# 1. Changes in Accounting Policies and Disclosures (continued)

# Amendments to HKFRS 9, HKAS 39 and HKFRS 7 Interest Rate Benchmark Reform Amendments to HKFRS 9, HKAS 39 and HKFRS 7 address the effects of interbank offered rate reform on issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark with an alternative risk-free rate ("RFR"). The amendments provide temporary reliefs which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark introduction of the alternative RFR. In addition, the amendments require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties. The amendments did not have any impact on the financial position and performance of the Group as the Group does not have any interest rate hedge relationships.

# Amendments to HKAS 1 and HKAS 8 Definition of Material

Amendments to HKAS 1 and HKAS 8 provide a new definition of material. The new definition states that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments clarify that materiality will depend on the nature or magnitude of information, or both. The amendments did not have any significant impact on the financial position and performance of the Group.

# Amendment to HKFRS 16 COVID-19-Related Rent Concessions

Amendment to HKFRS 16 provides a practical expedient for lessees to elect not to apply lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic. The practical expedient applies only to rent concessions occurring as a direct consequence of the pandemic and only if (i) the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change; (ii) any reduction in lease payments affects only payments originally due on or before 30th June, 2021; and (iii) there is no substantive change to other terms and conditions of the lease. The amendment is effective for annual periods beginning on or after 1st June, 2020 with earlier application permitted and shall be applied retrospectively. The amendments did not have any impact on the financial position and performance of the Group as the Group does not have any rent concessions.

# 2. Operating Segment Information

# (a) Operating segments

The following tables present revenue, profit and certain asset and liability information for the Group's operating segments.

<table><tr><td rowspan="3"></td><td>Insurance</td><td>Corporate</td><td>Eliminations</td><td>Consolidated</td></tr><tr><td>2020</td><td>2020</td><td>2020</td><td>2020</td></tr><tr><td>HK$'000</td><td>HK$'000</td><td>HK$'000</td><td>HK$'000</td></tr><tr><td>Segment revenue:</td><td></td><td></td><td></td><td></td></tr><tr><td>External customers</td><td>1,747,918</td><td>-</td><td>-</td><td>1,747,918</td></tr><tr><td>Other revenue, income and
gains, net</td><td>109,687</td><td>160,833</td><td>-</td><td>270,520</td></tr><tr><td>Intersegment</td><td>5,911</td><td>-</td><td>(5,911)</td><td>-</td></tr><tr><td>Total</td><td>1,863,516</td><td>160,833</td><td>(5,911)</td><td>2,018,438</td></tr><tr><td>Segment results</td><td>184,914</td><td>106,029</td><td>-</td><td>290,943</td></tr><tr><td>Share of profits or losses of:</td><td></td><td></td><td></td><td></td></tr><tr><td>Joint ventures</td><td>(6,313)</td><td>33,196</td><td>-</td><td>26,883</td></tr><tr><td>Associates</td><td>16,891</td><td>37,704</td><td>-</td><td>54,595</td></tr><tr><td>Profit before tax</td><td></td><td></td><td></td><td>372,421</td></tr><tr><td>Income tax expense</td><td>(6,037)</td><td>(21,437)</td><td>-</td><td>(27,474 )</td></tr><tr><td>Profit for the year</td><td></td><td></td><td></td><td>344,9 47</td></tr></table>

<table><tr><td rowspan="2"></td><td>Insurance 
2019</td><td>Corporate 
2019</td><td>Eliminations 
2019</td><td>Consolidated
2019</td></tr><tr><td>HK$'000</td><td>HK$'000</td><td>HK$'000</td><td>HK$'000</td></tr><tr><td>Segment revenue:</td><td></td><td></td><td></td><td></td></tr><tr><td>External customers</td><td>1,702,009</td><td>-</td><td>-</td><td>1,702,009</td></tr><tr><td>Other revenue, income and
gains, net</td><td>131,360</td><td>147,016</td><td>-</td><td>278,376</td></tr><tr><td>Intersegment</td><td>5,339</td><td>-</td><td>(5,339)</td><td>-</td></tr><tr><td>Total</td><td>1,838,708</td><td>147,016</td><td>(5,339)</td><td>1,980,385</td></tr><tr><td>Segment results</td><td>203,613</td><td>83,601</td><td>-</td><td>287,214</td></tr><tr><td>Share of profits or losses of:</td><td></td><td></td><td></td><td></td></tr><tr><td>Joint ventures</td><td>12,105</td><td>34,696</td><td>-</td><td>46,801</td></tr><tr><td>Associates</td><td>(7,184)</td><td>107,428</td><td>-</td><td>100,244</td></tr><tr><td>Profit before tax</td><td></td><td></td><td></td><td>434,259</td></tr><tr><td>Income tax expense</td><td>(25,796)</td><td>(895)</td><td>-</td><td>(26,691 )</td></tr><tr><td>Profit for the year</td><td></td><td></td><td></td><td>407,568</td></tr></table>