NTUC Income AR 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 4. MANAGEMENT OF INSURANCE AND FINANCIAL RISKS (CONTINUED) (f) Fair value measurements (continued) Financial asset / liabilities not carried at fair value Loans The fair value of consumer loans is 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 value and interest rates used are as follows: 2019 Life Insurance Par Fund Interest rate used Carrying value $’000 Fair value $’000 Consumer loans 16,496 14,690 3.65% 2018 Life Insurance Par Fund Interest rate used Carrying value $’000 Fair value $’000 Consumer loans 21,670 19,132 3.65% 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: 2019 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 5,672 4,917 3,751 2,816 – – 3.65% Investments and other payables 36,901 29,508 790 516 – – 3.65% Total 42,573 34,425 4,541 3,332 – – 2018 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 6,215 5,427 26,844 24,487 – – 3.65% Investments and other payables 13,173 12,350 – – – – 3.65% Total 19,388 17,777 26,844 24,487 – – * 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. 98 HERE FOR SURE