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

Transcription

1 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 th September INCR/(DECR) Gross premium written 2 (a) 3,252,748 3,588,945-9% Gross premium income 2 (a) 2,933,068 2,630,371 12% Premiums ceded to reinsurers 2 (b) (899,947) (852,916) 6% Net premiums Income 2,033,121 1,777,455 14% Fees and commission income 3 174, ,865 15% Net Underwriting income 2,207,132 1,928,320 14% Net benefits and claims expenses 8 (525,958) (710,081) -26% Underwriting expenses 11a (592,039) (531,905) 11% Underwriting profit 1,089, ,335 59% Investment income 4(a&b) 303, ,795 23% Fair value gains and losses 5 - Net realised gains and losses 6 - Other operating revenue 7 70,332 39,140 80% Management expenses 11b (799,115) (759,915) 5% Result of operating activities 664, , % Finance costs 9 - (2,909) -100% Profit before taxation 664, , % Income tax expense 12 (a) (99,625) (31,567) 216% Profit for the period 564, , % Other comprehensive income /(loss) Profit for the period 564, , % Net Gain/Loss on available-for-sale assets 15 (1,451) 5, % Income tax relating to Other comprehensive income - - Other comprehensive income net of tax (1,451) 5,116 Total comprehensive income for the period 563, , % Earnings per share Basic and Diluted %

2 Law Union & Rock Insurance Plc Statement of financial position as at 30th September th September th September INCR/(DECR) Notes Assets Cash and cash equivalents 16 3,658,378 2,791,542 31% Trade receivables ,810 61, % Investment securities ,369 1,572,684-40% Reinsurance assets 18 1,744,793 1,228,529 42% Deferred acquisition cost , ,405-8% Other receivables and prepayments ,600 66,675 54% Investment properties 21 1,171,331 1,229,521-5% Intangible asset 26 26,561 44,687-41% Property,Plant and equipment , ,090 13% Statutory deposit , ,000 0% Total Assets 9,133,675 8,201,661 11% Liabilities and Equity Liabilities Trade payables , ,197-37% Other payables and accruals , ,773 8% Book overdraft 26,885 - Employee defined contribution payable , ,499-16% Current income tax payable 20 (a) 108,869 83,690 30% Deferred tax liability 20 (b) 132, ,225 31% Insurance contract liabilities 32 3,274,544 2,587,083 27% Total liabilities 4,400,815 3,845,467 14% Equity Issued share capital 34 1,718,665 1,718,665 0% Share premium 35 1,363,034 1,363,034 0% Contingency reserve 1,136, ,168 15% Revaluation reserves 632, ,025 15% Available-for-sale reserve 83, ,036-72% Accumulated Losses (201,639) (562,732) -64% Total equity 4,732,860 4,356,195 9% Total equity and Liabilities 9,133,675 8,201,661 11%

3 Law Union & Rock Insurance Plc Statement of cash flows for the Nine month ended 30th September 2015 Notes 30th September th September Operating activities: Premium received 3,119,331 3,379,679 Commission received - 150,865 Commission paid (165,014) (219,565) Reinsurance premium paid (551,112) (613,330) Gross claim paid net of recoveries (511,035) (650,301) Payments to employees (410,191) (445,405) Other operating cash payments (494,301) (257,666) Other income received 70,332 39,140 Interest paid - - Tax paid (46,721) (63,175) Net cashflow from operating activities 37 1,011,289 1,320,243 Investing activities: Investment income received 190, , Purchase of property and equipment (36,964) - 11, Proceed from sale of property and equipment 67,404 - Purcahse of intangible assets - 3, Purchase of investments (2,295,482) (491,450) Proceed from sale of investments 1,904, ,091 Addtions to investment properties - - Net cash flows from investing activities (170,597) (227,621) Financing activities: Dividend paid to equity holders - - Net cash flows from financing activities - - Net(decrease)/increase in cash and cash equivalents 840,692 1,092,622 Net foreign exchange difference - Cash and cash equivalents at 1 January 36 2,790,800 1,698,920 Cash and cash equivalents at 30th September ,631,492 2,791,

4 Law Union & Rock Insurance Plc Statement of changes in equity For the quarter ended 30th Sept, 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 - 564, ,542 Transfer (132,833) 132,833 - Other comprehensive income - - (1,451) (12,650) (14,101) As At 30th Sept, ,718,665 (201,639) 1,363,034 1,136,172 83, ,701 4,732,860 As At 30th Sept, ,718,665 (562,732) 1,363, , , ,025 4,356,195 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 Premiums written in the year 3,252,748 3,588,945 Change in unearned premiums provision (319,680) (958,574) Total gross premiums 2,933,068 2,630,371 (b) Premiums ceded to reinsurers on insurance contracts Premiums ceded to reinsurers (982,109) (1,137,096) Change in unearned premiums provision 82, ,180 Total premiums ceded to reinsurers (899,947) (852,916) Total net premiums 2,033,121 1,777,455 3 Fees and commission income Reinsurance commission income 174, ,865 Total fees and commission income 174, ,865 4a Investment income Rental income from investment propertie 14,901 18,520 Available-for-sale financial assets: - - Interest income 5,242 7,542 Dividend income 23,635 19,532 Interest income on statutory deposit 36,394 37,602 Loans and receivables interest income 5,180 13,227 Cash and cash equivalents interest incom 218, ,372 Total investment income 303, ,795

6 4b Investment Income classified - - Policyholders Fund 218, , Shareholders fund 85, , , , Fair value gains and losses - Fair value gains on investment propertie Net realised gains and losses 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 N000 Sundry income 33, , Exchange gains/loss 36, , , , Net claims Gross claims paid 1,052, , , Claims ceded to reinsurers (523,174) (161,866) - 512,642.88

7 Change in outstanding claims provision 608,158 (166,684) Change in outstanding claims provision c (611,957) 166,464 Net claims 525, ,081 9 Finance cost Interest expense on bank overdraft Current borrowing: Interest expense on bank overdraft - Bank Charges - 2,909 Total finance cost - 2, Other operating and administrative expenses Amortisation of intangible assets 17,597 20,502 Impairment loss on insurance receivable - - Impairment loss on availaible for sale fina 53,742 - Impairment loss on loans and receivables - - Impairment loss on other receivables - - Depreciation on property and equipment 57,426 66,542 Directors Fees and Allowance 38,288 31,650 Investment property related expenses 1,603 4,865 Amortisation of deferred acquisition cost 402, ,014 Auditors remuneration 10,125 10,875 Employee benefits expense 455, ,726 Other expenses 354, ,645 Total other operating and administrative 1,391,155 1,291, Employee benefits expense - Wages ans salaries 435, ,388 Defined contribution pension costs 19,666 19,337 Total employee benefits expense 455, ,726 11a Underwriting Expenses Amortisation of deferred acquisition cost 402, ,014 Maintenance costs 112,100 91,627

8 other underwriting Expenses 77,461 75, , ,905 11b Management Expenses 799, , Income tax expense Current tax Company income tax 99, , Education tax Total current tax 99, , Deferred tax Origination of temporary differences - - Total deferred tax - - Total income tax expense 99, , (b) Reconciliation of tax charge Profit before tax 664, , Tax at Nigerian's statutory income tax ra - 99, , 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 investm Tax rate differential on tax calculated ba - - Tax effect of IFRS adjustments to other o - - Total tax charge for the year - 99, ,566.91

9 13 Dividends paid and proposed Declared and paid during the year Equity dividends on ordinary shares: 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 shareh 564, , Weighted average number of ordinary 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 - 1, ,116 Reclassification adjustments for gains inc , ,116 Income tax relating to components of oth - - Other comprehensive income for the yea- 1, ,116

10 16 Cash and cash equivalents Cash at hand Cash and cash equivalents 3,658, ,791,435 Total cash and cash equivalents 3,658, ,791,542 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 181, ,223 Due from Insurance companies 45, ,306 Due from Agents - - Total insurance receivables 226,810 61, Reinsurance Asset Reinsurance of insurance contract 1,744,793 1,228,529 Total reinsurance asset 1,744,793 1,228,529 At 1 January 1,228, , Arising during the current accident year 1,135, , Adjustment to amounts receivables in th - 95, , Claims recovered during the year - 523, , At the end of the period 1,744, ,228,529.34

11 19 Financial assets The Company's financial assets are summarised by categories as follows: Debt & Equity securities 931,606 1,262,981 Loan and receivables 6, ,703 Total Investment Securities 938,369 1,572,684 (a) Investment Securities Equity securities 829,288 1,140,661 Debt securities 48,178 63,000 Total Investment securities at fair value 877,466 1,203,661 Equity securities at cost 54,140 59,320 Total Investment securities 931,606 1,262,981 (b) Loans and Receivables Amortised cost Loans to related parties - Receivables under finance lease 49, Fixed term deposit - 54, Other loans , Accrued income 5, , Allowance for impairment losses - 49, , Total loans and advances at amortised co 6, , Taxation

12 (a) Current tax payable At the beginning of the period 55, , Amounts recorded in the income stateme 99, , under provison - 25, Payments made on-account during the ye- 46, , reclasification - - At the end of the period 108, , Income Statement (b) Deferred tax expense Fair value gains on investment propertie - - Fair value loss on investment properties - Accelerated capital allowance - Total deferred tax expense - - Statement of financial position Deferred tax liability Fair value gains/losses on investment pro 132, , Accelerated capital allowance Reclassification - Deferred tax liability 132, , Reconciliation of deferred tax liability is At the beginning of the period 132, , Amounts recorded in the income stateme - - Amounts recorded in other comprehensiv - - At the end of the period 132, , Investment properties At the beginning of the period 1,247, ,229,520.73

