Page 310 - Full Book_24.4.2021

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)
(ii) Other price risk

equity price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
inteGrated annUal rePort 2020 affecting similar financial instruments traded in the market.
because of changes in market prices (other than those arising from profit yield risk or currency risk), whether
those changes are caused by factors specific to the individual financial instrument or its issuer or factors

takaful’s equity price risk exposure relates to financial assets whose values will fluctuate as a result of
changes in market prices (excluding those investment securities held for the account of unit-linked business).
takaful’s price risk policy requires it to manage such risks by setting and monitoring objectives and constraints
on investments, diversification plans, limits on investments in each country, sector, market and issuer, having
regard also to such limits stipulated by bnm. takaful and its subsidiaries comply with bnm stipulated limits
during the financial year and has no significant concentration of price risk.
304
Equity price risk sensitivity analysis
the analysis below is performed for reasonably possible movements in key variables with all other variables
held constant, showing the impact on oci/equity for takaful operator, and showing the impact on
bimb holdinGS berhad 199701008362 (423858-X) but to demonstrate the impact due to changes in variables, variables had to be changed on individual basis.
operating surplus and participants’ fund for family takaful fund and General takaful fund accordingly.
the correlation of variables will have a significant effect in determining the ultimate impact on price risk,

it should be noted that movements in these variables are non-linear.

Impact on
Change
Impact on

Impact on
in
operating

Impact on
participants’
profit
equity*
after tax
surplus
fund

variables
RM’000
RM’000
RM’000
RM’000
2020
45,006
Market price
45,006
1,176
1,176
Market price
-15%
2019 +15% (1,176) (1,176) (45,006) (45,006)
Market price +15% 844 844 44,905 44,905
Market price -15% (810) (810) (44,905) (44,905)
* impact on equity reflects adjustments for tax, when applicable.