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100 eXIM BANK MALAYsIA ANNUAL REPORT 2022

InDEPEnDEnT auDITORS’ REPORT
to the members of Export-Import Bank of malaysia Berhad
(Incorporated in malaysia)

Key audit matters (cont’d.)

Risk area and rationale Our response

Insurance contract/Takaful certificate and expense liabilities
(cont’d.)
Significant management judgement is applied in setting these (d) reviewed the assumptions used by the Appointed Actuary
assumptions. In deriving the provision for these liabilities, and rationale for conclusions made thereon;
the Board of Directors and management have commissioned
a third-party independent professional actuary to perform (e) assessed consistency of valuation methodologies applied;
a valuation of such liabilities as at 31 December 2022 based
on requirements of MFRS 4 Insurance Contracts. (f) assessed whether changes made to the actuarial
models are in line with our understanding of business
Reinsurance assets are quantified from claims case estimates, developments, and our expectations derived from market
paid claims data and estimates of ultimate claims settlement experience;
amount. The Group and the Bank have reinsurance
arrangements designed to protect its aggregate exposure (g) performed independent analysis and re-computation of
to adverse development covers in the form of excess of loss the provision for these liabilities on selected classes of
contracts and catastrophic claim events. business. We focused on the largest and most uncertain
reserves. We compared our independent analysis to those
Refer to summary of significant accounting policies in performed by management; and
Note 2.4(m), significant accounting estimates and judgement
in Note 3 and the disclosures of these provisions in Note 24 (h) reviewed management’s estimation of the calculated
to the financial statements. reinsurance assets and thereon, their assessment of the
credit quality of the underlying reinsurance counterparties.

We also considered whether the disclosures in relation to the
provision for these liabilities comply with the relevant disclosure
requirements.

Information other than the financial statements and auditors’ report thereon
The directors of the Bank are responsible for the other information. The other information comprises the directors’ report and the
information included in the annual report, but does not include the financial statements of the Group and of the Bank and our
auditors’ report thereon, which is expected to be made available to us after the date of this auditors’ report.

Our opinion on the financial statements of the Group and of the Bank does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Bank, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the
Group and of the Bank or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard on the directors’ report.

When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to the directors of the Bank and take appropriate action.