UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION for the Quarter ended 31 March 2015 Note 31-Mar-15 31-Dec-14 31-Mar-15 31-Dec-14 ASSETS Cash and cash equivalents 5 2,057,451 6,622,345 18,035 36,411 Loans and advances to customers 6 1,109,868 1,083,876 - - Advances under finance lease 7 100,508 102,980 - - Financial assets 8 3,864,832 4,024,087 - - Investment in subsidiaries 9 - - 8,660,464 8,660,464 Trade receivables 10 707,392 319,428 - - Reinsurance assets 11 2,195,261 1,916,261 - - Deferred acqusition cost 12 421,011 366,892 - - receivables and prepayments 13 615,198 473,919 176,721 79,604 Investment in associates 14 295,250 295,250 - - Investment properties 15 7,780,514 7,722,739 - - Property and equipment 16 1,672,905 1,673,178 15,740 17,488 Intangible assets 17 67,572 46,863 - - Employees retirement benefit asset (Net) 18(a) 170,199 170,199 - - Statutory deposits 19 555,000 555,000 - - Deferred tax assets 20 646,156 640,445 - - Total Assets 22,259,117 26,013,462 8,870,960 8,793,967 LIABILITIES Bank borrowing 5 1,282,867 1,001,151 1,035,671 1,001,151 Deferred Income 21 136,280 102,234 - - Trade Payables 22 466,180 5,151,843 - - liabilities 23 948,221 1,207,351 807,499 699,917 Depositors' funds 24 1,074,043 1,032,616 - - Insurance Contract Liabilities 25 7,882,056 7,094,226 - - Investment Contract Liabilities 26 252,723 257,963 - - Dividend Payable 27 - - - - Current income tax liabilities 28 517,385 502,951 255,109 255,109 Employees benefit liability 18(b) 545,206 545,206 24,374 24,374 Deferred tax liabilities 20 172,495 172,495 - - Total Liabilities 13,277,456 17,068,036 2,122,653 1,980,551 EQUITY capital 30 2,572,685 2,572,685 2,572,685 2,572,685 premium 31 2,690,935 2,690,936 2,690,936 2,690,936 Contingency reserve 32 1,264,904 1,176,375 - - Treasury s 33 (500,000) (500,000) 34 2,666,950 2,719,243 1,484,263 1,549,372 35 286,187 286,187 423 423 Total 8,981,661 8,945,426 6,748,307 6,813,416 Total & Liabilities 22,259,117 26,013,462 8,870,960 8,793,967 8
UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the Quarter ended 31 March 2015 Note 31-Mar-15 31-Mar-14 31-Mar-15 31-Mar-14 Gross premium written: 36 3,622,551 3,800,778 - - Unearned premium (758,380) (1,229,829) Gross Income 2,864,171 2,570,949 - - Reinsurance Expenses 37 (681,478) (566,279) - - Net Income 2,182,693 2,004,671 - - Fees and commission income 38 86,309 80,798 - - Net Underwriting Income 2,269,002 2,085,468 - - Insurance claims and benefits incurred 39 (954,498) (785,504) - - Insurance claims and benefits incurred - recoverable from reinsurers 40 109,500 83,092 - - Net claims expenses (844,997) (702,412) - - Underwriting Expenses 41 (607,068) (771,596) - - Total Underwriting Expenses (1,452,065) (1,474,008) - - Underwriting Profit 816,937 611,460 - - Net Interest Income 42 54,020 42,539 - - Investment and other income 43 77,829 94,670 - - Net fair value gain or loss on financial assets 44 (204,175) (49,023) - - Write-back/(charge) of impairment allowance 45 (6,883) (15,060) - - operating income 46 84,804 135,728 56,710 66,178 Net Income 822,532 820,314 56,710 66,178 Foreign Exchange Gains/(Losses) 47 (20) 3 - - Management expenses 48 (771,842) (639,994) (121,819) (84,596) Total Expenses (771,862) (639,991) (121,819) (84,596) Profit before tax 50,670 180,323 (65,109) (18,418) Income taxes 28(a) (14,434) (57,703) - - Profit after Taxation 36,236 122,619 (65,109) (18,418) Comprehensive Income, net