NEM INSURANCE PLC STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, NOTES Jun-15 Dec-14

Size: px

Start display at page:

Download "NEM INSURANCE PLC STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, NOTES Jun-15 Dec-14"

Elijah Ellis
6 years ago
Views:

1 NEM INSURANCE PLC STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, 2015 NOTES Jun-15 Dec-14 Assets Cash and Cash equivalents 1 3,643,546 3,425,121 Financial Assets 2 3,143,675 2,914,575 Trade receivables 3-209,493 Reinsurance assets 4 717, ,121 Deferred Acquisition cost 5 633, ,473 Other Receivables and Prepayments 6 1,263,595 89,159 Investment in a subsidiary 7 193, ,308 Investment Properties 8 488, ,830 Statutory Deposit 9 320, ,000 Intangible asset 10 8,836 4,459 Property and equipment 11 2,607,007 2,175,775 Total assets 13,018,658 10,977,314 Liabilities Insurance contract liabilities 12 4,590,652 4,444,126 Trade payables 13-9,733 Book Overdraft ,861 4,364 Other payables , ,406 Retirement benefit obligations , ,848 Current income tax ,745 12,212 Deferred tax liability , ,913 5,535,468 5,076,601 Equity Issued share capital 16 2,640,251 2,640,251 Share premium , ,551 Contingency reserve 18 2,340,946 1,966,395 Retained earnings 19 1,832, ,106 Available for sale reserve , ,232 Other Res.-employee benefit act.surplus 21 68,178 68,178 total Equity 7,483,190 5,900,713 Total equity and liabilities 13,018,658 10,977,314 NEM INSURANCE PLC STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30TH JUNE, 2015 Notes 2015 JUNE, 2014 Gross premiums written 22 6,428,338 5,804,864

2 Decrease/(Increase) in unearned income (1,631,133) (1,477,614) Gross premiums earned 22 4,797,205 4,327,250 Reinsurance expenses 23 (206,966) (472,774) Net premiums income 4,590,239 3,854,476 Fee and commission income 24 19,060 3,605 Net underwriting income 4,609,299 3,858,081 Claims expenses 25 (1,079,427) (587,832) Underwriting expenses 26 (1,153,734) (1,254,437) Underwriting profit 2,376,138 2,015,812 Investment Income , ,666 Fair value (loss)/gain 28 - (155,669) Other income 29 15,379 2,398 Revaluation loss investment properties Profit /(loss) on disposal of Assets - - Impairments Other operating and admin. Expenses 31 (838,135) (709,009) Profit before tax 1,872,755 1,380,198 Income taxes 15.2 (290,277) (289,842) Profit after tax 1,582,478 1,090,356 Other Comprehensive Income Fair value loss on Available for sale Actuarial profit on defined benefit plan ,582,478 1,090,356 NEM INSURANCE PLC Notes to the Financial Statements 1 CASH AND CASH EQUIVALENTS Cash and bank balances Short-term deposits [see Note below] Short-term deposits: are made for verying period avera depending on the immediate cash requirements of the subject to an average interest rate of 6% 1.1 BOOK OVERDRAFT Book Overdraft 2 FINANCIAL ASSETS The financial assets are as summarised below: Financial assets at fair value through prof

3 Available for Sale Held to Maturity financial assets Current Non-current 3 TRADE RECEIVABLES Opening Balance Prior year collection Addition Impairment 4 REINSURANCE ASSETS Opening Balance For the year reinsurance assets Transfer to Impairment 5 DEFERRED ACQUISITION COST At January Acquisition during the quarter Apportionment during the quarter 6 OTHER RECEIVABLES AND PREPAYMENT Prepayments Accrued Income Other Debtors Other receivables 7 INVESTMENT IN SUBSIDIARY Opening Balance Addition Investment in subsidiary The Company's investment in a subsidiary established i unquoted investment. Subsidiary is wholly owned (100% Nigeria. The investment was fully funded by the compa could arise from this transaction since it is not an IFRS 3 combination. 8 INVESTMENT PROPERTIES Opening Balance Revaluation deficit/surplus As at December 31 Investment properties are held at fair value,which has b valuations performed independent valuations performe experts, Diya Fatimilehin & Co. property plaza, Muri Ok

