NTUC Income AR 2019

I am pleased to submit my report on the financial health of the Co-operative. The Co-operative remains financially sound and the insurance contract provisions are sufficient to meet future obligations. The detailed financials can be found in the "Consolidated Statement of Financial Position" section of this report. The insurance contract provisions are valued in accordance to Insurance (Valuation and Capital) Regulations 2004, taking into account all contractual liabilities. For the Participating Fund, total insurance contract provisions include an allowance for future bonuses. The reserving assumptions are reviewed on an annual basis to reflect the Co-operative's latest experience. One of my duties as the Appointed Actuary is to recommend to the Board of Directors (“the Board”) the bonus rates to be allocated to the Co-operative’s participating policyholders. After weighing in the financial analysis, policyholders’ reasonable expectations and senior management’s view, my recommendation is to maintain the bonus rates for the majority of the participating products and to increase the terminal or special bonus rates for a handful of endowment policies maturing between 1st April 2020 and 31st March 2021. The bonus rates will be published on the Co-operative’s website in April 2020. In addition, I recommend to the Board the amount to transfer from the surplus arising in the Participating Fund to the Surplus Account on an annual basis. This recommendation complies with the maximum amount that can be transferred as stipulated in section 17 of the Insurance Act. I also recommend to the Board the amount to transfer from Surplus Account and other Insurance Funds to the Shareholders’ Fund. The detailed financials can be found in the “Consolidated Statement of Changes in Equity” section of this report. The above recommendations have been agreed and approved by the Board. Lau Sok Hoon Appointed Actuary Singapore, 27 March 2020 APPOINTED ACTUARY’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 ANNUAL REPORT 2019 33