of tax Items that will never be reclassified subsequently to profit or loss: Revaluation Surplus on PPE - - - - Net Gains/Losses of Defined Benefit Obligations - - - - Tax Effects on Comprehensive Income - - - - Items that are or may be reclassified subsequently to profit or loss: Changes in fair value of AFS Investments - - - - Total other comprehensive income, net of tax - - - - Total comprehensive income for the period 36,236 122,619 (65,109) (18,418) Total comprehensive income shareholders per share - Basic and diluted (kobo) 1 2 (1) (0) The statement of significant accounting policies and the accompanying notes form an integral part of these financial statements. 9
UNAUDITED STATEMENT OF CASH FLOWS for the quarter ended 31 March 2015 Notes 31-Mar-15 31-Dec-14 31-Mar-15 31-Dec-14 Operating profit for the year 36,236 150,437 (65,109) 129,384 Adjustments for: Impairment allowance on loans and advances to customers 6,352 6,561 - - Impairment / (write-back ) of allowance on advance under lease 734 1,200 - - Impairment / (write-back ) of impairment allowances on trade receivable - 93,214 - - Impairment allowance on other receivables and prepayments 19,002 17,223 - - Fair value gain on investment properties - (584,315) - - Depreciation on property and equipment 63,334 262,358 2,119 8,883 Amortization of intangible assets 2,290 14,354 - - Profit on disposal of property and equipment (253) (7,201) - - Loss on revaluation of property and equipment - - - - Increase/ (decrease) in unearned premium 985,913 (169,872) - - Increase/ (decrease) in provision for outstanding claims 198,083 291,002 - - Increase/ (decrease) in provision for employees retirement benefits - 102,653-5,475 Contribution to employees retirement benefits - (26,722) - - Dividend income on equity investments - (191,062) - - Rental income - (104,618) - - Interest Income (72,260) (317,125) - - Fair value gain on financial assets through profit or loss 204,175 538,961 - - 1,443,606 77,048 (62,990) 143,742 Changes in working capital: Loans and advances to customers (19,640) (277,866) - - Advance under lease 3,206 114,405 - - Trade receivables (387,964) 20,118 - - Re-insurance asset (279,000) 116,657 - - Deferred acquisition cost (54,119) 102,268 - - receivables and prepayment (122,277) (18,627) (97,117) (3,220) Deferred Income 34,046 17,437 - - Trade and other payables (4,685,663) 4,623,334 - - liabilities (259,130) 21,657 107,582 247,099 Depositors' funds 41,427 437,167 - - Investment Contract Liabilities (5,240) (341,143) - - Tax expense 14,434 165,190-31,606 (4,276,314) 5,057,645 (52,525) 419,227 Income tax paid - (84,939) - (874) Gratuity and Long service award paid - (96,800) - (1,378) Withholding tax expense - (29,996) - (29,996) Net cash provided by operating activities (4,276,314) 4,845,910 (52,525) 386,979 Cash flows from investing activities: Purchases of property and equipment (63,061) (237,204) (371) (9,520) Purchases of intangible assets (22,999) (23,799) - - Purchase of investment properties - (45,855) - - Proceed from disposal of financial assets 127,347 680,794 - - Proceed from disposal of property and equipment 253 9,087 - - Net purchase of financial assets (1,704,184) (1,629,224) - - Purchase of shares in Subsidiary - - - (1,040,000) Purchase of shares in investee - (96,908) Dividend received - 191,062 - - Rent received - 104,618 - - Interest received 72,260 317,125 - - of profit of associate - 17,031 - - Net cash provided by investing activities (1,590,384) (713,273) (371) (1,049,520) Cash flows from financing activities: Borrowings 34,520 1,001,151 34,520 1,001,151 - (337,794) - (337,794) Net used in financing activities 34,520 663,357 34,520 663,357 Cash and cash equivalent at beginning of year 6,606,762 1,810,768 36,411 35,595 Net increase in cash and cash equivalent (5,832,178) 4,795,994 (18,376) 816 Cash and cash equivalent at end of year 774,584 6,606,762 18,035 36,411 12
