BIMB Integrated Annual Report 2019

34 NET BENEFITS, CLAIMS AND EXPENSE RESERVES Group 2019 2018 RM’000 RM’000 Gross benefits and claims paid (1,198,032) (1,112,557) Claims ceded to retakaful 226,870 160,215 Gross change to contract liabilities (69,754) (88,719) Change to contract liabilities ceded to retakaful 52,964 41,813 (987,952) (999,248) Expense reserves (59,588) (52,260) Net benefits, claims and expense reserves (1,047,540) (1,051,508) Gross benefits/claims paid (1,198,032) (1,112,557) Retakaful recoveries 226,870 160,215 Net benefits/claims paid (971,162) (952,342) Gross change in contract liabilities: At 31 December (703,598) (633,725) Less: At 1 January (633,725) (545,134) Acquisition of general takaful business – 39 Effect of movement in exchange rates 119 (167) (69,754) (88,719) Change in contract liabilities ceded to retakaful companies: At 31 December 349,548 296,534 Less: At 1 January 296,534 254,804 Effect of movement in exchange rates (50) 83 52,964 41,813 (987,952) (999,248) 35 NET ALLOWANCE FOR IMPAIRMENT ON FINANCING AND ADVANCES Group 2019 2018 RM’000 RM’000 Net allowance for impairment on financing, advances and others – Stage 1 24,186 27,183 – Stage 2 20,032 (3,759) – Stage 3 146,611 162,978 Bad debts and financing recovered (107,141) (104,948) 83,688 81,454 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 255 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary