NTUC Income AR 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 4. MANAGEMENT OF INSURANCE AND FINANCIAL RISKS (CONTINUED) (f) Fair value measurements (continued) Financial asset / liabilities not carried at fair value (continued) Insurance and other payables The fair values of insurance and other payables are based on cash flows discounted at the interest rate of the Co-operative’s subordinated debt (Note 18) and are classified as level 3. The fair values and interest rates used are as follows: 2017 Life Insurance Par Fund Life Insurance Non-Par Fund General Insurance Fund Interest rate used Carrying value $’000 Fair value $’000 Carrying value $’000 Fair value $’000 Carrying value $’000 Fair value $’000 Outstanding claims 6,888 6,029 21,567 19,615 – – 3.65% Investments and other payables 13,054 12,348 – – 1 1 3.65% Total 19,942 18,377 21,567 19,615 1 1 2016 Life Insurance Par Fund Life Insurance Non-Par Fund General Insurance Fund Interest rate used Carrying value $’000 Fair value $’000 Carrying value $’000 Fair value $’000 Carrying value $’000 Fair value $’000 Outstanding claims 7,772 6,832 18,028 16,921 – – 3.65% Investments and other payables 13,336 12,609 – – 245 233 3.65% Total 21,108 19,441 18,028 16,921 245 233 * The fair value of insurance and other payables to be settled within the next 12 months are not presented as the carrying values approximate their fair values. ANNUAL REPORT 2017 NTUC INCOME INSURANCE CO-OPERATIVE LIMITED 90