UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2018

Transcription

1 UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2018

2 Unaudited Consolidated Financial Statements For the period ended 30 September, 2018 Contents Page Statement of Comprehensive incomegroup 1 Statement of Comprehensive incomecompany 2 Statement of Financial Position 3 Statement of Changes in EquityGroup 4 Statement of Changes in EquityCompany 5 Statement of Cash Flows 6 Notes to the Financial Statements 7 18

3 Consolidated Statement of Profit or Loss and other Comprehensive Income For the period ended 30 September, 2018 JANSEPT. JANSEPT. JULYSEPT. JULYSEPT. Note Gross written Premium 27,008,578 21,858,690 7,756,675 6,668,598 Insurance premium revenue ,005,866 21,432,672 7,970,651 8,735,602 Insurance premium ceded to retrocessionaires 1.2 (4,040,677) (3,005,200) (1,301,782) (1,152,648) Net insurance premium revenue 21,965,190 18,427,472 6,668,868 7,582,954 Insurance benefits Insurance claims and loss adjustment expenses ,222,132 10,476,524 5,504,422 5,370,394 Insurance claims and loss adjustment expenses recoverable from retrocessionaire 2.1 (930,777) (2,476,961) (699,666) (889,137) Net insurance benefits and claims 11,291,355 7,999,563 4,804,756 4,481,258 Underwriting expenses 2.2 8,902,033 8,732,039 2,251,926 3,482,225 Insurance benefits and underwriting expenses 20,193,388 16,731,602 7,056,682 7,963,483 Underwriting profit 1,771,802 1,695,870 (387,814) (380,529) Net Interest income 3 1,594,859 1,446, , ,549 Net gains on financial assets designated at fair value through profit or loss 4 (17,124) 111,677 (990) Other income 5 165, ,811 42,848 91,163 Foreign exchange gain/(loss) , ,820 (477,694) 35,841 Income from investment in subsidiary 5.2 Administration expenses 6.1 (521,662) (681,589) (105,703) (149,310) Impairment of financial assets 6.2 (755,874) (363,233) (714,252) (341,687) Profit before taxation 2,900,347 2,855,509 (1,168,020) (252,964) Income tax expense 8 (783,180) (741,409) 197,343 39,366 Profit after taxation 2,117,167 2,114,100 (970,677) (213,599) Profit for the year 2,117,167 2,114,100 (970,677) (213,599) Other comprehensive income: Other comprehensive income/(loss) to be reclasified to P & L in subsequent periods: Remeasurement gains on available for sale financial assets 7 (16,859) (231,683) (18,782) (243,894) Reclassification adjustments to gain on available for sale financial assets included in profit and loss 7 Exchange difference on translation of foreign operations Other comprehensive income/(loss) not to be reclasified to P & L in subsequent periods: Actuarial (loss)/gains on defined benefit plans 26 (5,170) Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax (16,859) (231,683) (18,782) (249,064) Total Comprehensive Income for the year 2,100,307 1,882,417 (989,459) (462,662) Profit attributable to: Equity holders of the parent 2,038,167 2,058,189 (970,677) (213,599) Noncontrolling interest 79,000 55,911 2,117,167 2,114,100 (970,677) (213,599) Total comprehensive income attributable to: Equity holders of the parent 2,021,308 1,826,506 (989,459) (462,662) Noncontrolling interest 79,000 55,911 2,100,307 1,882,417 (989,459) (462,662) Earnings per share Basic (kobo) Key ratios; Claims incurred ratio 51% 43% 72% 59% Acquisition Expense Ratio 27% 33% 17% 28% Mgt. & admin. Expense ratio 15% 18% 18% 20% Combined Ratio 94% 94% 107% 107% 1

4 Statement of Profit or Loss and other Comprehensive Income For the period ended 30 September, 2018 JANSEPT. JANSEPT. JULYSEPT. JULYSEPT. Note Gross written Premium 16,236,647 15,623,818 4,539,763 4,537,903 Insurance premium revenue ,645,751 15,175,940 4,787,443 6,503,152 Insurance premium ceded to retrocessionaires 1.2 (1,716,743) (1,802,068) (631,765) (584,674) Net insurance premium revenue 13,929,007 13,373,872 4,155,678 5,918,479 Insurance benefits Insurance claims and loss adjustment expenses 2.1 8,251,594 7,518,571 3,778,616 4,208,812 Insurance claims and loss adjustment expenses recoverable from retrocessionaire 2.1 (807,905) (2,143,413) (647,744) (897,547) Net insurance benefits and claims 7,443,690 5,375,157 3,130,872 3,311,266 Underwriting expenses 2.2 5,443,945 6,120,183 1,238,940 2,047,677 Insurance benefits and underwriting expenses 12,887,634 11,495,340 4,369,812 5,358,943 Underwriting profit 1,041,373 1,878,532 (214,134) 559,536 Net Interest income 3 1,082,272 1,112, , ,388 Net gains on financial assets designated at fair value through profit or loss 4 (17,124) 110,411 Other income 5 335, , ,613 (421,907) Foreign exchange gain/(loss) , ,221 (525,627) 87,757 Income from investment in subsidiary 5.2 Administration expenses 6.1 (385,039) (444,888) (136,763) (132,931) Impairment of financial assets 6.2 (219,367) (306,969) (219,367) (306,969) Profit before taxation 2,409,598 3,187,693 (576,775) 161,873 Income tax expense 8 (602,400) (796,923) 144,194 (40,468) Profit after taxation 1,807,199 2,390,770 (432,581) 121,405 Profit for the year 1,807,199 2,390,770 (432,581) 121,405 Other comprehensive income: Other comprehensive income/(loss) to be reclasified to P & L in subsequent periods: Remeasurement gains on available for sale financial assets 7 (16,658) (243,894) (18,781) (70,591) Reclassification adjustments to gain on available for sale financial assets includedin profit and loss 7 Exchange difference on translation of foreign operations Other comprehensive income/(loss) not to be reclasified to P & L in subsequent periods: Actuarial (loss)/gains on defined benefit plans 26 Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax (16,658) (243,894) (18,781) (70,591) Total Comprehensive Income for the year 1,790,541 2,146,876 (451,362) 50,814 Profit attributable to: Equity holders of the parent 1,807,199 2,390,770 (432,581) 121,405 Noncontrolling interest 1,807,199 2,390,770 (432,581) 121,405 Total comprehensive income attributable to: Equity holders of the parent 1,790,541 2,146,876 (451,362) 50,814 Noncontrolling interest 1,790,541 2,146,876 (451,362) 50,814 Earnings per share Basic (kobo) Key ratios; Claims incurred ratio 53% 40% 75% 56% Acquisition Expense Ratio 26% 33% 13% 25% Mgt. & admin. Expense ratio 16% 16% 20% 12% Combined Ratio 95% 89% 108% 93% 2

5 Consolidated Statement of Financial Position As at 30 September, 2018 Note 30 Sept. 31 December 30 Sept. 31 December Assets Cash and cash equivalents 11 11,241,715 9,079,093 4,687,991 6,680,113 Financial assets Financial asset designated as fair value through P&L 12 2,356,083 2,159,476 Loans and other receivables , , , ,081 Availableforsale investments ,059,769 2,121,225 2,030,496 2,090,531 Held to maturity investments ,517,274 7,613,318 5,509,599 6,065,330 Reinsurance receivables 15 11,563,139 9,922,254 6,998,692 6,184,435 Retrocession assets 16 4,644,330 2,759,666 2,850,277 1,877,676 Deferred acquisition costs 17 3,332,314 2,291,853 2,208,452 1,501,752 Investment in Subsidiary ,216,931 2,272,473 Other assets , ,430 1,199, ,128 Investment properties 19 2,492,111 2,857,111 2,492,111 2,857,111 Intangible assets ,415 20, ,414 19,849 Property, plant and equipment 21 3,083,691 2,488,615 2,172,806 2,379,583 Statutory deposits 22 1,000,000 1,000,000 1,000,000 1,000,000 Total assets 51,079,522 43,134,489 37,133,151 34,124,061 Liabilities Insurance contract liabilities 23 20,887,196 17,965,990 12,928,391 12,470,590 Reinsurance creditors 24 2,729,607 1,356,210 2,035, ,364 Other liabilities 25 1,087, ,223 2,442,330 1,249,989 Retirement benefit obligations , , , ,150 Current income tax 8 1,719,291 1,550,357 1,491,046 1,565,199 Deferred taxation 9 318, , , ,853 Total liabilities 27,018,614 22,357,449 19,391,878 16,721,145 Equity Share capital 27 5,186,372 5,186,372 5,186,372 5,186,372 Share premium 28 3,915,451 3,915,451 3,915,451 3,915,451 Contingency reserve 29 4,894,865 4,462,002 4,845,896 4,413,032 Retained earnings 30 3,928,374 3,775,255 3,473,728 3,551,577 Availableforsale reserve , , , ,484 Foreign currency translation reserve 1,193,668 1,764,220 Equity attributed to holder of parent 19,432,533 19,433,277 17,741,273 17,402,916 Noncontrolling interest 4,628,374 1,343,765 Total equity 24,060,907 20,777,041 17,741,273 17,402,916 Total Liabilities & equities 51,079,522 43,134,489 37,133,151 34,124,061 Chief Ajibola Ogunshola Dr. Olufemi Oyetunji Nkem Odibeli Chairman Group Managing Director Chief Financial Officer FRC:2017/IODN/ FRC/2013/NSA/ The Financial Reporting Council (FRC) of Nigeria has granted a waiver which allows the Chief Financial Officer to sign the unaudited Financial Statements for the period ended September 30th, 2018 without indicating any FRC number. The Unaudited Financial Statements were approved by the Board on October 26,

6 Consolidated Statement of Changes in Equity For the period ended 30 September, 2018 Attributable to equity holdersgroup Foreign Exchange Noncontrolling Share Retained Contingency Available for Translation Notes Share capital premium earnings reserve sale reserve Reserve interest Total equity =N='000 =N='000 =N='000 Balance at 1 January ,186,372 3,915,451 3,775,255 4,462, ,978 1,764,220 1,343,765 20,777,042 Acquisition during the year 3,205,680 3,205,680 Profit or loss for the period 2,038,167 79,000 2,117,167 Transfer of contingency reserve (432,863) 432,863 Other comprehensive income Fair value of equity financial assets 7 (16,176) (71) (16,246) Foreign exchange translation reserve (570,552) (570,552) Total comprehensive income or loss 1,605, ,863 (16,176) (570,552) 78,929 1,530,368 Transaction with owners Dividend 25.1 (1,452,184) (1,452,184) Total Transactions with owners (1,452,184) (1,452,184) At 30 September, ,186,372 3,915,451 3,928,374 4,894, ,802 1,193,668 4,628,374 24,060,906 Balance at 1 January ,186,372 3,915,451 2,874,421 4,003, ,265 2,088,662 1,326,780 19,728,422 Change in shareholding Profit or loss for the year 2,232, ,929 2,497,543 Transfer of contingency reserve (428,270) 428,270 Other comprehensive income Fair value of equity financial assets (235,957) 4,274 (231,683) Foreign exchange translation reserve 153, ,515 Total comprehensive income or loss 5,186,372 3,915,451 4,678,765 4,431,741 97,308 2,242,177 1,595,983 22,147,798 Transaction with owners Dividend (1,452,184) (1,452,184) Total Transactions with owners (1,452,184) (1,452,184) At 30 September, ,186,372 3,915,451 3,226,581 4,431,741 97,308 2,242,177 1,595,983 20,695,614 4

7 Statement of Changes in Equity For the period ended 30 September, 2018 Attributable to equity holderscompany Share Retained Contingency Available for Notes Share capital premium earnings reserve sale reserve Total equity =N='000 =N='000 Balance at 1 January ,186,372 3,915,451 3,551,577 4,413, ,484 17,402,916 Profit or loss for the period 1,807,199 1,807,199 Transfer of contingency reserve (432,863) 432,863 Other comprehensive income Fair value of equity financial assets 7 16,657 (16,657) Foreign exchange translation reserve Total comprehensive income or loss 1,374, ,863 (16,657) 1,790,542 Transaction with owners Dividend 25.1 (1,452,184) (1,452,184) Total Transactions with owners (1,452,184) (1,452,184) At 30 September, ,186,372 3,915,451 3,473,728 4,845, ,827 17,741,273 Balance at 1 January ,186,372 3,915,451 2,408,676 3,754, ,912 15,606,099 Profit or loss for the year 2,390,770 2,390,770 Transfer of contingency reserve (428,270) 428,270 Other comprehensive income Fair value of equity financial assets (243,894) (243,894) Foreign exchange translation reserve Total comprehensive income or loss 5,186,372 3,915,451 4,371,175 4,182,958 97,018 17,752,975 Transaction with owners Dividend (1,452,184) (1,452,184) Total Transactions with owners (1,452,184) (1,452,184) At 30 September, ,186,372 3,915,451 2,918,991 4,182,958 97,018 16,300,791 5

8 Statement of Cash flows For the period ended 30 September, September 30 September 30 September 30 September N' 000 N' 000 N' 000 N' 000 Cash flows from operating activities Premium received from policy holders 28,498,658 19,468,740 17,980,033 15,517,036 Retrocession receipts in respect of claims 781,537 2,194, ,557 2,179,489 Acquisition costs paid (6,047,683) (5,462,765) (4,281,248) (4,368,284) Retrocession premium paid (3,517,801) (1,640,893) (2,167,539) (1,439,380) Employees benefit and other admin expenses paid (3,402,472) (2,547,776) (2,254,435) (2,123,147) Other operating cash receipts/payments (1,891,956) 455,815 (619,262) 386,284 Claims paid (11,503,616) (10,122,657) (7,847,215) (7,836,839) Income taxes paid (614,247) (836,498) (676,552) (702,939) Net cash flows (outflow)/inflow from operating activities 2,302,420 1,508, ,339 1,612,221 Cash flows from investing activities Purchase of property, plant and equipment (376,896) (59,137) (290,737) (14,795) Purchase of intangible assets (259,169) (18,333) (259,169) (18,333) Investment in subsidiary (1,609,584) (622,902) Proceeds from disposal of property, plant and equipment 10,688 5,612 10,688 5,612 Purchase of investment securities (1,896,424) (2,424,107) (1,649,065) (532,283) Proceeds on redemption /sales of investments 3,545,509 1,166,614 3,083,051 1,166,614 Purchase of investment property Proceeds from sale of investment property 375,000 (0) 375,000 (0) Rent Received 91,872 70,775 91,872 70,775 Interest received 1,387,528 1,236,926 1,104,117 1,134,794 Dividend received 20,402 36,719 20,270 35,755 Net cash generated/(used) in investing activities 2,898,508 15, ,443 1,225,238 Cash flows from financing activities Dividend expense (1,451,515) (2,612,808) (1,451,515) (2,612,808) Net cash used in financing activities (1,451,515) (2,612,808) (1,451,515) (2,612,808) Net increase in cash and cash equivalents 3,749,412 (1,088,814) (317,734) 224,651 Cash and cash equivalents at start of year 7,363,001 7,962,050 4,964,023 4,014,648 Effect of exchange rate changes on cash and cash equivalents 87,600 (67,523) 0 0 Cash and cash equivalents at end of period 11,200,013 6,805,713 4,646,289 4,239,299 Group Company Cash and cash Equivalent Balances held with other banks: N' 000 N' 000 N' 000 N' 000 Cash in hand 430 4, ,869 Current account and cash in hand 374, , , ,207 Domiciliary account 362, , , ,926 Balances held with foreign banks: 699,665 1,206, ,665 1,206,042 Placements with banks and other financial institutions 9,121,625 4,239,152 2,722,414 1,807,649 Treasury bill 641,733 40, ,733 40,606 Cash and Cash Equivalent at end 11,200,013 6,805,713 4,646,289 4,239,299 6

9 Notes to the Consolidated Financial Statements JANSEPT. JANSEPT. JANSEPT. JANSEPT. JULYSEPT. JULYSEPT. JULYSEPT. JULYSEPT. 1 Revenue 1.1 Insurance premium revenue Premium revenue arising from insurance contracts issued Life insurance contracts Gross Premium 3,229,578 2,525,899 2,711,796 2,022,245 1,045, , , ,707 Change in life insurance contract liabilities (228,145) 27,921 (228,145) 27,921 (8,078) 53,050 (10,506) 53,050 Change in ceded unepired risk reserve 56,468 56,468 56,468 56,468 Non life insurance contracts Gross Premium 23,779,000 19,332,791 13,524,851 13,601,572 6,710,995 5,962,584 3,718,109 3,989,196 Change in unearned premium provision (831,034) 453,939 (419,219) (475,798) 165,586 2,013, ,719 1,912,199 Total Premium revenue arising from insurance contracts issued 26,005,866 21,432,672 15,645,751 15,175,940 7,970,651 8,735,602 4,787,443 6,503, Insurance premium ceded to retrocessionaire Premium revenue ceded to retrocessionaire on insurance contracts issued Life insurance contracts 3,568, , , ,337 1,149, , ,248 82,306 Non life insurance contracts 471,928 2,626,315 1,309,974 1,498, ,168 1,046, , ,368 Total Premium revenue ceded to retrocessionaire on insurance contracts 4,040,677 3,005,200 1,716,743 1,802,068 1,301,782 1,152, , ,674 Net insurance premium revenue 21,965,190 18,427,472 13,929,007 13,373,872 6,668,868 7,582,954 4,155,678 5,918,479 2 Insurance benefits and underwriting expenses 2.1 Insurance claims and loss adjustment expenses Life insurance contracts 1,919, ,260 1,639, , ,356 48, ,737 (130,622) Non life insurance contracts 10,240,838 9,773,264 6,559,835 6,964,044 4,688,796 5,418,989 3,091,879 4,339,435 ceded oustanding claim reserve Non Life 51,862 51,862 ceded oustanding claim reserve Life 10,006 2,271 Total cost of policyholder benefits 12,222,132 10,476,524 8,251,594 7,518,571 5,504,422 5,370,394 3,778,616 4,208,812 Insurance claims and loss adjustment expenses recoverable from retrocessionaire (930,777) (2,476,961) (807,905) (2,143,413) (699,666) (889,137) (647,744) (897,547) Net insurance benefits and claims 11,291,355 7,999,563 7,443,690 5,375,157 4,804,756 4,481,258 3,130,872 3,311, Underwriting expenses Costs incurred for the acquisition of insurance contracts 5,219,298 5,260,946 3,120,190 3,843, ,507 1,835, ,780 1,284,082 Costs incurred for the maintenance of insurance contracts 801, , , , , ,607 86, ,622 Management expenses (See Note 6.1) 2,880,811 2,723,955 1,869,396 1,751,900 1,121,835 1,395, , ,974 Total underwriting expenses 8,902,033 8,732,039 5,443,945 6,120,183 2,251,926 3,482,225 1,238,940 2,047,677 Total insurance benefits and underwriting expenses 20,193,388 16,731,602 12,887,634 11,495,340 7,056,682 7,963,483 4,369,812 5,358,943 3 Net Interest income Cash and bank balances interest income 571, , , , , ,379 67,010 93,381 Statutory deposits interest income 117, , , ,694 43,639 65,101 43,639 65,101 Heldtomaturity and loans and receivables interest income 905, , , , , , , ,906 Net Interest income 1,594,859 1,446,154 1,082,272 1,112, , , , ,388 7

10 Notes to the Consolidated Financial Statements Continued JANSEPT. JANSEPT. JANSEPT. JANSEPT. JULYSEPT. JULYSEPT. JULYSEPT. JULYSEPT. 4 Net fair value gains on assets at fair value through profit o Net fair value gains/ (losses) on financial assets designated at fair value through profit (17,124) 111,677 (17,124) 110, Fair value gains on investment property 0 0 Total (17,124) 111,677 (17,124) 110,411 (990) 5 Other income Availableforsale Dividends 20,402 36,719 20,270 35,755 3,968 14,544 3,968 14,331 Gain on disposal of availableforsale securities: 0 Equity 27,779 27,779 0 Bond 113, , Income on investment property 88,706 81,835 88,706 81,835 47,518 46,110 47,518 46,110 Gain/(Loss) on disposal of investment properties 10, ,000 5, ,000 (Loss)/gain on disposal of property, plant and equipment 4,044 2,009 2,982 (2,009) 2,171 3,145 2,199 3,145 Other income 42,068 86, , ,606 (15,809) 27, ,928 (485,633) 165, , , ,436 42,848 91, ,613 (421,907) 5.1 Foreign exchange gain/(loss) 5.1a Foreign exchange gain/(loss) 663, , , ,221 (477,694) 35,841 (525,627) 87, , , , ,221 (477,694) 35,841 (525,627) 87,757 Breakdown of foreign exchange gain/(loss) Investment assets 65,040 45,113 65,040 45,113 (65,474) (38,691) (65,474) (38,691) Bank balances 326,944 (211,730) 326,944 (62,328) 12,207 (295,199) 12,207 (243,284) Reinsurance receivables 271, , , ,437 (424,427) 369,731 (472,360) 369, , , , ,221 (477,694) 35,841 (525,627) 87, Income from investment in Subsidiary Dividend received 6 Operating expenses 6.1 Management and administration expenses Management expenses (note 2.2) 2,880,811 2,723,955 1,869,396 1,751,900 1,121,835 1,395, , ,974 Administration expenses 521, , , , , , , ,931 3,402,472 3,405,544 2,254,435 2,196,788 1,227,538 1,544, , ,904 Management and administration expenses comprises the following: Depreciation and amortisation 111,740 92,671 63,677 60,247 22,865 34,571 19,465 22,519 Auditor's remuneration 40,263 15,389 26,250 1,793 35,034 4,569 26,250 Employee benefits expenses (a) 1,595,486 1,457,064 1,051,279 1,113, , , , ,624 Other operating expenses (b) 1,654,984 1,840,419 1,113,229 1,021, ,279 1,022, , ,761 Total management and administrative expenses 3,402,472 3,405,544 2,254,435 2,196,788 1,227,538 1,544, , ,904 (a) Employee benefit expense Wages and salaries (local) 716, , , , , , , ,059 Wages and salaries (other regions) 776, , , , , ,556 91, ,583 Pension 0 0 Defined Benefit Staff Gratuity Plan 30,540 30,540 0 Defined Contributory Plan 102,829 52, ,829 52,092 46,198 13,981 46,198 13,981 1,595,486 1,457,064 1,051,279 1,113, , , , ,624 (b) Other operating expense; Advert, publicity and client's devt. 62,178 68,143 45,503 34,852 19,839 39,054 16,533 12,663 Nonexecutive directors Expenses 124, ,763 81,972 96,131 35,740 41,510 29,783 34,928 Business travels 135, ,719 81,086 73,148 31,080 30,073 29,461 26,577 Supervisory levy 113,892 93, ,892 93,045 41,381 33,806 41,381 33,806 Consultancy and other professional fees 230, , , ,266 80, ,426 67,383 86,933 Training and seminars 169, , , ,449 45,069 28,902 37,557 38,313 Rent and rates 87,954 82,167 46,053 46,814 26,772 43,241 16,732 17,009 AGM 10,039 27,317 10,039 27,317 3,647 19,925 3,647 9,925 Bank charges 43,446 37,606 32,670 27,267 16,618 11,075 11,870 9,907 Stationeries, Printing & telephone 53,801 57,658 36,877 37,523 18,099 16,283 13,399 13,633 Electricity, fuel and diesel 39,205 33,592 29,230 28,623 13,806 12,526 10,620 10,400 ICT expenseshardware & software maintenance 118,714 78,235 51,376 36,803 24,266 17,383 18,667 13,372 Others 465, , , , , ,420 53,360 30,295 1,654,984 1,840,419 1,113,229 1,021, ,279 1,022, , ,761 8

11 Notes to the Consolidated Financial Statements Continued JANSEPT. JANSEPT. JANSEPT. JANSEPT. JULYSEPT. JULYSEPT. JULYSEPT. JULYSEPT. 6 Other operating expenses (cont'd) 6.2 Impairment of financial assets Reinsurance receivables 755, , , , , , , ,969 Retrocessionaire's share of receivables 755, , , , , , , ,969 7 Net unrealised gain /(loss) on financial assets Unrealised gain/(loss) on financial asset Availableforsale Equity instruments (16,859) 231,683 (16,658) (243,894) (18,782) 63,120 (18,781) (70,591) Debt Instruments 0 0 Total (16,859) (231,683) (16,658) (243,894) (18,782) (63,120) (18,781) (70,591) Reclassification adjusmentsto gans included in profit an loss 0 0 Income tax relating to component of other comprehensive inco Other comprehensive income for the year, net of tax (16,859) (231,683) (16,658) (243,894) (18,782) (63,120) (18,781) (70,591) 8 Taxation JANSEPT. JANSEPT. JANSEPT. JANSEPT. JULYSEPT. JULYSEPT. JULYSEPT. JULYSEPT. Per statement of comprehensive income: Income tax based on profit for the year 783, , , ,923 (197,343) (39,366) (144,194) 40,468 Education tax Back duty charge prior year 783, , , ,923 (197,343) (39,366) (144,194) 40,468 Deferred taxation (Note 9) 783, , , ,923 (197,343) (39,366) (144,194) 40,468 Per statement of financial position: At 1 January 1,550, ,602 1,565, ,518 Based on profit for the year 783,180 1,566, ,400 1,636,621 Payments during the year (614,247) (708,630) (676,553) (702,940) 1,719,291 1,550,357 1,491,046 1,565,199 9

12 Notes to the Consolidated Financial Statements 9 Deferred taxation 30Sep 31Dec 30Sep 31Dec Deferred income tax (assets)/liabilities are attributable to the following items: Deferred tax liabilities Balance b/f 318, , , ,907 Recognised in profit and loss Property plants and equipment 2 (49,742) 2 (49,742) Unrealised FX gain (425,852) (418,311) Employee benefits Total recognised in profit and loss 2 (475,594) 2 (468,053) Recognised in other comprehensive income Employee benefit Available for sale financial assets Net 318, , , , Earnings per share Basic earnings per share amounts is calculated by dividing the net profit for the year attributable to ordinary share holders by the weighted average number of ordinary shares outstanding at the reporting date. The following reflects the income and share data used in the basic earnings per share computations: 30Sep 31Dec 30Sep 31Dec Net profit attributable to ordinary shareholders 2,117,167 3,118,635 1,807,199 2,514,962 Weighted average number of ordinary shares in issue as at year end ('000) 10,372,744 10,372,744 10,372,744 10,372,744 Basis earnings per ordinary share (kobo) There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements. 11 Cash and cash equivalents 30Sep 31Dec 30Sep 31Dec =N='000 =N='000 =N='000 Cash in hand Balances held with local banks: Current account 374, , , ,736 Domiciliary account 362, , , ,170 Balances held with foreign banks 699, , , ,326 Placements with banks and other financial institutions 9,805,060 8,068,663 3,405,849 5,736,042 11,241,715 9,079,093 4,687,991 6,680,113 Included in placements with banks and other financial institutions are tenored deposits of the group (N643m) with original maturity of more than three months. The carrying amounts disclosed above reasonably approximate fair value at the reporting date. The cash and cash equivalents position for cash flow purposes is disclosed in the statement of cash flow. 10

13 Notes to the Consolidated Financial Statements Continued 12 Financial assets designated at fair 30Sep 31Dec 30Sep 31Dec value through profit or loss =N='000 =N='000 =N='000 Managed Funds External Portfolio Management 2,356,083 2,159,476 2,356,083 2,159, Loans and other receivables 30Sep 31Dec 30Sep 31Dec =N='000 =N='000 =N='000 Staff Loans and advances 682, , , ,387 Other advances 374, , , ,635 Impairment on other advances (406,941) (406,941) (406,941) (406,941) Total Loans and other receivables 650, , , , Investment Securities 30Sep 31Dec 30Sep 31Dec Analysis of investment securities =N='000 =N='000 =N='000 Equity 1,697,487 1,944,109 1,697,487 1,925,253 Debt 7,879,556 7,790,434 5,842,608 6,230,608 9,577,043 9,734,543 7,540,095 8,155,861 Analysis by class 14.1 Availableforsale: Equity instruments 2,030,496 1,744,048 2,030,496 1,742,269 Debt instruments 29, , ,262 Total availableforsale 2,059,769 2,121,225 2,030,496 2,090, Heldtomaturity Debt instruments 7,517,274 7,613,318 5,509,599 6,065,330 Total Investment securities 9,577,043 9,734,543 7,540,095 8,155,861 Equity Instruments Securities at Availableforsale Fair value Quoted 928, ,205 Unquoted 769,282 1,944, ,282 1,925,253 Total equity instruments 1,697,487 1,944,109 1,697,487 1,925,253 These equities instruments are measured at fair value and classified as availableforsale Debt Instruments 30Sep 31Dec 30Sep 31Dec Securities at Availableforsale Fair =N='000 =N='000 =N='000 Bonds 29, , ,262 29, , ,262 Securities at heldtomaturity amortised Listed 3,983,321 4,757,744 3,913,217 3,919,774 Unlisted 3,533,953 2,855,574 1,596,381 2,145,556 7,517,274 7,613,318 5,509,599 6,065,330 Total debt instruments 7,546,547 7,990,495 5,509,599 6,413,592 None of these investment securities have been pledged to third party as collateral. 11

14 Notes to the Consolidated Financial Statements Continued 15 Reinsurance receivables 30Sep 31Dec 30Sep 31Dec =N='000 =N='000 =N='000 Due from ceding companies 8,391,088 7,218,432 4,694,234 4,691,388 Due from ceding companies (Pipeline) Premium reserves retained by ceding 3,627,331 3,645,142 2,554,071 2,554,071 companies 1,582, ,397 1,030,778 13,601,248 11,203,970 8,279,083 7,245,459 Impairment on reinsurance receivables(note 15 (2,038,109) (1,281,716) (1,280,392) (1,061,024) 11,563,139 9,922,254 6,998,692 6,184, Reconcilliation of impairment on reinsurance receivables At 1 January 1,281,716 1,536,477 1,061,024 1,297,185 Write off during the year (810,979) (669,753) Charge for the year 756, , , ,591 Recovery during the year 2,038,109 1,281,716 1,280,392 1,061, a Breakdown of charge for the year impairment on gross receivables 756, , , ,591 reversal of exchange gain on impaired reinsurance receivables Net charge to income statement 756, , , , Retrocession Assets Retrocessionaires share of claims recoverable Retrocessionaires share of reserve for 2,986,266 1,853,942 1,699,606 1,015,259 outstanding claims 777, , , ,465 Retrocession share of unearned premium resereve 340, ,116 Retrocessionaires' share of life insurance contract liabilities 701, , , ,743 Impairment of retro assets (161,791) (161,791) (161,791) (161,791) Total retrocession assets 4,644,330 2,759,666 2,850,277 1,877, Reconcilliation of impairment on retro assets At 1 January 161, , , ,410 Write off during the year Charge for the year 0 47, ,381 Recovery during the year 161, , , , Deferred acquisition costs 30Sep 31Dec 30Sep 31Dec At 1 January 2,291,853 1,532,809 1,501, ,628 Net deferral during the year 1,040, , , ,124 3,332,314 2,291,853 2,208,452 1,501,752 12

15 Notes to the Consolidated Financial Statements Continued 18 Other Assets 30Sep 31Dec 30Sep 31Dec Prepayments (18a) 238,670 97,532 83,192 74,169 Intercompany balances (18b) 1,317, ,072 Deposit for shares (Note 18 a) 11,000 11,000 11,000 11,000 Proposed head office W.I.P Other (18c) 748, , , , , ,222 1,604,997 1,161,956 Impairment on others (129,793) (129,793) (405,828) (405,828) 868, ,430 1,199, ,128 18aPrepayments Office rent 20,932 29,832 15,052 23,253 Staff upfront 18,844 16,917 Other prepaid services 198,895 67,700 51,222 50, ,670 97,532 83,192 74,169 18bIntercompany balances Payable to related parties on retro 630, ,653 Payable to related parties on reinsurance contr 687, ,419 1,317, ,072 18cOthers Interest receivables 309, , , ,816 WHT recoverable 1,168 4,168 1,168 4,168 Sundry receivables 437, ,706 5, , , , ,715 30Sep 31Dec 30Sep 31Dec 18.1 Investment in Subsidiary Continental Reinsurance Limited, Nairobi Kenya 1,572,699 1,572,699 Continental Reinsurance Limited, Gaborone, Botswana 699, ,774 Continental Reinsurance Limited, Douala, Cameroon 2,944,458 5,216,931 2,272, Investment Properties 30Sep 31Dec 30Sep 31Dec Opening 2,857,111 2,868,728 2,857,111 2,868,728 Fair value adjustments (11,617) (11,617) Additions Disposal during the year (365,000) (365,000) Closing 2,492,111 2,857,111 2,492,111 2,857,111 Group Company 20 Intangible assets Computer Computer software software =N='000 =N='000 Cost: At 1 January ,697 85,378 Cost capitalised 259, ,169 At 30 September, , ,547 Accumulated amortisation and impairment: At 1 January ,529 65,530 Amortisation for the year 8,922 8,603 At 30 September, ,451 74,133 NBV At 30 September , ,414 NBV At 31 December ,168 19,849 13

16 Notes to the Consolidated Financial Statements Continued Group 21 Property, plant and equipment Freehold Motor Furniture Building Office Computer property vehicles and fittings W.I.P partitioning equipment Total =N='000 =N='000 =N='000 Cost/Valuation: At 1 January , , ,754 1,378,792 82, ,850 3,015,252 Additions 328, ,428 26, , , ,601 Disposals (39,437) (24,352) (596) (8,353) (72,738) Reclassification At 30 September, ,197, , ,800 1,593,939 81, ,420 3,648,115 Accumulated depreciation: At 1 January , ,668 73,065 90, ,637 Charge for the year 72,727 14,961 2,925 12, ,818 Disposal (39,437) (18,858) (60) (6,676) (65,032) Reclassification At 30 September, , ,771 75,930 95, ,423 NBV At 30 September ,197, ,858 70,030 1,593,939 5,747 32,521 3,083,691 NBV At 31 December , ,156 64,086 1,378,792 9,208 35,480 2,488,615 Company 21 Property, plant and equipment Freehold Motor Furniture Building Office Computer property vehicles and fittings W.I.P partitioning equipment Total =N='000 =N='000 =N='000 Cost/Valuation: At 1 January , , ,969 1,378,792 71,197 87,780 2,774,966 Additions (0) 68,591 2, , , ,737 Disposals (434,734) (39,437) (24,352) (596) (8,353) (507,472) Reclassification At 30 September, , ,489 92,928 1,593,939 70,601 84,115 2,558,231 Accumulated depreciation: At 1 January ,818 79,577 65,679 72, ,383 Charge for the year 37,260 8,401 2,038 7,375 55,074 Disposal (39,437) (18,858) (60) (6,676) (65,032) Reclassification At 30 September, ,641 69,120 67,657 73, ,425 NBV At 30 September , ,849 23,809 1,593,939 2,944 11,107 2,172,806 NBV At 31 December ,892 75,517 35,392 1,378,792 5,518 15,471 2,379,583 14

17 Notes to the Consolidated Financial Statements Continued 22 Statutory deposits 30Sep 31Dec 30Sep 31Dec 1,000,000 1,000,000 1,000,000 1,000,000 Statutory deposit represents the amount deposited with the Central Bank of Nigeria in accordance with section 9(1) and section 10(3) of Insurance Act This is restricted cash as management does not have access to the balances in its day to day activities. Statutory deposits are measured at cost. 23 Insurance contract liabilities 30Sep 31Dec 30Sep 31Dec Insuran Reserve for Unearned Premium (Note 23.1) 9,454,962 8,281,665 5,024,708 5,125,005 ReserveReserve for Outstanding Claims (Note 23.2) 8,846,555 7,254,013 5,755,068 5,179,229 18,301,517 15,535,678 10,779,776 10,304,234 Insuran Life (Note 23.3) 2,585,679 2,430,312 2,148,615 2,166,356 Total insurance liabilities 20,887,196 17,965,990 12,928,391 12,470,590 Total retrocessionaire's share of insurance liabilities (Note 16) (4,644,330) (2,759,666) (2,850,277) (1,877,676) Net insurance contracts 16,242,866 15,206,324 10,078,115 10,592, Reserve for Unearned Premium At 1 January 8,281,665 4,923,170 5,125,005 2,772,852 Increase in the year 24,052,937 25,963,551 13,524,851 17,295,784 Release of unearned premium during the year (22,759,538) (22,605,057) (13,105,632) (14,943,631) Portfolio transfer during the period (120,102) (519,515) 9,454,962 8,281,665 5,024,708 5,125, Reserve for Outstanding Claims At 1 January 7,254,013 6,883,940 5,179,229 5,775,330 Claims incurred including IBNR 10,350,585 12,197,651 6,559,835 7,953,283 Claims paid during the year (9,324,159) (11,827,579) (5,961,431) (8,549,384) Portfolio transfer during the period 566,116 (22,565) 8,846,555 7,254,013 5,755,068 5,179, Insurance liabilities on life policy holders At 1 January 2,430,312 1,938,205 2,166,356 1,588,966 (Decrease)/Increase in retrocessionaire's share 589, ,770 Changes in life policy contracts 155,367 (97,204) (17,741) 161,620 2,585,679 2,430,312 2,148,615 2,166,356 15

18 Notes to the Consolidated Financial Statements Continued 24 Reinsurance creditors 30Sep 31Dec 30Sep 31Dec Due to r Due to retrocessionaires 1,006, , , ,310 Due to cdue to ceding companies 1,722, ,289 1,671, ,054 2,729,607 1,356,210 2,035, ,364 This represents the amount payable to insurance and reinsurance companies 25 Other liabilities Sundry creditors Rent recrent received in advance 6,083 2,917 6,083 2,917 Receipt on behalf of 3rd party AccruedAccrued expenses 143, ,781 53, ,689 DividendDividend payable (Note 25.1) 23,910 23,241 23,910 23,241 Unclaimed dividend 330, , , ,241 IT devel Information technology development levy 1,712 45,988 1,712 45,987 Others Others 581, ,055 1,669, ,127 Intercompany Balance 356, ,787 1,087, ,223 2,442,330 1,249, Dividends paid and proposed At 1 January 23,241 1,241,451 23,241 1,241,451 Declared during the year 1,452,184 1,452,184 1,452,184 1,452,184 Paid during the year (1,451,515) (2,670,394) (1,451,515) (2,670,394) 23,910 23,241 23,910 23, Others; Staff bonus 191, ,099 Sundry creditors 210,563 87, , ,127 PAYE and other statutory liabilities 180,108 70,983 1,353, , ,055 1,669, , Intercompany balance; Receivables from related parties on retro 264, ,950 Receivables from related parties on reinsurance contrac 91,989 99, , , Retirement benefit obligations Define contribution scheme In accordance with the provisions of the Pensions Act 2004, AS AMENDED 2014 the Company and its staff commenced a contributory pension scheme in January The contribution by employees and the Company are 8% and 10%% respectively of the employees' basic salary, housing and transport allowances. The contribution made and transfered to the pension fund administrator during the period are as follows; 30Sep 31Dec 30Sep 31Dec Balance at start of period Provision during the period Transfer to PFA Defined benefit staff gratuity scheme The company operates a defined benefit staff gratuity plan where qualifying employees receive a lump sum payment based on the number of years served after an initial qualifying period of five years and gross salary on date of retirement. 30Sep 31Dec 30Sep 31Dec Statement of financial position obligation for: The amounts recognised in the balance sheet are determined as follows: Balance as at the beginning of the year 306, , , ,008 Net Expense/Income recognised in P & L 184, ,294 Remeasurement recognised in OCR 57,588 5,170 Defined contribution scheme Fair value of plan assets (30,231) (319,589) 1,076 (230,322) Deficit of funded plans 276, , , ,150 (Asset)/liability in the balance sheet 276, , , ,150 16

19 Notes to the Consolidated Financial Statements Continued 27 Share capital 30Sep 31Dec 30Sep 31Dec Authorised 25,000,000,000 Ordinary shares of 50k each 12,500,000 12,500,000 12,500,000 12,500,000 Issued and fully paid 10,372,744,000 Ordinary shares of 50k each 5,186,372 5,186,372 5,186,372 5,186, Share premium Premiums from the issue of shares are reported in share premium. 29 Contingency reserve 3,915,451 3,915,451 3,915,451 3,915,451 The statutory contingency reserve has been computed in accordance with Section 21 (1) of the Insurance Act, Cap I17 LFN The movements on the account are as follows: 30Sep 31Dec 30Sep 31Dec ContingNon Life 341, , , ,254 ContingLife 4,553,524 4,161,630 4,553,524 4,147,779 Total 4,894,866 4,462,002 4,845,896 4,413,032 Continental Reinsurance Plc Notes to the Consolidated Financial Statements Continued 30 Retained earnings: Retained earnings comprise the undistributed profits from previous years, which have not been reclassified to the other reserves noted below. 31 Availableforsale reserve: The fair value reserve shows the effects from the fair value measurement of financial instruments of the category availableforsale after deduction of deferred taxes. Any gains or losses are not recognised in the statement of comprehensive income until the asset has been sold or impaired. 32 Significant accounting policies The statement of accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statement. There have not been any change in the policies and methods of computation adopted. 17