2019 Integrated Report

PPS INTEGRATED REPORT 2019 | 171 Group Contractual cash flows 2018 Carrying Total cash Within 1 2 – 5 6 – 10 11 – 20 Over 20 R'000 amount flows year years years years years Insurance contract liabilities – DPF 26 073 342 26 073 342 1 512 736 3 784 285 5 551 165 9 719 624 5 505 532 Insurance contract liabilities – non-DPF 4 433 850 (53 613 043) 886 638 2 547 662 1 397 611 (665 271) (57 779 683) Short-term Insurance liabilities 21 808 21 808 21 292 516 – – – Reinsurance payables 35 448 35 448 35 448 – – – – Third-party financial liabilities arising on consolidation of unit trusts 12 670 465 12 670 465 12 670 465 – – – – Investment contract liabilities 2 045 946 2 045 946 2 045 946 – – – – Borrowings 173 688 173 688 24 602 110 862 11 704 26 520 – Other financial liabilities 808 694 808 694 808 694 – – – – Lease liabilities – – – – – – – Market risks Market risk is the risk that changes in market prices, such as interest rate, foreign exchange rates and equity prices will affect the value of the Group’s financial assets and the amount of the Group’s liabilities as well as the Group’s insurance contract assets and liabilities. Market risk arises in the Group due to fluctuation in the value of liabilities and the value of investments held. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on assets. The nature of the Group’s exposure to market risk and its objectives, policies and procedures for managing market risks have not changed significantly from the prior period although rigor has been applied to these in light of current market conditions and volatility. Refer below for more detail.