Interim Financial Report
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2014
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
REPORTS AND FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2014
CONTENTS
PAGE
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION
1
UNAUDITED CONDENSED STATEMENT OF INCOME
2
UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
3
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY
4
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
5
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
6 – 19
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014
Note
ASSETS Property and equipment Intangible assets Investments Available-for-sale financial assets Fair value through profit or loss financial assets Loans and receivables Reinsurance assets Insurance receivables Assets held for sale Other receivables Cash and cash equivalents
8
9
TOTAL ASSETS
30.6.2014 RM’000
31.12.2013 RM’000
1,729 101,714 721,378 417,664 270,946 32,768
1,980 102,806 697,304 368,626 249,327 79,351
25,855 14,482 7,300 5,113 99,612 ──────── 977,183 ════════
24,559 8,179 7,300 4,661 61,572 ──────── 908,361 ════════
288,000 (34,602) 18,361 ──────── 271,759 ────────
288,000 (33,970) 17,623 ──────── 271,653 ────────
591,173 4,731 4,752 55,646 4,012 821 44,289 ──────── 705,424 ────────
522,237 6,152 4,290 53,880 5,140 1,548 43,461 ──────── 636,708 ────────
977,183 ════════
908,361 ════════
EQUITY, POLICYHOLDERS’ FUNDS AND LIABILITIES Share capital Accumulated losses Available-for-sale reserve TOTAL EQUITY
LIABILITIES Insurance contract liabilities Insurance claims liabilities Deferred tax liabilities Insurance payables Reinsurance liabilities Current tax liabilities Other payables
10
TOTAL LIABILITIES TOTAL EQUITY, POLICYHOLDERS' FUNDS AND LIABILITIES
The accompanying notes form an integral part of the financial statements.
1
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF INCOME FOR THE HALF-YEAR ENDED 30 JUNE 2014 30.6.2014 RM’000 Gross premiums Premiums ceded to reinsurers Net premiums
Reinsurance commission income Investment income Net realised gains Net fair value gains Other operating income Other revenue
Gross benefits and claims paid Claims ceded to reinsurers Gross change to insurance contract liabilities Changes in insurance contract liabilities ceded to reinsurers Net claims
Net fair value losses Commission and agency expenses Management expenses Other operating expenses Other expenses Profit/(loss) before taxation Tax expense attributable to participating policyholders Profit/(loss) before taxation attributable to Shareholders
145,299 (8,227) ──── 137,072 ────
117,651 (6,515) ──── 111,136 ────
699 12,897 1,367 3,845 274 ──── 19,082 ────
969 19,358 7,460 217 ──── 28,004 ────
(39,422) 5,500 (68,135)
(190,844) 2,301 126,324
1,632 ──── (100,425) ────
1,863 ──── (60,356) ────
(22,712) (31,427) (690) ──── (54,829) ──── 900
(28,281) (17,765) (31,895) (1,285) ──── (79,226) ──── (442)
(900) ──── -
676 ──── 234
Taxation Tax expense attributable to participating policyholders Tax expense attributable to Shareholders Net (loss)/ profit for the financial period
Basic (loss)/earnings per share (sen)
(1,532) 900
498 (676)
(632) ───── (632) ════════
(178) ───── 56 ════════
(0.22) ════════
0.02 ════════
The accompanying notes form an integral part of the financial statements.
2
30.6.2013 RM’000
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 30 JUNE 2014
Net profit for the financial period
30.6.2014 RM’000
30.6.2013 RM’000
(632)
56
Other comprehensive income: Items that may be subsequently reclassified to profit or loss: Fair value changes on available-for-sale financial assets, net of deferred tax Gross fair value changes Deferred tax Net fair value changes Change in insurance contract liabilities arising from unrealised net fair value changes Other comprehensive income for the financial period, net of tax Total comprehensive income for the financial period
2,550 (295) 2,255
7,000 (33) 6,967
(1,517)
(4,712)
738 106
The accompanying notes form an integral part of the financial statements.
3
2,255 2,311
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 JUNE 2014
At 1 January 2014 Total comprehensive income for the financial period At 30 June 2014
At 1 January 2013 Total comprehensive income for the financial period At 31 June 2013
The accompanying notes form an integral part of the financial statements.
4
Share capital RM’000
Available-for-sale reserve RM’000
Accumulated losses RM’000
288,000
17,623
(33,970)
271,653
──────── 288,000 ════════
738 ──────── 18,361 ════════
(632) ──────── (34,602) ════════
106 ──────── 271,759 ════════
288,000
14,147
(39,752)
262,395
──────── 288,000 ════════
2,255 ──────── 16,402 ════════
56 ──────── (39,696) ════════
2,311 ──────── 264,706 ════════
Total RM’000
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 JUNE 2014 Note
30.6.2014 RM’000
30.6.2013 RM’000
11
91,840 32,555 (95,060) 696 10,588 137 (2,092) ────────
(109,801) 180,784 (68,810) 9,554 8,785 135 (1,642) ────────
38,664 ────────
19,005 ────────
(204) (420) ──────── (624) ────────
(134) (490) ──────── (624) ────────
38,040 61,572 ──────── 99,612 ════════
18,381 56,693 ──────── 75,074 ════════
31,182 68,430 ──────── 99,612 ════════
27,141 47,933 ──────── 75,074 ════════
Operating activities Cash flows generated from/(used in) operating activities Proceeds from disposal of investments Purchase of investments Dividend income received Interest income received Rental income received on investment properties Income tax paid Net cash flows generated from operating activities
Investing activities Purchase of property and equipment Purchase of intangible assets Net cash flows used in investing activities
Net increase in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 30 June
Cash and cash equivalents comprise: Cash and bank balances Fixed and call deposits
The accompanying notes form an integral part of the financial statements.
5
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 1.
