BIMB Integrated Annual Report 2017

22. TAKAFUL LIABILITIES (CONTINUED) (a) Takaful contract liabilities (continued) (iii) Participants’ fund (continued) GROUP 2017 2016 GROSS RETAKAFUL NET GROSS RETAKAFUL NET GROUP RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 5,497,622 (144,096) 5,353,526 5,312,141 (242,477) 5,069,664 Net earned contributions 1,577,342 (56,178) 1,521,164 1,533,870 (47,965) 1,485,905 Investment income 271,303 – 271,303 254,950 – 254,950 Realised gains 21,412 – 21,412 (2,319) – (2,319) Fair value (loss)/gain (1,698) – (1,698) 15,578 – 15,578 Other operating income 2,510 – 2,510 1,868 – 1,868 Net benefits and claims (882,504) 64,009 (818,495) (934,982) 62,679 (872,303) Net fees deducted (549,235) – (549,235) (502,332) – (502,332) Other operating expenses (13,206) – (13,206) (17,388) – (17,388) Profit paid to participants (29,449) – (29,449) (13,654) – (13,654) Increase in actuarial liabilities 18,878 (37,319) (18,441) (113,233) 99,420 (13,813) Profit attributable to the Takaful Operator (74,841) (7,831) (82,672) (73,364) (14,715) (88,079) Excess payment transferred to participants (12,535) – (12,535) (3,857) – (3,857) Change in AFS reserve 27,216 – 27,216 16,994 – 16,994 Withholding tax (25,924) – (25,924) (8,941) – (8,941) Disposal of subsidiary (6,737) – (6,737) – – – Effect of movement in exchange rates (48,588) 1,931 (46,657) 32,291 (1,038) 31,253 At 31 December 5,771,566 (179,484) 5,592,082 5,497,622 (144,096) 5,353,526 (b) Expense reserves GROUP 2017 2016 RM’000 RM’000 At 1 January 159,310 142,258 Provision for the year, net 37,897 16,676 Effect of movement in exchange rates (552) 376 At 31 December 196,655 159,310 (c) Takaful payables GROUP 2017 2016 RM’000 RM’000 Due to retakaful companies 86,409 65,610 Due to Intermediaries/Participants 20,574 17,801 106,983 83,411 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 223 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis