Other comprehensive income /(loss)

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1 Law Union & Rock Insurance Plc Statement of Comprehensive Income for the Six month ended 30th June, 2015 Notes 30th June th June INCR/(DECR) Gross premium written 2 (a) 2,311,744 2,727,861-15% Gross premium income 2 (a) 1,910,440 1,729,535 10% Premiums ceded to reinsurers 2 (b) (573,751) (561,496) 2% Net premiums Income 1,336,689 1,168,039 14% Fees and commission income 3 110,692 95,059 16% Net Underwriting income 1,447,381 1,263,098 15% Net benefits and claims 8 (282,687) (415,202) -32% Underwriting expenses 11a (380,936) (369,694) 3% Underwriting profit 783, ,202 64% Investment income 4 186, ,943 13% Fair value gains and losses 5 - Net realised gains and losses 6 - Other operating revenue 7 39,100 18, % Management expenses 11b (498,742) (532,855) -6% Result of operating activities 510, , % Finance costs 9 - (1,353) -100% Profit before taxation 510, , % Income tax expense 12 (a) (76,557) (19,120) 300% Profit for the period 433, , % Other comprehensive income /(loss) Profit for the period 433, , % Net Gain/Loss on available-for-sale assets 15 6,712 9,074-26% Income tax relating to Other comprehensive income - - Other comprehensive income net of tax 6,712 9,074 Total comprehensive income for the period 440, , % Earnings per share Basic and Diluted %

2 Law Union & Rock Insurance Plc Statement of financial position as at 30th June th June th June INCR/(DECR) Notes Assets Cash and cash equivalents 16 3,516,649 2,557,458 38% Trade receivables , ,180 70% Investment securities 19 1,009,216 1,615,302-38% Reinsurance assets 18 1,390,402 1,103,864 26% Deferred acquisition cost , ,347-5% Other receivables and prepayments ,222 90,956 45% Investment properties 21 1,171,331 1,229,521-5% Intangible asset 26 29,231 51,425-43% Property,Plant and equipment , ,583 10% Statutory deposit , ,000 0% Total Assets 8,715,628 7,992,635 9% Liabilities and Equity Liabilities Trade payables , ,822 3% Other payables and accruals , ,941 12% Book overdraft 24,921 26,663-7% Employee defined contribution payab 31 99, ,262-25% Current income tax payable 20 (a) 85,800 75,603 13% Deferred tax liability 20 (b) 132, ,225 31% Insurance contract liabilities 32 2,910,460 2,564,498 13% Total liabilities 4,105,325 3,703,014 11% Equity Issued share capital 34 1,718,665 1,718,665 0% Share premium 35 1,363,034 1,363,034 0% Contingency reserve 1,105, ,335 15% Revaluation reserves 632, ,025 15% Available-for-sale reserve 92, ,994-70% Accumulated Losses (301,602) (607,432) -50% Total equity 4,610,302 4,289,621 7% Total equity and Liabilities 8,715,628 7,992,635 9%

3 Law Union & Rock Insurance Plc Statement of cash flows for the Six month ended 30th June 2015 Notes 30th June th June Operating activities: Premium received 2,094,723 2,344,999 Commission received - - Commission paid (128,279) (196,305) Reinsurance premium paid (251,008) (286,501) Gross claim paid net of recoveries (302,524) (194,737) Payments to employees (294,604) (259,531) Other operating cash payments (265,215) (163,570) Other income received 39,100 15,715 Interest paid - (847) Tax paid (46,721) - Net cashflow from operating activities ,471 1,259,224 Investing activities: Investment income received 109,335 96, Purchase of property and equipment (29,502) - 17, Proceed from sale of property and equipment 67,404 - Purcahse of intangible assets - 3, Purchase of investments (1,403,221) (1,220,763) Proceed from sale of investments 1,111, ,201 Addtions to investment properties Net cash flows from investing activities (144,543) (409,361) Financing activities: Dividend paid to equity holders - - Net cash flows from financing activities - - Net(decrease)/increase in cash and cash equivalents 700, ,863 Net foreign exchange difference - Cash and cash equivalents at 1 January 36 2,790,800 1,680,932 Cash and cash equivalents at 30th June ,491,728 2,530,

4 Law Union & Rock Insurance Plc Statement of changes in equity For the quarter ended 30th June, 2015 Retained Contingency Available-for-sale financial Revaluation Issued share capital earnings Share premium reserve assets Reserve Total equity As at January 1, ,718,665 (633,348) 1,363,034 1,003,339 85, ,351 4,182,419 Profit for the Period - 433, ,821 Transfer (102,076) 102,076 - Other comprehensive income - - 6,712 (12,650) (5,938) As At 30th June, ,718,665 (301,603) 1,363,034 1,105,415 92, ,701 4,610,302 As At 30th June, ,718,665 (607,432) 1,363, , , ,025 4,289,620 For Twelve months ended 31st December, Retained Contingency Available-for-sale financial Revaluation Share premium Total equity 2014 Issued share capital earnings reserve assets Reserve As at January 1, ,718,665 (633,943) 1,363, , , ,025 4,172,200 Profit for the Period - 125, ,435 Transfer (124,840) 124,840 - Other comprehensive income - - (209,542) 94,326 (115,216) As at 31st December, ,718,665 (633,348) 1,363,034 1,003,339 85, ,351 4,182,419

5 Law Union & Rock Insurance Plc Notes to the financial statements 2 Net premiums (a) Gross premiums on insurance contracts 30th June, th June, 2014 Premiums written in the year 2,311,744 2,727,861 Change in unearned premiums provision (401,304) (998,326) Total gross premiums 1,910,440 1,729,535 (b) Premiums ceded to reinsurers on insurance contracts 30th June, th June, 2014 Premiums ceded to reinsurers (722,898) (863,330) Change in unearned premiums provision - reinsurers 149, ,834 Total premiums ceded to reinsurers (573,751) (561,496) Total net premiums 1,336,689 1,168,039 3 Fees and commission income 30th June, th June, 2014 Reinsurance commission income 110,692 95,059 Total fees and commission income 110,692 95,059 4 Investment income 30th June, th June, 2014 Rental income from investment properties 11,016 13,046 Available-for-sale financial assets: - - Interest income 3,864 6,242 Dividend income 19,003 14,648 Interest income on statutory deposit 17,370 - Loans and receivables interest income 3,011 25,131 Cash and cash equivalents interest income 131, ,876 Total investment income 186, ,943

6 5 Fair value gains and losses 30th June, th June, Fair value gains on investment properties Net realised gains and losses 30th June, th June, 2014 Property and equipment: Realised gains - - Available-for-sale financial assets: - - Realised gains on equity securities - - Realised losses on equity securities - - Total net realised gains and losses - - Total net realised gains and losses - 7 Other operating revenue 30th June, th June, 2014 N000 Sundry income 33, , Exchange gains/loss 5, , , Net claims 30th June, th June, 2014 Gross claims paid 688, , , Claims ceded to reinsurers - 360, (149,231) - 148, Change in outstanding claims provision 162, (229,020) Change in outstanding claims provision ceded to reinsurers - 208, ,334 Net claims 282, ,202

7 9 Finance cost Interest expense on bank overdraft 30th June, th June, 2014 Current borrowing: Interest expense on bank overdraft - Bank Charges - 1,353 Total finance cost - 1, Other operating and administrative expenses Notes Amortisation of intangible assets 13,055 13,764 Impairment loss on insurance receivable - - Impairment loss on availaible for sale financial assets - - Impairment loss on loans and receivables - - Impairment loss on other receivables - - Depreciation on property and equipment 39,160 45,809 Directors Fees and Allowance 27,109 19,589 Investment property related expenses 1,555 4,149 Amortisation of deferred acquisition costs 257, ,469 Auditors remuneration 6,750 7,500 Employee benefits expense 304, ,174 Other expenses 230, ,095 Total other operating and administrative expenses 879,678 # 902, Employee benefits expense 30th June, th June, Wages ans salaries 291, ,469 Defined contribution pension costs 12,676 13,706 Total employee benefits expense 304,020 # 304,174 11a Underwriting Expenses Amortisation of deferred acquisition costs 257,907 # 245,469 Maintenance costs 71,346 72,516 other underwriting Expenses 51,683 51, , ,694 11b Management Expenses 498, ,855

8 12 Income tax expense Notes Current tax Company income tax 76, , Education tax Total current tax 76, , Deferred tax Origination of temporary differences - - Total deferred tax - - Total income tax expense 76, # 19, (b) Reconciliation of tax charge Notes Profit before tax 510, , Tax at Nigerian's statutory income tax rate of 30% - 76, # - 19, under provision - Disallowable expenses - - Investment allowance - - Tax effect of capital allowance - - Education 2% of assessable profit - - Tax rate differential on fair value gains - - Tax effect of IFRS adjustments to investment income Tax rate differential on tax calculated based on local GAAP profit - - Tax effect of IFRS adjustments to other operating and administrative e - - Total tax charge for the year - 76, , th June, th June, Dividends paid and proposed Declared and paid during the year Equity dividends on ordinary shares: - - -

9 Earnings per share Basic earnings per share amounts is calculated by dividing the net profit for the year attributable to ordinary shareholders 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: Net profit attributable to ordinary shareholders for basic earnings 433, , Weighted average number of ordinary shares for basic earnings per sh 3,437,331 3,437,331 Basic 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. 15 Components of other comprehensive income Available-for-sale financial assets: Gains/loss arising during the year 6, ,074 Reclassification adjustments for gains included in the income statemen - - 6, ,074 Income tax relating to components of other comprehensive income - - Other comprehensive income for the year, net of tax 6, , Cash and cash equivalents Cash at hand Cash and cash equivalents 3,516, ,557,275 Total cash and cash equivalents 3,516, ,557,458

10 Short term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company. All deposits are subject to an average variable interest rate of 6.5% (2011: 6.5%) (1 January, 2011:6.5%) The carrying amounts disclosed above reasonably approximate fair value at the reporting date. 17 Insurance receivables Due from Insurance brokers 141, ,344 Due from Insurance companies 35, ,836 Due from Agents - - Total insurance receivables 177, , Reinsurance Asset Reinsurance of insurance contract 1,390,402 1,103,864 Total reinsurance asset 1,390,402 1,103,864 30th June, th June, 2014 At 1 January 1,103, , Arising during the current accident year 568, , Adjustment to amounts receivables in the prior accident years due to c 78, , Claims recovered during the year - 360, , At the end of the period 1,390, ,103,863.85

11 19 Financial assets The Company's financial assets are summarised by categories as follows: Debt & Equity securities 1,002,497 1,261,412 Loan and receivables 6, ,890 Total Investment Securities 1,009,216 1,615,302 (a) (b) Investment Securities Equity securities 900,374 1,139,092 Debt securities 47,983 63,000 Total Investment securities at fair value 948,357 1,202,092 Equity securities at cost 54,140 59,320 Total Investment securities 1,002,497 1,261,412 Loans and Receivables Amortised cost Loans to related parties - Receivables under finance lease 50, , Fixed term deposit - 328, Other loans Accrued income 5, Allowance for impairment losses - 49, , Total loans and advances at amortised cost 6, , (a) 20 Taxation Notes Current tax payable At the beginning of the period 55, , Amounts recorded in the income statements 76, , under provison - - Payments made on-account during the year - 46, , reclasification - - At the end of the period 85, ,603.07

12 Income Statement (b) Deferred tax expense Notes Fair value gains on investment properties - - Fair value loss on investment properties - Accelerated capital allowance - Total deferred tax expense - - Statement of financial position Deferred tax liability Notes Fair value gains/losses on investment properties 132, , Accelerated capital allowance Reclassification - Deferred tax liability 132, , Reconciliation of deferred tax liability is as shown below: Notes At the beginning of the period 132, , Amounts recorded in the income statement - - Amounts recorded in other comprehensive income - - At the end of the period 132, , Investment properties Notes At the beginning of the period 1,247, ,229, Additions Transfer from available for sale investment Disposal - 75, Fair value gains and losses - - At the end of the period 1,171, ,229,520.73

13 There are no restrictions on the realisability of investment property or the remittance of income and proceeds of disposal. The Company has no contractual obligations to purchase, construct or develop investment property or for repairs or enhancement. 22 Property and equipment Leasehold Land & Buildings Furniture and fittings Plant and Machinery Cost At 1 January , # 152, # 289, Additions 1, , Disposals - - Revaluation 94, Transfer - 61, At 31 December , # 154, # 299, Additions Disposals Transfer AS At 30 June , , , Accumulated depreciation At 1 January , # 128, # 258, Depreciation for the year 10 11, , , Disposals - Transfer - 61, At 31 December # 139, # 277, Reclassification Depreciation for the period 10 5, , , Disposals Transfer AS At 30 June , , , Carrying amount At 1 January , , , At 31 December , , , AS At 30 June , , ,729.89