4 Lagos. The valuers are the industry specialists in valuing properties. The fair value is supported by market eviden at which the assets could be exchanged between know knowledgeable, willing seller in an arm's length transac in accordance with standards issued by International Va Valuations are performed on an annual basis and the fa recorded within the statement of comprehensive incom This is an investment in land building held primarily for appreciation and occupied substantially for use in the o This is carried in the statement of financial position at t 9 STATUTARY DEPOSIT This represents the amount deposited with the Central 31, 2013 in accordance with section 9(1) and section 10 deposit are measured at cost 10 INTANGIBLE ASSET Cost At January 1, Addition Written off Reclassification from non-current asset At March 31 Amortisation At January 1, Written off Impairment during the year At March 31 Net Book Value 12 INSURANCE CONTRACT LIABILITIES As at January 1, Reserve for unexpired premium Reserve for outstanding claims Addition during the year: Reserve for unexpired premium Reserve for outstanding claims Reserve for unexpired premium Reserve for outstanding claims 13 TRADE PAYABLES Trade creditors

5 13.1 OTHER CREDITORS Accruals Others 14 RETIREMENTS BENEFITS OBLIGATIONS As at January 1, Addition Gain-employee benefit actuarial surplus Gratuity 15 TAXATION 15.1 Per Financial Position At January 1, Income tax for the year Paid during the year At June 30, 15.2 Per Income Statement Income tax Education tax Deferred tax 15.3 DEFERRED TAX At January 1, Charge for the year 16 ISSUED SHARED CAPITAL Authorised share: 8.4E+09 ordinary shares issued and fully paid: At January 1, 5,280,502,913 ordinary shares of 50k each At December 31, 17 SHARE PREMIUM Premium from the issue of shares are reported in share 18 CONTIGENCY RESERVE As at January 1, Transfer from retained earnings Contigency reserve is calculated in accordance with the the Insurance Act, 2003 at the higher of 3% of the total after tax. This shall accumulate until it reaches the amo

6 paid-up capital or 50% of net premium 19 RETAINED EARNINGS As at 1 January Transfer from comprehensive income Retained earnings consist of undistributed profits/loss f 20 AVAILABLE FOR SALE RESERVE Opening Balance Movement The fair value reserve shows the effect from the fair va instruments of the category available for sale. Any gain in the comprehensive income statements until the asse 21 OTHER RESERVE Actuarial gains on retirement benefit Opening Balance Gain during the year This represents actuarial gains on employee retirement 22 GROSS PREMIUM WRITTEN The analysis of gross premium by business class is as fo Fire Oil and Gas General accident Marine Motor Inward reinsurance Gross premium written (Increase) in unearned premium Gross premium income Re-insurance Outward 23 RE-INSURANCE EXPENSE Motor Marine Fire General accident Oil and Gas 24 FEE AND COMMISSION INCOME Fee income represents commission received on direct b ceded to re-insurance during the year under review Motor Marine

7 Fire General accident Oil and Gas 25 CLAIMS EXPENSES The analysis o of claim expenses by business class is as Motor Marine Fire General accident Oil and Gas Claims expenses consist of claims paid during the financ movement in the provision for outstanding claims. 26 UNDERWRITING EXPENSES Commission expense Maintenance expense 26.1 COMMISSION EXPENSE The analysis of commission expenses by business class Motor Marine Fire General accident Oil and Gas 26.2 MAINTENANCE EXPENSE Motor Marine Fire General accident Oil and Gas Underwriting expenses consist of acquisition and maint include commission and policy expenses,proportion of supervision levy. Underwriting expenses for insurance c expense when incurred 27 INVESTMENT INCOME Dividend income Interest from fixed deposit Interest from statutory deposit 28 FAIR VALUE GAIN THROUGH PROFIT OR LOSS Fin. assets at fair val throu p.or l at beg of the yr Addition during the year

8 Fin. assets at fair val throu p.or l at end of the yr 29 OTHER INCOME Sundry Income Rental Income Exchange Gain 30 IMPAIRMENTS Unquoted investment trade receivable Reinsurance assets Intangible assets 31 OTHER OPERATING & ADMINISTRATIVE EXPENSES Auditors Remuneration Employee Benefits Other Management Expenses Depreciation NEM INSURANCE PLC UNDERWRITING RESULT PER CLASS OF BUSINESS FOR THE PERIOD ENDED 30TH JUNE, 2015 MOTOR FIRE GEN.ACCID OIL & GAS Direct Business Premium Reinsurance Inward Gross Premium (Increase)/Decrease in Unexpired Risk Gross Premium Earned Reinsurance Expenses Net Premium Earned Commission Received Total Income Direct Claim Paid Increase/Decrease in prov.for O/S Claims Gross Claim Paid Reinsurance Claim Recovery Net Claim Incurred Underwriting Expenses Total Deduction Underwriting Profit ) PROPERTY AND EQUIPMENT

9 FIXED ASSET SCHEDULE Land & Building Plant & Motor Under ConstrPartitioning Machinery Vehicle At 1st January Additions Disposal/Transfer At 30th June, Depreciation/Amortisation At 1st January Charge for the year Depreciation on Dispoal - At 30th June, Net Book Value At 30th June, At 31st December, NEM INSURANCE PLC STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JUNE, Operating profit before taxation Adjustment for items not involving the movement of cash: Depreciation Amortization of intangible asset (Profit)/loss on disposal of assets Fair value gain on investment property Exchange gain Service and Interest cost on retirement ben Interest and Dividend Income Cashflow changes before changes in workin CHANGES IN WORKING CAPITAL Decrease in trade receivables (Increase)/Decrease in Reinsurance assets Decrease/( Increase) in Deferred acquisition (Increase)/Decrease in other Receivables & (Decrease)/ Increase in Insurance contract l (Decrease)/Increase in trade payables

10 Increase/(Decrease) in other payable Net cash flow from operating activities Exchange gain Gratuity benefit to employee Tax paid CASH FLOW FROM INVESTING ACTIVITIES Proceed of disposal Investment in subsidiary Interest and Dividend Income Maturity of Bond Purchase of Bond Purchase of investment Purchase of plant and equipment Net cash flow from investment activities CASH FLOW FROM FINANCIAL ACTIVITIES Dividends paid to equity holders of the pare Net cash outflow from financing activities Total cash flow Cash and cash equivalent at January Cash and cash equivalent at June Represented by: Cash and cash equivalent at June STATEMENT OF CHANGE IN EQUITY Issued Share Capital Share Premium At January 1, Profit for the year 0 0 Transfer to Contingency reserves 0 0 Other Comprehensive Income Actuarial gain on defined benefit plan Gains on revaluation of investment propty 0 0 Distribution to owners Dividend paid during the year As at 30 June,

12 , ,739 3,165,620 2,973,382 3,643,546 3,425,121 aging between 1-90 days group. All deposits are 58,861 4, , ,837

13 2,291,730 2,087, , ,939 3,143,675 2,914,575 2,291,730 2,087, , ,776 3,143,675 2,914, ,493 4,333,260 (209,493) (347,494) - 209,493-4,195,259 - (3,985,766) - 209, ,121 65, , , , , ,346 1,003,752 1,464,911 (812,715) (1,494,784) 633, ,473 12,873 12,873-38, ,240 5,887 1,147,482 31,957 1,263,595 89, , ,396-17, , ,308 in Ghana was treated as %) by NEM Insurance Plc any, therefore no goodwill 3 transaction i.e not a business been determined based on ed by independent valuation kunola Street, Victoria Island

14 g these types of investment nce and represent the amount wledgeable, willing buyers and ction at the date of valuation, aluation Standards Committee. air value gains and losses are me. generating income or capital operations of the company. their market value. l Bank of Nigeria as at December 0(3) of Insurance Act Statutory 320, ,000 45,253 45,253 5, ,892 45,253 40,794 29, ,262 11,313 42,056 40,794 8,836 4,459 2,804,638 2,740,749 1,639,488 1,678,848 1,631,133 63,888 (1,484,607) (39,361) 4,590,652 4,444,126 4,435,771 2,804, ,881 1,639,488 4,590,652 4,444,126-9,733

15 - 75, ,954 61, , , , ,838 (7,505) 17, , ,848 12,212 (87,745) 290, ,054 (28,744) (18,097) 273,745 12, , ,405 35,994 14,649 (290,277) 118, ,851 (290,277) 232, , , , , ,913 4,200,000 4,200,000 h 2,640,251 2,640, , ,551 e premium e provisions of Section 21(2) of l premium or 20% of total profit ount of greater of minimum

16 from previous years alue measurement of financial ns or losses are not recognised et has been sold or impaired. t benefit ollows: 1,106, ,402 1,018,879 1,125,494 1,404,580 1,135, , ,661 2,257,944 1,919,925 88,876 15,608 6,428,338 5,804,864 (1,631,133) (1,477,614) 4,797,205 4,327,250 (206,966) (472,774) 4,590,239 3,854,476 2,402-33,507 9,419 13,434 36,086 21,735 5, , , , ,774 business and transactions

17 follows: cial year together with the is as follows: tenance expenses which staff cost and insurance contracts are recognised as

18 TOTAL JUNE,

19 Furniture & Office Fittings Equipment Total

20 Retained AFS Other Contingency Earnings Reserve Reserves Reserves Total

Other comprehensive income /(loss)

Other comprehensive income /(loss) Law Union & Rock Insurance Plc Statement of Comprehensive Income for the Six month ended 30th June, 2015 Notes 30th June.2015 30th June. 2014 INCR/(DECR) Gross premium written 2 (a) 2,311,744 2,727,861-15%