000
31.12.2013 Company RM'000
5,102
5,102
15 CAPITAL STRUCTURE The capital structure of the Company as at 30 June 2014, as prescribed under the RBC Framework is provided below:
30.06.2014 RM'000 Eligible Tier 1 capital Share capital (paid up) Share premium Retained earnings
Tier 2 capital AFS reserve Revaluation reserve Share option reserve Subordinated loan
Deductions Goodwill Deferred tax assets
31.12.2013 RM'000
119,048 71,597 446,823 637,468
119,048 71,597 412,632 603,277
14,776 10,292 3,050 150,000 178,118
13,466 10,292 3,050 150,000 176,808
(165,822) (4,040) (169,862)
(165,822) (4,477) (170,299)
9
AXA AFFIN GENERAL INSURANCE BERHAD (Company No. 23820-W) (Incorporated in Malaysia) STATEMENT BY CHIEF FINANCIAL OFFICER I, Sylvain Ducros, the officer primarily responsible for the financial management of AXA Affin General Insurance Berhad, do hereby state that, the unaudited interim financial statements for the six-month financial period ended 30 June 2014, as set out on pages 1 to 9 are drawn up so as to show a true and fair view of the financial position of the Group and Company as at 30 June 2014 and of the financial performance of the Group and Company for the period ended on that date, in accordance with the Malaysian Financial Reporting Standards, being the MASB Approved Accounting Standards in Malaysia for Entities Other than Private Entities, the provisions of the Companies Act, 1965 and the Insurance Act, 1996.
SYLVAIN DUCROS CHIEF FINANCIAL OFFICER 25 August 2014
