be produced applying the general model. In assessing materiality, the Group has also considered qualitative factors such as the nature of the risk and types of its lines of business. Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Fuel and consumables 2,736.8 3,274.9 278.7 331.0 Work-in-progress 14.4 10.3 0 0 Finished goods 6.8 5.6 0 0 2,758.0 3,290.8 278.7 331.0 21 RECEIVABLES, DEPOSITS AND PREPAYMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 254 Accounting Policy (continued) Insurance contracts (continued) Reinsurance contracts - initial recognition (continued) For a group of contracts that is not onerous at initial recognition, the Group measures the liability for remaining coverage as: • The premiums, if any, received at initial recognition; • Minus any insuranceacquisition cash flows at that date, with the exception of contracts which are one year or less where this is expensed; • Plus or minus any amount arising from the derecognition at that date of the asset recognised for insurance acquisition cash flows; and • Any other asset or liability previously recognised for cash flows related to the group of contracts that the Group pays or receives before the group of insurance contracts is recognised. The Group calculates the loss-recovery component by multiplying the loss recognised on the underlying insurance contracts and the percentage of claims on the underlying insurance contracts the Group expects to recover from the group of reinsurance contracts held. The Group uses a systematic and rational method to determine the portion of losses recognised on the group to insurance contracts covered by the group of reinsurance contracts held where some contracts in the underlying group are not covered by the group of reinsurance contracts held. Reinsurance contracts - subsequent measurement The Group measures the carrying amount of the liability for remaining coverage at the end of each reporting period as the liability