BASIS OF PREPARATION
The condensed interim financial statements of the Company for the half-year ended 30 June 2014 are unaudited and have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”) 134 Interim Financial Reporting. 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 company’s audited financial statements for the year ended 31 December 2013. The explanatory notes attached to the condensed interim financial statements provide an explanation of events and transactions that are significant to gain an understanding of the changes in the financial position and performance of the Company since the financial year ended 31 December 2013. The following MFRS and Amendments to MFRS were issued but not yet effective and have not been applied by the Company: MFRS and Amendments to MFRS MFRS 132 Financial Instruments: Presentation MFRS 9
Effective date 1 January 2014
Financial Instruments: Classification and Effective date yet to be Measurement of Financial Assets and Financial determined by the Liabilities Malaysian Accounting Standards Board
The Company is reviewing the adoption of the above accounting standards, amendments to published standards and interpretations to existing standards and will complete the process prior to the reporting requirement deadline. The Company has not finalised any financial impact of the adoption of the above accounting standards.
6
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 2.
UNUSUAL ITEMS There were no unusual items affecting assets, liabilities, equity, net income or cash flows of the Company for the half-year ended 30 June 2014.
3.
CHANGES IN ESTIMATES There were no material changes in the basis used for accounting estimates for the condensed interim financial statements for the half-year ended 30 June 2014.
4.
SEASONAL OR CYCLICAL FACTORS The business operations of the Company were not significantly affected by seasonality or cyclical factors for the period under review.
5.
DEBT AND EQUITY SECURITIES There were no issuance, cancellation, repurchase, resale or repayment of debt and equity securities during the half-year ended 30 June 2014.
6.
DIVIDEND No dividend has been declared or paid by the Company during the period under review.
7.
SIGNIFICANT EVENTS There were no material events subsequent to the date of the statement of financial position that require disclosure or adjustments to the condensed interim financial statements.
7
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 8.
INVESTMENTS The financial assets are summarised by categories as follows:
Available-for-sale (“AFS”) financial assets (a) Fair value through profit or loss (“FVTPL”) financial assets – designated upon initial recognition (b) Loans and receivables (“LAR”) (c)
30.6.2014 RM’000
31.12.2013 RM’000
417,664
368,626
270,946 32,768 ──────── 721,378 ════════
249,327 79,351 ──────── 697,304 ════════
291,000
256,184
139,040 44 ──────── 430,084 ════════
140,195 47 ──────── 396,426 ════════
68,180 225,386 42,997 20,217 60,884 ──────── 417,664 ════════
62,902 195,469 37,899 19,500 52,856 ──────── 368,626 ════════
The following financial assets mature after 12 months:
AFS financial assets FVTPL financial assets – designated upon initial recognition LAR
(a)
AFS financial assets At fair value Malaysian Government securities Debt securities unquoted in Malaysia Equity securities quoted in Malaysia Investment-linked funds Unit and property trust funds quoted in Malaysia
8
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 8.
INVESTMENTS (CONTINUED) (b)
FVTPL financial assets – designated upon initial recognition At fair value Malaysian Government securities Equity securities quoted in Malaysia Equity securities quoted outside Malaysia Debt securities unquoted in Malaysia Structured investments quoted inside Malaysia Structured investments quoted outside Malaysia Unit and property trust funds quoted in Malaysia
(c)
31.12.2013 RM’000
71,173 14,960 3,572 115,675 28,983 36,364 219 ──────── 270,946 ════════
67,883 13,730 4,718 100,380 29,486 33,013 117 ──────── 249,327 ════════
11,579 56 21,133 ──────── 32,768 ════════
9,757 63 69,531 ──────── 79,351 ════════
LAR At amortised cost Policy loans Mortgage loans Fixed and call deposits
(d)
30.6.2014 RM’000
Fair values of financial assets The following table show the financial assets recorded at fair value analysed by the different basis of fair values as follows:
30 June 2014 Level 1 - Quoted market price Level 2 - Market observable inputs
31 December 2013 Level 1 - Quoted market price Level 2 - Market observable inputs
9
AFS RM’000
FVTPL RM’000
Total RM’000
115,564 302,100 ──────── 417,664 ════════
84,098 186,848 ──────── 270,946 ════════
199,662 488,948 ──────── 688,610 ════════
AFS RM’000
FVTPL RM’000
Total RM’000
102,653 265,973 ──────── 368,626 ════════
81,064 168,263 ──────── 249,327 ════════
183,717 434,236 ──────── 617,953 ════════
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 8.
INVESTMENTS (CONTINUED) The Company categorises its fair value measurements according to a three-level hierarchy. The hierarchy prioritises the inputs used by the Company’s valuation techniques for determining the fair value of the financial assets. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three-level hierarchy is defined as follows:
9.
Level 1 -
Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Valuations are based on quoted prices reflecting market transactions involving assets or liabilities identical to those being measured.
Level 2 -
Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, inputs that are observable that are not prices (such as interest rates, credit risks, etc) and inputs that are derived from or corroborated by observable market data.
Level 3 -
Fair value measurements using significant non market observable inputs. These include valuations for assets and liabilities that are derived using data, some or all of which is not market observable, including assumptions about risk.
REINSURANCE ASSETS
Reinsurance of insurance contracts: - Insurance contract liabilities (Note 10) - Insurance claims liabilities
30.6.2014 RM’000
31.12.2013 RM’000
25,256 599 ──────── 25,855 ════════
23,625 934 ──────── 24,559 ════════
The carrying amounts disclosed above approximate the fair values as at the date of the statement of financial position.
10
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 10.
INSURANCE CONTRACT LIABILITIES
Gross RM’000 Actuarial liabilities Unallocated surplus Available-for-sale reserve Net asset value attributable to unitholders Less: Elimination of Shareholders’ fund investment in investment-linked funds
455,802 20,578
30.6.2014 Reinsu -rance RM’000 (25,256)
-
8,602
Net RM’000
Gross RM’000
430,546 20,578
396,083 25,360
8,602
7,084
31.12.2013 Reinsu -rance RM’000 (23,625)
-
Net RM’000 372,458 25,360 7,084
126,408 611,390
(25,256)
126,408 586,134
113,210 541,737
(23,625)
113,210 518,112
(20,217) 591,173
(25,256)
(20,217) 565,917
¤(19,500) 522,237
(23,625)
(19,500) 498,612
The insurance contract liabilities and movements therein are further analysed as follows: 30.6.2014
Gross RM’000
Balance at 1 January 2014
522,237
Reserve movement for in-force policies Reserve for new business Change in discount rate Change in valuation methodology Adjustment of asset share Other changes in reserving Increase in unallocated surplus Change in net asset value attributable to unitholders
47,226 13,392 4,544 (776) (5,867) 1,200 (4,782) 13,198 68,135
Elimination of Shareholders’ fund investment in investment-linked funds Available-for-sale fair value adjustment
(716) 1,517
Balance at 30 June 2014
591,173
11
Reinsurance RM’000 (23,625) 828 (2,721) (293) 555 (1,631) (25,256)
Net RM’000 498,612 48,054 10,671 4,251 (776) (5,867) 1,755 (4,782) 13,198 66,504 (716) 1,517 565,917
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 10.
INSURANCE CONTRACT LIABILITIES (CONTINUED) The insurance contract liabilities and movements therein are further analysed as follows: (continued)
31.12.2013
Gross RM’000
Reinsurance RM’000
Net RM’000
Balance at 1 January 2013
679,582
(21,212)
658,370
Reserve movement for in-force policies Reserve for new business Change in discount rate Change in other assumptions Change in valuation methodology Adjustment of asset share Other changes in reserving Increase in unallocated surplus Change in net asset value attributable to unitholders
82,587 30,665 (21,188) 1,650 (1,983) (1,964) 4,398 4,071 (238,954) (140,718)
Elimination of Shareholders’ fund investment in investment-linked funds Available-for-sale fair value adjustment Balance at 31 December 2013
12
(19,500) 2,873 522,237
959 (3,364) 1,542 (1,008) (542) (2,413) (23,625)
83,546 27,301 (19,646) 642 (1,983) (1,964) 3,856 4,071 (238,954) (143,131) (19,500) 2,873 498,612
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 11.
CASH FLOWS GENERATED FROM OPERATING ACTIVITIES
Net (loss)/profit for the financial period Non-cash items: Taxation Investment income Depreciation of property and equipment Amortisation of intangible assets Gain on disposal of investments Fair value (gain)/loss on investments Allowance for impairment on other receivables Changes in working capital: Increase in loans Decrease in fixed and call deposits Increase in insurance receivables Increase in other receivables Increase in reinsurance assets Increase/(decrease) in insurance contract liabilities (Decrease)/increase in insurance claims liabilities Increase in insurance payables Decrease in reinsurance liabilities Increase in other payables Cash flows generated from/(used in) operating activities
12.
30.6.2014 RM’000
30.6.2013 RM’000
(632)
56
1,532 (12,897) 456 1,512 (1,367) (3,845) 381
(493) (19,358) 500 1,713 (7,460) 28,281 439
(1,413) 47,986 (6,304) (453) (1,296) 68,135 (1,421) 1,766 (1,128) 828 ───── 91,840 ════════
(348) 9,382 (4,989) (2,577) (1,863) (126,324) 41 9,241 (891) 4,849 ───── (109,801) ════════
NON-CANCELLABLE OPERATING LEASE COMMITMENTS The future minimum lease payments of the non-cancellable operating lease agreements are as follows: 30.6.2014
30.6.2013
RM’000
RM’000
Not later than 1 year
2,678
1,507
Later than 1 year and not later than 5 years
2,051
457
4,729
1,964
13
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 13.
CAPITAL COMMITMENTS There are no capital commitments for the financial period ended 30 June 2014 and financial year ended 31 December 2013.
14.
RISK MANAGEMENT FRAMEWORK The capital structure of the Company as at 30 June 2014, as prescribed under the RBC Framework, is shown below: 30.6.2014 RM’000 Eligible Tier 1 Capital Share capital Accumulated losses Eligible contract liabilities Tier 2 Capital Available-for-sale Amounts deducted from capital Total capital available
31.12.2013 RM’000
288,000 (34,602) 20,579 ─────── 273,977
288,000 (33,970) 88,335 ─────── 342,365
26,962 (99,120) ─────── 201,819 ═══════
24,707 (99,120) ─────── 267,952 ═══════
The Company has met the minimum capital requirements specified in the RBC Framework for the financial period ended 30 June 2014 and financial year ended 31 December 2013. 15.
INSURANCE FUNDS The Company’s activities are organised by funds and segregated into the Life and Shareholders’ funds in accordance with the Insurance Act, 1996 and Insurance Regulations, 1996. The Company’s statement of financial position and statement of income have been further analysed by funds.
