to download - Prudential Malaysia

Prudential AssuranceMalaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Unaudited Condensed InterimFinancial StatementsFor The Half-Year Ended30 June 2013(In Ringgit Malaysia)

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)ContentsPageCondensed Interim Statement of financial position 1Condensed interim statement of profit or loss and other comprehensive income 2Condensed Interim Statement of changes in equity 3Condensed Interim Statement of cash flows 4Notes to the interim financial statements 5 - 24

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Condensed interim statement of financial positionAs at 30 June 2013 (Unaudited)30.06.2013 31.12.2012Note RM’000 RM’000AssetsProperty and equipment 114,884 111,139Investments 3 18,661,325 17,633,524Reinsurance assets 4 3,633 3,877Insurance receivables 58,709 43,899Other receivables 271,928 150,116Tax recoverable 26,277 18,084Cash and bank balances 51,083 47,066_________ _________Total assets 19,187,839 18,007,705========= =========Equity, policyholders’ fundsand liabilitiesShare capital 100,000 100,000Retained earnings 1,109,874 1,335,776________ _________Total equity 1,209,874 1,435,776-------------- ---------------Insurance contract liabilities 5 16,837,856 15,587,944Deferred taxation 569,412 448,863Retirement gratuity benefits 49,597 40,052Insurance payables 287,836 275,368Tax payable 28,428 26,061Other payables 204,836 193,641_________ _________Total liabilities 17,977,965 16,571,929--------------- ----------------Total equity, policyholders’ fundsand liabilities 19,187,839 18,007,705========= =========The accompanying notes are an integral part of these condensed interim financial statements.Page 1

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Condensed interim statement of profit or loss and other comprehensive incomeFor the half-year ended 30 June 2013 (Unaudited)Half-year Half-yearended ended30.06.2013 30.06.2012RM’000 RM’000Operating Revenue 2,761,481 2,546,725======== ========Gross premiums 2,401,269 2,230,867Premiums ceded to reinsurers (34,733) (29,710)________ ________Net premiums 2,366,536 2,201,157-------------- --------------Investment income 360,584 314,996Realised gains and losses 125,488 173,508Fair value gains and losses 375,823 134,716Fee and commission income 103,042 84,254Other operating revenue 18,134 18,050________ ________Other revenue 983,071 725,524------------- --------------Gross benefits and claims paid (1,007,376) (949,373)Claims ceded to reinsurers 11,182 10,306Gross change to contract liabilities (1,250,220) (1,033,542)Change in contract liabilities ceded to reinsurers 11 1,273_________ _________Net claims (2,246,403) (1,971,336)--------------- ---------------Fee and commission expense (467,375) (415,866)Depreciation of property and equipment (5,767) (6,304)Management expenses (181,714) (167,972)Other operating expenses (27,742) (29,796)_________ ________Other expenses (682,598) (619,938)--------------- --------------Profit before taxation 420,606 335,407Taxation (141,508) (113,137)_________ ________Net profit/Total comprehensive income for the period 279,098 222,270========= ========Earnings per share (sen)Basic 279.10 222.27========= ========Page 2

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Condensed interim statement of changes in equityFor the half-year ended 30 June 2013 (Unaudited)Retained Earnings TotalShare Non- Retainedcapital distributable* Distributable earnings TotalRM’000 RM’000 RM’000 RM’000 RM’000At 1 January 2012 100,000 792,214 495,017 1,287,231 1,387,231Total comprehensiveincome for the year - 10,511 533,034 543,545 543,545Dividends paid duringthe year - - (495,000) (495,000) (495,000)_______ ________ ________ ________ ________At 31 December 2012/1 January 2013 100,000 802,725 533,051 1,335,776 1,435,776Total comprehensiveincome for the year - 267,122 11,976 279,098 279,098Dividends paid duringthe year - - (505,000) (505,000) (505,000)_______ ________ ________ ________ ________At 30 June 2013 100,000 1,069,847 40,027 1,109,874 1,209,874====== ======= ======= ======= =======* Non-distributable retained earnings comprises of the surplus from non-participating life insurancebusiness net of deferred tax. This amount is only distributable upon the annual recommendation bythe Appointed Actuary to transfer the Life fund surplus to the shareholders’ fund.Page 3

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Condensed interim statement of cash flowsFor the half-year ended 30 June 2013 (Unaudited)Half-year Half-yearendedended30.06.2013 30.06.2012RM’000 RM’000Cash flows from operating activitiesPremium receipts 2,408,813 2,243,092Commission (390,185) (351,091)Payment of claims (996,128) (904,396)Interest income 203,222 175,645Dividend income 140,057 112,826Payment of expenses (297,022) (188,827)Purchase of investments (2,047,189) (2,541,687)Proceeds from sale of investments 1,368,751 1,384,832Net disbursement of loans receivable (20,406) (15,157)Net change of fixed and call deposits 176,533 545,122_________ _________Cash generated from operations 546,446 460,359Income tax paid (27,902) (24,788)_________ _________Net cash from operating activities 518,544 435,571--------------- -------------Cash flows from investing activitiesPurchase of property and equipment (9,527) (6,596)Proceeds from sale of property and equipment - 115_________ ________Net cash used in investing activities (9,527) (6,481)-------------- -------------Cash flows from financing activityDividends paid (505,000) (495,000)_________ _________Net cash used in financing activity (505,000) (495,000)-------------- -------------Net decrease in cash and bank balances 4,017 (65,910)Cash and bank balances at beginning of period 47,066 102,408_________ _________Cash and bank balances at end of period 51,083 36,498======== =========Page 4

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements1. Basis of preparationThese condensed interim financial statements for the half-year ended 30 June 2013 of theCompany are unaudited and have been prepared in accordance with Malaysian FinancialReporting Standard ("MFRS") framework, issued by Malaysian Accounting Standards Board("MASB") and Revised Guidelines on Financial Reporting for Insurers issued by Bank NegaraMalaysia ("BNM") with effect from 1 January 2012.The condensed interim financial statements should be read in conjunction with the auditedfinancial statements of the Company for the year ended 31 December 2012, which wereprepared in accordance with MFRS, International Financial Reporting Standards (“IFRS”) andthe Companies Act, 1965 in Malaysia and Revised Guidelines on Financial Reporting forInsurers issued by BNM with effect from 1 January 2012.2. Significant accounting policiesThe accounting policies and presentation adopted by the Company for the condensed interimfinancial statements are consistent with those adopted in the Company's audited financialstatements for the financial year ended 31 December 2012, except for the adoption of thefollowing :MFRSs, Interpretations and amendments effective for annual periods beginning on orafter 1 January 2013 MFRS 13, Fair Value Measurement MFRS 119, Employee Benefits (2011) Amendments to MFRS 7, Financial Instruments: Disclosures – OffsettingFinancial Assets and Financial Liabilities Amendments to MFRS 1, First-time adoption of Malaysian FinancialReporting Standards (Annual Improvements 2009-2011 Cycle) Amendments to MFRS 101, Presentation of Financial Statements (AnnualImprovements 2009-2011 Cycle) Amendments to MFRS 116, Property, Plant and Equipment (AnnualImprovements 2009-2011 Cycle) Amendments to MFRS 132, Financial Instruments: Presentation (AnnualImprovements 2009-2011 Cycle) Amendments to MFRS 134, Interim Financial Reporting (AnnualImprovements 2009-2011 Cycle)The adoption of the revised standards, amendments and interpretations issued by MASB andrevised guidelines issued by BNM which are effective in the current year does not have anymaterial impact to the financial statements of the Company.Page 5

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)3. Investments (continued)The following investments mature after 12 months:As atAs at30.06.2013 31.12.2012RM’000 RM’000LAR - 3,515HFT 7,083,802 6,869,700_________ _________(a)LAR7,083,802 6,873,215======== =========As atAs at30.06.2013 31.12.2012RM’000RM’000Amortised costFixed and call deposits with financial institutions 1,588,225 1,764,758Policy loans 483,336 464,038Mortgage loans 2,209 1,958Unsecured loans 17,073 16,217________ ________2,090,843 2,246,971======== ========Fair valueFixed and call deposits with financial institutions 1,588,225 1,764,758Policy loans 483,336 464,038Mortgage loans 2,209 1,958Unsecured loans 17,073 16,217________ _________2,090,843 2,246,971======== =========The fair values of the LAR have been established by comparing current market interestrates for similar financial instruments to the rates offered when the LAR were firstrecognised together with appropriate market credit adjustments.Page 7