UNAUDITED STATEMENT OF CHANGES IN EQUITY as at 31 March 2015 Group Contingency Treasury s Regulatory risk reserve component of equity Fair value reserve (Total) holders Total As at 1 January 2015 2,572,685 2,690,936 1,176,375 2,719,243 (500,000) 123,580 114,844 53,122 286,187 8,945,426-8,945,426 Profit for the year - - - 36,236 - - - - - 36,236-36,236 Comprehensive Income: - - - Changes in fair value of AFS Investments - - - - - - - - - - - - Revaluation Surplus on PPE - - - - - - - - - - - - Net Gains/Losses - - - - - - - - - - - - Tax Effects on Comprehensive Income - - - - - - - - - - - - Transactions within : Transfer to Contingency Transfer to Regulatory As at 31 March 2015 2,572,685 2,690,936 1,176,375 2,755,479 (500,000) 123,580 114,844 53,122 286,187 8,981,662-8,981,661 - - - - - - - - - - - - - - 88,529 (88,529) - - - - - - - - - - - - - - - - - - - - 2,572,685 2,690,936 1,264,904 2,666,950 (500,000) 123,580 114,844 53,122 286,187 8,981,662-8,981,661 Statement of Changes in as at 31 December 2014 Group Contingency Treasury s Regulatory risk reserve component of equity Fair value reserve (Total) holders Total As at 1 January 2014 2,572,685 2,690,936 947,734 3,096,193 (500,000) 82,103 143,425 (4,210) 221,318 9,028,866-9,028,866 Profit for the year - - - 150,437 - - - - - 150,437-150,437 Comprehensive Income: - - - Changes in fair value of AFS Investments - - - - - - - 57,332 57,332 57,332-57,332 Revaluation Surplus on PPE - - - - - - - - - - - - Net Gains/Losses - - - - - - (12,179) - (12,179) (12,179) - (12,179) Tax Effects on Comprehensive Income - - - - - - (21,761) - (21,761) (21,761) - (21,761) Transactions within : Transfer to Contingency Transfer to Regulatory As at 31 December 2014 2,572,685 2,690,936 947,734 3,246,630 (500,000) 82,103 114,844 53,122 244,710 9,202,695-9,202,695 - - - (257,269) - - - - - (257,269) - (257,269) - - 228,641 (228,641) - - - - - - - - - - - (41,477) - 41,477 - - 41,477 - - - 2,572,685 2,690,936 1,176,375 2,719,243 (500,000) 123,580 114,844 53,122 286,187 8,945,426-8,945,426 10
UNAUDITED STATEMENT OF CHANGES IN EQUITY as at 31 March 2015 Company (Total) holders Total As at 1 January 2015 Profit for the year Net Gains/Losses Transactions within : As at 31 March 2015 2,572,685 2,690,936 1,549,372 423 423 6,813,416-6,813,416 - - - (65,109) - - (65,109) - (65,109) - - - - - - - - 2,572,685 2,690,936 1,484,263 423 423 6,748,307-6,748,307 - - - - - - - - 2,572,685 2,690,936 1,484,263 423 423 6,748,307-6,748,307 Statement of Changes in - as at 31 December 2014 Company (Total) holders Total As at 1 January 2014 Profit for the year Net Gains/Losses Transactions within : As at 31 December 2014 2,572,685 2,690,936 1,677,257 561 561 6,941,439-6,941,439 - - - 129,384 - - 129,384-129,384 - - - (138) (138) (138) - (138) 2,572,685 2,690,936 1,806,641 423 423 7,070,685-7,070,685 - - (257,269) - - (257,269) - (257,269) 2,572,685 2,690,936 1,549,372 423 423 6,813,416-6,813,416 11