Zurich Life Insurance Malaysia Berhad Annual Report 2022

Shape
your
future
Reports
And Statutory
Financial
Statements
2022
At Zurich, we want to create a brighter future together
to benefit people and planet. This could mean pursuing
net-zero to safeguard the Earth, our only home. It could
mean preparing for the effects of climate change and
building resilience. For others, it means using the latest
technology available to actively manage medical conditions
or track fitness to avoid ill-health now or in the future.
We’re working with partners big and small to find

solutions to the most pressing societal and environmental
problems. And we’re making sure we look after all our
stakeholders, from investors to customers to employees.
By working together, you have the ability to
shape your future.

Company No.
196801000442 (8029-A)
ZURICH LIFE INSURANCE MALAYSIA BERHAD

(Incorporated in Malaysia)
CONTENTS PAGES
CORPORATE GOVERNANCE 1 - 16
DIRECTORS’ REPORT 17 - 21
STATEMENT BY DIRECTORS 22
STATUTORY DECLARATION 22
INDEPENDENT AUDITORS’ REPORT 23 - 26
FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION 27
STATEMENT OF PROFIT OR LOSS 28
STATEMENT OF COMPREHENSIVE INCOME 29
STATEMENT OF CHANGES IN EQUITY 30
STATEMENT OF CASH FLOWS 31
NOTES TO THE FINANCIAL STATEMENTS 32 - 128

Company No.
196801000442 (8029-A)

CORPORATE GOVERNANCE
Introduction
Zurich Life Insurance Malaysia Berhad (“the Company”) is committed to effective corporate
governance for the benefit of its shareholders, customers, employees and other stakeholders based
on the principles of fairness, transparency and accountability.
The Board of Directors (“the Board”) is satisfied that the Company has complied with all prescriptive
requirements of and adopts the Corporate Governance policy document issued by Bank Negara
Malaysia (“BNM”). The Board has continued its commitment in ensuring that the highest principles
and best practices in corporate governance are practised as a fundamental part of discharging its
responsibilities to protect and enhance shareholders’ value and the financial performance of the
Company.
Roles and responsibilities of the Board
The Board is responsible for the overall governance of the Company by providing guidance, including
setting the directions in terms of the Company’s corporate objectives and business strategies,
overseeing the conduct of business of the Company, implementing an appropriate system of risk
management and ensuring the adequacy and integrity of the Company’s internal control and reporting
procedures.
Composition of the Board
The composition of the Board since the date of the last report is as follows:
Choy Khai Choon Chairman (Non-Independent Non-Executive Director)*

Donald Joshua Jaganathan Member (Independent Non-Executive Director)
Onn Kien Hoe Member (Independent Non-Executive Director)
Datuk Dr Hafsah binti Hashim Member (Independent Non-Executive Director)
(Appointed on 1 September 2022)
Timothy William Howell Member (Executive Director)
Datin Joan Hoi Lai Ping Member (Independent Non-Executive Director)
(Retired on 17 September 2022)
* Mr Choy had been redesignated from Independent Non-Executive Director to Non-Independent

Non-Executive Director of the Company effective 17 September 2022 following the approval obtained
from BNM vide its letter dated 31 May 2022.
The Board comprises five Directors with skills and experience in a diverse range of business, financial,
technical and public service background. The Board is represented by one Non-Independent Non-
Executive Directors, three Independent Non-Executive Directors and one Executive Director. The
roles and activities of the Chairman and the Chief Executive Officer are distinct and separate. The
Company sets the tenure limit of its independent directors to maximum of nine years.
The appointments to the Board were approved by BNM. All appointments and reappointments of
Board members are subject to evaluation and review by the Nomination and Remuneration
Committee and approved by the Board before the applications are submitted to BNM for approval.
1
Company No.
196801000442 (8029-A)

CORPORATE GOVERNANCE (CONTINUED)
Profile of Directors
Choy Khai Choon

Malaysian, Male
Non-Independent Non-Executive Director/Chairman
Member of Audit Committee
Member of Board Investment Committee
Member of Risk Management and Sustainability Committee
Member of Nomination and Remuneration Committee
Mr Choy Khai Choon (“Mr Choy”) was appointed as an Independent Non-Executive Director and
Chairman of the Company on 17 September 2013 and 13 October 2018 respectively. Mr Choy was
subsequently redesignated as Non-Independent Non-Executive Director and Chairman of the
Company on 17 September 2022. Mr Choy is a member of the Audit Committee, Board Investment
Committee, Risk Management and Sustainability Committee, and Nomination and Remuneration
Committee of the Company.
Mr Choy graduated with a Bachelor of Commerce degree from The University of New South Wales,
Australia and holds a Master in Business Administration (MBA) from Oklahoma City University, USA.
He is a Member of the Malaysian Institute of Accountants and a Fellow of the Australian Certified
Public Accountants.
Mr Choy served as the President and Chief Executive Officer (“CEO”) of Cagamas Berhad from year
2006 to 2012 and was appointed director of Cagamas MBS Berhad, Cagamas SME Berhad, BNM
Sukuk Berhad, Cagamas HKMC Berhad and Cagamas SRP Berhad.
Prior to joining Cagamas Berhad, Mr Choy held key positions in leading financial institutions in the
areas of financial management, strategic planning and business development. Key roles held include
serving as Regional Finance/Planning Director of Aviva Insurance Asia, CEO of Morley Fund
Management Ltd, Aviva Insurance Group, Singapore and Senior General Manager, Group Head of
RHB Berhad.
Mr Choy is currently the Non-Independent Non-Executive Director and Chairman of Zurich General
Insurance Malaysia Berhad. Mr Choy is also an Independent Director of Hap Seng Plantations
Holdings Berhad, MSM Malaysia Holding Berhad and Asian Banking School Sdn Berhad. Mr Choy is,
additionally, the Non-Independent Non-Executive Director of Kenanga Investment Bank Berhad. He
also sits on the Board of Bond & Sukuk Information Platform Sdn Bhd, a wholly owned subsidiary of
the Securities Commission. Mr Choy is also Member of Labuan Financial Services Authority.
2
Company No.
196801000442 (8029-A)

Profile of Directors (continued)
Donald Joshua Jaganathan

Malaysian, Male
Independent Non-Executive Director
Chairman of Risk Management and Sustainability Committee
Chairman of Board Investment Committee
Mr Donald Joshua Jaganathan (“Mr Donald”) was appointed as Independent Non-Executive Director
of the Company on 1 November 2020. Mr Donald is the Chairman of Risk Management and
Sustainability Committee and Board Investment Committee of the Company. He is also a member of
Audit Committee and Nomination and Remuneration Committee of the Company.
Mr Donald holds a Bachelor of Accounting (Hons) from the University of Malaya and is a Member of
the Malaysian Institute of Accountants. He also holds a Master in Business Administration from the
Cranfield School of Management, United Kingdom and is an alumnus of the Advanced Management
Program, Harvard Business School.
Mr Donald is a Fellow Chartered Banker and serves as a Council Member of the Asian Institute of
Chartered Bankers and the Chairman of its Education Committee. He is also a member of the Board
of Directors of the Asian Banking School and the Chairman of its Talent Development Committee. He
also serves as members of Board of Directors of RHB Bank Berhad and RHB Insurance Berhad.
Mr Donald has had a fulfilling career with Bank Negara Malaysia (“BNM”) for 36 years, rising to the
rank of Assistant Governor, with key responsibilities over the financial stability function, including
oversight of BNM’s Financial Stability Report. His work experience included leadership and
management oversight over the supervision and regulation of the banking and insurance industry in
Malaysia, training and development activities with the banking and insurance institutes, and serving
as country representative in international supervisory bodies.
Mr Donald also held previous positions as the Chairman of the Board of Directors of Payments
Network Malaysia Sdn Bhd, Chairman of the Board Executive Committee of the Malaysian Insurance
Institute, Council Member of the Malaysian Institute of Accountants and Member of the Malaysian
Financial Reporting Foundation.
3
Company No.
196801000442 (8029-A)

Onn Kien Hoe

Malaysian, Male
Chairman of Audit Committee
Mr Onn Kien Hoe (“Mr Onn”) was appointed as an Independent Non-Executive Director of the
Company on 1 July 2021. Mr Onn is the Chairman of the Audit Committee of the Company. He is also
a member of Risk Management and Sustainability Committee, Board Investment Committee and the
Nomination and Remuneration Committee of the Company.
Mr Onn completed his professional qualification with the Association of Chartered Certified
Accountants (U.K.) in 1988 and has been in the accounting profession since then. He is also a member
of the Malaysian Institute of Accountants, Malaysian Institute of Certified Public Accountants and
Kampuchea Institute of Certified Public Accountants and Auditors.
Mr Onn is a partner with Crowe Malaysia PLT, an internationally affiliated accounting firm. His role
includes acting as the Co-Head of the Corporate Advisory Division of Crowe Malaysia. He is also a
Director in Crowe (KH) Co., Ltd, where he is also responsible for the operations of Crowe in Cambodia.
Mr Onn has extensive experience in the disciplines of audit, advisory and insolvency. He has
participated in cross border transactions including mergers and acquisitions, listing, reverse takeovers,
due diligence reviews and valuation assignments. His cross-border experience involves transactions
on international stock exchanges including London, Hong Kong, Singapore, Australia, Cambodia and
Malaysia.
Mr Onn has served as an examiner for the Malaysian Institute of Certified Public Accountants, a
member of the Interpretation Committee of the Malaysian Accounting Standards Board and a member
of the General Committee of Malaysian International Chamber of Commerce and Industry.
Mr Onn currently sits on the Board of Sern Kou Resources Berhad and several private limited
companies.
4
Company No.
196801000442 (8029-A)

Datuk Dr Hafsah binti Hashim

Malaysian, Female
Chairperson of Nomination and Remuneration Committee
Datuk Dr Hafsah binti Hashim (“Datuk Dr Hafsah”) was appointed as Independent Non-Executive
Director of the Company on 1 September 2022. Datuk Dr Hafsah is the Chairperson of the Nomination
and Remuneration Committee. She is also a member of the Audit Committee, Board Investment
Committee and Risk Management and Sustainability Committee of the Company.
Datuk Dr Hafsah obtained her Bachelor in Applied Science from Science University of Malaysia in
1982 and Masters in Business Administration from Aston University, United Kingdom in 1996.
Datuk Dr Hafsah has vast experience in public sector administration and has served in several
ministries including Ministry of International Trade and Industry (“MITI”), Ministry of Agriculture and
Ministry of Primary Industries. She also served as the Chief Executive Officer of SME Corporation
Malaysia for nearly 14 years. In total, she served the Government of Malaysia for 36 years and 2
months before retiring on 15 August 2018.
On the international front, Datuk Dr Hafsah is appointed as the Monsha’at International Advisory
Board Committee of Small and Medium Enterprise General Authority (“SMEA”) of the Kingdom of
Saudi Arabia from 1 November 2017 until 1 November 2019.
Datuk Dr Hafsah currently sits on the Board of Directors of among others, Zurich Takaful Malaysia
Berhad, SIRIM Berhad, Malaysia Rubber Board (Lembaga Getah Malaysia) and USains Holding Sdn
Bhd. She is also the Chairman of Arab-Malaysia Chamber of Commerce Berhad, SIRIM Technology
Venture Sdn Bhd and Serunai Commerce Sdn Bhd. In addition, Datuk Dr Hafsah assumes an
Advisory role to the Board of Bank Islam, Malaysia.
5
Company No.
196801000442 (8029-A)

Timothy William Howell

Australian, Male
Executive Director
Mr Timothy William Howell (“Mr Tim Howell”) was appointed as an Executive Director of the Company
on 1 November 2021.
Mr Tim Howell is a Fellow of the Institute of Actuaries of Australia and holds Bachelor of Commerce
(Actuarial Studies) and Bachelor of Science (Computer Science). He is also a graduate from the
Australian Institute of Company Directors.
Mr Tim Howell has more than 17 years’ experience in the financial services sector, of which more than
10 years are with Zurich in finance, actuarial and proposition leadership positions. In November 2019,
Mr Tim Howell assumed the position as Head of Finance / Chief Financial Officer (“CFO”), Asia Pacific
(“APAC”). In his current role, Mr Tim Howell is accountable for delivering the financial performance of
the APAC region and is focused on supporting the APAC Business Units to achieve their strategic and
financial objectives.
From June 2017 until November 2019, Mr Tim Howell was Head of Zurich Propositions for Zurich
Financial Services Australia (Life & Investments) with responsibility for developing retail risk and
investment customer propositions. During this time the proposition function saw strong success with
substantial market share growth, innovative digital projects delivered and a clear focus on customer
solutions.
Mr Tim Howell’s previous roles with Zurich included Chief Life Actuary from 2015 to 2017 with
responsibility to lead the actuarial function including actuarial reserves and reporting (including
Financial Condition Report), capital management, pricing and product actuarial advice, actuarial
systems and reinsurance management. He was also the Director of Actuarial Service Centre Asia
Pacific (“ASCAP”) and was based in Malaysia from 2012 to 2015 with responsibility for building,
developing and leading a team of actuarial professionals to support the life actuarial reporting for
business units across the Asia Pacific region. Based on his previous working experiences in Malaysia,
he would be acquainted with the local working environment.
Before joining Zurich, Mr Tim Howell was with Ernst & Young, Tower Australia Ltd (currently known
as TAL) and Commonwealth Securities Ltd in actuarial and analyst roles.
Mr Tim Howell is also serves as a Board Member for Zurich Group entities, namely, Zurich General
Insurance Malaysia Berhad, Zurich Services (Hong Kong) Limited, Cover-More Group Limited, Zurich
Travel Solutions Pty Limited; and Zurich Life Insurance Japan Company Ltd.
Mr Tim Howell reports to the Board of the Company and the Regional CEO, APAC, Ms Tulsi Naidu.
Directors’ Training
The Directors are encouraged to attend programmes and seminars to keep abreast with the latest
developments in the industry and marketplace and to enhance the discharge of their duties. The
training programmes attended by the Directors during the financial year ended 31 December 2022
included areas of leadership, governance, risk management, finance, investment, insurance related
matters and information technology.
6
Company No.
196801000442 (8029-A)

Board Meetings
The Board is scheduled to meet at least six times a year with additional meetings being convened as
necessary. For the financial year ended 31 December 2022, the Board met eleven (11) times. All the
Directors satisfied the minimum attendance of at least 75% of the Board meetings held during the
financial year ended 31 December 2022.
The number of meetings attended by each member of the Board during the financial year ended 31
December 2022 is as follows:
Name of Directors No. of Attendance
Choy Khai Choon, Chairman 11/11

Donald Joshua Jaganathan 11/11
Onn Kien Hoe 11/11
Timothy William Howell 11/11
Datuk Dr Hafsah binti Hashim 2/2
Datin Joan Hoi Lai Ping 9/9
Board Committees
The Board has established numbers of Board Committees and Senior Management Committees.
Each Committee operates within defined terms of reference. Board Committees are the Audit
Committee, the Nomination and Remuneration Committee, the Risk Management and Sustainability
Committee and the Board Investment Committee. Senior Management Committees include the Asset
Liability Management and Investment Committee (“ALMIC”), the Human Resource Committee (“HRC”),
the Information Technology Steering Committee (“ITSC”), Business Continuity Management (“BCM”),
the Risk and Control Committee (“RCC”), the Occupational Safety and Health Committee (“OSHC”)
and various Senior Management Committees for Life. The Board Committees are chaired by an
Independent Non-Executive Director, while the Senior Management Committees are chaired by the
CEO or a member of senior management team.
Audit Committee
The members of the Audit Committee are as follows:
Onn Kien Hoe Chairman (Independent Non-Executive Director)

Choy Khai Choon Member (Non-Independent Non-Executive Director)
7
Company No.
196801000442 (8029-A)

Board Committees (continued)
Audit Committee (continued)
The principal objectives are to assist the Board in discharging its statutory duties and responsibilities
relating to accounting and reporting practices of the Company. The Audit Committee meets regularly
with senior management, the internal auditors and the external auditors to review the Company’s
financial reporting, the nature and scope of audit reviews and the effectiveness of the systems of
internal control and compliance.
The Audit Committee functions on the Terms of Reference approved by the Board. The principal
duties and responsibilities of Audit Committee are:
(i) To approve internal auditors’ audit plan, review the adequacy of the scope, functions, resources
and competency and that it has the necessary authority to carry out its work;
(ii) To review the results of internal audit process and ensure that appropriate actions are taken on
the recommendations given by the internal auditors;
(iii) To consider the appointment and removal of the external auditors, the audit fee and any
question of resignation or dismissal;
(iv) To discuss with the external auditors before the audit commences, the nature and scope of
audit;
(v) To provide assurance that the financial information presented by management is relevant,
reliable and timely;
(vi) To review the Compliance Policy and oversee its implementation, establish the Compliance
function, review and evaluation the effectiveness of the overall management of compliance risk;
(vii) To oversee compliance with relevant laws and regulations and observance of a proper code of
conduct; and
(viii) To determine the quality, adequacy and effectiveness of the Company’s internal control
environment.
The Audit Committee meets at least once every quarter, or more frequently as circumstances dictate.
During the financial year ended 31 December 2022 the Audit Committee held seven meetings with
senior management, internal auditors, and the external auditors to review the Company’s financial
reporting, the nature and scope of audit reviews and the effectiveness of the systems of internal
control and compliance.
The number of meetings attended by each member of the Audit Committee during the financial year
ended 31 December 2022 is as follows:
Onn Kien Hoe, Chairman 7/7

Choy Khai Choon 7/7
During the financial year ended 31 December 2022, apart from reviewing the quarterly results and
annual financial statements, the Audit Committee also approved the annual internal audit plan. The
plan is developed to cover key operational areas, financial activities and information systems and
regulatory compliance audit that are significant to the overall performance of the Company on a
cyclical basis.
8
Company No.
196801000442 (8029-A)

Audit Committee (continued)
The Internal Audit Department also conducts audits on an ad-hoc basis based on special requests
either by the Board of Directors or the senior management. It also works closely with the external
auditors to resolve any internal control issues raised by them and assists in ensuring appropriate
management-based actions are taken. The Audit Committee receives regular reports from the Head
of the Internal Audit Department on the audit results.
Nomination and Remuneration Committee
The members of the Nomination and Remuneration Committee are as follows:
Datuk Dr Hafsah binti Hashim Chairperson (Independent Non-Executive Director)

(Appointed as Chairperson on
17 September 2022)
The Nomination and Remuneration Committee is made up of a majority of Independent Non-

Executive Directors. In considering the right candidate for appointment to the Board, the Nomination
and Remuneration Committee takes into account the required mix of skills, experience and other core
competencies that are necessary to enable the Company to achieve its corporate objectives and fulfil
its fiduciary responsibilities. The Nomination and Remuneration Committee is also responsible for the
annual review of the effectiveness of the Board and individual Directors.
The principal duties and responsibilities of the Nomination and Remuneration Committee as per
Terms of Reference approved by Board are:
(i) To develop and recommend a formal, clear and transparent remuneration policy and
framework for fixing the remuneration for Directors, CEO and key senior officers (including the
expatriates, if any) of the Company. The remuneration policy and practices shall:
(a) be documented and approved by the Board of the Company and be subject to periodic
Board review, including when material changes are made to the remuneration policy;
(b) reflect the experience and level of responsibility borne by individual Directors, the CEO
and key senior officers (including the expatriates, if any);
(c) be sufficient to attract and retain Directors, CEO and key senior officers (including the
expatriates, if any) of calibre needed to manage the Company successfully; and
(d) be balanced against the need to ensure that the funds of the Company are not used to
subsidies excessive remuneration packages.
9
Company No.
196801000442 (8029-A)

Nomination and Remuneration Committee (continued)
The Nomination and Remuneration Committee functions on the Terms of Reference approved by the
Board. The principal duties and responsibilities of Nomination and Remuneration Committee are:
(continued)
(ii) To recommend specific remuneration packages for Directors, CEO and key senior officers
(including the expatriates, if any) of the Company. The remuneration packages shall:
(a) be based on an objective consideration and approved by the Board;
(b) take due consideration of the assessment of the Regional/Group Remuneration Team
on the effectiveness, level of contribution such as effort and time spent and
responsibilities of the Directors, the CEO and key senior officers (including the
expatriates, if any) in discharging their duties for the benefits of the Company and of the
Group;
(c) not be decided by the exercise of sole discretion of any one individual or restricted group
of individuals; and
(d) be competitive and does not induce excessive risk-taking and is consistent with the
Company’s culture, objective, risk appetite and long term strategy.
(iii) To ensure that the remuneration for individuals within the Company be aligned with prudent
risk-taking and appropriately adjusted for risks. The remuneration outcomes must be
symmetric with risk outcomes. This includes ensuring that:
(a) the remuneration is adjusted to account for all types of risk, and must be determined by
both quantitative measures and qualitative judgement;
(b) the size of the bonus pool is linked to the overall performance of the Company;
(c) incentive payments are linked to the contribution of the individual and business unit to
the overall performance of the Company;
(d) bonuses are not guaranteed, except in the context of sign-on bonuses;
(e) for members of senior management and other material risk takers:
i. a portion of remuneration consists of variable remuneration to be paid on the basis
of individual, business-unit and institution-wide measures that adequately assess
performance; and
ii. the variable portion of remuneration increases along with the individual’s level of
accountability.
(iv) To undertake and perform such other matters/activities according to the application
requirements in the guidelines from Bank Negara Malaysia and/or as the Board think fit.
The number of meetings attended by each member of the Nomination and Remuneration Committee
during the financial year ended 31 December 2022 is as follows:
Datuk Dr Hafsah binti Hashim, Chairperson 2/2

Choy Khai Choon 8/8
Onn Kien Hoe 8/8
In the opinion of the Nomination and Remuneration Committee, the Board has a balanced mix of skills
and experience required for the businesses of the Company.
10
Company No.
196801000442 (8029-A)

Risk Management and Sustainability Committee
The members of the Risk Management and Sustainability Committee (“RMSC”) are as follows:
Donald Joshua Jaganathan Chairman (Independent Non-Executive Director)

(Appointed as Member on
17 September 2022)
The RMSC is made up of Non-Executive Directors. It reviews the risk factors of the Company to
ensure risks at all levels are managed effectively. It also formulates risk management policies, action
plans and evaluates the adequacy of overall risk management policies and procedures.
The RMSC functions on the Terms of Reference approved by the Board. The principal duties and
responsibilities of RMSC are as follows:
(i) To review and recommend risk management strategies, policies and risk tolerance to the Board
for approval;
(ii) To review and assess the adequacy of risk management policies and framework for identifying,
measuring, monitoring and controlling risks;
(iii) To ensure that there are adequate infrastructure, resources and systems in place for an
effective risk management;
(iv) To review the management’s periodic reports on risk exposure, risk portfolio composition and
risk management activities;
(v) To provide oversight over technology-related matters which include review of technology-
related frameworks, review and recommendation of technology risk appetite, risk tolerances
for technology related events, ensure key performance indicators and forward looking risk
indicators are in place, adequacy of IT and cybersecurity strategic plans, effective
implementation of sound and robust technology risk management framework (“TRMF”) and
cyber resilience framework (“CRF”) and ensure that risk assessments undertaken in relation to
material technology application submitted to BNM are robust and comprehensive; and
(vi) To provide oversight over sustainability-related matters which include:
(a) review of the Company’s sustainability strategy and objectives;
(b) review of the Company’s approach and conduct concerning sustainability, assessing
progress against agreed actions at least annually;
(c) review of legislative and regulatory developments and reporting requirements relating
to sustainability;
(d) review of the proposal to the Board for approval targets on environmental, social and
corporate governance (“ESG”) matters which have a material impact on business
strategy, underwriting or business performance.
11
Company No.
196801000442 (8029-A)

Risk Management and Sustainability Committee (continued)
The number of meetings attended by each member of the RMSC during the financial year ended 31
Donald Joshua Jaganathan, Chairman 4/4

Choy Khai Choon 4/4
Onn Kien Hoe 4/4
Board Investment Committee
The members of the Board Investment Committee (“BIC”) are as follows:
Donald Joshua Jaganathan Chairperson (Independent Non-Executive Director)