14
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION BY FUNDS AS AT 30 JUNE 2014 Shareholders’ fund 30.6.2014 31.12.2013 ASSETS Property and equipment Intangible assets Investments AFS financial assets
Life fund 30.6.2014 31.12.2013
Investment-linked funds 30.6.2014 31.12.2013
Elimination 30.6.2014 31.12.2013
Total 30.6.2014 31.12.2013
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
-
-
1,729
1,980
-
-
-
-
1,729
1,980
99,120
99,120
2,594
3,686
-
-
109,743
107,876
516,455
500,523
115,397
108,405
88,609
88,027
329,055
280,599
-
-
(20,217) -
101,714
102,806
721,378
697,304
-
417,664
368,626
FVTPL financial assets
-
-
175,766
160,422
115,397
108,405
(19,500)
270,946
249,327
Loans and receivables
21,134
19,849
11,634
59,502
-
-
-
-
32,768
79,351
Reinsurance assets
-
-
25,855
24,559
-
-
-
-
25,855
24,559
Insurance receivables
-
-
14,482
8,179
-
-
-
-
14,482
8,179
-
7,300
7,300
5,113
4,661
99,612
61,572
977,183
908,361
Assets held for sale Other receivables Cash and cash equivalents TOTAL ASSETS
-
-
7,300
7,300
-
-
66,547
68,250
4,690
4,411
1,492
477
2,017
2,134
84,484
52,912
13,111
6,526
277,427
277,380
657,589
603,550
130,000
115,408
15
(20,217)
(19,500)
(67,616) (87,833)
(68,477) (87,977)
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION BY FUNDS AS AT 30 JUNE 2014 (CONTINUED) Shareholders’ fund 30.6.2014 31.12.2013 RM’000 RM’000 EQUITY, POLICYHOLDERS' FUNDS AND LIABILITIES Share capital Accumulated losses Available-for-sale reserve TOTAL EQUITY LIABILITIES Insurance contract liabilities Insurance claims liabilities Deferred tax liabilities Insurance payables Reinsurance liabilities Current tax liabilities Other payables TOTAL LIABILITIES TOTAL EQUITY, POLICYHOLDERS' FUNDS AND LIABILITIES
288,000 (34,602) 18,361 271,759
288,000 (33,970) 17,623 271,653
-
-
2,609 2,788 271 5,668
2,449 2,717 561 5,727
277,427
277,380
Life fund 30.6.2014 31.12.2013 RM’000 RM’000
Investment-linked funds 30.6.2014 31.12.2013 RM’000 RM’000
Elimination 30.6.2014 31.12.2013 RM’000 RM’000
-
-
-
-
484,982
428,528
126,408
113,209
(20,217)
4,731 1,746 55,646 4,012 (3,065) 109,537 657,589
6,152 1,801 53,880 5,140 (2,159) 110,208 603,550
397 1,098 2,097 130,000
40 990 1,169 115,408
(67,616) (87,833)
657,589
603,550
130,000
115,408
(87,833)
16
-
-
30.6.2014 RM’000
Total 31.12.2013 RM’000
288,000 (34,602) 18,361 271,759
288,000 (33,970) 17,623 271,653
591,173
522,237
(68,477) (87,977)
4,731 4,752 55,646 4,012 821 44,289 705,424
6,152 4,290 53,880 5,140 1,548 43,461 636,708
(87,977)
977,183
908,361
(19,500)
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED)
15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF INCOME BY FUNDS FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2014 Shareholders’ fund 30.6.2014 30.6.2013 RM’000 RM’000 Gross premiums Premiums ceded to reinsurers Net premiums Reinsurance commission income Investment income Net realised gains Net fair value gains Other operating income Other revenue Gross benefits and claims paid Claims ceded to reinsurers Gross change to contract liabilities Change in contract liabilities ceded to reinsurers Net claims Net fair value losses Fee and commission expense Management expenses Other operating expenses Other expenses
-
-
1,650 22 1,672
1,584 365 1,949
-
Life fund 30.6.2014 30.6.2013 RM’000 RM’000 127,968 (8,227) 119,741
107,706 (6,515) 101,191
699 10,817 493 281 12,290
969 7,939 942 195 10,045
-
(29,641) 5,500
-
-
(1,869) (1,869)
Investment-linked funds 30.6.2014 30.6.2013 RM’000 RM’000
Total 30.6.2013 RM’000
9,945 9,945
145,299 (8,227) 137,072
117,651 (6,515) 111,136
430 874 3,845 (29) 5,120
9,835 6,153 22 16,010
699 12,897 1,367 3,845 274 19,082
969 19,358 7,460 217 28,004
(20,486) 2,301
(9,781) -
(170,358) -
(39,422) 5,500
(190,844) 2,301
(55,947)
(44,615)
(12,188)
170,939
(68,135)
126,324
-
1,632
1,863
-
(78,456)
(60,937)
(21,969)
581
(100,425)
(60,356)
(22,712) (29,543) (690) (52,945)
(867) (17,765) (29,791) (1,260) (49,683)
(15) (15)
(27,414) (15) (25) (27,454)
(22,712) (31,427) (690) (54,829)
(28,281) (17,765) (31,895) (1,285) (79,226)
(2,089) (2,089)
17
17,331 17,331
30.6.2014 RM’000
-
-
1,632
1,863
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED)
15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF INCOME BY FUNDS FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2014 (CONTINUED) Shareholders’ fund 30.6.2014 30.6.2013 RM’000 RM’000 Profit before taxation Tax expense attributable to participating policyholders Profit before taxation attributable to Shareholders
(197)
(197)
Taxation Tax expense attributable to participating policyholders Tax expense attributable to Shareholders
(435)
(435)
Net profit for the financial period
(632)
-
-
(140)
Life fund 30.6.2014 30.6.2013 RM’000 RM’000
Investment-linked funds 30.6.2014 30.6.2013 RM’000 RM’000
Total 30.6.2014 30.6.2013 RM’000 RM’000
630
616
467
(918)
900
(442)
(433)
(242)
(467)
918
(900)
676
(140)
197
374
196
(630)
(616)
(467)
918
433
242
467
(918)
196
(197)
(374)
-
56
-
-
-
-
-
18
-
-
(1,532)
234 498
900
(676)
-
(632)
(178)
-
(632)
56
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED)
15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS BY FUNDS FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2014 Shareholders’ Fund 30.6.2014 30.6.2013 RM’000 RM’000
Life Fund 30.6.2014 30.6.2013 RM’000 RM’000
Investment-linked Funds 30.6.2014 30.6.2013 RM’000 RM’000
Total 30.6.2014 30.6.2013 RM’000 RM’000
Cash flows from: Operating activities
(116)
(407)
Investing activities
-
-
Financing activities
-
-
(116) Cash and cash equivalents: Net (decrease)/increase in cash and cash equivalents
(116)
(407)
(407)
32,195 (624) 31,571
16,741
6,585
2,671
-
-
-
-
-
16,117
6,585
2,671
38,040
(624) -
38,664 (624)
19,005 (624) 18,381
31,571
16,117
6,585
2,671
38,040
18,381
At beginning of the financial period
2,134
2,822
52,912
48,168
6,526
5,703
61,572
56,693
At end of the financial period
2,018
2,415
84,483
64,285
13,111
8,374
99,612
19
75,074
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2014
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
REPORTS AND FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2014
CONTENTS
PAGE
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION
1
UNAUDITED CONDENSED STATEMENT OF INCOME
2
UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
3
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY
4
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
5
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
6 – 19
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014
Note
ASSETS Property and equipment Intangible assets Investments Available-for-sale financial assets Fair value through profit or loss financial assets Loans and receivables Reinsurance assets Insurance receivables Assets held for sale Other receivables Cash and cash equivalents
8
9
TOTAL ASSETS
30.6.2014 RM’000
31.12.2013 RM’000
1,729 101,714 721,378 417,664 270,946 32,768
1,980 102,806 697,304 368,626 249,327 79,351
25,855 14,482 7,300 5,113 99,612 ──────── 977,183 ════════
24,559 8,179 7,300 4,661 61,572 ──────── 908,361 ════════
288,000 (34,602) 18,361 ──────── 271,759 ────────
288,000 (33,970) 17,623 ──────── 271,653 ────────
591,173 4,731 4,752 55,646 4,012 821 44,289 ──────── 705,424 ────────
522,237 6,152 4,290 53,880 5,140 1,548 43,461 ──────── 636,708 ────────
977,183 ════════
908,361 ════════
EQUITY, POLICYHOLDERS’ FUNDS AND LIABILITIES Share capital Accumulated losses Available-for-sale reserve TOTAL EQUITY
LIABILITIES Insurance contract liabilities Insurance claims liabilities Deferred tax liabilities Insurance payables Reinsurance liabilities Current tax liabilities Other payables
10
TOTAL LIABILITIES TOTAL EQUITY, POLICYHOLDERS' FUNDS AND LIABILITIES
The accompanying notes form an integral part of the financial statements.