14 23 Other receivables and prepayment Notes Other receivables 25, ,951 Prepayments 106, , , , Deferred expenses The analysis of deferred acquisition costs (DAC)which represents commission paid during the period on unearned premium received among different classes of business is shown below: Notes Fire Motor General accident Oil and Gas Total At 1 January ,326 49,359 9, ,680 Expenses deferred 86, ,645 80, ,874 Amortisation 10 (71,401) (121,787) (80,863) (379,501) At 31 December ,633 42,217 9, ,053 Expenses deferred 56,273 58,127 55, ,499 Amortisation 10 (46,521) (53,981) (33,299) (257,907) AS At 30 June ,384 46,362 31, , Statutory deposit of Nigeria as at 31 March, 2015 (31 March, 2014: 26 Intangible asset Cost: Computer software At 31 December , Cost capitalised 13, At 31 December , Cost capitalised 3, AS At 30 June ,226.40

15 Accumulated amortisation and impairment: At 1 January , Amortisation 10 28, Impairment loss - At 31 December , At 1 JANUARY , Amortisation 10 13, Impairment loss - AS At 30 June , Carrying amount At 31 December , AS At 30 June , Other payables and accruals Notes Trade payables - - Accrued expenses 89, ,611 Other payables 238, , , ,352 The carrying amounts disclosed above reasonably approximate fair value at the reporting date. All amounts are payable within one year. 28 Insurance payable This represents the amount payable to insurance and resinsurance companies 29 Other financial liabilities This represents deposit received as collateral in respect of a finance lease transaction for which the Company is a leassor The carrying amounts disclosed above approximate fair value at the reporting date.

16 30.1 Borrowings Notes Bank ovedrafts - - Total borrowings months of the reporting date. The carrying value of bank rate of % (Dec 2011:8.25%; Mar 2011:7%, 1 January 30.2 Book Overdraft Notes Book ovedrafts 24, , , , Employee benefit obligations benefit obligations represents the amount payable to employee 32 Insurance contract liabilities Notes Insurance contract liabilities consisit of the following: Provision for reported claims by policyholders 953, ,138 Provisions for claims incurred but not reported (IBNR) - # - Outstanding claims provisions 953, ,138 Provision for unearned premiums 1,957, ,018,360 Total insurance contract liabilities 2,910, ,564,498 (a) Outstanding claims provision Notes At 1 January 546, ,733 Claims incurred in the current accident period/year 689, , Claims paid during the year - 282, (415,202) At the end of the period 953, ,138

17 (b) Provision for unearned premiums Notes At 1 January 1,555, ,020, Premiums written in the year 2 2,311, ,727, Premums earned during the year 2-1,910, ,729, At the end of the period 1,957, ,018, Isssued share capital Authorised and issued share capital Notes Authorised share capital 3,600, ,600, Ordinary shares of N0.50k each Ordinary shares issued and fully paid At 1 January 1,718, ,718, Issued during the year - - At the end of the period 1,718, ,718, All ordinary shares issued are fully paid. All ordinary shares are held by external, non-related parties and companies to the Company(Apart from ACAP and Swalux) 34 Share premium At 1 January 1,363,034 1,363,034 Issued during the year - - AS At 30 June ,363,034 1,363,034

18 35 Cash and cash equivalents for the purpose of statements of cash flows Cash and cash equivalents per statement of financial position 3,516,649 2,557,458 Bank overdraft Book Overdraft (24,921) (26,663) Cash and cash equivalents per statements of cash flows 3,491, ,530, Reconciliation of profit before tax to cash flows provided by operating Profit before taxation 510, , Adjustments for non-cash items: Depreciation of property and equipment 10 39, , Amortisation of intangible 10 13, , Profit from sale of property and equipment Loss on sale of investments Loss on sale of investment property - 131, Investment income 4-186, Fair value gains Impairment loss on insurance receivables 10-67, Impairment loss on available-for-sale financial asset 10 67, , Impairment loss on other receivables 6, , Decrease/(increase) in loans and advances 392, , Increase in provision for unearned premium 252, , (Increase)/decrease in employee defined contribution payable 99, , (Increase)/decrease in other receivables and prepaymewnt - 41, , (Increase)/decrease in deferred acquisiton costs 72, , Decrease/(increase) in other payables and accruals 36, , Decrease/(increase) in trade receivables - 312, , Decrease/(increase) in reinsurance asset - 307, , (Decrease)/increase in trade payables 18, Increase/(decrease) in other financial liabilities 636, , Decrease in provision for outstanding claim - 407, , Tax paid - 46, # 0 Net cash flows from operating activities 843, ,259,

Law Union & Rock Insurance Plc Statement of Profit or Loss and Other Comprehensive Income for the Nine month ended 30th September, 2015

Law Union & Rock Insurance Plc Statement of Profit or Loss and Other Comprehensive Income for the Nine month ended 30th September, 2015 Notes 30th September.2015 30th September. 2014 INCR/(DECR) Gross