13 Additions Transfer from available for sale investment Disposal - 75, Fair value gains and losses - - At the end of the period 1,171, ,229, There are no restrictions on the realisability of investment property or the remittance of income and proceeds of disposal. The Company h 22 Property and equipment Leasehold Land & Buildings Furniture and fittings Plant and Machinery Motor vehicles Computer hardware and equipment Cost At 1 January , , , , , ,356, Additions 1, , , , , Disposals , , Revaluation 94, , Transfer - 61, , At 31 December , , , , , ,414, Additions , , Disposals Transfer AS At 30 September , , , , , ,457, Total Accumulated depreciation At 1 January , , , , , , Depreciation for the year 11, , , , , , Disposals , , Transfer - 61, , At 31 December , , , , , Reclassification Depreciation for the period 8, , , , , , Disposals - Transfer AS At 30 September , , , , , , Carrying amount At 1 January , , , , , , At 31 December , , , , , , AS At 30 September , , , , , ,084.00

14 23 Other receivables and prepayment Other receivables 25, ,628 Prepayments 77, , , , Deferred expenses The analysis of deferred acquisition costs Fire Motor General accident Engineering Marine and aviation Bond and Credit Oil and Gas Total At 1 January ,326 49,359 9,084 15,710 17,647 7,684 27, ,722 Expenses deferred 86, ,645 80,919 37,601 48,693 26, , ,349 Amortisation (71,401) (121,787) (80,863) (37,659) (48,963) (25,877) (105,450) (492,000) At 31 December ,633 42,217 9,140 15,652 17,377 7,988 84, ,071 Expenses deferred 81,438 80,782 75,894 27,275 53,819 11, , ,158 Amortisation (78,488) (77,465) (56,663) (27,970) (45,800) (14,748) (101,345) (402,478) AS At 30 September ,583 45,534 28,370 14,957 25,396 4,933 92, , Statutory deposit This represents the ammount deposited with the Central Bank 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 5, AS At 30 September , Accumulated amortisation and impairment: At 1 January , Amortisation 28, Impairment loss -

15 At 31 December , At 1 JANUARY , Amortisation 17, Impairment loss - AS At 30 September , Carrying amount At 31 December , AS At 30 September , Other payables and accruals Trade payables - - Accrued expenses 118, ,268 Other payables 249, , , ,829 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 Borrowings Bank ovedrafts - -

16 Total borrowings - - All borrowing are current and are expected to be settled within 12 months of the reporting date. The carrying value of bank overdrafts approximate their fair value. The bank overdrafts are subject to an average fixed interest rate of % (Dec 2011:8.25%; Mar 2011:7%, 1 January 2011: 7%). The bank overdrafts have an average current maturity of 180days (Dec 2011:180days;Mar 2011: 90days; 1 January 2011:90days). The bank ovedraft is secured by a charge over fixed deposit of N35m Book Overdraft Book ovedrafts 26, , Employee benefit obligations Employee benefit obligations represents the amount payable to employee under a defined contribution plan. The plan is fully funded and the plan assets consist of Treasry bills. Investment risk is fully borne by employees. The Company contributes 5% of employee basic salary, housing and transport allowance annually. 32 Insurance contract liabilities Insurance contract liabilities consisit of t Provision for reported claims by policyho 1,399, ,475 Provisions for claims incurred but not rep - - Outstanding claims provisions 1,399, ,475 Provision for unearned premiums 1,875, ,978,608 Total insurance contract liabilities 3,274, ,587,083 (a) Outstanding claims provision At 1 January 608, ,370

17 Claims incurred in the current accident p 1,316, , Claims paid during the year - 525, (710,081) At the end of the period 1,399, ,475 (b) Provision for unearned premiums At 1 January 1,555, ,020, Premiums written in the year 3,252, ,588, Premums earned during the year - 2,933, ,630, At the end of the period 1,875, ,978, Isssued share capital Authorised and issued share capital 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 - -

18 AS At 30 September ,363,034 1,363, Cash and cash equivalents for the purpos Cash and cash equivalents per statement 3,658,378 2,791,542 Bank overdraft - - Book Overdraft (26,885) - Cash and cash equivalents per statement 3,631, ,791, Reconciliation of profit before tax to cas Profit before taxation 664, , Adjustments for non-cash items: Depreciation of property and equipment 57, , Amortisation of intangible 17, , Profit from sale of property and equipme - - Loss on sale of investments - - Loss on sale of investment property - 247, Investment income - 303, Fair value gains - - Impairment loss on insurance receivables - 67, Impairment loss on available-for-sale fina 53, , Impairment loss on other receivables 6, , Decrease/(increase) in loans and advance 392, , Increase in provision for unearned premi 237, , (Increase)/decrease in employee defined 102, , (Increase)/decrease in other receivables - 35, , (Increase)/decrease in deferred acquisito 50, , Decrease/(increase) in other payables an 28, , Decrease/(increase) in trade receivables 118, , Decrease/(increase) in reinsurance asset 5, , (Decrease)/increase in trade payables 257, , Increase/(decrease) in other financial lia 368, , Decrease in provision for outstanding cla - 560, , Tax paid - 46, Net cash flows from operating activities 1,413, ,251, , ,460.62