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NOTES TO THE
FINANCIAL STATEMENTS

for the financial year ended 31 december 2020 (continUed)

49 FINANCIAL RISk MANAGEMENT POLICIES (CONTINUED)
49.4 Market risk (continued)
(b) Takaful (continued)
takaful malaysia also issue unit-linked investment certificates. in the unit-linked business, the certificate holders
bear investment risk on the assets held in the unit-linked funds as the certificate benefits are directly linked to value
of the assets in the funds. takaful malaysia’s exposure to market risk on this business is limited to the extent that
inteGrated annUal rePort 2020 (i) profit yield risk
income arising from asset management charges is based on the value of the assets in the funds.

Profit yield risk is the risk that the value or future cash flows of a financial instrument will fluctuate because
of changes in market profit yield.
floating rate/yield instruments expose takaful to cash flow risk, whereas fixed rate/yield instruments expose
takaful to fair value risk.

takaful malaysia’s profit risk policy requires its management to manage the risk by maintaining an appropriate
mix of fixed rate/yield instruments. the policy also requires takaful management to manage the maturities
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of profit-bearing financial assets and liabilities. floating rate/yield instruments will be re-priced at intervals
of not more than one (1) year. Profit on fixed rate/yield instruments is priced at inception of the financial
instrument and is fixed until maturity.
bimb holdinGS berhad 199701008362 (423858-X) Fixed rate instruments Operator 345,093 General – Malaysia
the profit yield profile of the takaful malaysia Group and its subsidiaries’ significant profit-bearing financial
instruments, based on carrying amounts as at the end of the reporting period is as follows:

Takaful
Takaful
Family
Takaful
Takaful
Group
RM’000
RM’000
RM’000
RM’000
2020
55,560
fvtPl financial assets
400,653
791,951
3,010,726
524,952
811,130
amortised cost
1,674,644
fvoci financial assets 1,658,641 4,699,434 346,576 5,837,961
9,249,340
6,719,171
871,528
2019
fvtPl financial assets 61,610 356,115 15,199 432,924
fvoci financial assets 584,698 3,908,919 356,748 4,850,365
amortised cost 732,187 1,816,032 371,977 2,920,196
1,378,495 6,081,066 743,924 8,203,485
takaful malaysia has no significant concentration of profit yield risk.