MUTUAL BENEFITS ASSURANCE PLC CONSOLIDATED AND SEPARATE STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 31 MARCH 2018

Transcription

1 UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH, 2018

2 CONSOLIDATED AND SEPARATE STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 31 MARCH 2017 MARCH 2017 Gross premium written 1.1 4,749,632 3,745,210 2,480,715 2,255,595 Gross premium income 1 4,635,689 4,089,532 3,108,799 2,671,574 Premium ceded to reinsurers 1.2 (766,096) (376,576) (485,723) (287,153) Net premium income 1.3 3,869,593 3,712,956 2,623,076 2,384,421 Fee and commission income 2 144,749 92, ,115 65,776 Net underwriting income 4,014,342 3,805,137 2,739,191 2,450,197 Net benefits and claims 3 1,390,887 1,077, , ,973 (Decrease)/increase in life fund Increase in annuity reserve (11,407) (11,342) - - Underwriting expenses 4 1,051, , , ,691 Net underwriting expenses 2,431,266 1,904,489 1,382, ,664 Underwriting profit 1,583,076 1,900,648 1,356,555 1,479,533 Profit/(loss) on investment contracts 5 319,392 1,083, Investment income 6 525,211 (424,248) 226, ,402 Net fair value gain on assets at FVTPL 7 40,112 (41,510) 40,112 (41,510) Other income 8 74,501 14,220 27, Impairment charge no longer required Impairment charges 10 (56,740) (26,959) - - Employee benefit expenses 11 (527,046) (508,698) (236,962) (277,722) Other management expenses 12 (865,590) (837,488) (529,161) (499,626) Net foreign exchange differences 12.1 (337,950) (296,550) (337,950) (296,550) Result of operating activities 754, , , ,199 Finance costs 13 (7,269) (15,275) - - Finance incomes ,261 22, Profit before income tax 868, , , ,199 Income tax expense 15 (197,264) (215,540) (164,013) (161,460) Profit from continuing operation 671, , , ,739 Discountinued operations Loss from discountined operation Profit for the year 671, , , ,739 Profit attributable to: Owners of the parent 665, , , ,739 Non-controlling interests - 6,098 11, , , , ,739 Earnings per share: Basic and diluted (kobo)

3 CONSOLIDATED AND SEPARATE STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 MARCH 2017 MARCH 2017 Profit for the year 671, , , ,739 Other comprehensive income: Items that are or may be reclassified to the profit or loss account: Foreign currency translation differences 158,563 12, ,563 - Revaluation Surplus 4, ,464 12, ,563 - Total comprehensive income for the year 835, , , ,739 Profit attributable to: Owners of the parent 808, , , ,739 Non-controlling interest 26,712 11, , , , ,739 2

4 MUTUAL BENEFITS ASSURANCE PLC CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDED 31 M DECEMBER A 2017 ACTUAL R ASSETS Cash and cash equivalents Financial assets Available-for-sale investment securities Fair value through profit or loss Loans and receivables Held to maturity Assets pledged as collateral Trade receivables Reinsurance assets Other receivables and prepayments Deferred acquisition costs Finance lease receivables Inventories Investment properties Investments in subsidiaries Investment in associates Intangible assets Property, plants and equipment Statutory deposit Deposit for shares Deferred tax assets Goodwill Total assets LIABILITIES Insurance contract liabilities Investment contract liabilities Trade payables Other liabilities Deposit liabilities Book overdraft Borrowings Current income tax liabilities Deferred tax liabilities Total liabilities EQUITY Share Capital Treasury shares Foreign currency translation reserve Contingency reserve Revaluation reserve Accumulated losses Shareholders' fund ,821, , ,952 12,704,119 16,859, , ,286 2,388,728 1,158, , , ,822 8,378,500 36,172 3,838, , ,588 1,543 56,433,213 10,696,515 24,945,958 1,552, , ,677 6,847, ,187 1,063,082 47,349,439 8,343,102 DECEMBER 2017 ACTUAL 859, ,952 12,245,288 16,840, , ,279 2,455, , , , ,822 8,566,000 43,994 3,922, , ,587 1,543 57,658,211 3,730,295 21, , ,926 4,218, , ,036 1,185, , , ,464 56,000 4,000,000 7,639 2,859, , ,588 19,087,797 3,249,277 21, , ,143 4,457, , ,159 1,086, , , ,044 56,000 4,000,000 15,387 2,925, , ,588 18,720,415 10,300,735 26,564,221 2,863,920 1,120, ,268 6,509, ,173 1,063,082 49,368,131 4,001, , ,700 6,847, , ,821 13,238,255 4,352,606 1,028, ,696 6,509, , ,821 13,253,570 4,000,000 (250) 1,069,625 2,896,926 1,472,305 (509,011) 8,929,595 4,000,000 (250) 911,062 2,801,764 1,467,404 (1,079,246) 8,100,734 4,000,000 (250) 2,475,024 1,339,395 (1,964,627) 5,849,542 4,000,000 (250) 2,398,485 1,339,395 (2,270,785) 5,466,845 8,929, ,179 9,083,774 8,100, ,346 8,290,080 5,849,542 5,849,542 5,466,845 5,466,845 56,433,213 57,658,211 19,087,797 18,720,415 Total equity attributable to the: Owners of the parent Non-controlling interests in equity Total equity Total liabilities and equity 47 These financial statements were approved by the Board on the 18th of January 2018 and signed on its behalf by: Mr. Abayomi Ogunwo FRC/2015/ICAN/ Chief Finance Officer Mr. Olusegun Omosehin FRC/2013/CIIN/ Managing Director 3 -

5 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 Company Share Treasury Contingency Revaluation Accumulated capital shares reserve reserve loss Total As at 1 January ,000,000 (250) 2,179,515 1,288,563 (2,657,093) 4,810,735 Total comprehensive income for the year: Profit for the year , ,739 Other comprehensive income Total comprehensive income for the year , ,739 Transactions with owners of equity Disposal of investments Transfer to contingency reserve ,348 - (75,348) - Total transactions with owners of equity ,348 - (75,348) - MARCH 2017 ACTUAL 4,000,000 (250) 2,254,863 1,288,563 (2,355,702) 5,187,474 AS AT 1 JANUARY ,000,000 (250) 2,398,484 1,339,395 (2,270,786) 5,466,843 4,000,000 (250) 2,398,485 1,339,395 (2,270,785) 5,466,845 Total comprehensive income for the year: Profit for the year , ,697 Other comprehensive income Total comprehensive income for the year , ,697 Transactions with owners of equity Transfer to contingency reserve ,539 - (76,539) - Total transactions with owners of equity ,539 - (76,539) - 4,000,000 (250) 2,475,024 1,339,395 (1,964,629) 5,849,540 4

6 CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 Group Attributable to equityholders of the Company Foreign Share Treasury translation Contingency Revaluation Accumulated Non - capital shares reserve reserve reserve losses Total controlling Total Note Restated* interests equity AS AT 1 JANUARY ,000,000 (250) 906,502 2,533,160 1,288,563 (1,838,814) 6,889, ,607 7,012,769 Total comprehensive income for the year: Profit/(loss) for the year , ,281 7, ,964 Other comprehensive income , ,359-27,359 Total comprehensive income for the year , , ,640 7, ,323 Transactions with owners of equity Transfer to contingency reserve ,284 - (84,284) Total transactions with owners of equity ,284 - (84,284) MARCH 2017 ACTUAL 4,000,000 (250) 933,861 2,617,444 1,288,563 (1,270,816) 7,568, ,290 7,700,092 AS AT 31 4,000,000 (250) 911,062 2,801,763 1,467,404 (1,079,247) 8,100, ,347 8,290,079 4,000,000 (250) 911,062 2,801,764 1,467,404 (1,079,246) 8,100, ,346 8,290,080 Total comprehensive income for the period: (1) Profit/(loss) for the period , ,596 6, ,694 Other comprehensive income Foreign currency translation reserve , ,563 (52,823) 105,740 Revaluation Surplus ,901-4,901 11,557 16,458 Total comprehensive income for the period ,563-4, , ,060 (35,168) 793,892 Transactions with owners of equity Changes in equity Transfer to contingency reserve ,162 - (95,162) Total transactions with owners of equity ,162 - (95,162) ,000,000 (250) 1,069,625 2,896,925 1,472,305 (509,011) 8,929, ,179 9,083,971 5

7 CONSOLIDATED AND SEPARATE STATEMENTS OF CASHFLOWS FOR THE PERIOD ENDED 31 MARCH 2017 MARCH 2017 Cash flows from operating activities Cash received from insurance contract policy holders 4,755,625 3,303,381 2,408,838 2,061,306 Cash received from investment contract policy holders 33 2,966,909 4,802,929 - Cash withdrawal by investment contract policy holders 33 (5,139,664) (3,929,572) - Commission received 2 144,749 92, ,115 65,776 Reinsurance cost 21.2 (864,743) (400,832) (584,371) (7,284) Claims paid 3 (1,686,430) (1,295,196) (732,633) (394,670) Claims recovered from to reinsurers 3 403, , , ,015 Commission paid 23.1 (565,314) (544,756) (375,521) (386,433) Payments to employees 11 (527,046) (508,698) (236,962) (277,722) Investment income 525,211 (424,248) 226, ,402 Other cash received 195,762 36,693 27, Cash paid to brokers, suppliers and other providers of services (2,187,051) 293,263 (893,887) (731,918) Income tax paid 13,750 (252,896) (15,078) (232,805) Net cash flows from operating activities 48 (1,965,198) 1,451, , , ,263 (731,918) Investing activities: Purchase of investment properties Purchase of intangible assets 28 - (13,552) - (9,632) Purchase of properties, plants and equipments 29 (78,436) (561,981) (51,890) (457,131) Receipts on loans and advances (226) 1,691, Receipts on finance lease receivables Additions to finance lease receivables - - Purchase of Held to maturity investments (585,000) (10,289,824) (585,000) (2,445,183) Proceeds on held to maturity financial assets 1,011,796 1,011,794 Proceeds from sale of properties, plant and equipment - 8,563 (1,154) 3,450 Additions to deposit for shares - (32,000) - (133,000) Proceeds from sale of investment properties 95, Purchase of available-for-sale investments Net cash flows used in investing activities 443,760 (9,197,303) 374,376 (3,041,496) Financing activities Increase in non controlling interest Net cash flows (used in)/from financing activities Net (decrease)/increase in cash and cash equivalents (1,521,438) (7,745,965) 481,017 (2,621,157) Effects of exchange rate changes on cash and cash equivalent - 2,184,975-2,184,975 Cash and cash equivalents as 1 January 8,343,102 14,016,107 3,249,277 4,111,237 Cash and cash equivalents as at period end ,821,664 8,455,117 3,730,294 3,675,055 6,821,664 8,455,117 3,730,294 3,675,055 6

8 NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 1 Gross premium income MARCH 2017 ACTUAL MARCH Gross premium written Non-life 2,835,984 2,769,028 2,480,715 2,255,595 Life (Group life and individual life) 1,766, , Annuity ,602,559 3,745,210 2,480,715 2,255,595 4,749,632 3,745,210 2,480,715 2,255,595 Changes in unearned premium Non-life 567, , , ,979 Life (Group life and individual life) (681,017) (16,027) - - Annuity (113,943) 344, , ,979 Gross premium income 4,488,616 4,089,532 3,108,800 2,671,574 4,635,689 4,089,532 3,108,799 2,671, Premiums ceded to reinsurers Outward premium - Non life 584, , , ,072 Outward premium - life 280,373 89, Changes in prepaid re-insurance (98,647) (60,919) (98,647) (60,919) 766, , , ,153 (766,096) (376,576) (485,723) (287,153) 1.3 Net premium income 3,722,520 3,712,956 2,623,077 2,384,421 3,869,593 3,712,956 2,623,076 2,384,421 2 Fee and commission income Commission received from reinsurance 144,749 92, ,115 65,774 Commission received from co insurance ,749 92, ,115 65, ,749 92, ,115 65,776 3 Net benefits and claims Claims paid ,686,430 1,295, , ,670 Change in outstanding claims 107,501 61, , ,318 Claims recoveries (403,044) (279,089) (166,024) (150,015) Change in outstanding claims - Reinsurers ,390,887 1,077, , ,973 1,390,887 1,077, , ,973 7

9 NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 4 Underwriting expenses Amortisation of deferred acquisition costs , , , ,055 Maintenance costs , , , ,636 1,049, , , ,691 1,051, , , ,691 Underwriting expenses can be sub-divided into commission expenses and other acquisition expenses. Commission expenses are those incurred in obtaining and renewing insurance contracts. They include commissions or brokerage paid to agents or brokers. Other acquisition expenses are those incurred in servicing existing policies/contracts. These include processing costs, preparation of statistics and reports, and other incidental costs attributable to maintenance. 4.1 Maintenance costs MARCH 2017 ACTUAL MARCH 2017 Agency expenses on vehicle insurance business 34,076 4,158 34,076 4,158 Tracking expenses on insured vehicles 35,983 40,885 35,983 40,885 Agency expenses on travel insurance business 57,401 24,231 57,401 24,231 Administrative charges-group Life 11,109 2, Agency allowance 30,916 30, Agency running cost Agency training 3,133 1, Transport & Travelling-Corporate 15,087 21, Superintending and surveyors fees 30,495 19,670 30,495 19,670 Group life actuary valuation report fee Stamp duty expenses Training and forum for marketers 66,177 85, Agency unit manager allowance 54,092 51, Business promotion expenses Value added tax 28,661 21,548 10,864 7,809 Underwriting medical expenses Consultancy fees Marketing expenses 38,760 31,186 8,767 4, , , , , , , , ,636 5 Profit/(loss) on investment contracts - Interest income 6 872,552 1,601, Surrender fee 144, , Guaranteed interest (454,492) (507,376) - - Acquisition cost on investment policies (243,525) (142,750) ,392 1,083, ,392 1,083,

10 NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 6 Investment income Interest income on loans and advances ,359 1,326,112-3,955 Dividend income Interest income on fixed term deposit 171, ,991 74,977 56,918 Interest income on statutory deposit 41,037 29,788 24,622 17,873 Interest income on lease 2,046 3,726 2,046 3,726 Interest from current accounts with banks 256 2, Interest Income from Staff Mortgage Loan 1,289 2,137 1,289 2,137 Interest income from treasury bills 608, , ,674 86,344 Rental income 13,058 20,422-1,984 Investment income written off (9,591) (23,636) - - Reclassification of investment contract (872,552) (2,344,951) - - income 5 525,211 (424,247) 226, , ,211 (424,248) 226, , Interest income on loans and advances Loan to Prime Exploration 558, , Loan to Mutual Homes and Properties Other loans and advances 10, ,101-3, ,359 1,326,112-3,955 7 Net fair value gain on assets at FVTPL MARCH 2017 ACTUAL MARCH 2017 Fair value (loss)/gain on financial assets 40,112 (41,510) 40,112 (41,510) through profit or loss Fair value (loss)/gain on pledged assets Fair value gain in investment property ,112 (41,510) 40,112 (41,510) 40,112 (41,510) 40,112 (41,510) 9

11 NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 8 Other income Profit on sale of property and equipment Bank charges income Net income from sale of properties Gain on disposal of PPE - (1,063) - - Micro finance fees and commission 14,104 17, Default charges Share of profit of the associate Commission on turnover 393 2, Others 11,977 1, Insurance claim received - (128) - (128) Sundry income 27, , Foreign exchange gain?? 20,135 (7,094) ,116 14,220 27, ,501 14,220 27, Impairment charge no longer required MARCH 2017 ACTUAL MARCH Other receivables This represents amount received on premium income that had been impaired 10 Impairment charges Loans and advances - 56,740 26, Trade receivables Other receivables Finance lease receivables ,740 26, (56,740) (26,959) Employee benefit expenses Wages and salaries 446, , , ,629 Defined contribution pension costs 80, ,328 72,180 99, , , , ,723 (527,046) (508,698) (236,962) (277,722) In accordance with Pension Reform Act 2015, the Group contributes 10% each of the qualifying staff's salary (Basic, transport, and housing), whilst the employees contribute 8%. The contributions are recognised as employee benefits expense as and when due. 10

12 NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED Other management expenses MARCH 2017 ACTUAL MARCH 2017 Depreciation of property, plants and , , , ,145 equipments Amortisation of intangible assets 28 28,385 9,350 7,747 8,783 Auditors' remunerations 10,011 8,575 3,750 3,413 Legal and consultancy fees 141,349 86, ,014 70,785 Directors fee and allowance 74,122 73,665 52,456 63,692 Medical expenses 11,251 16,685 1,386 7,295 Donations 16,234 9, ,650 Subscriptions 11,103 8,982 10,627 8,552 Rents and Rates 32,641 32,778 9,825 4,681 Share issue expenses Repairs and maintainance 81, ,200 30,315 38,233 Utilities 11,954 9,681 10,643 7,773 Transport and travelling 30,130 27,931 25,285 25,133 Public relations and advertising 21,577 11,259 16,201 7,955 Motor vehicle running expenses 20,306 17,602 11,711 8,778 Business acquisition costs 12,603 12,199 11,196 7,262 Training and recruitment 48,214 94,416 43,187 90,348 Insurance 8,263 9,178 6,472 7,049 Bank charges 16,859 19,284 4,097 2,792 Insurance supervisory fee 44,823 43,499 14,823 13,499 Conference and seminar expenses 14,107 2,815 14,107 2,815 Fines and penalties Newspapers and periodicals Printing and stationery 8,409 9,886 1,266 3,390 Telecommunication expenses 10,490 8,890 6,034 2,741 Security expenses 6,749 7,023 4,811 4,400 Other expenses (74,229) 31,266 1,495 1,380 Head office expenses 37,500 30, Loss on disposal of property, plant & equipment Investment related expenses , , , ,631 (865,590) (837,488) (529,161) (499,626) 11

13 NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 1 Net foreign exchange loss MARCH 2017 ACTUAL MARCH (2,184,975) - (2,184,975) Exchange gain on foreign currency denominated bank balances Exchange loss on foreign loan 337,950 2,481, ,950 2,481, , , , ,550 The exchange loss on foreign loan represents the impact of translation of 2,250,000,000 Japanese Yen (JPY) due to Daewoo Securities (Europe) Limited to the Company's funtional currency (NGN) at the reporting date.to hedge against future exchange losses that may arise on conversion of foreign currency denominated loan balances, the Group has started investing a proportion of its financial assets in foreign currency. 13 Finance costs MARCH 2017 ACTUAL MARCH 2017 Interest on loans and overdraft Interest charge on deposits 6,543 14, Other charges ,269 15, (7,269) (15,275) Finance income Interest income on Micro loans 121,261 21, Interest income on SME loans Interest on Eazy cash product Interest income on overdraft Interest income on treasury bills Income from funds placement ,261 22, , Income tax expense 15.1 Current income tax charge Current income tax 197, , , ,460 Education tax Information technology tax Minimum tax , , , ,460 12

14 NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED Deferred tax Reversal of origination and temporary differences Total Income tax expenses 197, , , , Earnings per share 16.1 Earnings per share - Basic Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held as treasury shares. MARCH 2017 ACTUAL MARCH 2017 Profit attributable to equity holders 665, , , ,739 Weighted average number of ordinary shares for basic earnings per share ,999,500 7,999,500 7,999,500 7,999,500 Basic earnings per ordinary share (kobo) Weighted average number of ordinary shares - basic Issued ordinary shares at 1 January 8,000,000 8,000,000 8,000,000 8,000,000 Effect of treasury shares held As at 31 December 7,999,500 7,999,500 7,999,500 7,999, Earnings per share- Diluted The calculation of diluted earnings per share has been based on the profit attributable to ordinary shareholders and the weighted- The company has no potential dilutive ordinary shares during the year (2016: Nil). Hence, the weighted average number of ordinary 13

15 FOR THE PERIOD ENDED Cash and cash equivalents Cash in banks and on hand 1,147,762 1,755, , ,825 Short-term deposits ,673,902 6,269,243 3,598,557 3,075,452 Treasury bills with original maturity - 318, of less than 90days 6,821,664 8,343,102 3,730,294 3,249,277 6,821,664 8,343,102 3,730,295 3,249, Short-term deposits - - (1) - Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash For the purpose of the statement of cash flows, the cash and cash equivalents comprise the following balances with maturity of three months or less from the date of acquisition. Cash in banks and on hand 1,147,762 1,755, , ,825 Short-term deposits 5,673,902 6,269,243 3,598,557 3,075,452 Treasury bills with original maturity <90days - 318, ,821,664 8,343,102 3,730,294 3,249,277 Book overdraft ,821,664 8,343,102 3,730,294 3,249, Financial assets The Group s financial assets are Available-for-sale investment securiti , ,524 21,553 21,553 Fair value through profit or loss , , , ,952 Loans and receivables ,704,119 12,245, , ,143 Held to maturity ,859,859 16,840,316 4,218,964 4,457,954 30,534,524 30,056,080 4,969,395 5,223,602 13,674,665 13,215, , , Available-for-sale investment securities Unquoted investments ,131,949 1,131, , ,908 Allowance for impairment (272,355) (272,355) (172,355) (172,355) 859, ,524 21,553 21,553 14

16 FOR THE PERIOD ENDED Analysis of investments in unlisted entities Empire Aviation Limited 122, , , ,355 Global Haulage Limited 150, ,000 50,000 50,000 Mutual Model Transport Limited (MMTL) 1,000 1,000 1,000 1,000 ICHL Limited 316, , Motor Way Assets Limited 330, , Leasing Company of Liberia 60,950 60, WAICA Reinsurance Corporation Plc 20,553 20,553 Avanage Limited 70,000 70, Other investments 60,619 50,400 20,553 20,553 1,131,949 1,121, , ,908-10, Movement in unlisted entities At 1 January 1,121, , , ,355 Purchase during the year - 20,553-20,553 Transfer from deposit for shares - 70, Foreign exchange reserves 10,219 64, At 31 December 1,131,949 1,121, , , Analysis of impaired unlisted investments Empire Aviation Limited 122, , , ,355 Global Haulage Limited 150, ,000 50,000 50,000 Other investments , , , , Investment securities - fair value through profit or loss Quoted shares 110, , , ,952 Movement in listed entities At 1 January 110,952 93, ,952 93,463 Purchase during the year Liquidation of subsidiaries Fair value (loss)/gain - 17,489-17,489 At 31 December 110, , , , Loans and advances Term loans ,641,771 11,273,420 (202) - Overdrafts 534, , Staff loans 704, , , ,143 12,880,285 12,364, , ,143 Allowance for specific impairment (176,165) (119,425) - - Allowance for collective impairment ,704,120 12,245, , ,143 12,704,119 12,245, , ,143 15

17 FOR THE PERIOD ENDED Term loans Loan to Prime Exploration and ,721,520 10,162, Production Limited Loan to Mutual Homes and Properties Limited Others 920,251 1,110, Gross loans and advances 11,641,771 11,273, Allowance for specific impairment Allowance for collective impairment ,641,771 11,273, ,641,771 11,273,420 (202) Term loans Balance as 1 January 10,162,578 10,010, Additions ,162,578 10,010, Interest on loan 558,942 2,202, Payments - (2,050,000) ,721,520 10,162, The movement in held-to-maturity financial assets At 1 January 16,840,316 8,214,636 4,457,954 2,030,905 Additions during the year 585,000 16,252, ,000 3,565,863 Accrued interest income 446,338 1,774, , ,382 Redemption at maturity (1,011,795) (9,401,338) (1,011,795) (1,831,196) 16,859,859 16,840,316 4,218,964 4,457, Assets pledged as collateral Quoted shares 208, , , ,064 16

18 FOR THE PERIOD ENDED Trade receivables General busines 306, , , ,159 Mutual Benefits Niger 236, , Mutual Benefits Liberia 80, , , , , , , , , , Reinsurance assets Reinsurance share of outstanding clai , , , ,866 Reinsurance receivable 798, , , ,865 Co-assurance claims receivable 911,330 1,088,418 76,944 76,944 Prepaid reinsurance , , , ,150 2,388,728 2,455,731 1,185,473 1,086,825 2,388,728 2,455,731 1,185,474 1,086, The movement in reinsurers' share of claims reported and loss adjustment expenses is as follows: Opening balance 214, , , ,818 Changes in reinsurance share of outstanding claims 3 - (690,363) - (495,952) 214, , , , The movement in prepaid reinsurance Balance, beginning of the year 366, , , ,901 Additions during the year 864,743 1,671, , ,537 Recognised in profit or loss 1.2 (766,096) (1,885,655) (485,723) (1,046,288) 464, , , ,150 17

19 FOR THE PERIOD ENDED Other receivables and prepayments Prepayments 181, , , ,077?? Interest receivable ?? Staff loans Loan to policy holders ?? Other bank balances ,154 76,784 63,601 63,601?? Investment receivables 22.2 (33,242) 16,758 16,758 16,758 Other assets ,661 64, Due from Related Companies (35,916) - 119, ,508 Sundries receivables 554, , , ,389?? Directors current account 69,349 35,646 66,684 32,700 Property development 21,922 21, VAT input recoverable on investment property 198, , Trade receivables of non-insurance subsidiaries 142,754 50, Deposit for building material ,245,754 1,039, , ,033 Allowance for impairment on other receivables 22.4 (86,748) (86,748) (80,358) (80,358) 1,159, , , ,675 1,158, , , , Other bank balances Balance held in Skye Bank Jericho 2,533 2,533 2,533 2,533 Balance held in GTB ( Premium call) 18,068 18,068 18,068 18,068 Balance held in Unity Bank Plc Balance held in Guaranty Trust 42,988 42,988 42,988 42,988 Balance held in Sterling Bank Balance held in GTB( current account) Other bank balances 10,554 13, ,154 76,784 63,601 63,601 74,154 76,784 63,601 63, Investment receivables Placement with Profound Securities 16,757 16,757 16,757 16,757 Others (49,999) (33,242) 16,758 16,758 16,758 (33,242) 16,758 16,758 16,758 18

20 FOR THE PERIOD ENDED Other assets WHT recoverable - OPL 72,430 67, Uniform stock Private placement Stock of cheque 2,119 2, Branch account SMS Alert account Telephone Accrued interest?? Unpaid capital?? Adjustment account?? Suspense account?? Cheques and coupons Due from government Excess interest charges 6,390 6, ATM Receivables?? Premium Refund (10,235) (12,912) ,661 64, ,661 64, The movement in impairment Balance, beginning of the year 86, ,440 80,358 80,358 Write-offs during the year - (104,406) - - Write back during the year - (1,286) ,748 86,748 80,358 80, Deferred acquisition costs Deferred acquisition cost - Fire 41,570 41,570 41,570 41,570 Deferred acquisition cost - Gen Accident 130, , , ,517 Deferred acquisition cost - Motor 86,275 86,275 86,275 86,275 Deferred acquisition cost - Marine 49,067 49,067 49,067 49,067 Deferred acquisition cost - Oil & Gas & aviation 18,754 18,754 18,754 18,754 Life Business 82, , , , , , , , , , The movement in deferred acquisition cost is as follows: Balance, beginning of the year 485, , , ,798 Additions during the year 565,314 1,785, ,521 1,155,075 Amortisation in the year (642,385) (1,622,653) (361,928) (1,104,690) Balance, end of year 408, , , ,183 19

21 FOR THE PERIOD ENDED Finance lease receivables Net investment in finance lease , , , ,347 Less: Allowance for specific impairment (197,719) (197,718) (119,303) (119,303) Allowance for collective impairment , , , , , , , , Movement in finance lease Balance at the beginning of the year 343, , , ,268 Additions Interest on finance leases 2,046 31,795 2,046 14,800 Repayment received on finance leases (626) (227,959) (626) (28,721) Foreign exchange difference , , , , Inventories Diesel Stocks-Head office Construction in progress 907, , Building raw materials Land properties for construction , , , ,

22 FOR THE PERIOD ENDED Investment properties At the beginning of the year 8,566,000 8,731,665 56,000 56,000 Additions - (80,275) - - Transfer from Mutual Benefits Homes & Properties Limited Reclassification from property, plant and equipment Disposal (187,500) Fair value gain - (85,390) - - 8,378,500 8,566,000 56,000 56,000 8,378,500 8,566,000 56,000 56,000 The items of investment properties Mutual Tulip Estate i 798, , Property at Ikeja GRA- Sasegbon ii 625, , Property at Ikeja Alausa iii 285, , Property at Ikota iv 56,000 56,000 56,000 56,000 Property at Sango/Idiroko - Mogga v 84,250 84, Property at Sango/Idiroko - Caxtonjo vi 50,000 50, Property at Onireke,Ibadan vii 538, , Mutual Alpha Court duplex, Costain, viii 4,143,000 4,218, Property at Asokoro, Abuja ix 702, ,000 Property at Akure Plots (5, , ,000 x Square Meters) Property at Paradise Estate, 230, ,000 xi Anthony Estate Property at Ado Ekiti Land, (100 Hect xii 750, ,000 Property at Oyingbo, Lagos xiii 170, ,000 8,651,390 8,726,390 56,000 56, Investments in subsidiaries The Company s investment in Mutual Benefits Life Assurance Limited 4,000,000 4,000,000 21

23 FOR THE PERIOD ENDED Investments in subsidiaries MUTUAL BENEFIT'S STRUCTURE Mutual Benefit Assurance Plc CLASS ULTIMATE PARENT 100% Mutual Benefits Life Assurance Limited 80% 100% 95% 92% Mutual Benefits Microfinance Bank Limited Mutual Benefits Homes and Properties Ltd Mutual Benefit Liberia Company Limited Mutual Benefits Niger Republic SA Company name Nature of business Country of origin Relationship % of equity Year of NCI Status controlled control 1 Mutual Benefits Life Assurance Insurance Nigeria Direct - Subsidiary 100% - Set up Dec Mutual Benefits Microfinance Bank Ltd Banking Nigeria Indirect - Subsidiary 76% 24% Acquired Jan Mutual Benefits Homes and Properties Ltd Property development Nigeria Indirect - Subsidiary 100% - Set up Jan Mutual Benefits Liberia Insurance Liberia Indirect - Subsidiary 95% 5% Set up Jan Mutual Benefits Niger Republic Insurance Niger Republic Indirect - Subsidiary 92% 8% Set up Jan

24 FOR THE PERIOD ENDED Investments in subsidiaries Mutual Benefits Life Assurance Limited Mutual Life Assurance Limited is a wholly owned subsidiary of Mutual Benefits Assurance Plc.The principal activity of the Company is the underwriting of life insurance policies. Mutual Benefits Microfinance Bank Mutual Benefits Microfinance Bank was incorporated in Nigeria in January 2008 and its principal activity involves the provision of retail banking services to both individual and corporate customers. Mutual Benefits Life Assurance Limited obtained control of the company with acquisition of 80% of the voting rights of the Company in January 2009.As at June 2017, MBA PLC's shareholdings changed to 76% with the additional issue of shares by the subsidiary. Mutual Benefits Homes and Properties Ltd Mutual Benefits Homes and Properties Limited was incorporated in December 2007 to provide property development services to corporate and individual customers. The Company was established as a wholly owned subsidiary of Mutual Benefits Life Assurance Limited. Mutual Benefits Liberia Mutual Benefit Assurance Company Liberia was incorporated on 29 August 2007 and commenced operations on 2 January It is into underwriting of all classes of non- Life and life businesses. It is 95% owned by Mutual Benefits Life Assurance Limited. Mutual Benefits Niger Republic Mutual Benefits Niger S.A commenced operations on 2 January It is into underwriting of all classes of non-life businesses. It is 92% owned by Mutual Benefits Life Assurance Limited. 23

25 FOR THE PERIOD ENDED Intangible assets Note DECEMBER 2017 ACTUAL Cost: Balance at the beginning of the year 326, , , ,512 Additions - 21,796-13,725 Foreign exchange reserves 3,735 12, , , , ,237 Amortization: Balance at the beginning of the year 282, , , ,207 Amortisation charge 12 8,623 54,986 7,747 31,644 Foreign exchange reserves 2,933 8, , , , ,851 (169,599) 36,173 43,994 7,639 15,386 24

26 FOR THE PERIOD ENDED Property, plant and equipments (Group) Furniture Organisa - Capital Leasehold Land & Leasehold Plant and Motor fittings and Trading tional work-in Total Note properties Land Building Improvement machinery vehicles equipment booth cost progress Cost: As at 1 January , ,900 2,243,070 1,550, ,558 1,055,318 1,488,726 3, ,751-7,053,918 Additions - 63,668-57,341 1, , , ,979 Disposal (65,887) (32,912) (7,136) (105,935) Revaluation adjustment - 139,139 72, ,756 Foreign exchange difference - 17, , , , ,282 2,315,687 1,608, ,864 1,165,271 1,593,180 3, ,751-7,554,437 Additions - - 8, ,664 65,270 2, ,436 Reclassification Foreign exchange difference ,049 (14) (148) 3, ,383 Disposal , ,282 2,323,945 1,623, ,514 1,230,393 1,599,196 3, ,751-7,650,256 Accumulated depreciation: As at 1 January , , , , , ,809 3, ,751-3,029,621 Charge for the year , ,989 16, , , ,713 Disposal (65,866) (32,912) (5,813) (104,591) Revaluation adjustment Foreign exchange difference , , , , , , ,172 1,173,284 3, ,751-3,631,506 Charge for the year ,610 55,833 2,992 46,765 59, ,854 Disposal Foreign exchange difference (29) (13) (119) 2, , , ,465 1,035, , ,818 1,235,775 3, ,751-3,811,036 Carrying amounts at: - 339,282 2,089, ,482 30, , , ,839, ,282 2,092, ,513 32, , , ,922,931 No leased assets are included in the above property, plant and equipment and the Group had no capital commitments as at 31 December The capital work-in progress is a control account for the acquisition of property, plant and equipment for which advance payments have been made but assets yet to be completed, delivered and put to use. None of the assets have been pledged as collateral. 25

27 FOR THE PERIOD ENDED Property, plant and equipment (Company) Furnitures Leasehold Leasehold Plant and Motor fittings and Total properties Building Improvement machinery vehicles equipment Cost/revaluation: As at 1 January 154,126 2,321, ,628 71, , ,880 4,749,486 Additions ,996-89,932 20, ,758 Disposal (1,137) (23,512) (3,843) (28,492) Revaluation adjustment - 72, , December ,126 2,394, ,624 70, ,738 1,009,867 4,945,369 Additions ,664 49,501-51,890 Disposal (1,154) (1,154) Transfer ,126 2,394, ,349 72, ,239 1,008,713 4,996,105 Accumulated depreciation: As at 1 January , , ,108 55, , ,407 1,596,842 Charge for the year - 46, ,744 4, , , ,418 Disposal (1,137) (23,512) (3,843) (28,492) Transfer December , , ,852 59, , ,178 2,019,768 Charge for the year - 11,610 27,944 1,148 39,108 36, ,371 Disposal Transfer Foreign exchange reserve , , ,796 60, , ,739 2,136,139 Carrying amounts at: - 2,120, ,553 11, , ,974 2,859,966-2,132, ,772 11, , ,689 2,925,601 26

28 FOR THE PERIOD ENDED Statutory deposit This represents amounts deposited with the Central Bank of Nigeria (CBN) pursuant to Section 10(3) of the Insurance Act, This amount is not available for the day-to-day use in the working capital of the Company and so it is excluded from the cash and cash equivalents. ACTUAL Statutory deposit 500, , , , , , , , , , , , Deposit for shares Mutual Exploration 410, , , ,588 Avanage Nigeria Limited 70, , , , , , , , , Insurance contract liabilities ACTUAL Outstanding claims ,339,834 6,078,210 2,202,870 1,926,358 Unearned premiums ,356,681 4,220,880 1,798,163 2,426,248 10,696,515 10,299,090 4,001,033 4,352, Movement in outstanding claims 10,696,515 10,300,735 4,001,033 4,352,606 At 1 January 6,078,210 1,804,553 1,926,358 1,783,719 Claims incurred in the current year 1,948,053 7,493,825 1,009,145 2,181,480 Claims paid during the year (1,686,429) (3,220,168) (732,633) (2,038,841) 6,339,834 6,078,210 2,202,870 1,926,358 Outstanding claims Non-Life business ,807,531 2,394,078 2,202,870 1,926,358 Life business ,532,303 3,684, ,339,834 6,078,210 2,202,870 1,926,358 6,339,834 6,078,210 2,202,870 1,926, Non-Life business: Non-Life outstanding claims Claims reported by policyholders 2,303,254 1,819,801 1,698,593 1,352,081 Claims incurred but not reported (IBNR) 504, , , ,277 2,807,531 2,394,078 2,202,870 1,926,358 2,807,531 2,394,078 2,202,870 1,926, Outstanding claims - Continued Movement in Non-life outstanding claims ACTUAL At 1 January 2,394,078 1,804,553 1,926,358 1,783,719 Claims incurred in the current year 1,210,544 2,312,121 1,009,145 2,181,480 Claims paid during the year (797,091) (1,722,596) (732,633) (2,038,841) 2,807,531 2,394,078 2,202,870 1,926,358 27

29 FOR THE PERIOD ENDED Life business: Life outstanding claims Outstanding claims 2,810,234 2,962, Claims incurred but not reported 722, , ,532,303 3,684, Analyis of life outstanding claims per class of insurance Group life i 3,066,667 3,207, Individual life ii 79,925 79, Annuity iii 385, , ,532,303 3,684, i Movement in group life outstanding claims At 1 January 3,207, , Claims incurred in the current year 722,527 3,998, Claims paid during the year (862,949) (1,388,814) - - 3,066,667 3,207, Life business: ii Movement in individual life outstanding claims At 1 January 79, ,727 Claims incurred in the current year 14,982 (87,827) Claims paid during the year (14,982) (77,975) 79,925 79,925 iii Movement in annuity At 1 January 397,118 65, Claims incurred in the current year - 362, Claims paid during the year (11,407) (30,783) , , Unearned premiums Non-Life business 1,975,027 2,490,377 1,798,163 2,426,248 Life business 2,381,654 1,730, ,356,681 4,220,881 1,798,163 2,426,248 i The movement in unearned premium At 1 January 4,220,881 3,374,888 2,426,248 2,187,449 Premiums written in the year 1.1 4,749,632 14,037,879 2,480,715 7,298,974 Premiums earned during the year 1 (4,613,832) (13,191,886) (3,108,800) (7,060,175) 4,356,681 4,220,881 1,798,163 2,426,248 ii The movement in non-life unearned premium At 1 January 2,490,377 2,267,057 2,426,248 2,187,449 Premiums written in the year 2,835,984 9,269,263 2,480,715 7,298,974 Premiums earned during the year (3,351,334) (9,045,943) (3,108,800) (7,060,175) 1,975,027 2,490,377 1,798,163 2,426,248 The movement in life unearned premium At 1 January 1,730, , Premiums written in the year 1,766,575 4,768,616 Premiums earned during the year (1,115,425) (3,993,856) 2,381,654 1,730,

30 FOR THE PERIOD ENDED Investment contract liabilities Group deposit administration 262, , Individual deposit administration 24,683,284 26,308, ,945,958 26,564, ,945,958 26,564,221 Current 9,742,373 8,827, Non-current 15,203,585 17,737, ,945,958 26,564, The movement in deposit administration funds Balance at the beginning of the year 26,564,221 24,217, Deposits received during the year 2,966,909 13,356, Guaranteed interest 554,492 2,041, Withdrawals during the year (5,139,664) (13,051,318) - - Balance at the end of the year 24,945,958 26,564, ,945,958 26,564, Trade payables ACTUAL Reinsurance payables 481, , , ,352 Co-Insurance payables (27,004) 885,197 (35,106) - Deferred commission 169, , , ,378 Commission payable 443, , , ,057 Deposit for premium 484,675 1,058, , ,474 1,552,140 2,863, ,640 1,028,261 1,552,140 2,863, ,641 1,028, Other liabilities ACTUAL Accruals 7, ,387 25,947 23,850 Creditors control-management 71,236 34,170 71,236 34,170 Rent received in advance 37,606 30,663 9,424 4,424 Dividend Payable 89,141 89,141 89,141 89,141 Due to related companies (22,735) PAYE 10,618 3,954 5, VAT payable 401, , WHT payable 31,600 28,711 3,166 1,435 Staff pension 2,052 6,976 (15) - ATM working capital??? 31,558 34, Deferred income , , Amount due to Directors 3,495 3, National Housing Fund 1,778 2,466 1,345 2,036 Cooperative 3,334 3, Unpaid capital??? 15,789 61, Provision for NAICOM levy 16,516 39,627 16,516 39,627 Sundry creditors 142, ,773 30,949 40,457 Deposit for properties by customers 50,317 50, ,287 1,120, , , ,760 1,120, , ,696 3,473 (40) 29

31 FOR THE PERIOD ENDED Deposit liabilities ACTUAL Current 100, , Time 199, Savings 130, , , , , , Book overdraft Book overdraft The Group has a cash management system under which overdrawn book balances exist at the reporting date due to un-posted lodgements and un-cleared cheques. 38 Borrowings ACTUAL GTBank margin facility , , , ,870 Loan from Daewoo Securities Limited ,446,250 6,108,300 6,446,250 6,108,300 6,847,120 6,509,170 6,847,120 6,509,170 6,847,120 6,509,170 6,847,120 6,509, The movement in borrowings during the year is as follows: Balance, beginning of the year 6,509,170 3,619,988 6,509,170 3,562,515 Impact of foreign exchange rate changes 337,950 2,946, ,950 2,946,655 Disposal of subsidiaries - (57,473) - - Accrued interest Payments during the year Balance at the end of the year 6,847,120 6,509,170 6,847,120 6,509,170 6,847,120 6,509,170 6,847,120 6,509, Loan from Daewoo Securities Limited ACTUAL Balance at 1 January 6,108,300 3,672,225 6,108,300 3,672,225 Interest Repayment Impact of foreign exchange rate changes 337,950 2,436, ,950 2,436,075 6,446,250 6,108,300 6,446,250 6,108, Current income tax liabilities ACTUAL At the beginning of the year: 687, , , ,932 Current year charge: Company income tax 197, , , ,263 Education tax - 15,921-15,343 Information technology tax - 1, Minimum tax - 83, Under provision during the year , , , ,607 Payments during the year 13,750 (100,482) (15,078) (28,534) Balance at the end of the year 898, , , ,005 30

32 FOR THE PERIOD ENDED Deferred income tax 898, , , ,005 Deferred income tax asset Deferred tax liabilities ,063,082 1,063, , ,821 1,063,082 1,063, , , Deferred income tax - Continued ACTUAL 41.2 Movement in Deferred income tax liabilities Balance, beginning of year 1,063,082 1,136, , ,943 (Credit)/charge in income statement for the year - (72,995) - (15,122) Disposal of subsidiaries Tax charge /(reversals) relating to components of other comprehensive income Balance at the end of the year 1,063,082 1,063, , ,821 1,063,082 1,063, , , Share capital Share capital comprises: 42.1 Authorized: 20,000,000,000 (2016: 10,000,000,000) Ordinary shares of 50k each 10,000,000 5,000,000 10,000,000 5,000, Issued and fully paid: 8,000,000, 000 (2016:8,000,000,000) Ordinary shares of 50k each 4,000,000 4,000,000 4,000,000 4,000,000 The Company increased it authorised share capital from N5,000,000,000 to N10,000,000,000 by the creation of 10,000,000,000 ordinary shares of 50 kobo each and this was registered with the Commission on the 15th of March Treasury shares ACTUAL Company's shares held Treasury share: this represents the market value of shares of the Company held by the Company through its investement in quoted securities of the Nigerian Stock Exchange. 43 Foreign currency translation reserve This comprises exchange differences resulting from the translation to Naira of the results and financial position of Group companies that have a functional currency other than Naira. Mutual benefits liberia limited and Mutual benefits Niger Republic limited have functional currencies other than Naira. 31

33 FOR THE PERIOD ENDED Contingency reserve In compliance with Section 21 (1) of Insurance Act 2003, the contingency reserve for non-life insurance business is credited with the greater of 3% of total premiums, or 20% of the profits. This shall accumulate until it reaches the amount of greater of minimum paid-up capital or 50 percent of net premium. While for life business, the contingency reserves is credited with an amount equal to 1% of gross premium or 10% of net profit (whichever is greater) and accumulated until it reached the amount of minimum paid up capital. ACTUAL Balance, beginning of the year 2,801,764 2,292,040 2,398,485 1,981,910 Transfer from retained earnings 95, ,724 76, ,575 Balance, end of year 2,896,926 2,801,764 2,475,024 2,398,485 Analysis per business segment Non-life business 2,475,024 2,398,485 2,475,024 2,398,485 Life business 421, , ,896,926 2,801,764 2,475,024 2,398,485 Non-life business Balance, beginning of the year 2,398,485 1,981,910 2,398,485 1,981,910 Transfer from retained earnings 76, ,575 76, ,575 Balance, end of year 2,475,024 2,398,485 2,475,024 2,398,485 Life business Balance, beginning of the year 403, , Transfer from retained earnings 18,623 93, Balance, end of year 421, , Revaluation reserves This is revaluation surplus in respect of building in line with the Company's accounting policies. ACTUAL 1 Revaluation surplus on property, plant and equipment - Land and building 1,288,563 1,288,563 1,288,563 1,288,563 Addition during the year ,472,305 1,467,404 1,339,395 1,339, Retained earnings The retained earnings represents the amount available for dividend distribution to the equity shareholders of the Company. See statement of changes in equity for movement in retained earnings. 47 Non-controlling interests in equity Opening balance 189, ,607 Additions during the year - 14,867 Changes in equity - 8,310 Transfer from the profit or loss account 6,098 (13,973) Transfer from OCI (41,266) 56,535 Balance as at year end 154, , , ,346 32