(Appointed as Chairperson on
17 September 2022)
(Appointed as Member on
17 September 2022)
The BIC consists of at least three members, the majority of whom shall be Independent Non-Executive
Directors.
The BIC functions on the Terms of Reference approved by the Board. The principal duties and
responsibilities of BIC are as follows:
(i) To ensure proper investment of insurance funds, the Company must put in place an
investment and risk management policy that is in line with the risk appetite set by the Board
of the Company. The investment and risk management policy should be approved and
reviewed regularly by the Board and cover overall investment strategy and proper risk
management systems, including monitoring and control mechanisms. In this respect, the
Committee is required to review:
(a) The Company’s ALMIC recommendations for the following:
• changes to Investment Strategy Policy Statement (includes Strategic Asset

Allocation);
• changes to ALMIC Charter; and
• changes to Delegated Authority for Investments.
(b) The ALMIC meeting approvals and main discussion topics; and
(c) Compliance to Risk Appetite Statement and relevant investment guidelines based on
the economic performance.
12
Company No.
196801000442 (8029-A)

Board Investment Committee (continued)
The number of meetings attended by each member of the BIC during the financial year ended 31
Donald Joshua Jaganathan, Chairman 3/3

Choy Khai Choon 3/3
Onn Kien Hoe 3/3
Datuk Dr Hafsah binti Hashim -
Datin Joan Lai Hoi Ping 3/3
Management accountability
The Company has an organisation structure showing all reporting lines as well as clearly documented
job description for all management and executive employees. The officers of the Company have
knowledge of their respective authority and operating limits, which are documented in the Company’s
Internal Control Procedures.
The human resource procedures of the Company provide for the setting of goals and training of each
staff. The Company conducts formal appraisals for each staff on an annual basis.
The Company has established procedures to avoid and to deal with any conflict of interest situation.
None of the Directors and senior management of the Company have, in any circumstances, conflict
of interest referred to in Part B, paragraph 14 of BNM Guidelines on Corporate Governance, and
paragraph 58 of the Financial Services Act 2013 (“FSA”).
The Board has approved a communication policy that is applicable to all levels of staff of the Company.
Corporate independence
The Company has complied with the requirements of BNM’s Guidelines on Related Party
Transactions (BNM/RH/GL018-6) in respect of all its related party undertakings. Necessary
disclosures were made to the Board and where required, the Board’s prior approval for the transaction
has also been obtained. All material related party transactions have been disclosed in the financial
statements.
13
Company No.
196801000442 (8029-A)

Internal controls
The responsibility of maintaining a system of internal controls rests with the Board. The Company has
established internal controls which cover all levels of personnel and business processes that ensure
the Company’s operations are run in an effective and efficient manner as well as safeguarding the
assets of the Company and stakeholders’ interest.
Continuous assessment of the effectiveness and adequacy of internal controls, which includes an
independent examination of controls by the internal audit function, ensures corrective action where
necessary, is taken in a timely manner. The internal audit function reports directly to the Board through
the Audit Committee, and its findings and recommendations are communicated to the senior
management and all levels of staff concerned. The Chief Internal Auditor has unrestricted access to
the Chairman and members of the Audit Committee, and the internal audit function performs their
duties within the ambit of the Audit Charter approved by the Audit Committee and the Board.
The ITSC is responsible for establishing effective information technology and information systems
plans, authorising information technology (“IT”) related expenditure based on authority limits, and
monitoring the progress of approved projects. The Company has increased the security controls for
the IT systems, and has put in place business resumption and contingency plans to ensure continued
operations of mission critical functions. The requirements of BNM’s Policy Document on Risk
Management in Technology (RMiT) (BNM/RH/PD 028-98) and Policy Document on Business
Continuity Management (BNM/RH/GL/013-3) have been complied.
14
Company No.
196801000442 (8029-A)

Risk management
RMSC meets regularly, at least every quarter in a financial year, to review risk management reports
of the Company. The RMSC has categorised risks into six (6) risk types affecting the Company
namely Life Insurance Risk, Market Risk, Credit Risk, Operational Risk, Strategic and Reputation Risk
and Capital Management and Liquidity Risk.
The Company has established, within its risk management framework, a structural approach to
enterprise-wide risk management. The process involves risk identification and assessment process
whereby all department heads of the Company are required to assess their operations and identify
risks affecting their operations, identify existing controls in place to mitigate those risks and the
probability of the risks occurring and its impact severity.
Public accountability
As a custodian of public funds, the Company’s dealings with the public are always conducted fairly,
honestly and professionally. All staff and agents of the Company are required to comply with the Code
of Ethics and Conduct.
Financial reporting
The Board is responsible for ensuring the proper maintenance of accounting records of the Company.
Reports on the financial condition and performance of the Company are reviewed at the Board,
Executive Committee and Management Committee meetings. Financial statements and reports are
lodged with the regulatory and supervisory authorities, and annual financial statements prepared in
accordance with applicable regulations and approved accounting standards are audited.
Remuneration Policy
The Company’s remuneration policy is based on Zurich Insurance Group Limited (“ZIGL”)
remuneration philosophy. The Company operates a balanced and effectively managed remuneration
system, which is aligned with risk considerations and provides for competitive total remuneration
opportunities to attract, retain, motivate and reward employees to deliver outstanding performance.
The remuneration system is also an important element of the risk management framework and is
designed to not encourage inappropriate risk taking through effective governance and a clearly defined
performance management process which supports the overall business strategy and plans. Aligned
with the Company’s corporate governance standards, there are separate responsibilities for the
business planning and performance management process and for the implementation of the
remuneration system.
The Board reviews and approves the”remu’eration rules regularly, at least once a year, and amends
them, as necessary, from time to time. The Board may approve amendments to the remuneration
architecture in general or to the applicable plans including exceptions to the short-term incentive plan
and/or long-term incentive plan target amounts, to the performance criteria, vesting and/or
performance periods and related retention periods.
With respect to the regular review and the oversight of the implementation of the Zurich’s
Remuneration Rules (“ZRR”) issued by the Group, the Board is supported by the Nomination and
Remuneration Committee and respective monitoring process as stated in the ZRR.
15
Company No.
196801000442 (8029-A)

Remuneration Policy (continued)
The guiding principles of the remuneration philosophy as set out in the ZRR are as follows:
• The remuneration architecture is simple, transparent and can be put into practice.
• Remuneration is tied to long-term results for individuals who have a material impact on the
Company’s risk profile.
• The structure and level of total remuneration are aligned with the Company’s risk policies and
risk-taking capacity.
• A high performance culture is promoted by differentiating total remuneration based on the
relative performance of business and individuals.
• Expected performance is clearly defined through a structured system of performance
management and this is used as the basis for remuneration decision.
• Variable remuneration awards are linked to key performance factors which include the
performance of the Company, business units, functions, as well as individual achievements.
• The Company’s Short Term Incentive Plan (“STIP”) and Long Term Incentive Plan (“LTIP”) used
for variable remuneration, are linked to appropriate performance criteria and the overall
expenditure on variable pay is considered in connection with its long term economic
performance.
• The structure of the LTIP links remuneration with the future development of performance and
risk by including features for deferred remuneration.
• Employees are provided with a range of benefits based on local market policies, taking into
account the ZIGL’s risk capacity on pension funding and investments.
Total remuneration and its composition may be influenced by factors such as scope and complexity
of the role, level of responsibility, risk exposure, business performance and affordability, individual
performance, internal equity, and legal requirements.
Total remuneration can include elements of base salary and variable remuneration.
• Base salary is the fixed pay for the role performed, determined by the scope and complexity of
the role and is reviewed regularly. Overall base salary structures are positioned to manage
salaries around the relevant market medians. Key factors to be taken into account are the
individual’s overall experience and performance.
• The variable remuneration architecture is aligned with the achievement of the key financial
objective and the execution of the business strategy, risk management framework and
operational plans, via short-term and long-term incentive plans. The plan designs are reviewed
regularly by the Nomination and Remuneration Committee and the Board. The incentive plans
are discretionary and can be terminated, modified, changed or revised, at any time, except for
previously awarded grants. A clawback framework is in place, however, for members of the
Executive Committee to allow for recovery, forfeiture and/or clawback, subject to specific
conditions. Malus conditions are also in place to reduce or eliminate awards applicable to all
STIP and LTIP participants.
• Variable remuneration is structured such that, on average, there is a higher weighting towards
the longer term sustainable performance for the most senior employees of the Company,
including the individuals with the most impact on the Company’s risk profile for the key takers.
This ensures that a significant portion of the variable pay for the senior group is deferred to
promote the risk awareness of the participants and to encourage the participants to operate the
business in a sustainable manner.
16
Company No.
196801000442 (8029-A)

DIRECTORS’ REPORT
The Directors have pleasure in presenting their report together with the audited financial statements
of the Company for the financial year ended 31 December 2022.
PRINCIPAL ACTIVITIES
The Company is engaged principally in the underwriting of life insurance business, including
investment-linked and annuity business.
There have been no significant changes in the nature of the principal activities during the financial
year.
FINANCIAL RESULTS
RM’000
Net profit for the financial year 75,632
RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year other than
as disclosed in the financial statements.
In the opinion of the Directors, the results of the operations of the Company during the financial year
were not substantially affected by any item, transaction or event of a material and unusual nature.
DIVIDENDS
The dividends paid or declared since the end of the previous financial year were as follows:
RM’000
Interim single tier gross dividend for the financial year ended 31 December
2022, paid on 29 December 2022 50,000
The Directors do not recommend the payment of any final dividend in respect of the current financial
year.
SHARE CAPITAL
No new ordinary shares were issued during the financial year.
17
Company No.
196801000442 (8029-A)

DIRECTORS’ REPORT (CONTINUED)
DIRECTORS
Directors who served since the date of the last report to the date of this report or who were appointed
or resigned during the financial year are as follow:
Name of Directors Designation
Choy Khai Choon Chairman, Non-Independent Non-Executive Director*

Donald Joshua Jaganathan Independent Non-Executive Director
Onn Kien Hoe Independent Non-Executive Director
Datuk Dr Hafsah binti Hashim Independent Non-Executive Director
Timothy William Howell Executive Director
Datin Joan Hoi Lai Ping Independent Non-Executive Director
Note:
*Mr Choy had been redesignated from Independent Non-Executive Director to Non-Independent Non-
Executive Director of the Company effective 17 September 2022 following the approval obtained from
BNM vide its letter dated 31 May 2022.
DIRECTORS' BENEFITS
Since the end of the previous financial year, no Director of the Company has received or become
entitled to receive a benefit (other than benefits included in the aggregate amount of emoluments
received or due and receivable by the Directors or the fixed salary of a full-time employee of the
Company as disclosed in Note 25 to the financial statements) by reason of a contract made by the
Company or a related corporation with a Director or with a firm of which the Director is a member, or
with a company in which the Director has a substantial financial interest.
During and at the end of the financial year, no arrangement subsisted to which the Company is a
party, with the object or objects of enabling Directors of the Company to acquire benefits by means
of the acquisition of shares in or debentures of the Company or any other body corporate.
INSURANCE AND INDEMNITY COST
The Company, through its ultimate holding corporation, Zurich Insurance Group Ltd. (“ZIGL”) has
maintained a Directors’ and Officers’ Liability Insurance (“the Group’s D&O Insurance”) on a group
basis up to an aggregate limit of USD350 million against any legal liability incurred by the Directors
and Officers in the discharge of their duties while holding office in the Company. The Company has
also placed a Directors’ and Officers’ Liability Insurance with a local insurer up to the deductible
amount under the Group’s D&O Insurance. The Directors and Officers shall not be indemnified by
such insurance for any deliberate negligence, fraud, intentional breach of law or breach of trust proven
against them.
The total amount paid and payable for indemnity insurance effected for the Directors of the Company
for the financial year amounted to RM12,546.99.
There was no indemnity given to, or insurance effected for, the auditors of the Company during and
at the end financial year.
18
Company No.
196801000442 (8029-A)

DIRECTORS' REPORT (CONTINUED)
DIRECTORS’ INTERESTS
According to the Register of Directors’ Shareholdings required to be kept under Section 59 of the
Companies Act 2016, particulars of interests of a Director who held office at the end of the financial
year in shares of a related corporation are as follows:
Number deferred/restricted/performance share units
Granted/
At Reinvested At
1.1.2022 dividends Exercised Cancelled 31.12.2022
Units in Zurich Insurance

Group Ltd.
Direct interest:
Timothy William Howell 938 686 (486) - 1,138
Zurich Insurance Group Ltd. (“ZIGL”) the holding company of Zurich Insurance Company Ltd. (“ZICL”)
which in turn is the immediate holding company of the Company, has designed a Group Long Term
Incentive Plan (“the Plan”) for the Group’s most senior executives for the accomplishment of key Group
performance measures. Participants are granted performance-based target shares under the Plan
with the vesting of these target grants subject to specific performance achievements over a three-year
period.
These performance-based target shares provide the holders with the right to purchase common stock
of ZIGL at an exercise price set at the market price of common shares on the Swiss Stock Exchange
on the day prior to the date of grant.
Other than the above, none of the other Directors in office at the end of the financial year held any
interests in shares in, or debentures of, the Company or its related corporations during the financial
year.
By virtue of the above Director’s interests in the shares of the ultimate holding company, he is deemed
to have an interest in the shares of the Company to the extent that the ultimate holding company has
interest.
DIRECTORS’ REMUNERATION
Details of Directors’ remuneration are set out in Note 25 to the financial statements.
AUDITORS’ REMUNERATION
Details of auditors’ remuneration are set out in Note 25 to the financial statements.
19
Company No.
196801000442 (8029-A)

DIRECTORS' REPORT (CONTINUED)
OTHER STATUTORY INFORMATION
(a) Before the financial statements of the Company were prepared, the Directors took reasonable
steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts
and the making of allowance for doubtful debts, and satisfied themselves that all known
bad debts had been written off and that adequate provision had been made for doubtful
debts; and
(ii) to ensure that any current assets which were unlikely to realise their value as shown in
the accounting records in the ordinary course of business had been written down to an
amount which they might be expected so to realise.
(b) At the date of this report, the Directors are not aware of any circumstances which would
render:
(i) the amount written off for bad debts or the amount of the allowance for doubtful debts
in the financial statements of the Company inadequate to any substantial extent; and
(ii) the values attributed to the current assets in the financial statements of the Company
misleading.
(c) At the date of this report, the Directors are not aware of any circumstances which have arisen
which would render adherence to the existing method of valuation of assets or liabilities of the
Company misleading or inappropriate.
(d) At the date of this report, the Directors are not aware of any circumstances not otherwise dealt
with in this report or financial statements of the Company which would render any amount
stated in the financial statements misleading.
(e) As at the date of this report, there does not exist:
(i) any charge on the assets of the Company which has arisen since the end of the financial
year which secures the liabilities of any other person; or
(ii) any contingent liability of the Company which has arisen since the end of the financial
year.
(f) In the opinion of the Directors:
(i) no contingent or other liability has become enforceable or is likely to become

enforceable within the period of twelve months after the end of the financial year which
will or may affect the ability of the Company to meet its obligations when they fall due;
and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval
between the end of the financial year and the date of this report which is likely to affect
substantially the results of the operations of the Company for the financial year in which
this report is made.
For the purpose of paragraphs (e)(ii) and (f)(i), contingent and other liabilities do not include liabilities
arising from insurance contracts underwritten in the ordinary course of business of the Company.
(g) Before the financial statements of the Company were made out, the Directors took reasonable
steps to ascertain that there was adequate provision for its insurance liabilities in accordance
with the valuation methods specified in the Risk-Based Capital (“RBC”) Framework for
insurers issued by BNM.
20
Company No.
196801000442 (8029-A)

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022
Note 31.12.2022 31.12.2021

RM’000 RM’000
ASSETS
Property, plant and equipment 4 23,816 27,439

Right-of-use assets 5 20,579 14,781
Intangible assets 6 815 1,952
Investment properties 7 54,950 57,103
Non-current assets held-for-sale 8 6,100 16,250
Investments 9 7,121,900 7,460,455
Available-for-sale financial assets 4,955,883 5,048,218
Financial assets at fair value through profit or loss 1,877,865 2,107,071
Loans and receivables 10 288,152 305,166
Reinsurance assets 11 111,363 84,553
Insurance receivables 12 62,306 31,198
Other receivables 13 23,738 21,629
Tax recoverable 10,095 12,405
Deferred tax assets 14 10,232 9,152
Cash and bank balances 338,196 274,635
Total assets 7,784,090 8,011,552
EQUITY, POLICYHOLDERS’ FUNDS AND

LIABILITIES
Share capital 15 579,000 579,000

Retained earnings 16(a) 838,354 812,722
Other reserves 16(b) (7,881) 30,760
Total equity 1,409,473 1,422,482
Insurance contract liabilities 17 4,490,016 4,673,472

Deferred tax liabilities 14 161,416 162,515
Lease liabilities 18 20,440 15,190
Other liabilities 19 133,264 109,780
Insurance payables 20 1,568,557 1,624,706
Current tax liabilities 924 3,407
Total liabilities 6,374,617 6,589,070
Total equity, policyholders’ funds and liabilities 7,784,090 8,011,552
The accompanying notes form an integral part of the financial statements.
27
Company No.
196801000442 (8029-A)

STATEMENT OF PROFIT OR LOSS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
Note 2022 2021

RM’000 RM’000
Gross earned premiums 854,318 865,379

Premiums ceded to reinsurers (28,519) (29,621)
Net earned premiums 825,799 835,758
Investment income 21 311,284 309,473

Realised gains and losses 22 (39,291) (49,861)
Fair value gains and losses 23 (179,000) (15,144)
Fee and commission income 24(a) 6,370 5,583
Other revenue 99,363 250,051
Total revenue 925,162 1,085,809
Gross benefits and claims paid (785,172) (682,141)

Claims ceded to reinsurers 36,068 20,214
Gross change to contract liabilities 136,584 (73,826)
Change in contract liabilities ceded to reinsurers 26,810 29,914
Net claims (585,710) (705,839)
Fee and commission expenses 24(b) (134,600) (126,731)

Management expenses 25 (120,478) (118,857)
Other operating income and expenses - net 26 19,175 7,811
Other expenses (235,903) (237,777)
Operating profit 103,549 142,193

Finance cost (370) (619)
Profit before taxation 103,179 141,574
Taxation 27 (27,547) (64,000)
Net profit for the financial year 75,632 77,574
Basic/diluted earnings per share (sen) 29 13.06 13.40
28
Company No.
196801000442 (8029-A)

STATEMENT OF COMPREHENSIVE INCOME

Note 2022 2021

RM’000 RM’000
Other comprehensive loss:
Items that may not be subsequently reclassified to

profit or loss :
Deferred tax on revaluation surplus of property upon

disposal - 3,534
Change in insurance contract liabilities 17 - (1,197)
Other comprehensive income for the financial year - 2,337
Items that may be subsequently reclassified to profit or

loss :
Fair value change on available-for-sale financial

assets, net of deferred tax:
Gross fair value change arising during the financial

year (85,506) (237,825)
Transferred to statement of profit or loss upon disposal 22 (7,702) (12,891)
Deferred tax 14 7,695 18,583
Net fair value changes (85,513) (232,133)
Change in insurance contract liabilities arising from net
fair value changes 17 46,872 136,548
Other comprehensive loss for the financial year, net of
tax (38,641) (95,585)
Total comprehensive income/(loss) for the financial

year 36,991 (15,674)
29
Company No.
196801000442 (8029-A)

STATEMENT OF CHANGES IN EQUITY

Issued and
fully paid
ordinary
shares Non-distributable Retained earnings
Non-
Available- Distributable
for-sale Asset Non-Par Distributable Total
Share fair value revaluation unallocated retained retained
capital reserve reserve surplus1 earnings earnings Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2022 579,000 30,760 - 472,946 339,776 812,722 1,422,482

Net profit for the financial year - - - 61,992 13,640 75,632 75,632
Other comprehensive loss for
the financial year - (38,641) - - - - (38,641)
Dividend declared (Note 28) - - - (50,000) (50,000) (50,000)
At 31 December 2022 579,000 (7,881) - 534,938 303,416 838,354 1,409,473
At 1 January 2021 579,000 126,345 11,128 347,045 374,638 721,683 1,438,156

Net profit/(loss) for the financial
year - - - 120,308 (42,734) 77,574 77,574
Realisation of revaluation
reserve upon disposal - - (13,465) 5,593 7,872 13,465 -
Other comprehensive
(loss)/income for the financial
year - (95,585) 2,337 - - - (93,248)
At 31 December 2021 579,000 30,760 - 472,946 339,776 812,722 1,422,482
In accordance with the Financial Services Act (FSA), 2013, the unallocated surplus of the Non-Participating (“Non-Par”) fund is only available for distribution to
the shareholder upon approval by the Appointed Actuary. There was no transfer from Non-Par fund unallocated surplus for the financial year ended 31 December
2022 (2021: Nil).

30
Company No.
196801000442 (8029-A)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022
Note 2022 2021

RM’000 RM’000
OPERATING ACTIVITIES
Cash utilised in operating activities 30 (194,257) (388,425)

Dividend/distribution income received 72,469 70,904
Interest/profit income received 255,642 245,712
Rental income on investment properties received 3,673 4,415
Property maintenance expenses paid (2,692) (5,607)
Income tax paid (21,952) (19,955)
Net cash inflows/(outflows) from operating activities 112,883 (92,956)
INVESTING ACTIVITIES
Proceeds from disposal of property, plant and equipment 170 -

Proceeds from disposal of non-current assets held-for-
sale 12,247 118,091
Purchase of property, plant and equipment 4 (2,349) (5,693)
Purchase of intangible assets 6 (132) (329)
Net cash inflows from investing activities 9,936 112,069
FINANCING ACTIVITIES
Payment of lease liabilities 18 (9,258) (10,016)

Dividend paid to Shareholder 28 (50,000) -
Net cash outflows from financing activities (59,258) (10,016)
Net increase in cash and bank balances 63,561 9,097

Cash and bank balances at the beginning of the financial
year 274,635 265,538
Cash and bank balances at the end of the financial
year 338,196 274,635
Cash and bank balances comprise:


31
Company No.
196801000442 (8029-A)

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022
1. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION
The Company is an unquoted public limited liability company, incorporated and domiciled in
Malaysia. The registered office and principal place of business of the Company are as follows:
Registered office
Level 25, Mercu 3

No.3 Jalan Bangsar
KL Eco City
59200 Kuala Lumpur
Principal place of business
Level 23A, Mercu 3

No.3 Jalan Bangsar
KL Eco City
59200 Kuala Lumpur
The Company is engaged principally in the underwriting of life insurance business, including
investment-linked and annuity business. There have been no significant changes in the nature of
these principal activities during the financial year.
The Directors regard Zurich Insurance Company Ltd. (“ZICL”) as the immediate holding company
and Zurich Insurance Group Ltd (“ZIGL”) as the ultimate holding company. Both companies are
incorporated in Switzerland.
ZIGL is listed on the SIX Swiss Exchange and produces financial statements available for public use.
The financial statements were authorised for issue by the Board in accordance with a resolution of
the Directors on 27 March 2023.
2. SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies have been used consistently in dealing with items which are
considered material in relation to the financial statements.
2.1 Basis of preparation
The financial statements of the Company have been prepared under the historical cost convention
except as disclosed in this summary of significant accounting policies, and in accordance with the
Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards
(“IFRS”), and the requirements of the Companies Act 2016 in Malaysia.
The Company has met the minimum capital requirements as prescribed by the RBC as at the date
of the statement of financial position.
32
Company No.
196801000442 (8029-A)

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022 (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.1 Basis of preparation (continued)
The preparation of financial statements in conformity with MFRS and IFRS requires the use of certain
critical accounting estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenses during the reported period. It also requires the
Directors to exercise their judgement in the process of applying the Company’s accounting policies.
Although these estimates and judgement are based on the Directors’ best knowledge of current
events and actions, actual results may differ from estimates.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed in Note 3 to the financial
statements.
The financial statements are presented in Ringgit Malaysia (“RM”), and all values are rounded to the
nearest thousand (RM’000) except when otherwise indicated.
Standards, amendments to published standards and interpretations
(i) Amendments to published standards that are applicable and effective to the Company
The accounting policies adopted are consistent with those of the previous financial year except
for the adoption of the new pronouncements as follows:
Effective for
annual financial
periods
beginning on or
Description after
• Amendments to MFRS 1 First-time Adoption of Malaysian Financial 1 January 2022

Reporting Standards (Annual Improvements to MFRS Standards
2018 – 2020)
• Amendments to MFRS 16 Leases (Annual Improvements to MFRS 1 January 2022

Standards 2018 – 2020)
• Amendments to MFRS 116 Property, Plant and Equipment 1 January 2022

(Reference to Property, Plant and Equipment – Proceeds before
Intended Use)
• Amendments to MFRS 137 Provisions, Contingent Liabilities and 1 January 2022

Contingent Assets (Reference to Onerous Contracts - Cost of
Fulfilling a Contract)
• Amendments to MFRS 3 Business Combinations (Reference to the 1 January 2022

Conceptual Framework)
• Amendments to MFRS 9 Financial Instruments (Annual 1 January 2022

Improvements to MFRS Standards 2018 – 2020)
The amendments listed above did not have any impact on the financial statements including
amounts recognised in prior periods and the current financial year.
33
Company No.
196801000442 (8029-A)

Standards, amendments to published standards and interpretations (continued)
(ii) Standards and Amendments to published standards that are issued but not yet effective
The followings are Standards, and Amendments to Standards issued by the Malaysian
Accounting Standards Board (“MASB”), but not yet effective, up to the date of issuance of the
Company’s financial statements. The Company intends to adopt these Standards and
Amendments to Standards, if applicable, when they become effective.
Effective for
annual
financial
periods
beginning on
Description or after
• Amendments to MFRS 101 Presentation of Financial Statements 1 January 2023
(Reference to Classification of Liabilities as Current of Non-current)
• Amendments to MFRS 101 Presentation of Financial Statements 1 January 2023

(Disclosure of Accounting Policies)
• MFRS 17 Insurance Contracts 1 January 2023
• Amendments to MFRS 17 Insurance Contracts Initial Application of 1 January 2023

MFRS 17 And MFRS 9 – Comparative Information
• Amendments to MFRS 108 Accounting Policies, Changes in 1 January 2023

Accounting Estimates and Errors – Definition of Accounting Estimates
• Amendments to MFRS 112 Income Taxes – Deferred Tax Related 1 January 2023
to Assets and Liabilities arising from Single Transaction
• Amendments to MFRS 101 Presentation of FInancial Statements - 1 January 2024

Non-current Liabilities with Covenants
• Amendments to MFRS 10 Consolidated Financial Statements and Deferred

MFRS 128 Sale or Contribution of Assets between an Investor and its
Assoviate or Joint Venture
34
Company No.
196801000442 (8029-A)

(continued)
The Directors expect that the adoption of the above new pronouncements will have no material
impact on the financial statements in the period of initial application except as discussed below:
• MFRS 17 “Insurance Contracts” and its Amendments

MFRS 17 “Insurance Contracts” and its Amendments has become effective on 1 January
2023. The Company will be applying MFRS 17 for the first time in the current financial year
ending 31 December 2023. Accordingly, it will restate comparative information for the
financial year ended 31 December 2022, including the opening balance as at 1 January
2022, by applying the transition requirements of MFRS 17.
The Company determined the transition approach at groups of insurance contracts levels,
depending on availability of reasonable and supportable historical information. The
Company will apply a retrospective transition approach and expects that most groups of
insurance contracts will follow either a full retrospective approach or fair value approach.
The Company has assessed that a significant portion of its life insurance liabilities
(including unit-linked insurance liabilities, annuity contracts and certain life insurance
contracts with policyholder participation qualify as direct participating contracts under
MFRS 17 and eligible for the application of Variable Fee Approach (“VFA”). The optional
exemption from the annual cohort requirement for such contracts is not applicable to the
Company. For non-participating contracts such as term life plans, medical plans and in-
force reinsurance contracts held the General Measurement Model or also known as
Building Block Approach (“BBA”) will be applied.
The Company applies full retrospective approach (“FRA”) for the measurement of the
Contractual Service Margin (“CSM”) for all the groups of contracts at transition on 1 January
2023. The CSM is based on initial assumptions when groups of contracts were incepted
and rolled forward to the date of transition as if MFRS 17 had always been applied. The
fair value approach is used to estimate the initial CSM for the groups of contracts when the
Company was acquired by ZICL on 1 October 2011. For subsequent measurement, the
groups of contracts accepted prior to the acquisition date and contracts written after the
acquisition date will apply the FRA.
35
Company No.
196801000442 (8029-A)

(ii) Standards and Amendments to published standards and interpretations that are issued but not
yet effective (continued)
• MFRS 17 “Insurance Contracts” and its amendments (continued)
As a result of the application of MFRS 17, the Company expects shareholders’ equity to be
affected by the classification of risk adjustment and CSM as liabilities, partially offset by
other adjustments. MFRS 17 will result in a change to the accounting policies for insurance
contract liabilities of the Company and is likely to have significant impact on the total profit
and total equity of the Company together with the overall presentation and disclosures in
the Company’s financial statements for the financial year ending 31 December 2023.
MFRS 17 will also significantly change how insurance and reinsurance contracts are
presented and disclosed in the Company’s financial statements. Under MFRS 17, portfolios
of insurance contracts that are assets and those that are liabilities, and portfolios of
reinsurance contracts that are assets and those that are liabilities, are presented separately
in the statement of financial position. All rights and obligations arising from a portfolio of
contracts will be presented on a net basis; therefore, balances such as insurance
receivables and payables will no longer be presented separately. Any assets or liabilities
from cash flows arising before the recognition of the related groups of contracts will also
be presented in the same line item as the related portfolios of contracts.
Under MFRS 17, amounts recognised in the statement of profit or loss and OCI are
disaggregated into an insurance service result, comprising of insurance revenue and
insurance service expenses; and insurance finance income or expenses. Amounts from
reinsurance contracts will be presented separately. There will be clear delineation of
investment related results in profit or loss.
MFRS 17 also requires extensive new disclosures on amounts recognised in the financial
statements, including detailed reconciliations of contracts, effects of newly recognised
contracts and information on the expected CSM emergence pattern, as well as disclosures
about significant judgements made when applying MFRS 17. There will also be expanded
disclosures about the nature and extent of risk from insurance and reinsurance contracts.
The Company adopted MFRS 17 on 1 January 2023 and will be fully compliant with the
requirements of the standards.
36
Company No.
196801000442 (8029-A)

(continued)
• MFRS 9 “Financial Instruments” and its amendments
MFRS 9 has become effective for the Company on 1 Janurary 2023. MFRS 9 retains but
simplifies the mixed measurement model in MFRS 139 and establishes three primary
measurement categories for financial assets:
• Amortised cost (“AC”)

• Fair value through profit or loss ("FVTPL")
• Fair value through other comprehensive income ("FVOCI")
The Company’s predominance ratio reflecting the share of liabilities connected to insurance
compared to total liabilities has consistently exceeded 90 percent. Due to the strong
interaction between underlying assets held and the measurement of insurance contracts,
the Company has used the option to defer the full implementation of MFRS 9 until MFRS 17
“Insurance Contracts” became effective on 1 January 2023 in accordance with the
Amendments to MFRS 4 “Extension of the Temporary Exemption from Applying MFRS 9”.
The basis of classification depends on the Company's business model and the cash flow
characteristics of the financial asset. Investments in equity instruments are always
measured at fair value through profit or loss. A debt instrument is measured at amortised
cost only if the entity is holding it to collect contractual cash flows and the cash flows
represent principal and interest. For financial liabilities, the standard retains most of the
MFRS 139 requirements. MFRS 9 also introduces an expected credit loss (“ECL”) model on
impairment that replaces the incurred loss impairment model used in MFRS 139. The
expected credit loss model is forward-looking and eliminates the need for a trigger event to
have occurred before credit losses are recognised.
Upon adoption on 1 January 2023, the Company has classified and measured all its quoted
and unquoted equity securities, as well as unit trusts at FVTPL. Its holding in debt securities
has been classified as FVOCI. There will be no significant changes to the Company’s
accounting for financial liabilities as it largely retains the MFRS 139 requirements. All the
financial liabilities will remain as amortised cost as there has not been significant change in
the requirements for financial liabilities under MFRS 9. For the year ended 31 December
2022 and 31 December 2021, the effects from adopting MFRS 9 are disclosed in Note 36
which shows the fair value and carrying value of financial assets separately between
financial assets with contractual cash flows that are solely payments of principal and interest
(“SPPI”) and other financial assets. Other financial assets consist of assets with contractual
cash flows that are not SPPI and assets measured at fair value through profit or loss under
MFRS 139. The Company adopted MFRS 9 on 1 January 2023 without restating prior
periods’ information and recognising any difference between the previous carrying amount
and the carrying amount at the beginning of the annual reporting period at the date of initial
application, in opening retained earnings.
37
Company No.
196801000442 (8029-A)

2.2 Summary of significant accounting policies
The following accounting policies have been used consistently in dealing with items which are
considered material to the financial statements.
(a) Property, plant and equipment and depreciation
Property, plant and equipment are initially stated at cost less accumulated depreciation and
accumulated impairment loss. Cost includes expenditure that is directly attributed to the
acquisition of the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of the replaced part is derecognised. All other repairs and maintenance are
recognised as expenses in profit or loss during the financial year in which they are incurred.
Property, plant and equipment are depreciated on a straight line basis to write off the cost
of the assets to their residual values over their estimated useful lives. The expected useful
lives of the assets are as follows:
Furniture, fittings and office equipment 5 to 10 years

Motor vehicles 10 years
Renovation 10 years
Residual values and useful lives of assets are reviewed, and adjusted if appropriate, at each
date of the statement of financial position.
At each date of the statement of financial position, the Company assesses whether there is
any indication of impairment. If such indications exist, an analysis is performed to assess
whether the carrying amount of the asset is fully recoverable. A write down is made if the
carrying amount exceeds the recoverable amount. See accounting policy Note 2.2(g) to the
financial statements on impairment of non-financial assets.
Gains and losses on disposals are determined by comparing proceeds with carrying
amounts and are credited or charged to profit or loss.
38
Company No.
196801000442 (8029-A)

2.2 Summary of significant accounting policies (continued)
(b) Leases
(i) Accounting by lessee
Leases are recognised as right-of-use (“ROU”) asset and a corresponding liability

at the date on which the leased asset is available for use by the Company (i.e. the
commencement date).
Contracts may contain both lease and non-lease components. The Company
allocates the consideration in the contract to the lease and non-lease components
based on their relative stand-alone prices.
Lease term
In determining the lease term, the Company considers all facts and circumstances
that create an economic incentive to exercise an extension option, or not to exercise
a termination option. Extension options (or periods after termination options) are
only included in the lease term if the lease is reasonably certain to be extended (or
not to be terminated).
The Company reassesses the lease term upon the occurrence of a significant event
or change in circumstances that is within the control of the Company and affects
whether the Company is reasonably certain to exercise an option not previously
included in the determination of lease term, or not to exercise an option previously
included in the determination of lease term. A revision in lease term results in
remeasurement of the lease liabilities. See accounting policy below on
reassessment of lease liabilities.
ROU assets
ROU assets are initially measured at cost comprising the following:

• The amount of the initial measurement of lease liability;
• Any lease payments made at or before the commencement date less any lease
incentive received;
• Any initial direct costs; and
• Decommissioning or restoration costs.
The ROU assets are subsequently measured at cost, less accumulated depreciation
and impairment loss (if any). The ROU assets are generally depreciated over the
shorter of the asset’s useful life and the lease term on a straight line basis. If the
Company is reasonably certain to exercise a purchase option, the ROU asset is
depreciated over the underlying asset’s useful life. In addition, the ROU assets are
adjusted for certain remeasurements of the lease liabilities.
39
Company No.
196801000442 (8029-A)

(b) Leases (continued)
(i) Accounting by lessee (continued)
Lease liabilities
Lease liabilities are initially measured at the present value of the lease payments
that are not paid at that date. The lease payments include the following:
• Fixed payments (including in-substance fixed payments), less any lease
incentive receivable;
• Variable lease payments that are based on an index or a rate, initially measured
using the index or rate as at the commencement date;
• Amounts expected to be payable by the Company under residual value
guarantees;
• The exercise price of purchase and extension options if the Company is
reasonably certain to exercise that option; and
• Payments of penalties for terminating the lease, if the lease term reflects the
Company exercising that option.
Lease payments are discounted using the interest rate implicit in the lease. If that
rate cannot be readily determined, which is generally the case for leases in the
Company, the lessee’s incremental borrowing is used. This is the rate that the
individual lessee would have to pay to borrow the funds necessary to obtain an asset
of similar value to the ROU in a similar economic environment with similar term,
security and conditions.
Lease payments are allocated between principal and finance cost. The finance cost
is charged to profit or loss over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability for each period.
The Company presents the lease liabilities as a separate line item in the statement
of financial position. Interest expense on the lease liability is presented within the
finance cost in the statement of profit or loss.
Reassessment of lease liabilities
The Company is also exposed to potential future increases in variable lease

payments that depend on an index or rate, which are not included in the lease
liability until they take effect. When adjustments to lease payments based on an
index or rate take effect, the lease liability is remeasured and adjusted against the
ROU assets.
Short-term leases and leases of low-value assets
Short-term leases are leases with a lease term of 12 months or less. Low-value
assets comprise IT equipment, printing and photocopy machines. The Company
has elected not to recognise ROU assets and lease liabilities for leases of low-value
assets and short-term leases. Payments associated with short-term leases and
leases of low-value assets are recognised on a straight-line basis as an expense in
profit or loss.
40
Company No.
196801000442 (8029-A)

(b) Leases (continued)
(i) Accounting by lessee (continued)
Rent concession
The Company elects to account for a Covid-19 related rent concession that meets
all of the following conditions in the same way as they would if they were not lease
modification:
• the change in lease payments results in revised consideration for the lease that
is substantially the same as, or less than, the consideration for the lease
immediately preceding the change;
• any reduction in lease payments affects only payments due on or before 30
June 2020; and
• there is no substantive change to other terms and conditions of the lease.
The Company accounts for such Covid-19 related rent concession as a variable
lease payment in the period(s) in which the event or condition that triggers the
reduced payment occurs. The Company presents the impacts of rent concessions
within profit or loss.
If a rent concession results from a lease modification, the Company accounts for
the rent concession as either a new lease or as a remeasurement of an existing
lease liability, depending on the criteria set in MFRS 16.
If a rent concession does not result from a lease modification, the Company
accounts for the rent concession as a variable lease payment in the period(s) in
which the event or condition that triggers the reduced payment occurs.
(ii) Accounting by lessor
The Company classifies all leases for which it is a lessor as operating leases, as
each of these leases does not transfer substantially all of the risks and rewards
incidental to ownership of the underlying asset.
Lease payments from operating leases are recognised as income on a straight line
basis over the lease term and are reported as rental income.
41
Company No.
196801000442 (8029-A)

(c) Investment properties
Investment properties, comprising principally land and office buildings, are held for long term
rental yields or for capital appreciation or both. Such properties are measured initially at its
cost, including related transaction costs and borrowing costs if the investment properties
meet the definition of qualifying asset.
After initial recognition, investment properties are carried at fair value. Fair value is based
on active market prices, adjusted, if necessary, for any difference in the nature, location or
condition of the specific asset. If this information is not available, the Company uses
alternative valuation methods, such as recent prices on less active markets or discounted
cash flow projections. The fair values of investment properties are assessed monthly for
offers to purchase received, and a formal valuation by an independent professional valuer
is carried out once in every three years or earlier if the carrying values of the investment
properties are materially different from the fair values. All gains or losses arising from a
change in fair value of investment properties are recognised in profit or loss.
Investment properties are derecognised either when they have been disposed of or when
the investment property is permanently withdrawn from use and no future economic benefit
is expected from its disposal. Any gains or losses on the retirement or disposal of an
investment property are recognised in profit or loss in the financial year in which they arise.
If an investment property becomes owner-occupied, it is reclassified as property, plant and

equipment, and its fair value at the date of reclassification becomes its cost for subsequent
accounting purposes.
If an owner-occupied property becomes an investment property, the fair value changes of

the property upon the reclassification are recognised in an equity reserve. Increases are
recognised directly in equity, unless there was an impairment loss recognised for the same
property in prior years and a portion of the increase is recognised in profit or loss to the
extent of that impairment loss. Decreases are recognised in profit or loss for any decrease
in excess of the amount included in the revaluation surplus for that property.
(d) Intangible assets
Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to
acquire and bring to use the specific software. These costs are amortised over their
estimated useful lives.
Costs associated with developing or maintaining computer software programmes are

recognised as an expense when incurred. Costs that are directly associated with identifiable
software systems controlled by the Company, which do not form an integral part of the
hardware, and that will probably generate economic benefits exceeding costs beyond one
year, are recognised as intangible assets.
Computer software development costs recognised as assets are amortised using the
straight line method over their estimated useful lives, not exceeding a period of three years.
Computer software in progress is not amortised until the asset is ready for its intended use.
In the interim, it is reviewed for impairment at each reporting date.
42
Company No.
196801000442 (8029-A)

(e) Investments and other financial assets
The Company classifies its financial assets into the following categories: financial assets
measured at fair value through profit or loss (“FVTPL”), loans and receivables (“LAR”) and
available-for-sale (“AFS”) financial assets. The classification depends on the purpose for
which the investments were acquired or originated. Management determines the
classification of its investments at initial recognition.
(i) Financial assets measured at FVTPL
The Company classifies investments acquired for the purpose of selling in the short-
term as held-for-trading, as FVTPL. Derivatives are also classified as held-for-
trading unless they are designated as hedges.
Investments held by investment-linked funds are designated at FVTPL at inception

as they are managed and evaluated on a fair value basis, in accordance with the
respective investment strategy and mandate.
These investments are initially recorded at fair value and transaction costs are
expensed in profit or loss. Subsequent to initial recognition, these assets are
remeasured at fair value. Fair value adjustments and realised gains and losses are
recognised in profit or loss.
(ii) LAR
LAR are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market but do not include insurance receivables. These
assets are initially recognised at fair value. All transaction costs directly attributable
to the acquisition are also included in the cost of the asset. After initial measurement,
LAR are measured at amortised cost, using the effective yield method, less
allowance for impairment.
Gains and losses are recognised in profit or loss when the assets are derecognised
or impaired, as well as through the amortisation process.
Refer to Note 2.2(i) to the financial statements for further details on the accounting
policy on loans.
43
Company No.
196801000442 (8029-A)

(e) Investments and other financial assets (continued)
(iii) AFS financial assets
AFS financial assets are non-derivative financial assets that are either designated
in this category or not classified in any of the other assets categories. These
investments are initially recognised at fair value. After initial measurement, AFS
financial assets are remeasured at fair value.
Fair value gains and losses of monetary and non-monetary financial assets are
reported in the statement of comprehensive income and reported as a separate
component of equity until the investment is derecognised or investment is
determined to be impaired, except for the life insurance contracts with discretionary
participating features, where such fair value gains or losses are reported as a
separate component of insurance contract liabilities. Fair value gains and losses of
monetary instruments denominated in a foreign currency are analysed between
translation differences resulting from changes in amortised cost of the instrument
and other changes in the carrying amount of the instrument. The translation
differences on monetary instruments are recognised in profit or loss; translation
differences on non-monetary instruments are reported in the statement of
comprehensive income and shown as a separate component of equity except for
the life insurance contract with discretionary participating features (“DPF”), where
such fair value gains or losses are reported as a separate component of insurance
contract liabilities until the investment is derecognised.
On derecognition or impairment, the cumulative fair value gains and losses

previously reported in equity is transferred through the statement of comprehensive
income or from insurance contract liabilities to profit or loss.
44
Company No.
196801000442 (8029-A)

(f) Fair value of financial instruments
The fair value of financial instruments that are actively traded in organised financial markets
is determined by reference to quoted or published (closing) price on the date of the
statement of financial position.
For investments in unit and real estate investment trusts, fair value is determined by
reference to published (closing) price.
For financial instruments where there is not an active market, the fair value is determined
by using valuation techniques. The Company uses its judgement to select a variety of
methods and make assumptions that are mainly based on market conditions existing at the
end of each reporting period. Such techniques include using recent arm’s length
transactions, reference to the current market value of another instrument which is
substantially the same, discounted cash flows analysis and/or option pricing models. For
discounted cash flow techniques, estimated future cash flows are based on management’s
best estimates and the discount rate used is a market related rate for a similar instrument.
Certain financial instruments are valued using pricing models that consider, among other
factors, contractual and market prices, co-relation, time value of money, credit risk, yield
curve volatility factors and/or prepayment rates of the underlying positions. The use of
different pricing models and assumptions could produce materially different estimates of fair
values.
The fair value of floating rate, over-night and time deposits with financial institutions is their
carrying value. The carrying value is the cost of the deposit/placement and accrued
interest/profit. The fair value of fixed interest/yield-bearing deposits is measured using
estimated discounted cash flow techniques. Expected cash flows are discounted at current
market rates for similar instruments at the date of the statement of financial position.
If the fair value cannot be measured reliably, these financial instruments are measured at
cost, being the fair value of the consideration paid for the acquisition of the instrument or
the amount received on issuing the financial liability. All transaction costs directly attributable
to the acquisition are also included in the cost of the investment.
(g) Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment. Assets that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the carrying amount
of the assets exceeds its recoverable amount. The recoverable amount is the higher of the
asset’s fair value less costs to sell and the value-in-use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash-generating units). Non-financial assets that suffered
impairment are reviewed for possible reversal of impairment at each reporting date.
An impairment loss is charged to profit or loss immediately. A subsequent increase in the

recoverable amount of an asset is treated as reversal of the previous impairment loss and
is recognised to the extent of the carrying amount of the asset that would have been
determined (net of amortisation and depreciation) had no impairment loss been recognised.
The reversal is recognised in profit or loss immediately.
45
Company No.
196801000442 (8029-A)

(h) Impairment of financial assets
The Company assesses at each date of the statement of financial position, whether a
financial asset or group of financial assets is impaired.
(i) Financial assets carried at amortised cost
If there is objective evidence that an impairment loss on assets carried at amortised

cost has been incurred, the amount of the impairment loss is measured as the
difference between the asset’s carrying amount and the present value of estimated
future cash flows (excluding future expected credit losses that have not been
incurred) discounted at the financial asset’s original effective interest rate/yield. The
carrying amount of the asset is reduced through the use of an allowance account
and the loss is recorded in profit or loss.
The Company first assesses whether objective evidence of impairment exists

individually for financial assets that are individually significant, and individually or
collectively for financial assets that are not individually significant. If it is determined
that no objective evidence of impairment exists for an individually assessed financial
asset, whether significant or not, the asset is included in a group of financial assets
with similar credit risk characteristics and that group of financial assets is collectively
assessed for impairment. Assets that are individually assessed for impairment and
for which an impairment loss is or continues to be recognised are not included in a
collective assessment of impairment. The impairment assessment is performed at
date of the statement of financial position.
To determine whether there is objective evidence that an impairment loss on

financial assets has been incurred, the Company considers factors such as the
probability of insolvency or significant financial difficulties of the debtor and default
or significant delay in payments.
If, in a subsequent period, the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment was
recognised, the previously recognised impairment loss is reversed. Any subsequent
reversal of an impairment loss is recognised in profit or loss, to the extent that the
carrying value of the asset does not exceed its amortised cost at the reversal date.
(ii) AFS financial assets
If an AFS financial asset is impaired, an amount comprising the difference between

its cost (net of any principal repayment and amortisation) and its current fair value,
less any impairment loss previously recognised in profit or loss, is transferred from
equity through the statement of comprehensive income or from insurance contract
liabilities to profit or loss. Reversals in respect of equity instruments classified as
AFS are not recognised in profit or loss. Reversals of impairment losses on debt
instruments classified as AFS are reversed through profit or loss if the increase in
the fair value of the instruments can be objectively related to an event occurring
after the impairment losses were recognised in profit or loss.
46
Company No.
196801000442 (8029-A)

(i) Loans
Loans are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method, less allowance for impairment. An allowance for
impairment of loan is established when there is objective evidence that the Company will
not be able to collect all amounts due according to the original terms of the receivables. The
amount of the allowance is the difference between the asset’s carrying amounts and the
present value of estimated future cash flows discounted at the effective interest rates. This
includes interest that is suspended and/or recognised to the extent of the recoverable
amount.
The amount of specific allowance also takes into account the collateral value and
recoverable amount of interest due, which may be discounted to reflect the impact of the
recovery process which is estimated to be between one to five years, depending on default
condition of the loan, type of collateral and whether under litigation. The amount of the
allowance is recognised in profit or loss.
Where the collateral is property, the net realisable value of the property is determined by
using its fair value which is based on open market value by independent property valuers,
adjusted if necessary, for any difference in the nature, location or condition of the specific
asset, while for shares, it is based on the last transacted price. If this information is not
available, the Company uses alternative valuation methods such as recent prices on less
active markets, adjusted if necessary, for any difference in nature, location or condition of
specific asset or discounted cash flow projections.
Loans are classified as non-performing when repayments or interests are in arrears for more
than six months from the first day of default or after maturity date.
(j) Insurance receivables
Insurance receivables are recognised when due. They are measured at initial recognition at
the fair value of the consideration received or receivable. Subsequent to initial recognition,
insurance receivables are measured at amortised cost, using the effective yield method.
If there is objective evidence that the insurance receivable is impaired, the Company
reduces the carrying amount of the insurance receivable accordingly and recognises that
impairment loss in profit or loss. The Company gathers objective evidence that an insurance
receivable is impaired using the same process adopted for financial assets carried at
amortised cost. The impairment loss is calculated under the same method used for these
financial assets. These processes are described in Note 2.2(h) to the financial statements.
Insurance receivables are derecognised when the derecognition criteria for financial assets,
as described in Note 2.2(k) to the financial statements, have been met.
(k) Financial instrument - Derecognition of financial assets
Financial assets are derecognised when the rights to receive cash flows from them have
expired or where they have been transferred, and the Company has also transferred
substantially all risks and rewards of ownership.
47
Company No.
196801000442 (8029-A)

(l) Equity instruments
Ordinary share capital
The Company has issued ordinary shares that are classified as equity. Incremental external
costs that are directly attributed to the issue of these shares are recognised in equity, net of
tax.
Dividends on ordinary share capital
Dividends on ordinary shares are recognised as a liability and deducted from equity when
they are approved by the Company’s shareholders. Interim dividends are deducted from
equity when they are paid.
(m) Product classification
The Company issues contracts that transfer insurance risk or financial risk or both.
Financial risk is the risk of a possible future change in one or more of a specified interest
rate, financial instrument price, commodity price, foreign exchange rate, index of price or
rate, credit rating or credit index or other variable, provided in the case of a non-financial
variable that the variable is not specific to a party to the contract. Insurance risk is the risk
other than financial risk.
Insurance contracts are those contracts that transfer significant insurance risk. An insurance
contract is a contract under which the Company (the insurer) has accepted significant
insurance risk from another party (the policyholders) by agreeing to compensate the
policyholders if a specified uncertain future event (the insured event) adversely affects the
policyholders. As a general guideline, the Company determines whether it has significant
insurance risk, by comparing benefits paid with benefits payable if the insured event did not
occur. Investment contracts are those contracts that do not transfer significant insurance
risk.
Once a contract has been classified as an insurance contract, it remains an insurance

contract for the remainder of its life-time, even if the insurance risk reduces significantly
during this period, unless all rights and obligations are extinguished or expired. Investment
contracts can, however, be reclassified as insurance contracts after inception if insurance
risk becomes significant.
Insurance and investment contracts are further classified as being either with or without DPF.
DPF is a contractual right to receive, as a supplement to guaranteed benefits, additional
benefits that are:
• likely to be a significant portion of the total contractual benefits;

• whose amount or timing is contractually at the discretion of the issuer; and
• that are contractually based on the:
o performance of a specified pool of contracts or a specified type of contract;
o realised and/or unrealised investment returns on a specified pool of assets held
by the issuer; or
o the profit or loss of the company, fund or other entity that issues the contract.
48
Company No.
196801000442 (8029-A)

(m) Product classification (continued)
Under the terms of the contracts, surpluses in the DPF fund can be distributed on a 90/10
basis to the policyholders and the shareholders respectively. The Company has the
discretion over the amount and timing of the distribution of these surpluses to policyholders.
All DPF liabilities, including unallocated surpluses, both guaranteed and discretionary, at
the end of the reporting period are held within insurance or investment contract liabilities, as
appropriate.
Under the RBC Framework for Insurers, statutory liabilities are calculated based on the
Gross Premium Valuation (“GPV”) method which takes into consideration not only the
guaranteed but also the discretionary benefits in the case of participating products and the
underlying assumptions are based on the Company’s actual experience.
For financial options and guarantees which are not closely related to the host insurance
contract and/or investment contract with DPF, bifurcation is required to measure these
embedded derivatives separately at fair value through profit or loss. However, bifurcation is
not required if the embedded derivative is itself an insurance contract and/or investment
contract with DPF, or if the host insurance contract and/or investment contract itself is
measured at fair value through profit or loss.
When insurance contracts contain both a financial risk component and a significant
insurance risk component, and the cash flows from the two components are distinct and can
be measured reliably, the underlying amounts are unbundled. Any premiums relating to the
insurance risk component are accounted for on the same bases as insurance contracts and
the remaining element is accounted for as a deposit through the statement of financial
position similar to investment contracts.
The Company defines insurance risk to be significant when the ratio of the insurance risk
over the deposit component is not less than 105% of the deposit component at any point of
the insurance contract in force. Based on this definition, all policy contracts issued by the
Company are considered insurance contracts as at the date of the statement of financial
position.
(n) Reinsurance
The Company cedes insurance risk in the normal course of business for most of its
businesses. Reinsurance assets represent balances due from reinsurance companies.
Amounts recoverable from reinsurers are estimated in a manner consistent with the
outstanding claims provision or settled claims associated with the reinsurer’s policies and
are in accordance with the related reinsurance contracts.
Ceded reinsurance arrangements do not relieve the Company from its obligations to
policyholders. Premiums and claims are presented on a gross basis for both ceded and
assumed reinsurance.
Reinsurance assets are reviewed for impairment at each reporting date or more frequently
when an indication of impairment arises during the reporting period. Impairment occurs
when there is objective evidence as a result of an event that occurred after initial recognition
of the reinsurance asset that the Company may not receive all outstanding amounts due
under the terms of the contract, and the event has a reliably measurable impact on the
amounts that the Company will receive from the reinsurers. The impairment loss is
recorded in profit or loss.
49
Company No.
196801000442 (8029-A)

(n) Reinsurance (continued)
Gains or losses on buying reinsurance are recognised in profit or loss immediately at the
date of purchase and are not amortised.
The Company also assumes reinsurance risk in the normal course of business for life
insurance when applicable. Premiums and claims on assumed reinsurance are recognised
as revenue or expenses in the same manner as they would be if the reinsurance were
considered direct business, taking into account the product classification of the reinsured
business. Reinsurance liabilities represent balances due to reinsurance companies.
Amounts payable are estimated in a manner consistent with the related reinsurance
contract. Reinsurance assets or liabilities are derecognised when the contractual rights are
extinguished or expire or when the contract is transferred to another party.
Reinsurance contracts that do not transfer significant insurance risk are accounted for
directly through the statement of financial position. These are deposit assets or financial
liabilities that are recognised based on the consideration paid or received less any explicit
identified premiums or fees to be retained by the reinsured. Investment income on these
contracts is accounted for using the effective yield method when accrued.
(o) Life insurance underwriting results
The surplus transferable from the life participating fund to profit or loss is based on the
surplus determined by an annual actuarial valuation of the long-term insurance contract
liabilities to the policyholders.
Premium income
Premium income includes premium recognised in the life fund and the investment-linked
fund. Premium income of the life fund is recognised as soon as the amount of the premium
can be reliably measured. First premium is recognised from inception date, and subsequent
premium is recognised when due.
At the end of the financial year, all due premiums are accounted to the extent that they can
be reliably measured.
Premium income of the investment-linked fund includes creation of units which represents
premiums paid by policyholders as payment for a new contract or subsequent payments to
increase the amount of that contract. Net creation of units is recognised on a receipt basis.
50
Company No.
196801000442 (8029-A)

(o) Life insurance underwriting results (continued)
Reinsurance premiums
Gross reinsurance premiums are recognised as an expense when payable or on the date
on which the policy is effective.
Benefits, claims and expenses
Benefits and claims that are incurred during the financial year are recognised when a
claimable event occurs and/or the insurer is notified.
Benefits and claims, including settlement costs, are accounted for using the case-by-case
method and for this purpose; the amounts payable under a policy are recognised as follows:
• maturity and other policy benefit payments due on specified dates are treated as
claims payable on the due dates;
• death, surrender and other benefits without due dates are treated as claims payable
on the date of receipt of intimation of death of the assured or occurrence of
contingency covered; and
• bonus on DPF policy upon its declaration.
Reinsurance claims are recognised when the related gross insurance claim is recognised
according to the terms of the relevant contracts.
Commission and agency expenses
Gross commission and agency expenses, which are costs directly incurred in securing
premium on insurance policies, and income derived from reinsurers in the course of ceding
of premiums to reinsurers, are charged to profit or loss in the financial year in which they
are incurred.
51
Company No.
196801000442 (8029-A)

(p) Insurance contract liabilities
(i) Life actuarial liabilities
Life actuarial liabilities are recognised when contracts are entered into and
premiums are charged.
These liabilities are measured by using a prospective actuarial valuation method.

The liability is determined as the sum of the present value of future guaranteed
and, in the case of a participating life policy, appropriate level of non-guaranteed
benefits, and the expected future management and distribution expenses, less the
present value of future gross considerations arising from the policy discounted at
the appropriate risk discount rate. The liability is based on best estimate
assumptions and with due regard to significant recent experience. An appropriate
allowance for provision of risk margin for adverse deviation from expected
experience is made in the valuation of non-participating life policies, the
guaranteed benefits liabilities of participating life policies, and non-unit liabilities of
investment-linked policies. The valuation basis, including the determination of the
appropriate risk discount rate, is in accordance with Part D of the RBC Framework
and Appendix VII: Valuation Basis for Life Insurance Liabilities of the RBC
Framework, and any related circulars issued by BNM relevant to the guidelines.
The liability in respect of DPF insurance contract is taken as the higher of the
guaranteed benefit liabilities loaded with provision of risk margin for adverse
deviation or the total benefit liabilities at the contract level derived as stated above.
In the case of a life policy where a part of, or the whole of the premiums are
accumulated in a fund, the liabilities shall be the higher of the current accumulated
amount (as declared to the policy owners), or the sum of the current accumulated
amount and liabilities calculated using the prospective actuarial valuation method.
Where policies or extensions of a policy are collectively treated as an asset at the

fund level under the valuation method adopted, the value of such asset is
eliminated through zerorisation.
In the case of a 1-year life policy or a 1-year extension to a life policy covering
contingencies other than death or survival, the liability for such life insurance
contracts comprises the provision for unearned premiums and unexpired risks, as
well as for claims outstanding, which includes an estimate of the incurred claims
that have not yet been reported to the Company.
Adjustments to the liabilities at each reporting date are recorded in profit or loss.
Profits that originate from margins of adverse deviations on run-off contracts are
recognised in profit or loss over the life of the contract, whereas losses are fully
recognised in profit or loss during the first year of run-off. The liability is
derecognised when the contract expires, is discharged or is cancelled.
52
Company No.
196801000442 (8029-A)

(p) Insurance contract liabilities (continued)
(ii) Surplus in the life insurance contracts
Surpluses with the DPF fund are distributable to policyholders and shareholders in
accordance with the relevant terms under the insurance contracts. The Company,
however, has the discretion over the amount and timing of the distribution of these
surpluses to policyholders and shareholders which are determined by an actuarial
valuation of the long term liabilities to the policyholders at the date of the statement
of financial position and is made in accordance with the provision of the FSA and
related regulations by the Company’s Appointed Actuary.
Unallocated surplus of DPF insurance contracts where the amounts of surplus are
yet to be allocated or distributed by the Company’s Appointed Actuary to either
policyholders or shareholders by the end of the financial year, are classified as part
of life insurance contract liabilities.
(iii) AFS fair value adjustment
Where unrealised gains or losses arise on AFS financial assets of the life
participating fund, the adjustment to the insurance contract liabilities equal to the
effect that the realisation of those gains or losses at the end of the reporting years
would have on those liabilities which is recognised directly in the other
comprehensive income.
(iv) Asset revaluation surplus adjustment
Where asset revaluation reserve arises on the self-occupied properties of the DPF
fund, the adjustment to the life insurance liabilities equal to the effect that the
realisation of those surpluses at the end of the reporting period would have on
those liabilities is recognised directly in other comprehensive income. Upon
disposal, any surplus previously recorded is transferred to surplus with the DPF
fund; the transfer is not made through profit or loss.
(v) Net asset value attributable to unitholders
The unit liability of investment-linked contract is equal to the net asset value of the
investment-linked funds, which represents net premium received and investment
returns credited to the policy less deduction for mortality and morbidity costs and
expense charges.
53
Company No.
196801000442 (8029-A)

(q) Other revenue recognition
Interest income
Interest income is recognised on an accrual basis using the effective yield method. When
a receivable is impaired, the Company reduces the carrying amount to its recoverable
amount, being the estimated future cash flows discounted at the original effective interest
rate of the investment and continues unwinding the discount as interest income.
Other interest income including the amount of amortisation of premiums and accretion of
discounts is recognised on a time proportion basis that takes into account the effective yield
of the assets.
Dividend income
Dividend income is recognised as investment income when the Company’s right to receive
payment is established.
Rental income
Rental income on owner-occupied and investment properties is recognised on a straight-

line basis over the term of the lease. The aggregate cost of incentives provided to lessee
is recognised as a reduction of rental income over the lease term on a straight line basis.
Lease rental income net of payment of lease rental expenses made under operating lease
of the same properties is recognised on straight-line basis over the lease term.
Realised gains and losses on investments
Realised gains and losses recorded in profit or loss on investments include gains and
losses on financial assets and investment properties. Gains and losses on the sale of
investments are calculated as the difference between net sales proceeds and the original
or amortised cost, and are recorded on occurrence of the sale transaction.
Fees and commission income
Insurance contract policyholders are charged for policy administration services, investment
management services, surrenders and other contract fees. These fees are recognised as
revenue over the period in which the related services are performed. If the fees are for
services to be provided in future periods, then, they are deferred and recognised over those
future periods.
Management fee income earned from the investment-linked business is recognised on an

accrued basis based on the net asset value of the investment-linked funds.
54
Company No.
196801000442 (8029-A)

(r) Foreign currencies
The financial statements are presented in Ringgit Malaysia which is also the functional
currency of the Company.
Foreign currency transactions in the Company are accounted for at exchange rates
prevailing at the transaction dates. Foreign currency monetary assets and liabilities at the
date of the statement of financial position are translated to Ringgit Malaysia at exchange
rates prevailing at the date of the statement of financial position. Exchange differences
arising from the settlement of foreign currency transactions and from the translation of
foreign currency monetary assets and liabilities are included in profit or loss.
(s) Income taxes
Income taxes on the profit or loss for the financial year comprises current and deferred tax.
Current tax assets and liabilities for the current and prior years are measured at the amount
expected to be recovered or paid to the tax authorities. The tax rates used to compute the
amount are those that are enacted or substantively enacted at the date of the statement of
financial position.
Current tax expense is determined according to the tax laws of the jurisdiction in which the
Company operates and includes all taxes based upon the taxable profits. The tax expense
is based on the method prescribed under the Income Tax Act 1967 for life and general
insurance businesses. Current tax is recognised in profit or loss.
Deferred tax is provided for, using the liability method. In principle, deferred tax liabilities
are recognised for all taxable temporary differences and deferred tax assets are recognised
for all deductible temporary differences, unused tax losses and unused tax credits to the
extent that it is probable that future taxable profits will be available against which the
deductible temporary differences, unused tax losses and unused tax credits can be utilised.
Deferred tax is not recognised if the temporary difference arises from the initial recognition
of an asset or liability in a transaction which is not a business combination and at the time
of the transaction, affects neither accounting profit nor taxable profit.
The carrying amount of deferred tax assets is reviewed at each date of the statement of
financial position and reduced to the extent that it is no longer probable that sufficient future
taxable profits will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at each date of the statement of financial
position and are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be utilised.
Deferred tax is measured at the tax rates that are expected to apply in the period when the
asset is realised or the liability is settled, based on tax rates that have been enacted or
substantively enacted at the date of the statement of financial position.
Deferred tax is recognised as income or an expense and included in profit or loss for the
financial year, except when it arises from a transaction which is recognised in other
comprehensive income or directly in equity or directly in the insurance contract liabilities,
in which case the deferred tax is also recognised in other comprehensive income or directly
in equity or directly in the insurance contract liabilities.
55
Company No.
196801000442 (8029-A)

(t) Provisions
Provisions are recognised when the Company has a present obligation, either legal or
constructive, as a result of a past event and it is probable that an outflow of resources will
be required to settle the obligation, and a reliable estimate of the amount can be made.
Provisions are reviewed at each date of the statement of financial position and adjusted to
reflect the current best estimate. If it is no longer probable that an outflow of resources
embodying economic benefits will be required to settle the obligation, the provision is
reversed. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is
recognised as finance cost expense.
(u) Employee benefits
Short-term employee benefits
Wages, salaries, bonuses and social security contributions are recognised as expenses in
the financial year in which the associated services are rendered by employees. Short-term
accumulating compensated absences such as paid annual leave are recognised when
services are rendered by employees that increase their entitlement to future compensated
absences. Short-term non-accumulating compensated absences such as sick leave are
recognised when the absences occur.
Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Company
pays fixed contributions or variable contributions into separate entities or funds and will
have no legal or constructive obligation to pay further contributions if any of the funds do
not hold sufficient assets to pay all employee benefits relating to the employee services in
the current and preceding financial years. Such contributions are recognised as an expense
in profit or loss as incurred. As required by law, the Company makes such contributions to
the Employees Provident Fund (“EPF”). Once the contributions have been paid, the
Company has no further payment obligations.
Termination benefits
Termination benefits are payable when employment is terminated by the Company before
the normal retirement date, or whenever an employee accepts voluntary redundancy in
exchange for these benefits.
The Company recognises termination benefits at the earlier of the following dates:
(a) when the Company can no longer withdraw the offer of those benefits; and
(b) when the Company recognises costs for a restructuring that is within the scope of
MFRS 137 and involves the payment of termination benefits.
In the case of an offer made to encourage voluntary redundancy, the termination benefits
are measured based on the number of employees expected to accept the offer.
56
Company No.
196801000442 (8029-A)

(u) Employee benefits (continued)
Share-based long-term incentive plan
The ultimate holding corporation, Zurich Insurance Group Ltd (“ZIGL”), operates a global
long term incentive plan wherein performance-based target shares administered by a
central shareholding vehicle are granted to eligible directors and senior executives of the
ZIGL and its subsidiary companies (“ZIGL Group”) based on the financial and performance
criteria and such conditions as it may deem fit. The Company purchases the right to shares
from this holding vehicle for Malaysian senior executives who participate in the plan. When
shares vest with the participants, the central share vehicle transfers those shares directly
to the participants. The Company does not bear any exchange or price risk in relation to
payments for these rights to shares.
The cost of this equity-settled share-based compensation for the Company (being the fair
value at grant date) is recognised in the statement of profit and loss over the vesting period
of the grant.
(v) Other financial liabilities and insurance payables
Other financial liabilities and insurance payables are recognised when due and measured
on initial recognition at the fair value of the consideration payable less directly attributable
transaction costs. Subsequent to initial recognition, they are measured at amortised cost
using the effective yield method.
A financial liability and an insurance payable are derecognised when the obligation under
the liability is extinguished. When an existing financial liability is replaced by another from
the same lender on substantially modified, such an exchange or modification is treated as
a derecognition of the original liability and the recognition of a new liability, and the
difference in the respective carrying amounts is recognised in profit or loss.
(w) Contingent liabilities and contingent assets
The Company does not recognise a contingent liability but discloses its existence in the
financial statements. A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by uncertain future events beyond the control of
the Company or a present obligation that is not recognised because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also
arises in the extremely rare case where there is a liability that cannot be recognised
because it cannot be measured reliably.
A contingent asset is a possible asset that arises from past events whose existence will be
confirmed by uncertain future events beyond the control of the Company. The Company
does not recognise contingent assets but discloses their existence where inflows of
economic benefits are probable, but not virtually certain.
57
Company No.
196801000442 (8029-A)

(x) Cash and bank balances
Cash and bank balances comprise cash on hand, and deposits held at call with original
maturity of three months or less that are readily convertible to a known amount of cash and
which are subject to an insignificant risk of changes in value.
(y) Non-current assets held-for-sale
Non-current assets are classified as assets held-for-sale when their carrying amounts are
recovered principally through a sale rather than through continuing use and a sale is
considered highly probable. They are stated at the lower of carrying amount and fair value
less cost to sell.
(z) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision-maker. The chief operating decision-maker, who
is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Chief Operating Officer who makes strategic
decisions. The Company’s principal operations are organised into Life insurance and
Shareholders’ segments as disclosed in Note 41 to the financial statements.
(aa) Funding under the Par Stabilisation Plan (“PSP”)
Any deficit in the Ordinary Life Participating fund will be made good via an interest-free
funding under the PSP, granted by the Shareholder’s fund to the Ordinary Life Participating
fund (“Par Fund”). The funding shall be repaid from future surpluses of the Par Fund.
PSP funding is accounted for as receivable and payable in the financial statements of the
Shareholder’s Fund and Par Fund respectively and is stated at cost. At each date of the
statement of financial position, the Company assesses whether there is any indication of
impairment. If such indication exists, an analysis is performed to assess whether the
carrying amount of the asset is fully recoverable. An impairment loss is recognised if the
carrying amount exceeds the recoverable amount, as set out in Note 2.2(h) to the financial
statements on impairment of financial assets.
The amount payable to Shareholder’s Fund in the Par fund is stated at cost.
58
Company No.
196801000442 (8029-A)

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated by the Directors and are based on historical
experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, rarely equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are outlined below.
(i) Valuation of life insurance contract liabilities
The liability for life insurance contracts is based on current assumptions, reflecting the best
estimate at the time increased with a margin for risk and adverse deviation. All contracts
are subject to a liability adequacy test, which reflect management’s best current estimate
of future cash flows.
The main assumptions used relate to mortality, morbidity, longevity, investment returns,
expenses, lapse and surrender rates, and discount rates. The Company bases mortality
and morbidity on established industry and Malaysian tables which reflect historical
experiences, adjusted when appropriate to reflect the Company’s unique risk exposure,
product characteristics, target markets and own claims severity and frequency experiences.
Estimates are also made as to future investment income arising from the assets backing
life insurance contracts. These estimates are based on current market returns as well as
expectations about future economic and financial developments.
Assumptions on future expenses are based on current expense levels, adjusted for
expected expense inflation adjustments, if appropriate. Lapse and surrender rates are
based on the Company’s historical experience of lapses and surrenders.
Discount rate for non-participating policies, guaranteed benefits of participating policies and
the non-unit liability of investment-linked policies accord a level of guarantee which is no
less certain than that accorded by a Malaysian Government Security (“MGS”). In the case
of the total benefits liabilities of participating policies, the discount rate is based on the
historical yield and future investment outlook of the participating fund, net of tax on
investment income of the life fund.
(ii) Impairment assessment on non-performing loans
Judgement is applied in determining the amount that may be recovered from long
outstanding non-performing loans via the disposal of collaterals pledged to those loans.
The actual amounts that will be recovered from these non-performing loans are largely
dependent on the values that those collaterals can fetch should foreclosure take place or
if the borrowers agree to settlements with the Company, and lastly the time taken to
complete the recovery of these loans. Valuations of collaterals are reviewed by an
independent valuer every three years or earlier if the carrying values of the collaterals are
materially different from the fair values, and the impairment assessment is done monthly.
59
Company No.
196801000442 (8029-A)

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
Estimates and judgements are continually evaluated by the Directors and are based on historical
experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, rarely equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are outlined below. (continued)
(iii) Assumptions applied for MFRS 16 Leases
Determination of incremental borrowing rate
The lease liabilities are measured at the present value of the remaining lease payments over
the lease term, discounted using the Company’s incremental borrowing rate as the rate
implicit in the lease is generally not readily determinable.
Extension and termination options
Any options to extend or terminate a lease that the Company is reasonably certain to
exercise are included in the lease term. The ROU asset is initially recognised at an amount
equal to the lease liability adjusted for lease prepayments made or lease incentives received,
initial direct costs and any estimated costs to dismantle or restore the leased asset.
The lease term will be considered to extend beyond the non-cancellable period if the lessee
has an extension option that is considered to be reasonably certain to exercise, or an
termination option that is considered to be reasonably certain not to exercise.
The Company has several lease contracts that include extension and termination options.
The Company has included the renewal period as part of the lease term as the Company is
reasonably certain to exercise the option to extend the lease. The Company considers all
relevant facts and circumstances that create an economic incentive to exercise or not to
exercise the option including any expected changes in facts and circumstances from the
commencement date until the exercise date of the option.
60
Company No.
196801000442 (8029-A)

4. PROPERTY, PLANT AND EQUIPMENT
Furniture,
fittings
and office Motor
equipment vehicles Renovation Total
RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2021 27,860 661 22,774 51,295
Additions 4,049 400 1,244 5,693
Write-offs - - (154) (154)
At 31 December 2021 31,909 1,061 23,864 56,834
Additions 1,466 - 883 2,349
Write-offs (6,045) (156) (6,564) (12,765)
Disposals - (505) - (505)
At 31 December 2022 27,330 400 18,183 45,913
Accumulated depreciation
At 1 January 2021 13,466 375 10,249 24,090
Charge for the financial year
(Note 25) 3,531 174 1,754 5,459
Write-offs - - (154) (154)
At 31 December 2021 16,997 549 11,849 29,395
Charge for the financial year
(Note 25) 3,893 80 1,814 5,787
Write-offs (6,045) (156) (6,564) (12,765)
Disposals - (320) - (320)
At 31 December 2022 14,845 153 7,099 22,097
Net carrying amount

At 31 December 2021 14,912 512 12,015 27,439
At 31 December 2022 12,485 247 11,084 23,816
61
Company No.
196801000442 (8029-A)

5. RIGHT-OF-USE ASSETS
2022 2021
RM’000 RM’000
Cost
At 1 January 47,838 54,673
Additions 927 -
Modification 12,998 (6,835)
At 31 December 61,763 47,838
Accumulated depreciation
At 1 January 33,057 26,578
Charge for the financial year (Note 25) 8,313 9,400
Modification (186) (2,921)
At 31 December 41,184 33,057
Net carrying amount

At 31 December 20,579 14,781
The Company also has certain leases of equipment with low value. The Company applies the 'lease
of low-value assets' recognition exemptions for these leases.
The following are the amounts recognised in profit or loss:
2022 2021
RM’000 RM’000
Depreciation of right-of-use assets (Note 25) 8,313 9,400

Interest expense on lease liabilities 370 619
Expense related to leases of low-value assets (Note 25) 261 586
Total amount recognized in profit or loss 8,944 10,605
62
Company No.
196801000442 (8029-A)

6. INTANGIBLE ASSETS
Computer
software
RM’000
Cost
At 1 January 2021 20,375
Additions 329
At 31 December 2021 20,704
Additions 132
Write-offs (5,289)
At 31 December 2022 15,547
Accumulated amortisation
At 1 January 2021 17,417
Amortisation during the financial year (Note 25) 1,335
At 31 December 2021 18,752
Amortisation during the financial year (Note 25) 1,269
Write offs (5,289)
At 31 December 2022 14,732
Net carrying amount

At 31 December 2021 1,952
At 31 December 2022 815
63
Company No.
196801000442 (8029-A)

7. INVESTMENT PROPERTIES
2022 2021
RM’000 RM’000
At 1 January 57,103 74,510

Fair value losses recorded in statement of profit or loss
(Note 23) (3) (1,350)
Transferred to non-current assets held-for-sale (Note 8) (2,150) (16,057)
At 31 December 54,950 57,103
The fair values of the investment properties as at 31 December 2022 and 31 December 2021 were
determined by external independent valuers, or by management based on market or income
approaches by reference to valuations performed by external independent valuers where considered
appropriate. Fair value changes are recorded in profit or loss.
Rental income and the rates and maintenance expenses in respect of investment properties are
disclosed in Note 21 to the financial statements.
The titles to certain investment properties amounting to RM54,950,000 (2021: RM56,910,000) are in
the process of being transferred to the Company. Risks, rewards and effective titles to these
investment properties have been passed to the Company upon unconditional completion of the
acquisition of those properties.
Fair value is determined through various valuation techniques using Level 3 inputs (defined as
unobservable inputs for asset or liability) in the fair value hierarchy of MFRS 13 Fair Value
Measurement. Changes in fair value are recognised in the statement of profit or loss during the
reporting period in which they are reviewed.
The Level 3 inputs or unobservable inputs include:
• Term yield - the expected rental that the investment properties are expected to achieve and are
derived from the current passing rental, including revision upon renewal of tenancies during the
financial year;
• Reversion yield - the expected rental that the investment properties are expected to achieve upon
expiry of term rental;
• Allowance for void - refers to allowance provided for vacancy periods; and
• Price per square foot (“psf”) - estimated price psf for which a property should exchange on the
date of valuation between a willing buyer and a willing seller.
64
Company No.
196801000442 (8029-A)

7. INVESTMENT PROPERTIES (CONTINUED)
The fair value measurements using Level 3 inputs are as follows:
Reversion Price
Valuation Fair Term Reversion Allowance outgoing per sq
technique value yield yield for void foot
RM
RM’000 % % % psf/month RM/psf
31 December 2022
Office Investment 5.00-

54,950 6.25-7.00 6.75 1.00 -
building method 10.00
31 December 2021
Office Investment 5.00- -

54,950 6.25-7.00 6.75 1.00
building method 10.00
Others Comparison 94.64-
2,153 - - - -
method 243.06
57,103
8. NON-CURRENT ASSETS HELD-FOR-SALE
2022 2021
RM’000 RM’000
At 1 January 16,250 117,132

Disposal (12,300) (116,939)
Transferred from investment properties (Note 7) 2,150 16,057
At 31 December 6,100 16,250
The Company had three properties classified as held-for-sale as at 31 December 2022 (2021 : two
properties classified as held-for-sale). The Company has signed a sale and purchase agreement for the
disposal of the three properties and the sales are expected to be completed in 2023.
During the current financial year, the Company has completed the disposal of one property.
The Company has performed a valuation exercise to determine the need for any impairment losses to
be recognised to reflect the fair value of the properties.
65
Company No.
196801000442 (8029-A)

9. INVESTMENTS
31.12.2022 31.12.2021
RM’000 RM’000
Malaysian Government Securities/

Government Investment Issues 1,145,243 707,353
Corporate debt securities 3,706,044 4,239,661
Equity securities 1,145,380 1,344,413
Unit trusts 837,081 863,862
Loans 288,152 305,166
7,121,900 7,460,455
The Company’s financial investments are summaried by

measurement categories as follows:
Available-for-sale (“AFS”) financial assets 4,955,883 5,048,218

Fair value through profit or loss (“FVTPL”) financial assets 1,877,865 2,107,071
Loans and receivables (“LAR”) (Note 10) 288,152 305,166
7,121,900 7,460,455
Investments that mature after 12 months:
AFS financial assets 4,490,954 4,463,666

FVTPL financial assets 171,640 174,146
LAR (Note 10) 1,698 3,115
4,664,292 4,640,927
66
Company No.
196801000442 (8029-A)

9. INVESTMENTS (CONTINUED)
31.12.2022 31.12.2021
RM’000 RM’000
(a) AFS financial assets
Malaysian Government Securities/Government

Investment Issues 1,139,028 699,264
Corporate debt securities
- Unquoted in Malaysia 3,535,200 4,071,656
Equity securities
- Unquoted in Malaysia 29,429 19,044
Unit trusts
- Quoted in Malaysia 252,226 258,254
4,955,883 5,048,218
(b) FVTPL financial assets
Held-for-trading:
Equity securities
Unit trusts
652,335 809,835
Designated at FVTPL:
Malaysian Government Securities/Government
Investment Issues 6,215 8,089
Corporate debt securities
- Unquoted in Malaysia 170,844 168,005
Equity securities
Unit trusts
- Quoted outside Malaysia 74,183 72,402
- Unquoted outside Malaysia 323,146 312,089
1,225,530 1,297,236
1,877,865 2,107,071
67
Company No.
196801000442 (8029-A)

9. INVESTMENTS (CONTINUED)
(c) Carrying value of financial instruments
The movements in the Company’s financial assets (excluding loans and receivables) are
summarised in the table below by measurement category.
AFS FVTPL Total

RM’000 RM’000 RM’000
At 1 January 2021 5,159,930 2,037,226 7,197,156

Purchases 667,794 773,946 1,441,740
Disposals (sale and redemptions) (483,023) (742,848) (1,225,871)
Fair value losses recorded in:
Statement of profit or loss (Note 23) - 31,506 31,506
Other comprehensive income (250,716) - (250,716)
Movement in impairment allowance
(Note 23) (41,064) - (41,064)
Amortisation/interest movement (4,703) (591) (5,294)
Foreign exchange - 7,832 7,832
At 31 December 2021 5,048,218 2,107,071 7,155,289
Purchases 1,103,820 348,737 1,452,557
Disposals (sale and redemptions) (1,049,251) (463,673) (1,512,924)
Fair value gains recorded in:
Statement of profit or loss (Note 23) - (134,383) (134,383)
Other comprehensive income (93,208) - (93,208)
Movement in impairment allowance
(Note 23) (36,178) - (36,178)
Amortisation/interest movement (17,518) (919) (18,437)
Foreign exchange - 21,032 21,032
At 31 December 2022 4,955,883 1,877,865 6,833,748
The fair value hierarchy of investments is disclosed in Note 36 to the financial statements.
68
Company No.
196801000442 (8029-A)

10. LOANS AND RECEIVABLES
31.12.2022 31.12.2021
RM’000 RM’000
Loans arising from:
Policy loans 271,070 277,987
Mortgage loans 54,016 55,714
Unsecured loans - 404
325,086 334,105
Allowance for impairment (36,934) (28,939)
Net loans (Note 8) 288,152 305,166
The estimated fair values of the loans and receivables have been established by comparing current
market interest rates for similar financial instruments to the rates offered when the loans and
receivables were first recognised together with appropriate market credit adjustments except for
loans which are non-performing (“NPL”), where it is reported at estimated recoverable fair
value.The carrying value of the policy loans, secured loans and unsecured loans are reasonable
approximations of fair value due to the insignificant impact of discounting.
The maturity structure of the loans and receivables is as follows:
31.12.2022 31.12.2021
RM’000 RM’000
Receivables within 12 months 286,454 302,051

Receivables after 12 months 1,698 3,115
288,152 305,166
Included in the total loan portfolio net of allowance for impairment as at 31 December 2022 is
several NPL amounting to approximately RM14,907,000 (2021: RM23,330,000). The NPL was
collateralised by properties as pledged by the borrowers. The Company has assessed the value of
the collaterals or agreed settlement plans and has made appropriate allowances for impairment
where appropriate. Should the market value or adjusted value of the collaterals deviate by 10% or
the recovery process be delayed by a year, there may be a potential shortfall in the net recoverable
value of approximately RM2,895,000 (2021: RM1,250,000) for the NPL.
A reconciliation of the allowance for impairment for NPL are as follows:
2022 2021
RM’000 RM’000
At 1 January 28,939 24,703

Allowance during the financial year (Note 23) 8,436 4,236
Write off (441) -
At 31 December 36,934 28,939
69
Company No.
196801000442 (8029-A)

11. REINSURANCE ASSETS
31.12.2022 31.12.2021
RM’000 RM’000
Reinsurers’ share of insurance contract liabilities (Note 17) 111,363 84,553
12. INSURANCE RECEIVABLES
31.12.2022 31.12.2021
RM’000 RM’000
Due premiums including agents/brokers balances 25,563 25,889

Due from reinsurers 38,449 6,611
64,012 32,500
Allowance for impairment (1,706) (1,302)
62,306 31,198
The carrying amounts approximate fair values due to the relatively short-term maturity of these
balances.
13. OTHER RECEIVABLES
31.12.2022 31.12.2021
RM’000 RM’000
Outstanding proceeds from disposal of investments 6,206 6,648

Deposits, prepayments and other receivables 18,235 15,684
24,441 22,332
Allowance for impairment (703) (703)
23,738 21,629
The carrying amount of the other receivable (excluding prepayments) disclosed above is the
approximate fair values at the date of the statement of financial position due to their short-term
maturity.
70
Company No.
196801000442 (8029-A)

14. DEFERRED TAXATION
2022 2021
RM’000 RM’000
At 1 January (153,363) (124,027)

Recognised in:
Income statement (5,516) (51,453)
Other comprehensive income 7,695 22,117
At 31 December (151,184) (153,363)
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set-off
current tax assets against current tax liabilities and when the deferred income taxes relate to the
same fiscal authority. Net deferred tax assets shown on the statement of financial position have
been determined after considering appropriate offsetting as follows:
2022 2021
RM’000 RM’000
Deferred tax assets 18,441 10,969

Deferred tax liabilities (169,625) (164,332)
(151,184) (153,363)
The components and movements of deferred tax assets and liabilities of the Company during the
financial year prior to offsetting are as follows:
(i) Deferred tax assets
Investments Investment
and loans properties Others Total
RM’000 RM’000 RM’000 RM’000
2022
At 1 January 2022 2,240 8,701 28 10,969
Recognised in:
Income statement 7,874 (145) (28) 7,701
Other comprehensive income (229) - - (229)
At 31 December 2022 9,885 8,556 - 18,441
2021
At 1 January 2021 - 25,471 28 25,499
Recognised in:
Income statement 757 (18,414) - (17,657)
Other comprehensive income 1,483 1,644 - 3,127
At 31 December 2021 2,240 8,701 28 10,969
71
Company No.
196801000442 (8029-A)

14. DEFERRED TAXATION (CONTINUED)
The components and movements of deferred tax assets and liabilities of the Company during the financial year prior to offsetting are as follows: (continued)
(ii) Deferred tax liabitlies
Property, Life Non-

plant and Investments Investment Participating
equipment and loans properties Fund Surplus Total
RM’000 RM’000 RM’000 RM’000 RM’000
2022
At 1 January 2022 (482) (14,500) - (149,350) (164,332)
Recognised in:
Income statement (216) 6,576 - (19,577) (13,217)
Other comprehensive income - 7,924 - - 7,924
At 31 December 2022 (698) - - (168,927) (169,625)
2021
At 1 January 2021 (382) (37,661) (1,890) (109,593) (149,526)
Recognised in:
Income statement (100) 6,061 - (39,757) (33,796)
Other comprehensive income - 17,100 1,890 - 18,990
At 31 December 2021 (482) (14,500) - (149,350) (164,332)
72
Company No.
196801000442 (8029-A)

15. SHARE CAPITAL
2022 2021
Number Share Number Share
of shares capital of shares capital
’000 RM’000 ’000 RM’000
Issued and fully paid

At 31 December
– ordinary shares with no
par value 579,000 579,000 579,000 579,000
16. RESERVES
(a) Retained earnings
In accordance with Section 83 of the FSA, the life non-participating unallocated surplus is only
available for distribution to the shareholders upon approval/recommendation by the Appointed
Actuary.
Pursuant to the single tier system, any dividends distributed by the Company from the
distributable retained earnings will be exempted from tax in the hands of the shareholder. The
Company shall not be required to deduct tax on dividend paid, credited or distributed to the
shareholder.
The Company may distribute single tier exempt dividends to its shareholder out of its retained
earnings. Pursuant to Section 51(1) of the FSA, the Company is required to obtain BNM’s
written approval prior to declaring or paying any dividend. Pursuant to the RBC Framework for
Insurers, the Company shall not pay dividends if its Capital Adequacy Ratio position is less
than its internal target capital level or if the payment of dividend would impair its Capital
Adequacy Ratio position to below its internal target.
(b) Other reserves
Other reserves consist of available-for-sale reserve and assets revaluation reserve.
The available-for-sale reserve of the Company represents the fair value gains or losses of the
available-for-sale financial assets, net of deferred tax, of the life non-participating and
shareholder’s funds.
The assets revaluation reserve represents the fair value difference arising upon the
reclassification of self-occupied properties which are carried at cost less accumulated
depreciation and accumulated impairment loss, to investment properties. Upon disposal, any
surplus previously recorded is transferred to retained earnings; the transfer is not made through
profit or loss.
73
Company No.
196801000442 (8029-A)

17. INSURANCE CONTRACT LIABILITIES
Re-
Gross insurance Net
RM’000 RM’000 RM’000
31.12.2022
Liability for future policyholders’ benefits 3,172,208 (98,202) 3,074,006

Net asset value attributable to unitholders 1,337,758 - 1,337,758
Actuarial liabilities 4,509,966 (98,202) 4,411,764
Claims liabilities 125,133 (13,161) 111,972
4,635,099 (111,363) 4,523,736
Life Participating Fund
- Unallocated deficit (189,800) - (189,800)
- Available-for-sale reserve 37,508 - 37,508
- Asset revaluation reserve 7,209 - 7,209
4,490,016 (111,363) 4,378,653
31.12.2021
Liability for future policyholders’ benefits 3,219,724 (61,800) 3,157,924

Net asset value attributable to unitholders 1,362,762 - 1,362,762
Actuarial liabilities 4,582,486 (61,800) 4,520,686
Claims liabilities 135,695 (22,753) 112,942
4,718,181 (84,553) 4,633,628
Life Participating Fund
- Unallocated deficit (136,298) - (136,298)
- Available-for-sale reserve 84,380 - 84,380
- Asset revaluation reserve 7,209 - 7,209
4,673,472 (84,553) 4,588,919
74
Company No.
196801000442 (8029-A)

17. INSURANCE CONTRACT LIABILITIES (CONTINUED)
* The Life Participating Fund consists of the Ordinary Life Participating Fund (“Par Fund”) and the
Annuity Participating Fund. The unallocated deficits in the Ordinary Life Participating Fund, as
disclosed in the previous page, is being funded via a loan from the Shareholder’s Fund, made in
accordance with the Par Stabilisation Plan (“the Plan”). The Plan requires the shareholder to make
good any unallocated deficits via a loan to the Par Fund, the amount of which is determined after
considering unallocated deficits of the Par Fund, net of any available-for-sale and asset revaluation
reserves. Based on the Plan, the Par Fund will make repayment of the loan to the Shareholder’s Fund
out of any future surpluses arising from the fund.
Disclosed below are the net deficits in the Par Fund at the respective financial year ends and the
related loan provided by the Shareholder’s Fund. The loan is recognized as a balance payable to the
Shareholder’s Fund in the Par Fund and correspondingly, as a balance receivable from the Par Fund
in the Shareholder’s Fund. Both these amounts are eliminated in deriving the Company’s Statement
of Financial Position:
31.12.2022 31.12.2021
RM’000 RM’000
Ordinary Life Participating Fund:
- Unallocated deficit (174,435) (107,093)
- Available-for-sale reserve 29,351 62,382
(145,084) (44,711)
Funding via Par Stabilisation Plan 145,084 44,711
- -
Movement of the Par Stabilisation Plan during the financial year is as follows:
2022 2021
RM’000 RM’000
At 1 January 44,711 239,659

Additional funding of deficit to/(repayment from surpluses of)
the Par fund 100,373 (147,901)
145,084 91,758
Less : Write-off * - (47,047)
At 31 December 145,084 44,711
* The amount written-off is not recoverable by the Shareholder’s Fund and is recognized as part of
Insurance Contract Liabilities.
75
Company No.
196801000442 (8029-A)

Gross Reinsurance
With Without With Without
DPF DPF Total DPF DPF Total Net
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Actuarial liabilities
At 1 January 2021 2,567,903 2,288,345 4,856,248 (27,037) (17,757) (44,794) 4,811,454

Benefits and claims experience variation (24,667) 21,413 (3,254) (18,021) 1,015 (17,006) (20,260)
Change due to valuation basis:
Model enhancement (247,135) 1,337 (245,798) - - - (245,798)
Yield movement (47,626) (102,671) (150,297) - - - (150,297)
Assumption changes 8,631 14,787 23,418 - - - 23,418
Increase in net asset value attributable to
unitholders - 102,169 102,169 - - - 102,169
At 31 December 2021 2,257,106 2,325,380 4,582,486 (45,058) (16,742) (61,800) 4,520,686
Benefits and claims experience variation (81,174) 36,808 (44,366) (39,261) 2,859 (36,402) (80,768)
Change due to valuation basis:
Model enhancement - 682 682 - - - 682
Yield movement - (38,212) (38,212) - - - (38,212)
Assumption changes 44,807 (10,427) 34,380 - - - 34,380
Decrease in net asset value attributable to
unitholders - (25,004) (25,004) - - - (25,004)
At 31 December 2022 2,220,739 2,289,227 4,509,966 (84,319) (13,883) (98,202) 4,411,764
76
Company No.
196801000442 (8029-A)

Gross Reinsurance
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Claims liabilities
At 1 January 2021 53,352 65,056 118,408 (1,578) (8,267) (9,845) 108,563

Movement in claim provisions (6,755) 24,042 17,287 391 (13,299) (12,908) 4,379
At 31 December 2021 46,597 89,098 135,695 (1,187) (21,566) (22,753) 112,942
Movement in claim provisions (8,111) (2,451) (10,562) 552 9,040 9,592 (970)
At 31 December 2022 38,486 86,647 125,133 (635) (12,526) (13,161) 111,972
77
Company No.
196801000442 (8029-A)

2022 2021
DPF DPF* Total DPF DPF* Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Unallocated (deficit)/surplus
At 1 January (136,298) 472,946 336,648 (481,576) 347,045 (134,531)
Premium received 110,943 714,856 825,799 124,456 711,302 835,758

Payment due to death, surrenders, benefits and
claims (322,241) (426,863) (749,104) (273,972) (387,955) (661,927)
Net investment income 114,541 (45,506) 69,035 138,097 83,060 221,157
Management expenses and commissions (34,674) (190,257) (224,931) 13,229 (189,670) (176,441)
Change in life insurance fund actuarial liabilities 44,478 38,604 83,082 317,551 (61,077) 256,474
Change in claims liabilities ceded to reinsurers 38,708 (11,898) 26,810 17,629 12,285 29,914
Tax expense (5,257) (16,944) (22,201) (6,690) (47,637) (54,327)
Asset revaluation reserve - - - 14,978 5,593 20,571
Net (deficit)/surplus for the financial year (53,502) 61,992 8,490 345,278 125,901 471,179
At 31 December (189,800) 534,938 345,138 (136,298) 472,946 336,648
* The unallocated surplus of the Life Non-Participating fund and its movements is reported under non-distributable retained earnings in the statement of
changes in equity.
78
Company No.
196801000442 (8029-A)

Reserves movement for the Life Participating fund is as follows:
2022 2021
RM’000 RM’000
Available-for-sale reserve
At 1 January 84,380 220,928

Fair value change on available-for-sale financial assets,
net of tax:
- Gross fair value change (49,744) (144,062)
- Deferred tax 2,872 7,514
(46,872) (136,548)
At 31 December 37,508 84,380
2022 2021
RM’000 RM’000
Asset revaluation reserve
At 1 January 7,209 20,990

Fair value change, net of tax:
- Gross fair value transferred to unallocated surplus
upon disposal - (14,978)
- Deferred taxation - 1,197
7,209 (13,781)
At 31 December 7,209 7,209
79
Company No.
196801000442 (8029-A)

18. LEASE LIABILITIES
31.12.2022 31.12.2021
RM’000 RM’000
At 1 January 15,190 28,616

Additions 913 -
Accrued interest 370 619
Lease modification 13,225 (3,984)
Rent concessions - (45)
Payment for lease liabilities (9,258) (10,016)
At 31 December 20,440 15,190
Repayable within 12 months 9,107 8,168

Repayable after 12 months 11,333 7,022
20,440 15,190
The Company has applied the practical expedient to all rent concessions that meet the conditions of
the Amendments to MFRS 16.
The amount recognised in the Company’s profit or loss to reflect changes in lease payments that
arise from rent concessions to which the Company has applied the practical expedient is nil (2021:
RM45,000). The lease liabilities have correspondingly reduced by RM45,000 in 2021.
80
Company No.
196801000442 (8029-A)

19. OTHER LIABILITIES
31.12.2022 31.12.2021
RM’000 RM’000
Investment creditors 769 1,830

Unclaimed monies 37,766 28,007
Rental deposits 111 360
Accrual for unutilised staff leave 1,728 1,815
Accrued expenses 35,624 23,211
Other payables 57,266 54,557
133,264 109,780
Repayable within 12 months 133,264 109,645

Repayable after 12 months - 135
133,264 109,780
The carrying amount of the other liabilities disclosed above approximate fair values at the date of
the statement of financial position due to their short-term maturity.
20. INSURANCE PAYABLES
31.12.2022 31.12.2021
RM’000 RM’000
Due to agents and intermediaries 56,221 59,599

Due to reinsurers and cedants 1,705 1,320
Cash payments/cash dividends payable to life policyholders 1,375,099 1,468,024
Accrued interest on cash payments/cash dividends payable
to life policyholders 42,853 44,847
Reinsurance deposits 78,779 38,458
Premium deposits 13,900 12,458
1,568,557 1,624,706
The carrying amount of the financial liabitliies disclosed above is the approximate fair values at the
date of the statement of financial position due to their short-term maturity.
81
Company No.
196801000442 (8029-A)

21. INVESTMENT INCOME
2022 2021
RM’000 RM’000
FVTPL financial assets
Interest/profit income:
- Malaysian Government Securities/Government Investment
Issues 273 342
- corporate debt securities unquoted in Malaysia 8,431 8,682
Dividend/distribution income:
- equity securities quoted in Malaysia 45,076 50,485
- unit trusts quoted in Malaysia 11,590 9,199
- unit trusts quoted outside Malaysia 981 883
Amortisation of premiums:
Issues (27) (27)
- corporate debt securities unquoted in Malaysia (592) (487)
65,732 69,077
AFS financial assets

Issues 37,610 26,817
Dividend/distribution income:
- equity securities unquoted in Malaysia 1,354 462
- unit trusts quoted in Malaysia 14,078 9,282
Amortisation of premiums:
Issues (1,784) (1,060)
- corporate debt securities unquoted in Malaysia (9,391) (5,797)
223,267 220,828
Loans and receivables

- policy loans 16,428 16,664
- mortgage loans 69 249
- fixed and call deposits 4,789 3,831
21,286 20,744
Properties
Gross rental income 3,691 4,431
Less: Rates and maintenance (2,692) (5,607)
999 (1,176)
311,284 309,473
82
Company No.
196801000442 (8029-A)

22. REALISED GAINS AND LOSSES
2022 2021
RM’000 RM’000
FVTPL financial assets
Realised gains:
- corporate debt securities unquoted in Malaysia 10 -
- equity securities quoted in Malaysia 11,315 30,529
- equity securities unquoted in Malaysia 443 46
- unit trusts quoted in Malaysia 678 -
- unit trusts unquoted outside Malaysia - 2,964
Realised losses:
Issues (13) (93)
- corporate debt securities unquoted in Malaysia (929) (739)
- equity securities quoted in Malaysia (57,376) (95,820)
- unit trust quoted in Malaysia (492) (776)
- unit trust quoted outside Malaysia (503) -
- unit trust unquoted outside Malaysia (58) (15)
(46,925) (63,904)
AFS financial assets
Realised gains:
Issues 311 2,970
- unit trusts quoted in Malaysia 183 148
Realised losses:
Issues (1,552) (384)
- corporate debt securities unquoted in Malaysia (4,239) (22)
- unit trust quoted in Malaysia (1,531) (846)
7,702 12,891
Non-financial assets
Realised gains:
- Non-current assets held-for-sale - 1,152
Realised losses:
- Non-current assets held-for-sale (53) -
- Property, plant and equipment (15) -
(68) 1,152
(39,291) (49,861)
83
Company No.
196801000442 (8029-A)

23. FAIR VALUE GAINS AND LOSSES
2022 2021
RM’000 RM’000
FVTPL financial assets:
Net fair value (losses)/gains
Issues (139) (426)
- corporate debt securities unquoted in Malaysia (5,690) (9,563)
- equity securities quoted in Malaysia (61,794) 29,559
- unit trusts quoted in Malaysia (1,263) (12,700)
- unit trusts quoted outside Malaysia (7,681) 6,689
- unit trusts unquoted outside Malaysia (57,816) 17,947
(134,383) 31,506
Non-financial assets:
Net fair value losses
- Investment properties (Note 7) (3) (1,350)
AFS financial assets:

Allowance for impairment losses (Note 9) (36,178) (41,064)
Loans and receivables:

Allowance of impairment losses (Note 10) (8,436) (4,236)
(179,000) (15,144)
24. FEES AND COMMISSION
2022 2021
RM’000 RM’000
(a) Fee and commission income
Policy administration and investment management services 2,517 2,586

Surrender charges and other contract fees 223 270
Reinsurance commission income 3,630 2,727
6,370 5,583
(b) Fee and commission expenses
Gross commission expenses 134,600 126,731
84
Company No.
196801000442 (8029-A)

25. MANAGEMENT EXPENSES
2022 2021
RM’000 RM’000
Staff costs (including Chief Executive Officer and Executive

Director):
- salaries and bonus 75,537 81,068
- staff and retirement benefits contributions 12,738 14,846
88,275 95,914
Directors’ remuneration 893 860

Auditors’ remuneration:
- Statutory audit 444 425
- Other assurance services 255 -
- Regulatory-related services 42 40
Expenses relating to leases of low-value assets (Note 5) 261 586
Depreciation of property, plant and equipment (Note 4) 5,787 5,459
Depreciation of right-of-use assets (Note 5) 8,313 9,400
Amortisation of intangible assets (Note 6) 1,269 1,335
Allowance/(write-back) of impairment of insurance receivables 404 (70)
Allowance of impairment of other receivables - 157
Training expenses 1,878 1,219
Repairs and maintenance expenses 1,768 1,909
Information technology expenses 4,693 3,775
Advertising, promotional and entertainment expenses 3,005 2,863
Motor vehicle and travelling expenses 2,486 2,309
Printing and stationery expenses 407 223
Postage, courier and telephone charges 1,386 1,449
Management fees 3,260 1,606
Other expenses 23,511 23,624
Less: Shared service costs recovered from related parties (27,859) (34,226)
32,203 22,943
120,478 118,857
85
Company No.
196801000442 (8029-A)

25. MANAGEMENT EXPENSES (CONTINUED)
The total remuneration (including benefits-in-kind) of the Chief Executive Officer and Directors are as
follows:
Other Benefits-
emoluments Fees in-kind Total
RM’000 RM’000 RM’000 RM’000
2022
Chief Executive Officer

Khoo Ai Lin 3,594 - 31 3,625
Executive Director
Timothy Willam Howell - - - -
Non-Executive Directors
Choy Khai Choon 39 240 - 279
Datin Joan Hoi Lai Ping 35 114 - 149
Donald Joshua Jaganathan 41 160 - 201
Onn Kien Hoe 42 160 - 202
Datuk Dr Hafsah binti Hashim 9 53 - 62
166 727 - 893
2021
Chief Executive Officer

Khoo Ai Lin 2,215 - 29 2,244
Executive Director
Stephen James Clark 7,257 - 18 7,275
Non-Executive Directors
Choy Khai Choon 44 240 - 284
Datin Joan Hoi Lai Ping 52 160 - 212
Hasnah binti Omar 15 40 - 55
Donald Joshua Jaganathan 47 160 - 207
Onn Kien Hoe 22 80 - 102
180 680 - 860
86
Company No.
196801000442 (8029-A)

25. MANAGEMENT EXPENSES (CONTINUED)
The number of Executive and Non-Executive Directors whose total remuneration received or
receivable during the financial year fall within the following bands are analysed as follows:
Number of Directors
2022 2021
Executive Director:
RM0 1 -
RM7,000,001 – RM8,000,000 - 1
Non-Executive Directors:
RM1 - RM100,000 1 1
RM100,001 – RM200,000 1 1
RM200,001 – RM300,000 3 3
26. OTHER OPERATING INCOME/(EXPENSES) – NET
2022 2021
RM’000 RM’000
Realised foreign exchange (loss)/gains (60) 1,540

Unrealised foreign exchange gains 21,032 7,832
Other miscellaneous expenses (1,797) (1,561)
19,175 7,811
87
Company No.
196801000442 (8029-A)

27. TAXATION
Share-
Life holder’s
fund fund Total
RM’000 RM’000 RM’000
2022
Current tax 17,624 4,407 22,031
Deferred tax (Note 14) 4,577 939 5,516
Tax expenses 22,201 5,346 27,547
Current tax
Current financial year 16,999 3,728 20,727
Under provision in prior financial years 625 679 1,304
17,624 4,407 22,031
Deferred tax
Origination and reversal of temporary
differences 4,577 939 5,516
22,201 5,346 27,547
2021
Current tax 13,674 (1,127) 12,547
Deferred tax (Note 14) 40,653 10,800 51,453
Tax expenses 54,327 9,673 64,000
Current tax
Current financial year 10,875 (736) 10,139
Under/(over) provision in prior financial years 2,799 (391) 2,408
13,674 (1,127) 12,547
Deferred tax
Origination and reversal of temporary
differences 40,653 10,800 51,453
54,327 9,673 64,000
88
Company No.
196801000442 (8029-A)

27. TAXATION (CONTINUED)
A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax
rate to income tax expenses at the effective income tax rate of the Company is as follows:
2022 2021
RM’000 RM’000
Profit before taxation 103,179 141,574
Taxation at Malaysian statutory tax rate of 24% (2021:24%) 24,763 33,978

Effect due to different tax rates (6,584) (8,965)
Income not subject to tax (127,027) (123,013)
Expenses not deductible for tax purposes 136,891 154,486
Tax impact on investment income attributable to
policyholders and unitholders (1,800) 5,106
26,243 61,592
Under provision of tax in prior financial years 1,304 2,408
Tax expenses 27,547 64,000
The income tax for the Shareholders’ fund is calculated based on the corporate tax rate of 24% (2021:
24%) of the estimated assessable profit for the financial year. The income tax for the Life fund is
calculated based on the tax rate of 8% (2021: 8%) of the assessable investment income net of
allowable deductions for the financial year.
28. DIVIDENDS
The Company has declared interim dividend of RM50,000,000 in respect of the financial year ended
31 December 2022 which was paid on 29 December 2022.
The Directors have not recommended the payment of any final dividend for the current financial year.
29. EARNINGS PER SHARE
The basic earnings per ordinary share has been calculated by dividing the net profit or loss for the
financial year attributable to equity holders of the Company over the weighted average number of
shares of the Company in issue during the financial year.
Diluted earnings per share are not presented as there were no dilutive potential ordinary shares as at
the date of the statement of financial position.
There have been no other transactions involving ordinary shares between the reporting date and the
date of completion of these financial statements.
2022 2021
RM’000 RM’000
Net profit attributable to ordinary equity holders 75,632 77,574
Weighted average number of shares in issue 579,000 579,000
Basic/diluted earnings per share (sen) 13.06 13.40
89
Company No.
196801000442 (8029-A)

30. CASH FLOWS
Note 2022 2021

RM’000 RM’000
Adjustments:
Depreciation of property, plant and equipment 4 5,787 5,459
Depreciation of right-of-use assets 5 8,313 9,400
Amortisation of intangible assets 6 1,269 1,335
Rent concessions 18 - (45)
Investment income 21 (311,284) (309,473)
Allowance of impairment of other receivable 25 - 157
Realised losses recorded in profit or loss 22 39,291 49,861
Fair value losses recorded in profit or loss 23 179,000 15,144
Unrealised foreign exchange gains recorded in
profit or loss 26 (21,032) (7,832)
Allowance for/(write-back of) of impairment of
insurance receivables 25 404 (70)
Interest expenses on lease liabilities 18 370 619
Tax expense 27 27,547 64,000
Operating cashflows before changes in working
capital 5,297 (93,871)
Changes in working capital:

Decrease/(increase) in financial assets at fair
value through profit or loss 68,012 (95,002)
Increase in available-for-sale financial assets (46,865) (171,880)
Decrease/(increase) in loans and receivables 8,578 (2,263)
Increase in reinsurance assets (26,810) (29,914)
(Increase)/decrease in insurance receivables (31,512) 6,838
(Increase)/decrease in other receivables (1,482) 3,308
(Decrease)/increase in insurance contract
liabilities (136,584) 73,825
Increase/(decrease) in other liabilities 23,258 (2,116)
Decrease in insurance payables (56,149) (77,350)
Cash utilised in operating activities (194,257) (388,425)
The Company classifies the cash flows from the acquisition and disposal of financial assets as
operating cash flows, as the purchases are funded from the cash flows associated with the origination
of insurance contracts, net of the cash flows for payments of benefits and claims incurred for insurance
contracts, which are also classified under operating activities.
90
Company No.
196801000442 (8029-A)

31. CAPITAL AND OTHER COMMITMENTS
Capital expenditure not provided for in the financial statements is as follows:
31.12.2022 31.12.2021
RM’000 RM’000
Authorised and contracted for:

- investment properties - 409
32. OPERATING LEASES
The Company leases out its investment property. The Company classified these leases as operating
leases, because they do not transfer substantially all of the risks and rewards incidental to the
ownership of the assets. The following table sets out the maturity analysis of lease payments, showing
the undiscounted lease payments to be received after the reporting date.
31.12.2022 31.12.2021
RM’000 RM’000
Within 1 year 3,074 1,822

In the 2nd year 2,753 409
In the 3rd year 2,001 26
Total undiscounted lease payments 7,828 2,257
91
Company No.
196801000442 (8029-A)

33. SIGNIFICANT RELATED PARTY DISCLOSURES
(a) Related parties and relationship
The related parties and their relationship with the Company as at 31 December 2022 are as
follows:
Name of company Relationship
Zurich Insurance Group Limited (“ZIGL”) Ultimate holding company

Zurich Insurance Company Ltd. (“ZICL”) Immediate holding company
Zurich Financial Services Australia Limited Subsidiary of ZICL
Zurich Services (Hong Kong) Limited Subsidiary of ZICL
Zurich International Life Limited Subsidiary of ZICL
Zurich Insurance Company Ltd., Hong Kong Subsidiary of ZICL
PT Zurich Topas Life Subsidiary of ZICL
Zurich Insurance Company Ltd., Singapore Branch Branch office of ZICL
Zurich General Insurance Malaysia Berhad Fellow subsidiary
Zurich General Takaful Malaysia Berhad Fellow subsidiary
Zurich Takaful Malaysia Berhad Fellow subsidiary
Zurich Shared Services Malaysia Sdn. Bhd. Fellow subsidiary
Zurich Services Malaysia Sdn. Bhd. Fellow subsidiary
(b) Related party transactions
In the normal course of business, the Company undertakes various transactions with other
companies deemed related by virtue of being subsidiary and associated companies of ZIGL,
collectively known as ZIGL Group, at agreed terms and prices.
The significant related party transactions during the financial year with related parties are as
follows:
2022 2021
RM’000 RM’000
(Expenses)/income:
Non-trade
Immediate holding company
Dividend declared (50,000) -
Reimbursement of expenses (7,226) (6,365)
Non-trade
Subsidiary of ultimate holding company
Reimbursement of expenses (788) (4,946)
Outsourcing expenses (4,896) (3,736)
Fellow subsidiary
Rental income and deposits 239 373
Cost sharing charges 26,885 33,070
Reimbursement of expenses 17,181 24,809
Actuarial support services (490) (602)
92
Company No.
196801000442 (8029-A)

33. SIGNIFICANT RELATED PARTY DISCLOSURES (CONTINUED)
(c) Related party balances
The significant outstanding balances of the Company with its related parties are as follows:
31.12.2022 31.12.2021
RM’000 RM’000
Amount due from related companies

Other receivables* 4,789 3,433
Amount due to related companies

Trade payables** 61,908 37,842
Other payables* 2,808 2,584
* These balances are unsecured, interest-free and repayable in the short-term.

** This balance is unsecured, interest-free and payable in accordance with the relevant
insurance contracts.
(d) Key management personnel
The key management personnel received remuneration for services rendered during the
current and previous financial years, whilst an Executive Director received remuneration in the
previous year. The total compensation paid to the Company’s key management personnel as
well as fees and allowances paid to the Executive Director were as follows:
2022 2021
RM’000 RM’000
Salaries and other short-term employee benefits

and directors’ emoluments 14,787 15,116
Defined contribution retirement benefits 1,569 3,739
Share-based payments/benefits 3,297 3,333
19,653 22,188
Included in key management personnel is the

CEO’s remuneration/Directors’ emoluments
(Note 25) 3,625 9,519
The estimated monetary value of benefits provided to CEO during the financial year by way
of usage of the Company’s assets was RM 31,150 (2021: RM29,000).
93
Company No.
196801000442 (8029-A)

34. RISK MANAGEMENT FRAMEWORK
Risk Governance Structure
The Company adopts three line of defense model approach to governance and enterprise risk
management. The Company’s risk governance structure and risk reporting requirement are
incorporated in the Company’s Risk Management Framework. The Framework explains the
underlying approach and defines an on-going and consistent process for identifying, analysing,
evaluating, treating, monitoring and reporting significant risks faced by the business units, divisions,
stakeholders and ultimately, the Company. It also outlines the key aspects of the risks management
process and identifies the main reporting procedures.
The adoption of the Framework is the responsibility of the Board with some of the responsibilities
delegated to the Risk Management and Sustainability Committee including oversight over technology-
related matters and sustainability related matters. The Company has established senior management
committees which act as a platform for two-way communication between the Management and the
Board. The Committees are the Asset Liability Management and Investment Committee (“ALMIC”),
Human Resource Committee (“HRC”), Information Technology Steering Committee (“ITSC”),
Business Continuity Management (“BCM”), Risk and Control Committee (“RCC”), Occupational Safety
and Health Committee (“OSHC”) and the various Senior Management Committees for Life Businesses.
All these committees are chaired by the Chief Executive Officer or a member of the senior
management team.
They are responsible to oversee the development and assess the effectiveness of risk management
policies, review risk exposure and portfolio composition, and ensure that infrastructure, resources and
systems are put in place for effective risk management activities.
Regulatory Framework
The Company is required to comply with the FSA and BNM Regulations, as applicable.
The Company is also required to comply with all Zurich Group’s policies and standards. If there is any
conflict with the local laws or regulations, the local laws and regulations have priority while the stricter
rules will apply where possible.
94
Company No.
196801000442 (8029-A)

34. RISK MANAGEMENT FRAMEWORK (CONTINUED)
Capital Management
The Company’s capital management policy is to create shareholders value, maintain a strong capital
position with sufficient buffer to meet policyholders’ obligations, regulatory requirements, and make
strategic investments for business growth.
The minimum Capital Adequacy Ratio (“CAR”) under the RBC Framework regulated by BNM is 130%
for each insurance entity. The Company complied with the minimum CAR as at 31 December 2022
and 31 December 2021.
The regulated capital of the Company as at 31 December 2022 comprised Total Capital Available of
RM1,791,790,000 (2021: RM1,880,351,000).
The capital structure of the Company as at 31 December 2022, as approved by BNM under the RBC
Framework, is shown below:
31.12.2022 31.12.2021
RM’000 RM’000
Tier 1 Capital
Paid-up share capital 579,000 579,000
Reserves, including retained earnings 1,201,552 1,217,361
1,780,552 1,796,361
Tier 2 Capital
Available-for-sale reserve 21,469 93,142
Less:
Deferred tax assets (10,231) (9,152)
Total Capital Available 1,791,790 1,880,351
95
Company No.
196801000442 (8029-A)

35. INSURANCE RISK
The risk underlying any insurance contract is the likelihood of the insured event occurring and the
uncertainty in the amount of the resulting claims. This risk is random and therefore unpredictable.
For a portfolio of insurance contracts, the principal risk that the Company faces is that claims and
benefit payments exceed the amount of insurance liabilities. This could occur because the frequency
or severity of claims and benefits are greater than estimated. The actual number and amount of claims
and benefits will vary from year to year from the level established using statistical estimation
techniques.
Life Insurance Contracts
Life insurance contracts offered by the Company include whole life, term assurance, endowments,
annuity contracts, investment-linked contracts, and medical and health riders. The Company currently
does not offer any investment contracts with DPF.
The main risks that the Company is exposed to are the following:
• Mortality risk – risk of loss arising due to policyholders’ death experience being worse than
expected
• Morbidity risk – risk of loss arising due to policyholders’ health experience being worse than
expected
• Investment return/Interest rate risk – risk of loss arising from actual returns being lower than
expected
• Expense risk – risk of loss arising from expense experience being higher than expected
• Lapse risk – risk of loss arising due to policyholders’ surrender experience deviate from that
expected
These risks do not vary significantly in relation to the location of the risk insured by the Company,
type of risk insured or by industry.
The Company’s underwriting strategy is designed to ensure that risks are well diversified in terms of
type of risk and level of insured benefits. This is broadly achieved through diversification across
industry sectors and geography, use of medical screening to ensure that pricing reflects policyholders’
health condition and family medical history, regular review of actual claims experience and product
pricing, as well as detailed claims procedures.
96
Company No.
196801000442 (8029-A)

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022(CONTINUED)
35. INSURANCE RISK (CONTINUED)
Life Insurance Contracts (continued)
The table below shows the concentration of the liabilities for actuarial liabilities by type of contract:
Gross Reinsurance
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
31 December 2022
Life Contracts:
Whole life 1,215,172 96,630 1,311,802 - - - 1,311,802
Endowment 95,727 658,714 754,441 - - - 754,441
Term-Mortgage - 52,835 52,835 - - - 52,835
Term-Others 115,799 77,572 193,371 - - - 193,371
Term-Medical & Health - 38,557 38,557 - - - 38,557
Term-Other plans - 905 905 - - - 905
Term-Others - 26,256 26,256 (4,560) (13,883) (18,443) 7,813
Annuity Contracts:
Immediate annuities 363 - 363 - - - 363
Deferred annuities 809,344 - 809,344 - - - 809,344
Others (15,666) - (15,666) (79,759) - (79,759) (95,425)
Unitholders’ Investment Linked Products - 1,337,758 1,337,758 - - - 1,337,758
2,220,739 2,289,227 4,509,966 (84,319) (13,883) (98,202) 4,411,764
As all of the business is derived from Malaysia, the entire life insurance liabilities are in Malaysia.
97
Company No.
196801000442 (8029-A)

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022(CONTINUED)
The table below shows the concentration of the liabilities for future policyholders’ benefits by type of contract:
Gross Reinsurance
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
31 December 2021
Life Contracts:
Whole life 1,182,133 86,866 1,268,999 - - - 1,268,999
Endowment 152,424 644,333 796,757 - - - 796,757
Term-Mortgage - 56,655 56,655 - - - 56,655
Term-Others 127,716 99,979 227,695 - - - 227,695
Term-Medical & Health - 47,765 47,765 - - - 47,765
Term-Other plans - 764 764 - - - 764
Term-Others - 26,256 26,256 (6,209) (16,742) (22,951) 3,305
Annuity Contracts:
Immediate annuities 376 - 376 - - - 376
Deferred annuities 806,084 - 806,084 - - - 806,084
Others (11,627) - (11,627) (38,849) - (38,849) (50,476)
Unitholders’ Investment Linked Products - 1,362,762 1,362,762 - - - 1,362,762
2,257,106 2,325,380 4,582,486 (45,058) (16,742) (61,800) 4,520,686
As all of the business is derived from Malaysia, the entire life insurance liabilities are in Malaysia.
98
Company No.
196801000442 (8029-A)