1
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF INCOME FOR THE HALF-YEAR ENDED 30 JUNE 2014 30.6.2014 RM’000 Gross premiums Premiums ceded to reinsurers Net premiums
Reinsurance commission income Investment income Net realised gains Net fair value gains Other operating income Other revenue
Gross benefits and claims paid Claims ceded to reinsurers Gross change to insurance contract liabilities Changes in insurance contract liabilities ceded to reinsurers Net claims
Net fair value losses Commission and agency expenses Management expenses Other operating expenses Other expenses Profit/(loss) before taxation Tax expense attributable to participating policyholders Profit/(loss) before taxation attributable to Shareholders
145,299 (8,227) ──── 137,072 ────
117,651 (6,515) ──── 111,136 ────
699 12,897 1,367 3,845 274 ──── 19,082 ────
969 19,358 7,460 217 ──── 28,004 ────
(39,422) 5,500 (68,135)
(190,844) 2,301 126,324
1,632 ──── (100,425) ────
1,863 ──── (60,356) ────
(22,712) (31,427) (690) ──── (54,829) ──── 900
(28,281) (17,765) (31,895) (1,285) ──── (79,226) ──── (442)
(900) ──── -
676 ──── 234
Taxation Tax expense attributable to participating policyholders Tax expense attributable to Shareholders Net (loss)/ profit for the financial period
Basic (loss)/earnings per share (sen)
(1,532) 900
498 (676)
(632) ───── (632) ════════
(178) ───── 56 ════════
(0.22) ════════
0.02 ════════
The accompanying notes form an integral part of the financial statements.
2
30.6.2013 RM’000
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 30 JUNE 2014
Net profit for the financial period
30.6.2014 RM’000
30.6.2013 RM’000
(632)
56
Other comprehensive income: Items that may be subsequently reclassified to profit or loss: Fair value changes on available-for-sale financial assets, net of deferred tax Gross fair value changes Deferred tax Net fair value changes Change in insurance contract liabilities arising from unrealised net fair value changes Other comprehensive income for the financial period, net of tax Total comprehensive income for the financial period
2,550 (295) 2,255
7,000 (33) 6,967
(1,517)
(4,712)
738 106
The accompanying notes form an integral part of the financial statements.
3
2,255 2,311
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 JUNE 2014
At 1 January 2014 Total comprehensive income for the financial period At 30 June 2014
At 1 January 2013 Total comprehensive income for the financial period At 31 June 2013
The accompanying notes form an integral part of the financial statements.
4
Share capital RM’000
Available-for-sale reserve RM’000
Accumulated losses RM’000
288,000
17,623
(33,970)
271,653
──────── 288,000 ════════
738 ──────── 18,361 ════════
(632) ──────── (34,602) ════════
106 ──────── 271,759 ════════
288,000
14,147
(39,752)
262,395
──────── 288,000 ════════
2,255 ──────── 16,402 ════════
56 ──────── (39,696) ════════
2,311 ──────── 264,706 ════════
Total RM’000
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 JUNE 2014 Note
30.6.2014 RM’000
30.6.2013 RM’000
11
91,840 32,555 (95,060) 696 10,588 137 (2,092) ────────
(109,801) 180,784 (68,810) 9,554 8,785 135 (1,642) ────────
38,664 ────────
19,005 ────────
(204) (420) ──────── (624) ────────
(134) (490) ──────── (624) ────────
38,040 61,572 ──────── 99,612 ════════
18,381 56,693 ──────── 75,074 ════════
31,182 68,430 ──────── 99,612 ════════
27,141 47,933 ──────── 75,074 ════════
Operating activities Cash flows generated from/(used in) operating activities Proceeds from disposal of investments Purchase of investments Dividend income received Interest income received Rental income received on investment properties Income tax paid Net cash flows generated from operating activities
Investing activities Purchase of property and equipment Purchase of intangible assets Net cash flows used in investing activities
Net increase in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 30 June
Cash and cash equivalents comprise: Cash and bank balances Fixed and call deposits
The accompanying notes form an integral part of the financial statements.
5
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 1.
BASIS OF PREPARATION
The condensed interim financial statements of the Company for the half-year ended 30 June 2014 are unaudited and have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”) 134 Interim Financial Reporting. 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 company’s audited financial statements for the year ended 31 December 2013. The explanatory notes attached to the condensed interim financial statements provide an explanation of events and transactions that are significant to gain an understanding of the changes in the financial position and performance of the Company since the financial year ended 31 December 2013. The following MFRS and Amendments to MFRS were issued but not yet effective and have not been applied by the Company: MFRS and Amendments to MFRS MFRS 132 Financial Instruments: Presentation MFRS 9
Effective date 1 January 2014
Financial Instruments: Classification and Effective date yet to be Measurement of Financial Assets and Financial determined by the Liabilities Malaysian Accounting Standards Board
The Company is reviewing the adoption of the above accounting standards, amendments to published standards and interpretations to existing standards and will complete the process prior to the reporting requirement deadline. The Company has not finalised any financial impact of the adoption of the above accounting standards.
6
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 2.
UNUSUAL ITEMS There were no unusual items affecting assets, liabilities, equity, net income or cash flows of the Company for the half-year ended 30 June 2014.
3.
CHANGES IN ESTIMATES There were no material changes in the basis used for accounting estimates for the condensed interim financial statements for the half-year ended 30 June 2014.
4.
SEASONAL OR CYCLICAL FACTORS The business operations of the Company were not significantly affected by seasonality or cyclical factors for the period under review.
5.
DEBT AND EQUITY SECURITIES There were no issuance, cancellation, repurchase, resale or repayment of debt and equity securities during the half-year ended 30 June 2014.
6.
DIVIDEND No dividend has been declared or paid by the Company during the period under review.
7.
SIGNIFICANT EVENTS There were no material events subsequent to the date of the statement of financial position that require disclosure or adjustments to the condensed interim financial statements.
7
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 8.
INVESTMENTS The financial assets are summarised by categories as follows:
Available-for-sale (“AFS”) financial assets (a) Fair value through profit or loss (“FVTPL”) financial assets – designated upon initial recognition (b) Loans and receivables (“LAR”) (c)
30.6.2014 RM’000
31.12.2013 RM’000
417,664
368,626
270,946 32,768 ──────── 721,378 ════════
249,327 79,351 ──────── 697,304 ════════
291,000
256,184
139,040 44 ──────── 430,084 ════════
140,195 47 ──────── 396,426 ════════
68,180 225,386 42,997 20,217 60,884 ──────── 417,664 ════════
62,902 195,469 37,899 19,500 52,856 ──────── 368,626 ════════
The following financial assets mature after 12 months:
AFS financial assets FVTPL financial assets – designated upon initial recognition LAR
(a)
AFS financial assets At fair value Malaysian Government securities Debt securities unquoted in Malaysia Equity securities quoted in Malaysia Investment-linked funds Unit and property trust funds quoted in Malaysia
8
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 8.
INVESTMENTS (CONTINUED) (b)
FVTPL financial assets – designated upon initial recognition At fair value Malaysian Government securities Equity securities quoted in Malaysia Equity securities quoted outside Malaysia Debt securities unquoted in Malaysia Structured investments quoted inside Malaysia Structured investments quoted outside Malaysia Unit and property trust funds quoted in Malaysia
(c)
31.12.2013 RM’000
71,173 14,960 3,572 115,675 28,983 36,364 219 ──────── 270,946 ════════
67,883 13,730 4,718 100,380 29,486 33,013 117 ──────── 249,327 ════════
11,579 56 21,133 ──────── 32,768 ════════
9,757 63 69,531 ──────── 79,351 ════════
LAR At amortised cost Policy loans Mortgage loans Fixed and call deposits
(d)
30.6.2014 RM’000
Fair values of financial assets The following table show the financial assets recorded at fair value analysed by the different basis of fair values as follows:
30 June 2014 Level 1 - Quoted market price Level 2 - Market observable inputs
31 December 2013 Level 1 - Quoted market price Level 2 - Market observable inputs
9
AFS RM’000
FVTPL RM’000
Total RM’000
115,564 302,100 ──────── 417,664 ════════
84,098 186,848 ──────── 270,946 ════════
199,662 488,948 ──────── 688,610 ════════
AFS RM’000
FVTPL RM’000
Total RM’000
102,653 265,973 ──────── 368,626 ════════
81,064 168,263 ──────── 249,327 ════════
183,717 434,236 ──────── 617,953 ════════
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 8.
INVESTMENTS (CONTINUED) The Company categorises its fair value measurements according to a three-level hierarchy. The hierarchy prioritises the inputs used by the Company’s valuation techniques for determining the fair value of the financial assets. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three-level hierarchy is defined as follows:
9.
Level 1 -
Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Valuations are based on quoted prices reflecting market transactions involving assets or liabilities identical to those being measured.
Level 2 -
Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, inputs that are observable that are not prices (such as interest rates, credit risks, etc) and inputs that are derived from or corroborated by observable market data.
Level 3 -
Fair value measurements using significant non market observable inputs. These include valuations for assets and liabilities that are derived using data, some or all of which is not market observable, including assumptions about risk.
REINSURANCE ASSETS
Reinsurance of insurance contracts: - Insurance contract liabilities (Note 10) - Insurance claims liabilities
30.6.2014 RM’000
31.12.2013 RM’000
25,256 599 ──────── 25,855 ════════
23,625 934 ──────── 24,559 ════════
The carrying amounts disclosed above approximate the fair values as at the date of the statement of financial position.
10
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 10.
INSURANCE CONTRACT LIABILITIES
Gross RM’000 Actuarial liabilities Unallocated surplus Available-for-sale reserve Net asset value attributable to unitholders Less: Elimination of Shareholders’ fund investment in investment-linked funds
455,802 20,578
30.6.2014 Reinsu -rance RM’000 (25,256)
-
8,602
Net RM’000
Gross RM’000
430,546 20,578
396,083 25,360
8,602
7,084
31.12.2013 Reinsu -rance RM’000 (23,625)
-
Net RM’000 372,458 25,360 7,084
126,408 611,390
(25,256)
126,408 586,134
113,210 541,737
(23,625)
113,210 518,112
(20,217) 591,173
(25,256)
(20,217) 565,917
¤(19,500) 522,237
(23,625)
(19,500) 498,612
The insurance contract liabilities and movements therein are further analysed as follows: 30.6.2014
Gross RM’000
Balance at 1 January 2014
522,237
Reserve movement for in-force policies Reserve for new business Change in discount rate Change in valuation methodology Adjustment of asset share Other changes in reserving Increase in unallocated surplus Change in net asset value attributable to unitholders
47,226 13,392 4,544 (776) (5,867) 1,200 (4,782) 13,198 68,135
Elimination of Shareholders’ fund investment in investment-linked funds Available-for-sale fair value adjustment
(716) 1,517
Balance at 30 June 2014
591,173
11
Reinsurance RM’000 (23,625) 828 (2,721) (293) 555 (1,631) (25,256)
Net RM’000 498,612 48,054 10,671 4,251 (776) (5,867) 1,755 (4,782) 13,198 66,504 (716) 1,517 565,917
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 10.
