Page 319 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

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for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

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49 FINANCIAL RISk MANAGEMENT POLICIES (CONTINUED)
49.5 Liquidity risk (continued)
(b) Takaful achieving a leading repute
the following policies and procedures are in place to mitigate exposure to liquidity risk at takaful malaysia level:

• Wide liquidity risk policy setting out the evaluation and determination of the components of liquidity risk. |
compliance with the policy is monitored and reported monthly and exposures and breaches are reported to
the risk management committee as soon as practicable. the policy is regularly reviewed for pertinence and for
changes in the risk environment.
• Setting up guidelines on asset allocations, portfolio limit structures and maturity profiles of assets, in order to Paving the Way for a Sustainable future
ensure sufficient funding is available to meet takaful and investment contracts obligations.
• Setting up contingency funding plans which specify minimum proportions of funds to meet emergency calls as
well as specifying events that would trigger such plans.

• The Takaful’s catastrophe excess-of-loss retakaful contracts contains clauses permitting the immediate
drawdown of funds to meet claims payments should claims events exceed certain amount.
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Maturity analysis

the table below summarises the maturity profile of the financial liabilities of the takaful malaysia Group based on
remaining undiscounted contractual obligations, including profit payable.
for provision for outstanding claims, maturity profiles are determined based on estimated timing of net cash
outflows from the recognised takaful liabilities.
Contractual Contractual adhering to the best Governance Practices
Carrying interest Up to >1 to 3 >3 to 5 More than cash
Note value rate a year * years years 5 years flow
RM’000 % RM’000 RM’000 RM’000 RM’000 RM’000
2020 |
Provision for
outstanding claims 22(a) 480,871 – 219,235 205,091 39,241 17,304 480,871
lease liabilities 807 6.34% to 6.50% 639 220 – – 859
takaful payables 21 232,529 – 232,529 – – – 232,529
other payables 438,811 – 436,772 2,039 – – 438,811 Laying the Foundation for Financial Growth

1,153,018 889,175 207,350 39,241 17,304 1,153,070

2019
Provision for
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outstanding claims 22(a) 341,249 – 179,700 120,401 29,218 11,930 341,249
additional information & disclosure Summary
Lease liabilities 988 6.34% to 6.50% 595 457 – – 1,052
takaful payables 21 175,351 – 175,351 – – – 175,351
other payables 314,592 – 312,613 1,979 – – 314,592
832,180 668,259 122,837 29,218 11,930 832,244

* expected utilisation or settlement is within 12 months from the reporting date.

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24 th aGm information