BIMB Integrated Annual Report 2019

22 TAKAFUL CONTRACT LIABILITIES (CONTINUED) (c) Participants’ fund (continued) The participants’ fund movements are analysed as follows: Group 2019 2018 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 6,062,086 (163,719) 5,898,367 5,773,238 (179,484) 5,593,754 Net earned contributions 2,471,876 (117,589) 2,354,287 2,031,898 (90,408) 1,941,490 Investment income on financial assets not measured at FVTPL 267,711 – 267,711 228,234 – 228,234 Investment income – others 41,427 – 41,427 52,000 – 52,000 Realised gains and losses 13,366 – 13,366 1,917 – 1,917 Fair value gains and losses 31,050 – 31,050 (73,883) – (73,883) Other operating income 3,143 – 3,143 255 – 255 Net benefits and claims (1,104,610) 100,730 (1,003,880) (1,073,609) 65,768 (1,007,841) Fees deducted (net) (963,022) – (963,022) (771,918) – (771,918) Impairment losses on financial instruments (1,286) – (1,286) 5,468 – 5,468 Other operating expenses (4,871) – (4,871) (61) – (61) Profit paid to participants (11,815) – (11,815) (23,698) – (23,698) Movement in actuarial liabilities 145,644 (151,137) (5,493) (15,688) 14,878 (810) Profit attributable to the Takaful Operator (83,534) 16,859 (66,675) (79,028) 24,641 (54,387) Excess payment transferred to participants (6,362) – (6,362) (7,634) – (7,634) Net change in fair value on debt instruments at FVOCI 243,553 – 243,553 43,984 – 43,984 Tax expense (13,072) – (13,072) (4,187) – (4,187) Withholding tax (4,876) – (4,876) (5,415) – (5,415) Effect of movement in exchange rates 12,810 (758) 12,052 (19,787) 886 (18,901) At 31 December 7,099,218 (315,614) 6,783,604 6,062,086 (163,719) 5,898,367 23 EXPENSE RESERVES Group 2019 2018 RM’000 RM’000 At 1 January 251,806 196,655 Provision for the year, net 59,588 52,260 Acquisition of General Takaful business – 3,077 Effect of movement in exchange rates 306 (186) At 31 December 311,700 251,806 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 242 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance