There isn't anything wrong with the statement I'm sure..  ILP always deduct insurance charges from the units purchased.  The number of units purchased each year is done according to a scale, from first year 30%-40% up until 90% or more (differs in each insurance co.).  So, in summary, 2 things happen every year in ILP product:

Let's say your premium is 3000:
1.  let say 30% allocated to buy unit trusts, u will then have let say $900 in your unit trust in this very first year.  (Don't ask me where the rest of 70% of your premium has gone.. it goes to commission, and to cover insurance co.'s other expenditure I guess!!)

2.  insurance cost will then be deducted from the units.  Balance of the units is what you get to see in your yearly statement.

It is as 'simple' as this.