INSURANCE CONTRACT LIABILITIES (CONTINUED) The insurance contract liabilities and movements therein are further analysed as follows: (continued)
31.12.2013
Gross RM’000
Reinsurance RM’000
Net RM’000
Balance at 1 January 2013
679,582
(21,212)
658,370
Reserve movement for in-force policies Reserve for new business Change in discount rate Change in other assumptions Change in valuation methodology Adjustment of asset share Other changes in reserving Increase in unallocated surplus Change in net asset value attributable to unitholders
82,587 30,665 (21,188) 1,650 (1,983) (1,964) 4,398 4,071 (238,954) (140,718)
Elimination of Shareholders’ fund investment in investment-linked funds Available-for-sale fair value adjustment Balance at 31 December 2013
12
(19,500) 2,873 522,237
959 (3,364) 1,542 (1,008) (542) (2,413) (23,625)
83,546 27,301 (19,646) 642 (1,983) (1,964) 3,856 4,071 (238,954) (143,131) (19,500) 2,873 498,612
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 11.
CASH FLOWS GENERATED FROM OPERATING ACTIVITIES
Net (loss)/profit for the financial period Non-cash items: Taxation Investment income Depreciation of property and equipment Amortisation of intangible assets Gain on disposal of investments Fair value (gain)/loss on investments Allowance for impairment on other receivables Changes in working capital: Increase in loans Decrease in fixed and call deposits Increase in insurance receivables Increase in other receivables Increase in reinsurance assets Increase/(decrease) in insurance contract liabilities (Decrease)/increase in insurance claims liabilities Increase in insurance payables Decrease in reinsurance liabilities Increase in other payables Cash flows generated from/(used in) operating activities
12.
30.6.2014 RM’000
30.6.2013 RM’000
(632)
56
1,532 (12,897) 456 1,512 (1,367) (3,845) 381
(493) (19,358) 500 1,713 (7,460) 28,281 439
(1,413) 47,986 (6,304) (453) (1,296) 68,135 (1,421) 1,766 (1,128) 828 ───── 91,840 ════════
(348) 9,382 (4,989) (2,577) (1,863) (126,324) 41 9,241 (891) 4,849 ───── (109,801) ════════
NON-CANCELLABLE OPERATING LEASE COMMITMENTS The future minimum lease payments of the non-cancellable operating lease agreements are as follows: 30.6.2014
30.6.2013
RM’000
RM’000
Not later than 1 year
2,678
1,507
Later than 1 year and not later than 5 years
2,051
457
4,729
1,964
13
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 13.
CAPITAL COMMITMENTS There are no capital commitments for the financial period ended 30 June 2014 and financial year ended 31 December 2013.
14.
RISK MANAGEMENT FRAMEWORK The capital structure of the Company as at 30 June 2014, as prescribed under the RBC Framework, is shown below: 30.6.2014 RM’000 Eligible Tier 1 Capital Share capital Accumulated losses Eligible contract liabilities Tier 2 Capital Available-for-sale Amounts deducted from capital Total capital available
31.12.2013 RM’000
288,000 (34,602) 20,579 ─────── 273,977
288,000 (33,970) 88,335 ─────── 342,365
26,962 (99,120) ─────── 201,819 ═══════
24,707 (99,120) ─────── 267,952 ═══════
The Company has met the minimum capital requirements specified in the RBC Framework for the financial period ended 30 June 2014 and financial year ended 31 December 2013. 15.
INSURANCE FUNDS The Company’s activities are organised by funds and segregated into the Life and Shareholders’ funds in accordance with the Insurance Act, 1996 and Insurance Regulations, 1996. The Company’s statement of financial position and statement of income have been further analysed by funds.
