annual report 2011
annual report 2011
annual report 2011
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IOOF | <strong>annual</strong> <strong>report</strong> <strong>2011</strong><br />
Notes to the financial statements (cont’d)<br />
For the year ended 30 June <strong>2011</strong><br />
40 Life Insurance Business<br />
A subsidiary of the Company, IOOF Ltd, is a friendly society in accordance with the Life Insurance Act 1995.<br />
(a) Assets relating to insurance business<br />
Statutory<br />
<strong>2011</strong> 2010<br />
$’000 $’000<br />
Cash at bank 6,269 12,902<br />
Receivables 13,836 19,633<br />
Certificates of deposit and bank bills 46,672 173,196<br />
Debt securities 180,084 171,148<br />
Shares in listed companies 18,815 3,246<br />
Unlisted unit trusts 680,841 615,888<br />
Derivatives 35 1,278<br />
Loans to policyholders 9,530 9,994<br />
Mortgages 117 268<br />
Margin accounts 1,771 1,287<br />
Deferred tax assets 10,047 14,636<br />
Investments backing policyholder liabilities designated at fair value through profit or loss 968,017 1,023,476<br />
Investments held in the life insurance Statutory Funds (including the Benefit Funds) are subject to the distribution and transfer<br />
restrictions and other requirements of the Life Insurance Act 1995. Monies held in the benefit funds and controlled trusts are held for<br />
the benefit of the members of those funds, and are subject to the constitution and rules of those funds.<br />
Accordingly, with the exception of permitted profit distributions, the investments held in the statutory funds are not available for use<br />
by other parties of the Group.<br />
(b) Policy liabilities<br />
Policy liabilities have been determined in accordance with applicable accounting standards. Policy liabilities for life insurance contracts<br />
are valued in accordance with AASB 1038, whereas life investment contracts are valued in accordance with AASB 139 and AASB 118.<br />
There are differences between the valuation requirements of the accounting standards and those of the Life Insurance Act 1995.<br />
Statutory<br />
<strong>2011</strong> 2010<br />
$’000 $’000<br />
Payables 19,476 15,963<br />
Contract policy liabilities - investment contracts with DPF 427,323 447,048<br />
Policy liabilities ceded under reinsurance - 322<br />
Investment contract liabilities 411,737 403,100<br />
Non-controlling interests in controlled trusts 109,481 156,297<br />
968,017 1,022,730<br />
(c) Reconciliation of movements in policy liabilities<br />
Statutory<br />
<strong>2011</strong> 2010<br />
$’000 $’000<br />
Contract policy liabilities<br />
Insurance contract liabilities at beginning of the year 447,048 466,199<br />
Net increase in life insurance contract policy liabilities 15,974 19,475<br />
Life insurance contract contributions 13,563 13,577<br />
Life insurance contract withdrawals (49,262) (52,203)<br />
Insurance contract liabilities at end of the year 427,323 447,048<br />
page 110
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