Page 202 - EXIM-BANK-AR20

200 EXIM BANK MALAYSIA
Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS

43. INSURANCE RISKS (CONT’D.)
Premium/contribution liability sensitivity analysis (cont’d.)

c. Change in Maintenance Expenses (“ME”)
Assumed ME of 5%. Changing this by 10% (to 5.5% and 4.5% respectively) points gives the following result:
2020 2019
Net Net
RM’000 RM’000 RM’000 RM’000
High Low High Low
+10% -10% +10% -10%

Estimated premium liabilities/contribution 9,892 9,847 7,087 7,043

d. Change in PRAD %
Assumed a premium PRAD of 40%. Changing this by 10% (to 44% and 36% respectively) gives the following result:

2020 2019
Net Net
RM’000 RM’000 RM’000 RM’000
High Low High Low
+10% -10% +10% -10%

Estimated premium liabilities 10,152 9,588 7,219 6,911