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) (a) Life Insurance Contracts Risk Management (continued) Sensitivity Analysis (continued) (ii) Life Insurance Non-Par Fund To understand the risks undertaken by the Group in the Life Insurance Non-Par Fund, the following sensitivity analysis is done to measure the impact on the Group’s insurance contract provisions. 2019* 2018 Assumption Change Impact on insurance contract provisions $’000 Impact on insurance contract provisions $’000 Interest rates +100 bps (86,997) (395,953) -100 bps 138,964 609,789 Mortality / morbidity ElderShield: +11.1% Morbidity DPS: +5% Mortality Non-Par Life: +20% Mortality Group & Health: +20% Morbidity 121,960 156,714 ElderShield: -11.1% Morbidity DPS: -5% Mortality Non-Par Life: -20% Mortality Group & Health: -20% Morbidity (89,590) (93,030) Lapses ElderShield: +50bps DPS: +50bps Non-Par Life:+20% (12,562) (14,672) ElderShield: -50bps DPS: -50bps Non-Par Life: -20% 15,008 16,529 * Sensitivity analysis in respect of ElderShield Basic is excluded from 2019 following the transfer as disclosed in Note 32. (iii) Investment-Linked Fund To understand the risks undertaken by the Group in the Investment-Linked Fund, the following sensitivity analysis is done to measure the impact on the Group’s insurance contract provisions. Assumption Change 2019 2018 Impact on insurance contract provisions $’000 Impact on insurance contract provisions $’000 Interest rates +100 bps (217) (101) -100 bps 336 156 Mortality +20% 23 29 -20% (15) (26) Lapses +20% (162) (55) -20% 209 66 76 HERE FOR SURE