14
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION BY FUNDS AS AT 30 JUNE 2014 Shareholders’ fund 30.6.2014 31.12.2013 ASSETS Property and equipment Intangible assets Investments AFS financial assets
Life fund 30.6.2014 31.12.2013
Investment-linked funds 30.6.2014 31.12.2013
Elimination 30.6.2014 31.12.2013
Total 30.6.2014 31.12.2013
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
-
-
1,729
1,980
-
-
-
-
1,729
1,980
99,120
99,120
2,594
3,686
-
-
109,743
107,876
516,455
500,523
115,397
108,405
88,609
88,027
329,055
280,599
-
-
(20,217) -
101,714
102,806
721,378
697,304
-
417,664
368,626
FVTPL financial assets
-
-
175,766
160,422
115,397
108,405
(19,500)
270,946
249,327
Loans and receivables
21,134
19,849
11,634
59,502
-
-
-
-
32,768
79,351
Reinsurance assets
-
-
25,855
24,559
-
-
-
-
25,855
24,559
Insurance receivables
-
-
14,482
8,179
-
-
-
-
14,482
8,179
-
7,300
7,300
5,113
4,661
99,612
61,572
977,183
908,361
Assets held for sale Other receivables Cash and cash equivalents TOTAL ASSETS
-
-
7,300
7,300
-
-
66,547
68,250
4,690
4,411
1,492
477
2,017
2,134
84,484
52,912
13,111
6,526
277,427
277,380
657,589
603,550
130,000
115,408
15
(20,217)
(19,500)
(67,616) (87,833)
(68,477) (87,977)
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED) 15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION BY FUNDS AS AT 30 JUNE 2014 (CONTINUED) Shareholders’ fund 30.6.2014 31.12.2013 RM’000 RM’000 EQUITY, POLICYHOLDERS' FUNDS AND LIABILITIES Share capital Accumulated losses Available-for-sale reserve TOTAL EQUITY LIABILITIES Insurance contract liabilities Insurance claims liabilities Deferred tax liabilities Insurance payables Reinsurance liabilities Current tax liabilities Other payables TOTAL LIABILITIES TOTAL EQUITY, POLICYHOLDERS' FUNDS AND LIABILITIES
288,000 (34,602) 18,361 271,759
288,000 (33,970) 17,623 271,653
-
-
2,609 2,788 271 5,668
2,449 2,717 561 5,727
277,427
277,380
Life fund 30.6.2014 31.12.2013 RM’000 RM’000
Investment-linked funds 30.6.2014 31.12.2013 RM’000 RM’000
Elimination 30.6.2014 31.12.2013 RM’000 RM’000
-
-
-
-
484,982
428,528
126,408
113,209
(20,217)
4,731 1,746 55,646 4,012 (3,065) 109,537 657,589
6,152 1,801 53,880 5,140 (2,159) 110,208 603,550
397 1,098 2,097 130,000
40 990 1,169 115,408
(67,616) (87,833)
657,589
603,550
130,000
115,408
(87,833)
16
-
-
30.6.2014 RM’000
Total 31.12.2013 RM’000
288,000 (34,602) 18,361 271,759
288,000 (33,970) 17,623 271,653
591,173
522,237
(68,477) (87,977)
4,731 4,752 55,646 4,012 821 44,289 705,424
6,152 4,290 53,880 5,140 1,548 43,461 636,708
(87,977)
977,183
908,361
(19,500)
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED)
15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF INCOME BY FUNDS FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2014 Shareholders’ fund 30.6.2014 30.6.2013 RM’000 RM’000 Gross premiums Premiums ceded to reinsurers Net premiums Reinsurance commission income Investment income Net realised gains Net fair value gains Other operating income Other revenue Gross benefits and claims paid Claims ceded to reinsurers Gross change to contract liabilities Change in contract liabilities ceded to reinsurers Net claims Net fair value losses Fee and commission expense Management expenses Other operating expenses Other expenses
-
-
1,650 22 1,672
1,584 365 1,949
-
Life fund 30.6.2014 30.6.2013 RM’000 RM’000 127,968 (8,227) 119,741
107,706 (6,515) 101,191
699 10,817 493 281 12,290
969 7,939 942 195 10,045
-
(29,641) 5,500
-
-
(1,869) (1,869)
Investment-linked funds 30.6.2014 30.6.2013 RM’000 RM’000
Total 30.6.2013 RM’000
9,945 9,945
145,299 (8,227) 137,072
117,651 (6,515) 111,136
430 874 3,845 (29) 5,120
9,835 6,153 22 16,010
699 12,897 1,367 3,845 274 19,082
969 19,358 7,460 217 28,004
(20,486) 2,301
(9,781) -
(170,358) -
(39,422) 5,500
(190,844) 2,301
(55,947)
(44,615)
(12,188)
170,939
(68,135)
126,324
-
1,632
1,863
-
(78,456)
(60,937)
(21,969)
581
(100,425)
(60,356)
(22,712) (29,543) (690) (52,945)
(867) (17,765) (29,791) (1,260) (49,683)
(15) (15)
(27,414) (15) (25) (27,454)
(22,712) (31,427) (690) (54,829)
(28,281) (17,765) (31,895) (1,285) (79,226)
(2,089) (2,089)
17
17,331 17,331
30.6.2014 RM’000
-
-
1,632
1,863
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED)
15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF INCOME BY FUNDS FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2014 (CONTINUED) Shareholders’ fund 30.6.2014 30.6.2013 RM’000 RM’000 Profit before taxation Tax expense attributable to participating policyholders Profit before taxation attributable to Shareholders
(197)
(197)
Taxation Tax expense attributable to participating policyholders Tax expense attributable to Shareholders
(435)
(435)
Net profit for the financial period
(632)
-
-
(140)
Life fund 30.6.2014 30.6.2013 RM’000 RM’000
Investment-linked funds 30.6.2014 30.6.2013 RM’000 RM’000
Total 30.6.2014 30.6.2013 RM’000 RM’000
630
616
467
(918)
900
(442)
(433)
(242)
(467)
918
(900)
676
(140)
197
374
196
(630)
(616)
(467)
918
433
242
467
(918)
196
(197)
(374)
-
56
-
-
-
-
-
18
-
-
(1,532)
234 498
900
(676)
-
(632)
(178)
-
(632)
56
Company No. 723739
W
AXA AFFIN LIFE INSURANCE BERHAD (Incorporated in Malaysia)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS - 30 JUNE 2014 (CONTINUED)
15.
INSURANCE FUNDS (CONTINUED)
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS BY FUNDS FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2014 Shareholders’ Fund 30.6.2014 30.6.2013 RM’000 RM’000
Life Fund 30.6.2014 30.6.2013 RM’000 RM’000
Investment-linked Funds 30.6.2014 30.6.2013 RM’000 RM’000
Total 30.6.2014 30.6.2013 RM’000 RM’000
Cash flows from: Operating activities
(116)
(407)
Investing activities
-
-
Financing activities
-
-
(116) Cash and cash equivalents: Net (decrease)/increase in cash and cash equivalents
(116)
(407)
(407)
32,195 (624) 31,571
16,741
6,585
2,671
-
-
-
-
-
16,117
6,585
2,671
38,040
(624) -
38,664 (624)
19,005 (624) 18,381
31,571
16,117
6,585
2,671
38,040
18,381
At beginning of the financial period
2,134
2,822
52,912
48,168
6,526
5,703
61,572
56,693
At end of the financial period
2,018
2,415
84,483
64,285
13,111
8,374
99,612
19
75,074
