NTUC Income AR 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 20. SHARE CAPITAL (CONTINUED) Members and their rights (continued) Any monies remaining after the application of the funds to the purposes specified in the above paragraph (Section 88 of the Act) and any sums unclaimed after two years under Section 89(2) (which relates to claims of creditors), shall not be divided among the Members but shall be carried to the Co-operative Societies Liquidation Account kept by the Registrar. Out of the Co-operative Societies Liquidation Account such sums may be transferred to the Central Co-operative Fund, or applied generally for the furtherance of co-operative principles in such manner, as the Minister may determine from time to time. The Common Shares and the Permanent Shares are presented as equity on the statement of financial position. The redemption rights of the Ordinary Members and Institutional Members holding the Common Shares and the requirements of FRS 32 Financial Instruments: Presentation are described in Note 2(s) of significant accounting policies. 21. RESERVES FOR FUTURE DISTRIBUTION The Group has designated an amount of $150,240,000 (2018: $500,142,000) as reserves for future distribution. This amount relates to the ElderShield Supplement and IncomeShield business (2018: ElderShield Supplement, ElderShield Basic and IncomeShield business). The reserves are set aside because the underlying risk for IncomeShield and ElderShield Supplement is uncertain and of a long term nature, it is prudent to earmark this amount as being available for distribution only when the trend of the experience can be clearly established. 22. FEE AND OTHER INCOME 2019 Life Insurance Par Fund $’000 Life Insurance Non-Par Fund $’000 Investment- Linked Fund $’000 General Insurance Fund $’000 Share holders' Fund $’000 Total $’000 Reinsurance commission 8,395 57 45 5,816 – 14,313 Management and other fees 9,753 – – – – 9,753 Other Income – – – – 3,640 3,640 18,148 57 45 5,816 3,640 27,706 2018 Life Insurance Par Fund $’000 Life Insurance Non-Par Fund $’000 Investment- Linked Fund $’000 General Insurance Fund $’000 Share holders' Fund $’000 Total $’000 Reinsurance commission 3,705 64 12 5,749 – 9,530 Management and other fees 10,916 – – – – 10,916 Other Income – – – – 128,505 128,505 14,621 64 12 5,749 128,505 148,951 ANNUAL REPORT 2019 133