BIMB Integrated Annual Report 2019

48 FINANCIAL RISK MANAGEMENT POLICIES (CONTINUED) 48.5 Liquidity risk (continued) (b) Takaful 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 ensure sufficient funding is available to meet takaful 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. 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 takaful contract liabilities, maturity profiles are determined based on estimated timing of net cash outflows from the recognised takaful liabilities. Investment-linked liabilities are repayable or transferable on demand and are included in the “up to a year” column. Contractual Carrying Up to >1 to 3 >3 to 5 More than cash Note value a year* years years 5 years flow RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 2019 Provision for outstanding claims 22(a) 341,249 179,700 120,401 29,218 11,930 341,249 Lease liabilities 988 595 457 – – 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 2018 Provision for outstanding claims 22(a) 294,655 142,233 104,046 41,164 7,212 294,655 Takaful payables 21 114,267 114,267 – – – 114,267 Other payables 406,673 404,777 1,896 – – 406,673 815,595 661,277 105,942 41,164 7,212 815,595 * expected utilisation or settlement is within 12 months from the reporting date. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 299 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary