NTUC Income AR 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 15. INSURANCE CONTRACT PROVISIONS (CONTINUED) Movements in insurance contract provisions Life Insurance Par Fund Provision for future participating / non-participating benefits 2017 $’000 2016 $’000 At 1 January 23,370,979 23,476,963 Premium received 2,019,875 1,785,241 Income: – Investment income 2,202,507 1,057,819 – Other income 15,171 20,479 Claims and surrenders (1,879,010) (2,792,089) Expenses (152,374) (150,282) Other movements (39,603) (18,444) Transfer to Shareholders’ Fund (7,851) (8,708) At 31 December 25,529,694 23,370,979 Life Insurance Non-Par Fund (a) Provision for unexpired risks 2017 $’000 2016 $’000 At 1 January 174,805 153,870 Increase in insurance provision for unexpired risk 24,952 20,935 At 31 December 199,757 174,805 (b) Provisions for future non-participating benefits and claims 2017 $’000 2016 $’000 At 1 January 1,867,304 1,624,318 (Decrease) / increase in provision for claims 7,447 1,651 Increase in insurance contract provision – Business movements 190,332 194,513 Change in valuation basis – Discount rate 20,369 50,616 – Assumption and other changes 47,543 (3,794) At 31 December 2,132,995 1,867,304 At 31 December (a) + (b) 2,332,752 2,042,109 ANNUAL REPORT 2017 NTUC INCOME INSURANCE CO-OPERATIVE LIMITED 110