Page 218 - Exim iar24_Ebook

EXIM BANK MALAYSIA
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NOTES TO THE FINANCIAL STATEMENTS

43. INSURANCE RISKS (cont’d)
Liability for remaining coverage (cont’d)
b. Change in claims severity

Changing the claims severity by 10% will give the following results.
2024 2023
Net Net
RM’000 RM’000 RM’000 RM’000
High Low High Low
+10% -10% +10% -10%
Estimated LRC 2,893 2,878 4,769 4,760

c. Change in credit rating for medium/long term policies

The medium/long term policies were assumed a credit rating based on their shipment destination countries by Fitch
respectively. Changing this rating assumption to a lower rating (less trustworthy - for the “High” Scenario) and a higher
rating (more trustworthy - for the “Low” scenario) will give the following results.

2024 2023
Net Net
RM’000 RM’000 RM’000 RM’000
High Low High Low
+10% -10% +10% -10%
Estimated LRC 1,883 2,905 4,825 4,488

d. Change in Maintenance Expenses (“ME”)

Changing the ME by 10% will give the following results.
2024 2023
Net Net
RM’000 RM’000 RM’000 RM’000
High Low High Low
+10% -10% +10% -10%
Estimated LRC 3,166 2,604 4,953 4,575

e. Change in risk adjustment
Changing the risk adjustment by 10% will give the following results.

2024 2023
Net Net
RM’000 RM’000 RM’000 RM’000
High Low High Low
+10% -10% +10% -10%
Estimated LRC 3,172 2,599 4,911 4,618