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)3. Investments (continued)(b)(c)HFTAs atAs at30.06.2013 31.12.2012RM’000RM’000Fair valueMalaysian government securities 674,461 635,068Debt securities 6,835,737 6,616,489Equity securities 7,723,048 6,925,721Unit and property trust funds 444,851 330,266Foreign managed fund 784,518 756,078Investment in structured products 107,867 122,931_________ _________Carrying values of financial instruments16,570,482 15,386,553========= =========LAR HFT TotalRM’000 RM’000 RM’000At 1 January 2012 2,528,035 12,610,928 15,138,963Purchases 39,222,424 4,511,923 43,734,347Maturities (39,538,806) (312,545) (39,851,351)Disposals - (1,980,621) (1,980,621)Fair value gains recorded in:Profit or loss - 561,969 561,969New loans 139,307 - 139,307Redemption or repayment (115,385) - (115,385)Interest receivable 11,396 - 11,396Movement in foreign exchange rate - (5,101) (5,101)_________ _________ __________At 31 December 2012 2,246,971 15,386,553 17,633,524Purchases 24,996,210 2,047,189 27,043,399Maturities (25,172,743) (180,900) (25,353,643)Disposals - (1,062,365) (1,062,365)Fair value gains recorded in:Profit or loss - 376,601 376,601New loans 71,046 - 71,046Redemption or repayment (54,759) - (54,759)Interest receivable 4,118 - 4,118Movement in foreign exchange rate - 3,404 3,404_________ _________ _________At 30 June 2013 2,090,843 16,570,482 18,661,325======== ======== ========Page 8

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)3. Investments (continued)(d)Fair value of financial investments (continued)The following table shows financial investments recorded at fair value analysed by thedifferent basis of fair values as follows:As atAs at30.06.2013 31.12.2012RM’000RM’000HFTQuoted market price 16,570,482 15,386,553======== ========Included in the quoted price category are financial instruments that are measured inwhole or in part by reference to published quotes in an active market. A financialinstrument is regarded as quoted in an active market if quoted prices are readily andregularly available from an exchange, secondary market via dealer and broker, pricingservice or regulatory agency and those prices represent actual and regularly occurringmarket transactions on an arm’s length basis.(e)Fair value hierarchyThe table below analyses financial instruments carried at fair value, by valuation method.The different levels have been defined as follows:Level 1: Quoted prices (unadjusted) in active markets for identical assets andliabilitiesLevel 1 principally includes exchange listed equities, mutual funds with quoted prices,and exchange traded derivatives such as futures and options unless there is evidencethat trading in a given instrument is so infrequent that the market could not possibly beconsidered active. It also includes other financial instruments (including net assetsattributable to unit-holders of consolidated unit trusts and similar funds) where there isclear evidence that the year end valuation is based on a traded price in an active market.Level 2: Inputs other than quoted prices included within level 1 that are observableeither directly (i.e. as prices) or indirectly (i.e. derived from prices)Level 2 principally includes corporate bonds, national and non-national government debtsecurities which are valued using observable inputs, together with over-the-counterderivatives such as forward exchange contracts and non-quoted investment funds valuedwith observable inputs. It also includes net assets attributable to unit-holders ofconsolidated unit trusts and similar funds and investment contract liabilities that arevalued using observable inputs.Page 9

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)3. Investments (continued)(e)Fair value hierarchy (continued)Level 3: Significant inputs for the asset or liability that are not based onobservable market data (observable inputs)Level 3 principally includes investment in private equity funds, investments in propertyfunds which are exposed to bespoke properties or risks, investment which are internallyvalued or subject to a significant number of unobservable assumptions and certainderivatives which are bespoke or long dated. It also includes debt securities which arerarely traded or traded in only privately negotiated transactions and where it is difficult toassert that these have been based on observable market data. The inherent nature ofthe vast majority of these assets means that, in normal market conditions, there isunlikely to be significant change in the specific underlying assets classified as level 3.Level 1 Level 2 Level 3 TotalRM’000 RM’000 RM’000 RM’00030 June 2013Malaysian government securities - 674,461 - 674,461Debt securities - 6,835,737 - 6,835,737Equity securities 7,717,752 - 5,296 7,723,048Unit and property trust funds 444,851 - - 444,851Foreign managed fund - 784,518 - 784,518Investment in structured products 3,933 42,424 61,510 107,867________ ________ _______ _________8,166,535 8,337,140 66,806 16,570,482======== ======== ====== =========Level 1 Level2 Level 3 TotalRM’000 RM’000 RM’000 RM’00031 December 2012Malaysian government securities - 635,068 - 635,068Debt securities - 6,616,489 - 6,616,489Equity securities 6,920,425 - 5,296 6,925,721Unit and property trust funds 330,266 - - 330,266Foreign managed fund - 756,078 - 756,078Investment in structured products 4,312 57,811 60,808 122,931________ ________ ______ _________7,255,003 8,065,446 66,104 15,386,553======== ======== ====== =========Page 10

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)3. Investments (continued)(e)Fair value hierarchy (continued)Financial assets measured at fair value based on Level 3:Unquoted Investment inequity structuredsecurities products TotalRM’000 RM’000 RM’000At 1 January 2012 5,296 63,017 68,313Fair value losses - (2,209) (2,209)______ ______ ______At 31 December 2012/1 January 2013 5,296 60,808 66,104Fair value gains - 702 702______ _______ _______At 30 June 2013 5,296 61,510 66,806===== ====== ======4. Reinsurance assetsAs at As at30.06.2013 31.12.2012RM’000 RM’000Reinsurance of insurance contracts – current 3,633 3,877===== =====Page 11

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)5. Insurance contract liabilitiesAs atAs at30.06.2013 31.12.2012Note Gross Reinsurance Net Gross Reinsurance NetRM’000 RM’000 RM’000 RM’000 RM’000 RM’000Life insurance 5(a) 16,783,506 - 16,783,506 15,533,128 - 15,533,128General insurance 5(b) 54,350 (3,633) 50,717 54,816 (3,877) 50,939_________ _______ _________ _________ ________ __________16,837,856 (3,633) 16,834,223 15,587,944 (3,877) 15,584,067========= ======= ========= ========= ======== =========(a)Life insuranceThe life insurance contract liabilities and its movements are further analysed as follows:As atAs at30.06.2013 31.12.2012Gross Reinsurance Net Gross Reinsurance NetRM’000 RM’000 RM’000 RM’000 RM’000 RM’000Actuarial liabilities 6,408,347 - 6,408,347 5,994,453 - 5,994,453Net asset value attributable to unitholders 10,145,866 - 10,145,866 9,309,448 - 9,309,448Provision for outstanding claims 229,293 - 229,293 229,227 - 229,227_________ _________ _________ _________ _________ _________16,783,506 - 16,783,506 15,533,128 - 15,533,128========= ========= ========= ========= ========= =========Page 12

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)5. Insurance contract liabilities (continued)Unit Non-Unit ClaimNon Par Par Reserves Reserves Liabilities TotalRM’000 RM’000 RM’000 RM’000 RM’000 RM’000At 1 January 2012 208,943 4,984,701 7,705,710 76,991 209,169 13,185,514Valuation premiums 242,396 - - - - 242,396Premium received, net of reinsurance - 767,438 1,717,770 (21,754) - 2,463,454Fees deducted from account balances ofinvestment-linked contracts - - (108,998) - - (108,998)Liabilities released for payments on death,surrender and other terminations (173,678) (287,992) (961,216) (9,818) (829,318) (2,262,022)Claims incurred during the period - - - 55,880 849,376 905,256Accretion of interest 1,086 - - 16,515 - 17,601Other movements (34,430) - - 19,098 - (15,332)New business (10,554) - - 2,602 - (7,952)Change in valuation basis (25,520) - - (892) - (26,412)Investment income - 242,747 - - - 242,747Expenses: Operating- Commission and agency expenses - (119,276) - - - (119,276)- Management expenses - (53,134) - - - (53,134)Other income - 129,150 - - - 129,150Movement in tax - (26,449) - - - (26,449)Changes in unit prices - - 956,182 - - 956,182Policyholder’s liability 37,047 - - - - 37,047Transfer to shareholder’s fund - (26,644) - - - (26,644)_______ ________ ________ ______ _______ _________At 31 December 2012 245,290 5,610,541 9,309,448 138,622 229,227 15,533,128======= ======== ======== ====== ======= =========Page 13

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)5. Insurance contract liabilities (continued)Unit Non-Unit ClaimNon Par Par Reserves Reserves Liabilities TotalRM’000 RM’000 RM’000 RM’000 RM’000 RM’000At 1 January 2013 245,290 5,610,541 9,309,448 138,622 229,227 15,533,128Valuation premiums 121,299 - - - - 121,299Premium received, net of reinsurance - 421,508 795,292 (12,937) - 1,203,863Fees deducted from account balances ofinvestment-linked contracts - - (61,524) - - (61,524)Liabilities released for payments on death,surrender and other terminations (95,462) (161,673) (455,860) (3,836) (440,151) (1,156,982)Claims incurred during the period - - - 35,479 440,217 475,696Accretion of interest 1,680 - - 8,942 - 10,622Other movements (40,381) - - 12,811 - (27,570)New business 5,220 - - 763 - 5,983Change in valuation basis 6,241 - - (11,557) - (5,316)Investment income - 128,001 - - - 128,001Expenses: Operating- Commission and agency expenses - (59,102) - - - (59,102)- Management expenses - (29,880) - - - (29,880)Other income - 79,596 - - - 79,596Movement in tax - (14,670) - - - (14,670)Changes in unit prices - - 558,510 - - 558,510Policyholder’s liability 21,852 - - - - 21,852_______ ________ ________ ______ _______ _________At 30 June 2013 265,739 5,974,321 10,145,866 168,287 229,293 16,783,506======= ======== ======== ====== ======= =========Page 14

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)5. Insurance contract liabilities (continued)(b) General insuranceAs atAs at30.06.2013 31.12.2012Gross Reinsurance Net Gross Reinsurance NetRM’000 RM’000 RM’000 RM’000 RM’000 RM’000Provision for claims reported by policyholders 22,678 (2,179) 20,499 22,713 (2,167) 20,546Provision for incurred but not reportedclaims (“IBNR”) 13,914 - 13,914 13,972 - 13,972______ ______ ______ ______ ______ ______Provision for outstanding claims (i) 36,592 (2,179) 34,413 36,685 (2,167) 34,518Provision for unearned premiums (ii) 17,758 (1,454) 16,304 18,131 (1,710) 16,421______ ______ ______ ______ ______ ______54,350 (3,633) 50,717 54,816 (3,877) 50,939====== ====== ====== ====== ====== ======Page 15

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)5. Insurance contract liabilities (continued)(b)General insurance (continued)(i) Provision for outstanding claimsAs atAs at30.06.2013 31.12.2012Gross Reinsurance Net Gross Reinsurance NetRM’000 RM’000 RM’000 RM’000 RM’000 RM’000At 1 January 36,685 (2,167) 34,518 26,189 (1,788) 24,401Claims incurred in the current accident period/year 4,835 (705) 4,130 24,021 (2,710) 21,311Claims paid during the period/year (4,928) 693 (4,235) (13,525) 2,331 (11,194)______ ______ ______ ______ ______ ______At 30 June / 31 December 36,592 (2,179) 34,413 36,685 (2,167) 34,518====== ====== ====== ====== ====== ======Page 16

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)5. Insurance contract liabilities (continued)(b) General insurance (continued)(ii) Provision for unearned premiumsAs atAs at30.06.2013 31.12.2012Gross Reinsurance Net Gross Reinsurance NetRM’000 RM’000 RM’000 RM’000 RM’000 RM’000At 1 January 18,131 (1,710) 16,421 16,684 (1,961) 14,723Premiums written during the period/ year 12,546 (1,896) 10,650 36,075 (4,442) 31,633Premiums earned during the period/ year (12,919) 2,152 (10,767) (34,628) 4,693 (29,935)______ ______ ______ ______ ______ ______At 30 June/ 31 December 17,758 (1,454) 16,304 18,131 (1,710) 16,421====== ====== ====== ====== ====== ======Page 17

