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) (c) Financial risk (continued) (i) Market risk (continued) (a) Equity price risk (continued) The Group has chosen the Morgan Stanley Capital International Index (“MSCI”) Singapore, MSCI Asia Ex-Japan and MSCI Global indices as representative market indices for all the equities held at the reporting date. In addition, the Group makes adjustments or assumptions where it determines this to be necessary or appropriate. Historical statistics used in the model may not accurately estimate future changes particularly in periods of market turmoil. Actual results may differ substantially from these estimates. Sensitivity analysis for changes in risk variable that was reasonably possible at year end is as follows: 2019 Impact on net operating surplus $’000 Impact on equity $’000 MSCI Singapore +10% 176,384 8,002 – 10% (176,384) (8,002) MSCI Asia Ex-Japan +10% 200,159 – – 10% (200,159) – MSCI Global Equities +10% 233,750 11,310 – 10% (233,750) (11,310) 2018 Impact on net operating surplus $’000 Impact on equity $’000 MSCI Singapore +10% 171,805 7,587 – 10% (171,805) (7,587) MSCI Asia Ex-Japan +10% 152,861 – – 10% (152,861) – MSCI Global Equities +10% 192,541 10,074 – 10% (192,541) (10,074) 80 HERE FOR SURE