Key Assumptions
Material judgement is required in determining the liabilities and in the choice of assumptions.
Assumptions in use are based on past experience, current internal data, external market indices and
benchmarks which reflect current observable market prices and other published information.
Assumptions and prudent estimates are determined at the date of valuation, and no credit is taken
for possible beneficial effects of voluntary withdrawals. Assumptions are further evaluated on a
continuous basis in order to ensure realistic and reasonable valuations.
The table below shows the key underlying assumptions used for valuation of life insurance
contract liabilities:
Assumptions Description
Valuation Method Gross Premium Valuation
For Life Participating fund, liabilities taken as the higher value derived
below:
(i) Total benefits (i.e. guaranteed and non-guaranteed benefits cash

flows) with best estimates assumptions and discounted by Fund
Based Yield, or
(ii) Guaranteed benefits cash flows with best estimates plus provision
for risk of adverse deviation (“PRAD”) assumptions and discounted
by Malaysia Government Bond yields (as outlined below).
For Life Non-Participating business, only value from (ii) is taken.
Interest Rate Malaysia Government bond yields determined based on the following:
(i) For cash flows with duration less than 15 years, Malaysia
Government Bond zero coupon spot yields of matching duration.
(ii) For cash flows with duration 15 years or more, Malaysia Government
Bond zero coupon spot yields of 15 years to maturity.
Data source: Malaysia Government Bond zero coupon spot yield from
Bond Pricing Agency Malaysia Sdn. Bhd.
Mortality, Best estimate and PRAD assumptions are determined based on internal
Disability, experience studies, with due regard to significant recent experience.
Dread disease, These assumptions reflect the Company’s long term view of future
Expense, Lapse experience that is expected to emerge.
and Surrenders
Data source: Internal experience studies.
99
Company No.
196801000442 (8029-A)

Sensitivities
The analysis below is performed for reasonably possible movements in key assumptions with all
other assumptions held constant, showing the impact on gross and net liabilities. The correlation of
assumptions will have a significant effect in determining the ultimate claims liabilities, but to
demonstrate the impact due to changes in assumptions, assumptions had to be changed on an
individual basis. It should be noted that movements in these assumptions are non-linear. Sensitivity
information will also vary according to the current economic assumptions.
Impact on Impact on
gross life net life
insurance insurance Impact on
Change in contract contract profit Impact on
assumptions liabilities liabilities before tax equity
% RM’000 RM’000 RM’000 RM’000
<-Increase/(decrease)-> <-(Decrease)/increase->
31 December 2022
Mortality/morbidity +10 59,058 71,639 (71,639) (54,445)

Mortality/morbidity -10 (60,316) (74,117) 74,117 56,329
Expenses +10 40,044 37,437 (37,437) (28,452)
Lapse and surrender +10
rates (13,233) 3,341 (3,341) (2,539)
Lapse and surrender -10
rates 15,079 (3,210) 3,210 2,439
Investment return +1 (160,840) (114,562) 114,562 87,067
Investment return -1 222,315 138,450 (138,450) (105,222)
Discount rate +1 (117,630) (117,630) 117,630 89,399
Discount rate -1 173,897 143,169 (143,169) (108,808)
31 December 2021
Mortality/morbidity +10 53,946 65,423 (65,423) (49,721)

Mortality/morbidity -10 (54,862) (67,452) 67,452 51,264
Expenses +10 39,108 36,450 (36,450) (27,702)
Lapse and surrender
rates +10 (13,503) 3,683 (3,683) (2,799)
Lapse and surrender
rates -10 15,344 (3,821) 3,821 2,904
Investment return +1 (127,736) (107,904) 91,759 69,737
Investment return -1 212,612 128,988 (128,988) (98,031)
Discount rate +1 (117,054) (117,054) 117,054 88,961
Discount rate -1 202,869 142,327 (142,327) (108,169)
The method used and significant assumptions made for deriving sensitivity information did not change
from the previous financial year.
100
Company No.
196801000442 (8029-A)

36. FAIR VALUE MEASUREMENTS
(a) Determination of fair value and fair value hierarchy
The Company classifies fair value measurement using a fair value hierarchy that reflects the
significant of the inputs used in making the measurements. The fair value hierarchy has the
following levels:
Level 1 - Quoted market price
Included in the quoted price category are financial instruments that are measured in whole
or in part by reference to published quotes in an active market. A financial instrument is
regarded as quoted in an active market if quoted prices are readily and regularly available
from an exchange, secondary market via dealer and broker, pricing service or regulatory
agency, and those prices represent actual and regularly occurring market transactions on
an arm’s length basis.
Level 2 - Valuation Techniques - Market observable input
Financial instruments in this category are measured using a valuation technique based on
assumptions that are supported by prices from observable current market transactions. It
includes financial instruments for which pricing is obtained via pricing services, but where
prices have not been determined in an active market, instruments with fair values based on
broker quotes and discounted cash flows, the price of the most recent transactions may be
used provided that there has not been a significant change in economic circumstances since
the time of the transaction, or if the conditions have changed, that price should be adjusted
to reflect the change in conditions by reference to current prices for similar financial
instruments and investment in structured products with fair values obtained via investment
bankers and/or fund managers.
Level 3 - Valuation Techniques - Unobservable input
Non-market observable inputs mean that fair values are determined in whole or in part using
a valuation technique based on assumptions that are neither supported by prices from
observable current market transactions in the same instrument nor are they based on
available market data. Example of main asset classes in this category are unquoted equity
securities, un-rated securities, investment properties, non-performing loans and debt
securities from organisations in default. Valuation techniques of these portfolios are used to
the extent that observable inputs are not available, thereby allowing for situations in which
there is little, if any, market activity for the instrument at the measurement date. However,
the fair value measurement objective remains the same, that is, an exit price from the
perspective of the Company. Therefore, unobservable inputs reflect the Company’s own
assumptions about the assumptions that market participants would use in pricing the
instrument (including assumptions about risk). These inputs are developed based on the
best information available, which might include the Company’s own data and judgments.
The judgement applied in valuing the non-performing loans is explained in Note 3(ii) to the
financial statements.
101
Company No.
196801000442 (8029-A)

36. FAIR VALUE MEASUREMENTS (CONTINUED)
(b) Financial instruments and non-financial assets carried at fair value
The following tables show the Company’s financial instruments and non-financial assets
which are measured at fair value at the reporting date analysed by the various levels within
the fair value hierarchy:
Level 1 Level 2 Level 3 Total

RM’000 RM’000 RM’000 RM’000
31 December 2022

- Malaysian Government
Securities/Government
Investment Issues - 1,139,028 - 1,139,028
- Corporate debt securities - 3,498,558 36,642 3,535,200
- Unquoted equity securities - - 29,429 29,429
- Unit trusts 252,226 - - 252,226

Investment Issues - 6,215 - 6,215
- Corporate debt securities - 170,302 542 170,844
- Quoted equity securities 1,115,951 - - 1,115,951
- Unit trusts 584,855 - - 584,855
- Investment properties - - 54,950 54,950
- Non-current assets held-for-
sale - 6,100 - 6,100
1,953,032 4,820,203 121,563 6,894,798
102
Company No.
196801000442 (8029-A)

(b) Financial instruments and non-financial assets carried at fair value (continued)
The following tables show the Company’s financial instruments and non-financial assets
which are measured at fair value at the reporting date analysed by the various levels within
the fair value hierarchy: (continued)
Level 1 Level 2 Level 3 Total

RM’000 RM’000 RM’000 RM’000
31 December 2021

- Corporate debt securities - 4,034,158 37,498 4,071,656
- Unquoted equity securities - - 19,044 19,044
- Unit trusts 258,254 - - 258,254

- Corporate debt securities - 167,447 558 168,005
- Quoted equity securities 1,325,369 - - 1,325,369
- Unit trusts 605,608 - - 605,608
- Investment properties - - 57,103 57,103
- Non-current assets held-for-
sale - 16,250 - 16,250
2,189,231 4,925,208 114,203 7,228,642
103
Company No.
196801000442 (8029-A)

(c) Fair value measurements using valuation techniques based on unobservable input (level 3)
The following table show the changes in level 3 items for recurring fair value measurements:
Non-current
Investment assets held-
AFS FVTPL LAR properties for-sale
RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2022 56,542 558 23,330 57,103 -
Addition - - 75 - -
Disposals (658) - (45) - -
Transfer (to)/from - - - (2,150) 2,150
Transfer to Level 2 - - - - (2,150)
Interest adjustment (856) (16) (14) - -
Fair value changes
- Charged to statement of profit or loss 658 - (8,439) (3) -
- Charged to other comprehensive income 10,385 - - - -
At 31 December 2022 66,071 542 14,907 54,950 -
At 1 January 2021 16,677 - 27,762 74,510 193
Addition 36,641 542 12 - -
Disposals - - (45) - -
Transfer (to)/from - - - (16,057) 16,057
Transfer to Level 2 - - - - (16,250)
Interest adjustment 856 16 - - -
Reclassified to performing loan - - (163) - -
Fair value changes
- Charged to statement of profit or loss - - (4,236) (1,350) -
- Charged to other comprehensive income 2,368 - - - -
At 31 December 2021 56,542 558 23,330 57,103 -
* The Company transferred the fair value of non-current assets held for sale from Level 3 into Level 2 as the fair value was determined using the price
of most recent completed transactions. The details are disclosed in Note 8 to the financial statements.
104
Company No.
196801000442 (8029-A)

37. OFFSETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Financial assets and financial liabilities subject to offsetting, enforceable master netting arrangement
and similar arrangement are as follows:
Gross amount Gross amount Amount

recognised as offset in the presented in
financial statement of the statement
assets/ financial of financial
liabilities position position
RM’000 RM’000 RM’000
31 December 2022
Financial assets:
Insurance receivables 86,335 (24,029) 62,306
Financial liabilities:
Insurance payables 1,592,586 (24,029) 1,568,557
31 December 2021
Financial assets:
Insurance receivables 30,168 1,030 31,198
Financial liabilities:
Insurance payables 1,623,676 1,030 1,624,706
There are no financial instruments subjected to an enforceable master netting arrangement or

financial collateral (including cash collateral) pledged or received as at 31 December 2022 (2021:
RM Nil).
105
Company No.
196801000442 (8029-A)

38. FINANCIAL RISK
The Company is exposed to a range of financial risks through its assets, financial liabilities and
insurance liabilities. In particular, the key financial risk is that in the long term its investment
proceeds are not sufficient to fund the obligations arising from its insurance contracts. The most
important components of this financial risk are credit risk, liquidity risk, and market risk which
comprise of currency risk, interest rate/profit yield risk and price risk.
The Company manages these positions within an Asset Liability Management (“ALM”) framework
that has been developed to achieve long term investment returns in excess its obligations under
insurance contracts. The key principle of the framework is to match assets to the liabilities by
reference to the type of benefits payable to contract holders. For each distinct class of liabilities, a
separate portfolio of assets is maintained and monitored.
The Company’s ALM is integrated with the management of the financial risks associated with the
Company’s other classes of financial assets and liabilities not directly associated with insurance
liabilities. The note below explains how financial risks are managed using the categories utilised in
the Company’s ALM framework. In particular, the ALM framework requires the management of
interest rate risk, equity price risk, credit risk and liquidity risk at both business line level and
company-wide basis. The following notes are in relation to the Company’s management disclosure
with respect to credit risk, liquidity risk, interest rate risk, and price risk.
Credit Risk
The Company has exposure to credit risk, which is the risk that one party to a financial instrument
will cause a financial loss to the other party by failing to discharge an obligation. The Company is
mainly exposed to credit risk through (i) investment in cash and private debt securities, (ii)
corporate/individuals and mortgage lending activities, and (iii) exposure to counterparty’s
reinsurance contracts. For investments in private debt securities, a downgrade of credit rating or
widening of credit spread may also incur financial loss.
Minimum credit quality applies to investments in private debt securities/bonds with a minimum rating
of A-/A2 (at the date of investment) provided by Malaysian Rating Corporation Berhad (“MARC”)
and Rating Agency Malaysia Berhad (“RAM”), respectively. The Company however intends to
maintain an average rating of AA in the overall bond portfolio under current investment strategy and
objectives. The Company does not solely depend on the rating report provided but also depends on
publicly available issuer information together with in-house analysis based on information provided
by the borrower/issuer, peer group comparisons, industry comparisons and other quantitative tools.
Reinsurance is used to manage insurance risk. This does not, however, discharge the Company’s
liability as primary insurer. If a reinsurer fails to pay a claim for any reason, the Company remains
liable for the payment to the policyholder. The creditworthiness of reinsurers is considered on an
annual basis by reviewing their financial strength prior to finalisation of any contract.
The Company issues unit-linked investment policies. In the unit-linked business, the holders of these
contract bear the investment risks on the assets held in the unit-linked funds as the policy benefits
are directly linked to the value of the assets in the fund. Therefore, the Company has no material
credit risk on unit-linked financial assets.
Debtor recoverability and risk concentration monitoring are part of credit risk management which is
reviewed regularly. The management monitors the market value of the collateral, requests additional
collateral when needed and performs an impairment valuation. Allowance of impairment/specific
provision is made on those securities/loans (or part of remaining amount) where the level of security
has been impaired. Refer to Note 10 to the financial statements for more details on assessment and
disclosure of credit risk on loan borrowers.
106
Company No.
196801000442 (8029-A)

38. FINANCIAL RISK (CONTINUED)
Credit Exposure
The table below shows the maximum exposure to credit risk for the components on the statement of
financial position and items such as future commitments. The maximum exposure is shown gross,
before the effect of mitigation through the use of master netting or collateral agreements.
Life Insurance
and
Shareholder’s Unit-Linked
Note Funds Funds Total
RM’000 RM’000 RM’000
31 December 2022
AFS financial assets: 9(a)
Securities/Government Investment
Issues 1,139,028 - 1,139,028
- Corporate debt securities 3,535,200 - 3,535,200
FVTPL financial assets: 9(b)
Issues - 6,215 6,215
- Corporate debt securities - 170,844 170,844
Loans and receivables: 10
- Loans 288,152 - 288,152
Reinsurance assets 11 111,363 - 111,363
Insurance receivables 12 62,306 - 62,306
Other Receivables 13 6,100 106 6,206
Cash and bank balances 223,749 114,447 338,196
5,365,898 291,612 5,657,510
31 December 2021
AFS financial assets: 9(a)
Issues 699,264 - 699,264
- Corporate debt securities 4,071,656 - 4,071,656
FVTPL financial assets: 9(b)
Issues - 8,089 8,089
- Corporate debt securities - 168,005 168,005
Loans and receivables: 10
- Loans 305,166 - 305,166
Reinsurance assets 11 84,553 - 84,553
Insurance receivables 12 31,198 - 31,198
Other receivables 13 6,558 90 6,648
5,393,469 255,745 5,649,214
107
Company No.
196801000442 (8029-A)


Credit Risk (continued)
Credit Exposure by Credit Rating
The table below provides information regarding the credit risk exposure of the Company by classifying financial and insurance assets according to the Company’s
credit rating of counterparties.
Neither past-due nor impaired
Non- Past due
investment Unit-Linked but not
Investment grade grade Not rated Funds impaired Impaired Total
Government (AAA to
Guarantee BBB) (BB to C)
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
31 December 2022
- Malaysian Government Securities/
Government Investment Issues 1,139,028 - - - - - - 1,139,028
- Corporate debt securities 654,159 2,844,399 - - - - 36,642 3,535,200
Government Investment Issues - - - - 6,215 - - 6,215
- Corporate debt securities - - - - 170,844 - - 170,844
- Loans - - - 273,245 - 747 14,160 288,152
Reinsurance assets - 79,760 - - - - 31,603 111,363
Insurance receivables - - - - - 23,419 38,887 62,306
Other receivables - - - 6,100 106 - - 6,206
Cash and bank balances - 223,749 - - 114,447 - - 338,196
1,793,187 3,147,908 - 279,345 291,612 24,166 121,292 5,657,510
108
Company No.
196801000442 (8029-A)


Credit Exposure by Credit Rating (continued)
The table below provides information regarding the credit risk exposure of the Company by classifying financial and insurance assets according to the Company’s
credit rating of counterparties. (continued)
Neither past-due nor impaired
Non- Past due
investment Unit-Linked but not
Investment grade grade Not rated Funds impaired Impaired Total
Government (AAA to
Guarantee BBB) (BB to C)
31 December 2021
Government Investment Issues 699,264 - - - - - - 699,264
- Corporate debt securities 753,329 3,279,886 943 - - - 37,498 4,071,656
Government Investment Issues - - - - 8,089 - - 8,089
- Corporate debt securities - - - - 168,005 - - 168,005
- Loans - - - 281,943 - 660 22,563 305,166
Reinsurance assets - 38,849 - - - - 45,704 84,553
Insurance receivables - - - - - 22,253 8,945 31,198
Other receivables - - - 6,558 90 - - 6,648
Cash and bank balances - 195,074 - - 79,561 - - 274,635
1,452,593 3,513,809 943 288,501 255,745 22,913 114,710 5,649,214
109
Company No.
196801000442 (8029-A)


The table below provides information regarding the credit risk exposure of the Company by classifying financial and insurance assets according to the RAM and
MARC credit ratings of counterparties. AAA is the highest possible rating. Assets that fall outside the range of AAA to BBB are classified as speculative grade.
Unit-
Government BBB1 to BB and Linked
Guarantee AAA to AA A1 to A3 BBB3 below Not rated Funds Impaired Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
31 December 2022

Investment Issues 1,139,028 - - - - - - - 1,139,028
- Corporate debt securities 654,159 2,737,595 66,994 39,810 - - - 36,642 3,535,200
Investment Issues - - - - - - 6,215 - 6,215
- Corporate debt securities - - - - - - 170,844 - 170,844
- Loans - - - - - 273,992 - 14,160 288,152
Reinsurance assets - 79,760 - - - - - 31,603 111,363
Insurance receivables - - - - - 23,419 - 38,887 62,306
Other receivables - - - - - 6,100 106 - 6,206
Cash and bank balances - 223,749 - - - - 114,447 - 338,196
1,793,187 3,041,104 66,994 39,810 - 303,511 291,612 121,292 5,657,510
110
Company No.
196801000442 (8029-A)


The table below provides information regarding the credit risk exposure of the Company by classifying financial and insurance assets according to the RAM and
MARC credit ratings of counterparties. AAA is the highest possible rating. Assets that fall outside the range of AAA to BBB are classified as speculative grade.
(continued)
Unit-
Government BBB1 to BB and Linked
Guarantee AAA to AA A1 to A3 BBB3 below Not rated Funds Impaired Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
31 December 2021

Investment Issues 699,264 - - - - - - - 699,264
- Corporate debt securities 753,329 3,176,054 103,832 - 943 - - 37,498 4,071,656
Investment Issues - - - - - - 8,089 - 8,089
- Corporate debt securities - - - - - - 168,005 - 168,005
- Loans - - - - - 282,603 - 22,563 305,166
Reinsurance assets - 38,849 - - - - - 45,704 84,553
Insurance receivables - - - - - 22,253 - 8,945 31,198
Other receivables - - - - - 6,558 90 - 6,648
Cash and bank balances - 195,074 - - - - 79,561 - 274,635
1,452,593 3,409,977 103,832 - 943 311,414 255,745 114,710 5,649,214
111
Company No.
196801000442 (8029-A)

The credit risk analysis for the unit-linked business was not provided as the Company has no direct
exposure to any credit risk in those assets.
To-date, there are two (2021: two) occurrences of rating default events, where one of the corporate
debt securities was defaulted since the financial year ended 2013. No credit exposure limits were
exceeded during the financial year.
The bondholders are pursuing recovery actions through negotiations and taking legal actions
against the issuers for the remaining two (2) corporate debt securities.
The Company actively manages its product mix to ensure that there is no significant concentration
of credit risk.
Aged Analysis of Financial Assets Past Due But Not Impaired
3 months 7 months
Up to 3 to to >12
months 6 months 12 months months Total
RM’000 RM’000 RM’000 RM’000 RM’000
31 December 2022
Loans and receivables - - 30 717 747
Insurance receivables 23,419 - - - 23,419
23,419 - 30 717 24,166
31 December 2021
Loans and receivables - - - 660 660
Insurance receivables 22,253 - - - 22,253
22,253 - - 660 22,913
112
`Company No.
196801000442 (8029-A)

Impaired Financial Assets (continued)
For assets to be classified as “past-due and impaired”, indicators of objective evidence of impairment are contractual payments in arrears for more than
three (3) months for insurance receivables and other receivables; and more than six (6) months for loans and receivables. In addition, full impairment were
made on insurance receivables exhibiting objective evidence of impairment such as outstanding debts exceeding twelve months, outstanding debts with
terminated status, closed accounts, commuted, winding-up under legal action, accounts written or those served letter of demand. This applies similarly to
reinsurance assets, particularly reinsurance recoverable on outstanding claims. No collateral is held as security for any past due or impaired assets. The
Company records impairment allowance for loans and receivables, insurance receivables and other receivables in separate allowance for impairment loss
accounts.
A reconciliation of the allowance for impairment loss is as follows:
Re- Corporate
Loans and Insurance Other insurance debt
receivables receivables receivables assets securities Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2021 24,703 1,372 546 6 14,025 40,652

Allowance for the financial year 4,236 (70) 157 7 41,064 45,394
At 31 December 2021 28,939 1,302 703 13 55,089 86,046
Allowance for the financial year 8,436 404 - (6) - 8,834
Write off (441) - - - - (441)
Redemption for the year - - - - (658) (658)
At 31 December 2022 36,934 1,706 703 7 54,431 93,781
113
`Company No.
196801000442 (8029-A)

Liquidity Risk
Liquidity risk is the risk that the Company is unable to meet its financial obligations when due. This
situation arises when the Company is unable to convert its financial assets into cash when needed.
Demands for funds can usually be met through ongoing normal operations, premiums received, sale
of assets or borrowings. Unexpected demands for liquidity may be triggered by negative publicity,
deterioration of the economy, reports of problems in other companies in the same or similar lines of
business, unanticipated policy claims, or other unexpected cash demands from policyholders.
Expected liquidity demands are managed through a combination of treasury, investment and asset-
liability management practices, which are monitored on an ongoing basis. Actual and projected cash
inflows and outflows are monitored, and an adequate cushion in the form of cash and very liquid
investments are maintained at all times. The projected cash flows from the in-force insurance policy
contract liabilities consist of renewal premiums, commissions, claims, maturities and surrenders.
Renewal premiums, commissions, claims and maturities are generally stable and predictable.
Surrenders can be more uncertain.
Unexpected liquidity demands are managed through a combination of product design, diversification
limits, investment strategies and systematic monitoring. The existence of surrender penalty in life
insurance contracts also protects the Company from losses due to unexpected surrender trends as
well as reduces the sensitivity of surrenders to changes in interest rates.
114
Company No.
196801000442 (8029-A)

Liquidity Risk (continued)
Maturity Profile
The table below summarises the maturity profile of the Company’s financial and insurance assets and liabilities based on remaining undiscounted contractual
obligations, including interest payable and receivable. For insurance contract liabilities, maturity profiles are determined based on estimated timing of discounted
net cash outflows from the recognised insurance liabilities. The insurance contract liabilities below are gross of reinsurance (no reinsurance credit is taken into
account). Unit-linked liabilities are repayable or transferrable on demand and are included in the “up to a year” column. Repayments which are subject to notice
are treated as if notice were to be given immediately. Products which have no maturity benefits such as term assurance and yearly renewable plans are excluded
as these carry no maturity values. Products with no maturity dates are annuity and whole life plans. Unearned premiums have been excluded from the analysis
as they are not contractual obligations.
No
Carrying Up to a 1-3 3-5 5 - 15 Over 15 maturity
value year years years years years date Total
31 December 2022
Financial Assets:
AFS financial assets 4,955,883 397,193 918,143 934,812 3,178,706 1,583,499 281,655 7,294,008
FVTPL financial assets 1,877,865 14,159 40,009 40,557 142,825 355 1,700,806 1,938,711
Loans and receivables 288,152 286,453 375 318 1,006 - - 288,152
Reinsurance assets 111,363 111,363 - - - - - 111,363
Insurance receivables 62,306 62,306 - - - - - 62,306
Other receivables* 19,192 19,192 - - - - - 19,192
Cash and bank balances 338,196 338,196 - - - - - 338,196
7,652,957 1,228,862 958,527 975,687 3,322,537 1,583,854 1,982,461 10,051,928
Financial Liabilities:
Insurance contract liabilities 4,214,414 1,480,685 52,606 46,564 179,698 409,970 2,044,891 4,214,414
Lease liabilities 20,440 9,040 11,526 862 339 - - 21,767
Other liabilities 133,264 133,264 - - - - - 133,264
Insurance payables 1,568,557 1,568,557 - - - - - 1,568,557
5,936,675 3,191,546 64,132 47,426 180,037 409,970 2,044,891 5,938,002
* Exclude prepayments of RM 4,546,000 as at 31 December 2022 (2021: RM 4,684,000).
115
Company No.
196801000442 (8029-A)

Maturity Profile (continued)

No
Carrying Up to a 1-3 3-5 5 - 15 Over 15 maturity
value year years years years years date Total
31 December 2021
Financial Assets:
AFS financial assets 5,048,218 511,470 1,086,312 910,676 3,086,448 755,944 277,298 6,628,148
FVTPL financial assets 2,107,071 10,514 28,602 34,129 160,516 6,248 1,930,977 2,170,986
Loans and receivables 305,166 302,051 693 631 1,791 - - 305,166
Reinsurance assets 84,553 84,553 - - - - - 84,553
Insurance receivables 31,198 31,198 - - - - - 31,198
Other receivables* 16,945 16,945 - - - - - 16,945
Cash and bank balances 274,635 274,635 - - - - - 274,635
7,867,786 1,231,366 1,115,607 945,436 3,248,755 762,192 2,208,275 9,511,631
Financial Liabilities:
Insurance contract liabilities 4,260,377 1,553,317 59,519 44,047 158,742 429,443 2,015,309 4,260,377
Lease liabilities 15,190 8,528 5,871 718 709 - - 15,826
Other liabilities 109,780 109,644 136 - - - - 109,780
Insurance payables 1,624,706 1,624,706 - - - - - 1,624,706
6,010,053 3,296,195 65,526 44,765 159,451 429,443 2,015,309 6,010,689
* Exclude prepayments of RM 4,546,000 as at 31 December 2022 (2021: RM 4,684,000).
116
Company No.
196801000442 (8029-A)

The table below summarises the current/non-current classification of assets:
Unit-
Non- Linked
Current* current Funds Total
RM’000 RM’000 RM’000 RM’000
31 December 2022
Property, plant and equipment - 23,816 - 23,816
Right-of-use assets - 20,579 - 20,579
Intangible assets - 815 - 815
Investment properties - 54,950 - 54,950
Non-current assets held-for-sale - 6,100 - 6,100
Financial assets:
- AFS 464,929 4,490,954 4,955,883
- FVTPL 652,334 - 1,225,531 1,877,865
- LAR 286,453 1,699 - 288,152
Reinsurance assets 111,363 - - 111,363
Insurance receivables 62,306 - - 62,306
Other receivables 22,814 - 924 23,738
Tax recoverable 10,095 - - 10,095
Deferred tax assets 10,232 - - 10,232
Cash and bank balances 223,749 - 114,447 338,196
1,844,275 4,598,913 1,340,902 7,784,090
31 December 2021
Property, plant and equipment - 27,439 - 27,439
Right-of-use assets - 14,781 - 14,781
Intangible assets - 1,952 - 1,952
Investment properties - 57,103 - 57,103
Non-current assets held-for-sale 16,250 - - 16,250
Financial assets:
- AFS 584,552 4,463,666 5,048,218
- FVTPL 809,835 - 1,297,236 2,107,071
- LAR 302,051 3,115 - 305,166
Reinsurance assets 84,553 - - 84,553
Insurance receivables 31,198 - - 31,198
Other receivables 21,207 - 422 21,629
Tax recoverable 12,405 - - 12,405
Deferred tax assets 9,152 - - 9,152
Cash and bank balances 195,074 - 79,561 274,635
2,066,277 4,568,056 1,377,219 8,011,552
* Expected recovery or settlement within 12 months from the date of the statement of financial position.
117
Company No.
196801000442 (8029-A)

Market Risk
Market risk is the risk of loss in the Company investment’s valuation due to adverse changes or
volatility of prices in economic and financial markets. Market risk comprises three (3) types of risk
i.e. currency risk, interest rates/profit yields risk and price risk.
The Company manages market risk through setting of investment policy and asset allocation,
approving portfolio limit structure and risk management methodologies, approving hedging, and
alternative risk transfer strategies. Investment limits monitoring is in place at various levels to ensure
that all investment activities are aligned with the Company’s risk management principles and
philosophies. Compliance with established financial risk limits forms an integral part of the risk
governance and financial reporting framework.
The Company also issues unit-linked investment policies in a number of its products. In unit-linked
business, the policyholders bear the investment risk on the assets held in the unit-linked funds as
the policy benefits are directly linked to the value of the assets in the funds. The Company’s exposure
to market risk on this business is limited to the extent of income arising from asset management
charges based on the value of the assets in the funds.
Currency Risk
Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates.
As the Company’s business is conducted primarily in Malaysia, the Company’s financial assets are
also primarily maintained in Malaysia as required under the FSA and hence, primarily denominated
in the same currency (the local RM) as its insurance contract liabilities. Thus, the main exchange
risk from recognised assets and liabilities arises from transactions other than those in which
insurance contract liabilities are expected to be settled.
The Company’s main exchange risk from recognised assets and liabilities arises from reinsurance
transactions for which the balances are expected to be settled and realised in less than a year. The
impact arising from sensitivity in exchange rates is deemed minimal as the Company has no
significant concentration of foreign currency risk.
Interest Rate Risks
Interest rate risk is part of market risk as any adverse movements in interest rates may affect the
Company investment’s fair valuation and reinvestment issues to the Company. ALMIC actively
monitors such developments as well as discuss changes in maturity profiles of the assets and
liabilities to minimise overall mismatch as given the long duration of policy liabilities and the
uncertainty of cash flows, it is not possible to hold assets that will perfectly match the policy liabilities.
The Company has no significant concentration of interest rate/profit yield risk.
The analysis below is performed for reasonably possible movements in key variables with all other
variables held constant, showing the impact of equity (that reflects adjustments to profit before tax
and re-valuing fixed rate/yield AFS financial assets). The correlation of variables will have a
significant effect in determining the ultimate impact on interest rate/profit yield risk but to demonstrate
the impact due to changes in variables, variables had to be changed in an individual basis. It should
be noted that movements in these variables are non-linear.
118
Company No.
196801000442 (8029-A)

Market Risk (continued)
Interest Rate Risks (continued)
Impact on insurance
Impact on equity* contract liabities*
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
<----(Decrease)/Increase----> <----(Decrease)/Increase---->
Change in variables:
Interest rate
+ 100 basis point – loss (113,907) (117,028) (176,750) (135,724)
- 100 basis point – gain 150,025 154,152 240,424 166,625
* Impact reflects adjustments for tax, where applicable.
The above impact on equity arose from the investments in fixed income securities which are
classified as AFS financial assets. The impact arising from changes in interest rate risk to FVTPL
fixed income securities of the investment-linked funds are retained in the insurance contract liabilities,
and hence there is no impact on profit before tax.
The method used for deriving sensitivity information and significant variables did not change from
the previous financial year.
Price Risk
Equity price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices (other than those arising from interest rate/profit yield risk or
currency risk), whether those changes are caused by factors specific to the individual financial
instrument or its issuer or factors affecting similar financial instruments traded in the market.
The equity investment portfolio of the Company is exposed to movements in equity markets. The
Company monitors its equity price risk through regular stress testing. In addition, the Company
monitors and manages the equity exposure against investment guidelines set and agreed by ALMIC.
These investment guidelines include monitoring the equity exposure against benchmark set and
single security exposure of the portfolio against the limits set. The Company uses historical stock
betas, index levels and equity prices, and estimates the volatility and correlation of each of these
share prices and index levels to calculate the gains and losses that could occur over a period of time,
given a certain index level.
The Company may use derivative financial instruments as a means of hedging against the impact
of negative market movements on the value of assets in the portfolio so as to reduce and eliminate
risks. The Company’s policy is to trade in derivatives only to hedge existing financial market risk and
not for the purpose of speculation.
119
Company No.
196801000442 (8029-A)

Market Risk (continued)
Price Risk (continued)
In respect of risk associated with the use of derivative financial instruments, price risk is controlled
through the settling of exposure limits, which are subjected to detailed monitoring and review.
variables held constant, showing the impact on profit before tax (due to changes in fair value of
financial assets and liabilities whose changes in fair values are recorded in profit or loss) and equity
(that reflects adjustments to profit before tax and changes in fair value of AFS financial assets). The
correlation of variables will have a significant effect in determining the ultimate impact on price risk,
but to demonstrate the impact due to changes in variables, variables had to be changed on an
individual basis. It should be noted that movements in these variables are non-linear.
In respect of risk associated with the use of derivative financial instruments, price risk is controlled
through the settling of exposure limits, which are subjected to detailed monitoring and review.
variables held constant, showing the impact on profit before tax (due to changes in fair value of
financial assets and liabilities whose changes in fair values are recorded in profit or loss) and equity
(that reflects adjustments to profit before tax and changes in fair value of AFS financial assets). The
correlation of variables will have a significant effect in determining the ultimate impact on price risk,
but to demonstrate the impact due to changes in variables, variables had to be changed on an
individual basis. It should be noted that movements in these variables are non-linear.
Impact on insurance
Impact on equity* contract liabities*
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
<----(Decrease)/Increase----> <----(Decrease)/Increase---->
Change in variables:
FTSE Bursa Malaysia

FBM KLCI + 15% - gain 12,396 8,410 176,778 200,326
FBM KLCI – 15% - loss (12,530) (35,675) (157,643) (169,563)
Change in NAV
NAV + 15% - - 60,555 55,931
NAV -15% - - (60,555) (55,931)
The potential impacts arising from other market indices are deemed insignificant as the Company’s
holdings in equity securities listed in other bourses are not material.
* Impact reflects adjustments for tax, where applicable.
The above impact on equity arose from the investments in equities which are classified as AFS
financial assets. The impact arising from changes in price risk to FVTPL equities of the DPF fund
and investment-linked funds are retained in the insurance contract liabilities, and hence there is no
impact on profit before tax.
The method used for deriving sensitivity information and significant variables did not change from
the previous financial year.
120
Company No.
196801000442 (8029-A)

39. OPERATIONAL RISK
Operational risk arises from inadequate or failed performance of business functions or internal
processes. Exposure to this risk can cause deficiencies or breakdowns in internal controls or
processes, technology and external events such as interruption of business operations due to a
breakdown of IT systems, cybersecurity incident, landslide or flood.
The Company has developed comprehensive Standard Operating Procedures (“SOP”) to enable all
relevant departments to implement measures, to monitor and control the risk in order to avoid or
reduce future losses. The Risk Management Department is assigned to facilitate the relevant
departments in identifying and evaluating their operational risks and control weaknesses via
structured risk assessment process.
40. COMPLIANCE RISK
Compliance risk is the risk arising from violations of, or non-conformance with business principles,
internal policies and procedures, related laws, rules and regulations issued by regulatory bodies (i.e.
BNM, Life Insurance Association of Malaysia (“LIAM”), Perbadanan Insurans Deposit Malaysia
(“PIDM”) governing the insurance industry, products and activities.
Consequently, the exposure to this risk can damage the Company’s reputation, lead to legal or
regulatory sanctions and /or financial loss.
The Legal Department and Compliance Department are assigned to look into all compliance aspects
in observing the regulatory requirements prescribed by the regulators (i.e. BNM, LIAM, PIDM). The
Company has developed internal policies and procedures (e.g. Anti-Money Laundering Framework,
Introduction of New Products Framework, Outsourcing Framework) to align with the laws and
guidelines issued by the authorities.
41. INSURANCE FUNDS
The Company’s operating businesses are organised and managed separately according to the
nature of the products and services provided, with each segment representing a strategic business
unit that offers different products for different markets. The operating segments are reported in a
manner consistent with the internal reporting provided to the chief operating decision maker. The
Company’s principal operations are organised into Life insurance and Shareholders’ segments.
The Life insurance business offers a wide range of participating and non-participating whole life,
term assurance, endowments, medical and health riders, annuity products as well as investment-
linked products.
The businesses written for Life insurance are all Malaysian businesses.
121
Company No.
196801000442 (8029-A)

41. INSURANCE FUNDS (CONTINUED)
STATEMENT OF FINANCIAL POSITION BY FUNDS

Share-
Life holders’
Fund Fund Total
RM’000 RM’000 RM’000
ASSETS
Property, plant and equipment 23,816 - 23,816

Right-of-use assets 20,579 - 20,579
Intangible assets 815 - 815
Investment properties 33,000 21,950 54,950
Non-current assets held-for-sale 6,100 - 6,100
Investments 6,532,232 589,668 7,121,900
AFS 4,366,215 589,668 4,955,883
FVTPL 1,877,865 - 1,877,865
LAR 288,152 - 288,152
Reinsurance assets 111,363 - 111,363
Insurance receivables 62,306 - 62,306
Other receivables 23,296 442 23,738
Tax recoverable 2,699 7,396 10,095
Deferred tax assets - 10,232 10,232
Total assets 7,145,528 638,562 7,784,090

LIABILITIES
Share capital - 579,000 579,000

Retained earnings 534,938 303,416 838,354
Other reserves (3,514) (4,367) (7,881)
Total equity 531,424 878,049 1,409,473
Insurance contract liabilities 4,490,016 - 4,490,016

Deferred tax liabilities 161,416 - 161,416
Lease liabilities 20,440 - 20,440
Other liabilities 131,514 1,750 133,264
Insurance payables 1,568,557 - 1,568,557
Current tax liabilities 924 - 924
Total liabilities 6,372,867 1,750 6,374,617
Total equity, policyholders’ funds and liabilities 6,904,291 879,799 7,784,090
Inter-fund balances 96,153 (96,153) -
Inter-fund loan 145,084 (145,084) -
122
Company No.
196801000442 (8029-A)

STATEMENT OF FINANCIAL POSITION BY FUNDS

Share-
Life holders’
Fund Fund Total
RM’000 RM’000 RM’000
Restated Restated Restated
ASSETS
Property, plant and equipment 27,439 - 27,439

Right-of-use assets 14,781 - 14,781
Intangible assets 1,952 - 1,952
Investment properties 35,153 21,950 57,103
Non-current assets held-for-sale 16,250 - 16,250
Investments 6,690,749 769,706 7,460,455
AFS 4,278,512 769,706 5,048,218
FVTPL 2,107,071 - 2,107,071
LAR 305,166 - 305,166
Reinsurance assets 84,553 - 84,553
Insurance receivables 31,198 - 31,198
Other receivables 21,149 480 21,629
Tax recoverable 4,308 8,097 12,405
Deferred tax assets - 9,152 9,152
Total assets 7,192,427 819,125 8,011,552

LIABILITIES
Share capital - 579,000 579,000

Retained earnings 472,946 339,776 812,722
Other reserves 28,737 2,023 30,760
Total equity 501,683 920,799 1,422,482
Insurance contract liabilities 4,673,472 - 4,673,472

Deferred tax liabilities 162,515 - 162,515
Lease liabilities 15,190 - 15,190
Other liabilities 106,457 3,323 109,780
Insurance payables 1,624,706 - 1,624,706
Current tax liabilities 3,407 - 3,407
Total liabilities 6,585,747 3,323 6,589,070
Total equity, policyholders’ funds and liabilities 7,087,430 924,122 8,011,552
Inter-fund balances 60,286 (60,286) -
Inter-fund loan 44,711 (44,711) -
123
Company No.
196801000442 (8029-A)

STATEMENT OF PROFIT OR LOSS BY FUNDS

Share-
Life holders’
Fund Fund Total
RM’000 RM’000 RM’000
Gross earned premiums 854,318 - 854,318

Premiums ceded to reinsurers (28,519) - (28,519)
Net earned premiums 825,799 - 825,799
Investment income 286,203 25,081 311,284

Realised gains and losses (38,168) (1,123) (39,291)
Fair value gains and losses (179,000) - (179,000)
Fee and commission income 6,370 - 6,370
Other revenue 75,405 23,958 99,363
Total revenue 901,204 23,958 925,162
Gross benefits and claims paid (785,172) - (785,172)

Claims ceded to reinsurers 36,068 - 36,068
Gross change to contract liabilities 136,584 - 136,584
Change in contract liabilities ceded to reinsurers 26,810 - 26,810
Net claims (585,710) - (585,710)
Fee and commission expenses (134,600) - (134,600)

Management expenses (118,137) (2,341) (120,478)
Other operating income/(expenses) – net 21,806 (2,631) 19,175
Other expenses (230,931) (4,972) (235,903)
Operating profit 84,563 18,986 103,549

Finance cost (370) - (370)
Profit before taxation 84,193 18,986 103,179
Taxation (22,201) (5,346) (27,547)
Net profit for the financial year 61,992 13,640 75,632
124
Company No.
196801000442 (8029-A)

STATEMENT OF PROFIT OR LOSS BY FUNDS

Share-
Life holders’
Fund Fund Total
RM’000 RM’000 RM’000
Gross earned premiums 865,379 - 865,379

Premiums ceded to reinsurers (29,621) - (29,621)
Net earned premiums 835,758 - 835,758
Investment income 286,335 23,138 309,473

Realised gains and losses (51,426) 1,565 (49,861)
Fair value gains and losses (13,752) (1,392) (15,144)
Fee and commission income 5,583 - 5,583
Other revenue 226,740 23,311 250,051
Total revenue 1,062,498 23,311 1,085,809
Gross benefits and claims paid (682,141) - (682,141)

Claims ceded to reinsurers 20,214 - 20,214
Gross change to contract liabilities (73,826) - (73,826)
Change in contract liabilities ceded to reinsurers 29,914 - 29,914
Net claims (705,839) - (705,839)
Fee and commission expenses (126,731) - (126,731)

Management expenses (112,018) (6,839) (118,857)
Other operating expenses – net 57,344 (49,533) 7,811
Other expenses (181,405) (56,372) (237,777)
Operating (loss)/profit 175,254 (33,061) 142,193

Finance cost (619) - (619)
Profit before taxation 174,635 (33,061) 141,574
Taxation (54,327) (9,673) (64,000)
Net profit/(loss) for the financial year 120,308 (42,734) 77,574
125
Company No.
196801000442 (8029-A)

INVESTMENT-LINKED FUND
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
31.12.2022 31.12.2021
RM’000 RM’000
Assets
Investments
FVTPL 1,225,531 1,297,236
Other receivables 924 422
Total assets 1,340,902 1,377,219
Liabilities
Deferred tax liabilities 2,279 11,321
Other liabilities 1,238 1,321
Current tax liabilities 921 1,950
Total liabilities 4,438 14,592
Inter-fund balances (1,294) (135)
Net asset value attributable to unitholders (Note 17) 1,337,758 1,362,762
INVESTMENT-LINKED FUND
STATEMENT OF PROFIT OR LOSS
2022 2021
RM’000 RM’000
Investment income 36,488 41,104

Realised gains and losses (23,948) (37,472)
Fair value gains and losses (117,023) 17,964
(104,483) 21,596
Fee and commission expenses (14,974) (14,453)
Management expenses (50) (46)
Other operating expenses – net 21,014 9,201
Profit before taxation (98,493) 16,298
Taxation 7,468 (2,026)
Net (loss)/profit for the financial year (91,025) 14,272
126
Company No.
196801000442 (8029-A)

INFORMATION ON CASH FLOWS BY FUNDS

Share-
Life holders’
Fund Fund Total
RM’000 RM’000 RM’000
2022
Cash flows from:
Operating activities 63,749 49,134 112,883
Investing activities 9,936 - 9,936
Financing activities (9,258) (50,000) (59,258)
Net increase/(decrease) in cash and bank
balances 64,427 (866) 63,561
Cash and bank balances:
At beginning of the financial year 264,895 9,740 274,635
At end of the financial year 329,322 8,874 338,196
2021
Cash flows from:
Operating activities (62,584) (30,372) (92,956)
Investing activities 76,628 35,441 112,069
Financing activities (10,016) - (10,016)
Net increase in cash and bank balances 4,028 5,069 9,097
Cash and bank balances:
At beginning of the financial year 260,867 4,671 265,538
At end of the financial year 264,895 9,740 274,635
127
Company No.
196801000442 (8029-A)

42. ADDITIONAL DISCLOSURES UNDER AMENDMENTS TO MFRS 4 INSURANCE CONTRACTS
The Company has applied the temporary exemption from the adoption of MFRS 9 “Financial
Instruments” from 1 January 2018 to no later than 1 January 2023.
In order to compare with entities applying MFRS 9, the amendments require deferring entities to
disclose additional information including contractual cash flows characteristics and credit exposure of
the financial assets. The following table presents the Company’s financial assets by their contractual
cash flows characteristics, which indicate if they are solely payments of principal and interest on the
principal outstanding (“SPPI”).
The following table presents the Company’s financial assets by their contractual cash flows
characteristics, which indicate if they are solely payments of principal and interest on the principal
outstanding (“SPPI”):
Result of cash
Change in flows
Fair value fair value characteristics
RM’000 RM’000 RM’000
31 December 2022
Government Investment Issues 1,139,028 8,600 SPPI
- Corporate debt securities 3,535,200 (148,179) SPPI
- Equity securities 29,429 10,385 Non-SPPI
- Unit trusts 252,226 35,987 Non-SPPI
Government Investment Issues 6,215 (139) SPPI
- Corporate debt securities 170,844 (5,690) SPPI
- Equity securities 1,115,951 (61,794) Non-SPPI
- Unit trusts 584,855 (66,760) Non-SPPI
Loans and receivables 288,152 (8,436) SPPI
Other receivable excluding prepayments 19,192 - SPPI
Cash and bank balances 338,196 - SPPI
31 December 2021
Government Investment Issues 699,264 (37,512) SPPI
- Corporate debt securities 4,071,656 (201,550) SPPI
- Equity securities 19,044 2,368 Non-SPPI
- Unit trusts 258,254 (14,022) Non-SPPI
Government Investment Issues 8,089 (426) SPPI
- Corporate debt securities 168,005 (9,563) SPPI
- Equity securities 1,325,369 29,559 Non-SPPI
- Unit trusts 605,608 11,936 Non-SPPI
Loans and receivables 305,166 (4,236) SPPI
Other receivable excluding prepayments 16,945 - SPPI
Cash and bank balances 274,635 - SPPI
128
Zurich Life Insurance Malaysia Berhad
Registration No. 196801000442 (8029-A)
Level 23A, Mercu 3,

No. 3, Jalan Bangsar, KL Eco City,
59200 Kuala Lumpur, Malaysia
Tel: 03-2109 6000 Fax: 03-2109 6888
Call Centre: 1-300-888-622
www.zurich.com.my

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ZURICH LIFE INSURANCE MALAYSIA BERHAD

INDEPENDENT AUDITORS’ REPORT 23 - 26

STATEMENT OF FINANCIAL POSITION 27

STATEMENT OF PROFIT OR LOSS 28

STATEMENT OF COMPREHENSIVE INCOME 29

STATEMENT OF CHANGES IN EQUITY 30

STATEMENT OF CASH FLOWS 31

NOTES TO THE FINANCIAL STATEMENTS 32 - 128

ZURICH LIFE INSURANCE MALAYSIA BERHAD

Roles and responsibilities of the Board

Composition of the Board

Choy Khai Choon Chairman (Non-Independent Non-Executive Director)*

* Mr Choy had been redesignated from Independent Non-Executive Director to Non-Independent

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Choy Khai Choon

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Profile of Directors (continued)

Donald Joshua Jaganathan

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Profile of Directors (continued)

Onn Kien Hoe

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Profile of Directors (continued)

Datuk Dr Hafsah binti Hashim

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Profile of Directors (continued)

Timothy William Howell

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Name of Directors No. of Attendance

Choy Khai Choon, Chairman 11/11

The members of the Audit Committee are as follows:

Onn Kien Hoe Chairman (Independent Non-Executive Director)

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Board Committees (continued)

Audit Committee (continued)

Name of Directors No. of Attendance

Onn Kien Hoe, Chairman 7/7

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Board Committees (continued)

Audit Committee (continued)

Nomination and Remuneration Committee

The members of the Nomination and Remuneration Committee are as follows:

Datuk Dr Hafsah binti Hashim Chairperson (Independent Non-Executive Director)

The Nomination and Remuneration Committee is made up of a majority of Independent Non-

ZURICH LIFE INSURANCE MALAYSIA BERHAD

CORPORATE GOVERNANCE (CONTINUED)

Board Committees (continued)

Nomination and Remuneration Committee (continued)