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)6. Regulatory capital requirementsThe capital structure of the Company as at 30 June 2013, as prescribed under the BNM RiskBased Capital Framework is provided below:As atAs at30.06.2013 31.12.2012RM’000 RM’000Eligible Tier 1 CapitalShare capital (paid-up) 100,000 100,000Reserves, including retained earnings 1,463,223 3,327,092_________ _________1,563,223 3,427,092-------------- --------------Tier 2 CapitalEligible reserves - -_________ _________- ---------------- -------------Total capital available 1,563,223 3,427,092========= =========The capital adequacy ratio as at 31 December 2012 and 30 June 2013, were derived based on All Fundsbasis and All Funds Except Participating Fund basis, respectively.7. Capital commitmentsAs atAs at30.06.2013 31.12.2012RM’000 RM’000Capital expenditureApproved and contracted for:Property and equipment 5,604 4,041====== ======8. Dividends paidDuring the period, the Company paid a single tier interim dividend of 505% totalling RM505million for the year ending 31 December 2013 on 22 May 2013.Page 18

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)9. Insurance FundsThe Company’s activities are organised by funds and segregated into the Life, General and Shareholders’ funds in accordance with the Insurance Act, 1996and Insurance Regulations, 1996.The statement of financial position and statement of profit or loss and other comprehensive income have been further analysed by funds and theShareholders’ and General Funds has been presented together as one fund.The life insurance business offers a wide range of participating and non-participating Whole Life, Term Assurance, Endowment and Annuity products, as wellas investment-linked products.The general insurance business offers general insurance products which include Motor, Fire and Personal Accidents products.Interim statement of financial position by funds as at 30 June 2013Shareholders’ and General funds Life fund Elimination* Total30.06.2013 31.12.2012 30.06.2013 31.12.2012 30.06.2013 31.12.2012 30.06.2013 31.12.2012RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000AssetsProperty and equipment 1,050 1,054 113,834 110,085 - - 114,884 111,139Investments 135,284 134,672 18,526,041 17,498,852 - - 18,661,325 17,633,524Reinsurance assets 3,633 3,877 - - - - 3,633 3,877Insurance receivables - - 58,709 43,899 - - 58,709 43,899Other receivables 59,921 551,893 149,057 119,347 62,950 (521,124) 271,928 150,116Tax recoverable 20 1,151 26,257 16,933 - - 26,277 18,084Cash and bank balances 892 948 50,191 46,118 - - 51,083 47,066_______________________________________________________________________________________________________Total assets 200,800 693,595 18,924,089 17,835,234 62,950 (521,124) 19,187,839 18,007,705===================================================================================================Page 19

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)9. Insurance Funds (continued)Interim statement of financial position by funds as at 30 June 2013 (continued)Shareholders’ and General funds Life fund Elimination* Total30.06.2013 31.12.2012 30.06.2013 31.12.2012 30.06.2013 31.12.2012 30.06.2013 31.12.2012RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000Equity, policyholders’ fundsand liabilitiesTotal equity 140,027 633,051 1,069,847 802,725 - - 1,209,874 1,435,776----------------------------------------------------------------------------------------------------------------------------------------------------------------------Insurance contract liabilities 54,350 54,816 16,783,506 15,533,128 - - 16,837,856 15,587,944Deferred taxation 16 176 569,396 448,687 - - 569,412 448,863Retirement gratuity benefits - - 49,597 40,052 - - 49,597 40,052Insurance payables 976 819 286,860 274,549 - - 287,836 275,368Tax payables 2,276 1,500 26,152 24,561 - - 28,428 26,061Other payables 3,154 3,233 138,732 711,532 62,950 (521,124) 204,836 193,641____________________________________________________________________________________________________Total liabilities 60,772 60,544 17,854,243 17,032,509 62,950 (521,124) 17,977,965 16,571,929------------------------------------------------------------------------------------------------------------------------------------------------------------------------Total equity, policyholders’ fundsand liabilities 200,799 693,595 18,924,090 17,835,234 62,950 (521,124) 19,187,839 18,007,705============================================================================ ===================*Refers to elimination of Interfund balances.Page 20

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)9. Insurance Funds (continued)Interim statement of profit or loss and other comprehensive income by funds for the half-year ended 30 June 2013Shareholders’ andGeneral fund Life fund TotalHalf-year Half-year Half-year Half-year Half-year Half-yearEnded ended ended ended ended ended30.06.2013 30.06.2012 30.06.2013 30.06.2012 30.06.2013 30.06.2012RM’000 RM’000 RM’000 RM’000 RM’000 RM’000Operating revenue 15,178 21,106 2,746,303 2,525,619 2,761,481 2,546,725=================================================================Gross premiums 12,919 16,536 2,388,350 2,214,331 2,401,269 2,230,867Premiums ceded to reinsurers (2,152) (2,338) (32,581) (27,372) (34,733) (29,710)____________________________________________________________________Net premiums 10,767 14,198 2,355,769 2,186,959 2,366,536 2,201,157----------------------------------------------------------------------------------------------------------------Investment income 2,632 3,708 357,952 311,288 360,584 314,996Realised gains and losses 77 113 125,411 173,395 125,488 173,508Fair value gains and losses (761) (350) 376,584 135,066 375,823 134,716Fee and commission income - - 103,042 84,254 103,042 84,254Other operating revenue 16,358 16,924 1,776 1,126 18,134 18,050____________________________________________________________________Other revenue 18,306 20,395 964,765 705,129 983,071 725,524----------------------------------------------------------------------------------------------------------------Gross benefits and claims paid (4,927) (6,068) (1,002,449) (943,305) (1,007,376) (949,373)Claims ceded to reinsurers 695 1,202 10,487 9,104 11,182 10,306Gross change to contract liabilities 92 (7,688) (1,250,312) (1,025,854) (1,250,220) (1,033,542)Change in contract liabilities ceded to reinsurers 11 1,273 - - 11 1,273____________________________________________________________________Net claims (4,129) (11,281) (2,242,274) (1,960,055) (2,246,403) (1,971,336)----------------------------------------------------------------------------------------------------------------Page 21

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)9. Insurance Funds (continued)Interim statement of profit or loss and other comprehensive income by funds for the half-year ended 30 June 2013 (continued)Shareholders’ andGeneral fund Life fund TotalHalf-year Half-year Half-year Half-year Half-year Half-yearended ended ended ended ended ended30.06.2013 30.06.2012 30.06.2013 30.06.2012 30.06.2013 30.06.2012RM’000 RM’000 RM’000 RM’000 RM’000 RM’000Fee and commission expense (2,672) (2,624) (464,703) (413,242) (467,375) (415,866)Depreciation of property and equipment (10) (25) (5,757) (6,279) (5,767) (6,304)Management expenses (1,181) (2,989) (180,533) (164,983) (181,714) (167,972)Other operating expenses (14,029) (14,355) (13,713) (15,441) (27,742) (29,796)_____________________________________________________________________Other expenses (17,892) (19,993) (664,706) (599,945) (682,598) (619,938)-------------------------------------------------------------------------------------------------------------------7,052 3,319 413,554 332,088 420,606 335,407Transfer from revenue accounts - - - - - -_____________________________________________________________________Profit before taxation 7,052 3,319 413,554 332,088 420,606 335,407Taxation 4,924 (649) (146,432) (112,488) (141,508) (113,137)_____________________________________________________________________Net profit/Total comprehensiveincome for the period 11,976 2,670 267,122 219,600 279,098 222,270==================================================================Page 22

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)9. Insurance Funds (continued)Investment-linked fundsInterim statement of financial position as at 30 June 2013AssetsAs atAs at30.06.2013 31.12.2012RM’000 RM’000Investments 10,310,464 9,462,744Other receivables 34,192 18,274Tax recoverable 3 6Cash and bank balances 1,087 900________ _________Total assets 10,345,746 9,481,924-------------- ---------------LiabilitiesDeferred taxation 176,020 146,251Tax payable 23,228 16,966Other payables 632 9,259________ ________Total liabilities 199,880 172,476-------------- --------------Net asset value of funds 10,145,866 9,309,448======== ========Page 23

Prudential Assurance Malaysia Berhad(Company No. 107655-U)(Incorporated in Malaysia)Notes to the interim financial statements (continued)9. Insurance Funds (continued)Investment-linked funds (continued)Interim statement of profit or loss and other comprehensive incomeFor the half-year ended 30 June 2013Half-year Half-yearended ended30.06.2013 30.06.2012RM’000 RM’000Investment income 183,006 149,399Realised gains and losses 60,999 131,605Fair value gains and losses 359,327 125,727Fee and commission income 18,014 14,361Other operating revenue 517 112_______ ________621,863 421,204Gross change to contract liabilities (496,988) (321,588)Fee and commission expense (83,494) (69,925)Other operating expenses (1,257) (3,247)_______ ________Profit before taxation 40,124 26,444Taxation (40,124) (26,444)_______ ________Net profit for the period/Total comprehensive - -income for the period ======= =======Page 24