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Sep 30, 2016 - MANAGEMENT ACCOUNTS FOR THE ..... asset above relate to the Company's accounting software packages (Turnq
STANDARD ALLIANCE INSURANCE PLC

CONSOLIDATED MANAGEMENT ACCOUNTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016

STANDARD ALLIANCE INSURANCE PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2016 Group Company Group Company ASSETS Cash and Cash Equivalents

NOTES 3

Financial Assets -

30-Sep-16 N'000 1,283,937

30-Sep-16 N'000 768,656

31-Dec-15 N'000 1,317,866

31-Dec-15 N'000 730,785

4

At fair value through profit or loss Loans & Receivables

32,928 89,978

14,898 9,927

36,395 80,224

18,365 12,629

Available for sale investment Trade Receivables

5

432,047 225,434

351,319 225,434

433,948 49,994

433,948 49,994

Reinsurance Assets

6

1,506,047

1,034,598

1,032,984

492,673

Deferred Acqusition Costs Other Receivables and Prepayments

7 8

109,280 359,828

109,280 43,701

131,238 65,074

108,199 28,117

Non current assets held for sale Investment Properties

9 10

1,890,433 3,304,563

1,890,433 1,150,000

1,890,433 3,304,563

1,890,433 1,150,000

Investments in Subsididary

11

Goodwill & Other Intangible Assets Property, Plant and Equipment Statutory Deposits TOTAL ASSETS

12 13 14

-

406,728

-

406,728

15,595 2,786,260 535,000 12,571,330

7,160 2,698,680 335,000 9,045,814

11,757 2,897,893 535,000 11,787,369

8,241 2,770,510 335,000 8,435,622

LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Insurance Contract Liabilities 15 4,188,557 Investment Contract Liabilities 448,642

2,179,262 -

4,404,741 630,239

2,226,847 0

Trade Payables Other Payables and Accruals

16 17

121,585 679,221

8,191 543,896

157,331 469,627

75,986 516,749

Financial Liabilities Finance Lease Obligation Taxation Deferred Tax Liabilities TOTAL LIABILITIES

18 19 20 21

1,187,548 86,790 236,126 335,759 7,284,228

1,187,548 70,688 221,598 315,046 4,526,229

795,918 136,698 214,013 326,273 7,134,840

795,918 111,800 170,561 305,560 4,203,421

SHAREHOLDERS' EQUITY Ordinary Share Capital Share Premium

22

5,996,587 7,667,476

5,996,587 7,667,476

5,996,587 7,667,476

5,996,587 7,667,475

Contigency Reserve Retained Earnings

24 25

1,411,579 (12,552,146)

1,386,196 (12,553,495)

Revaluation Reserves Fair Value Reserves

26 27

1,671,830 (19,024)

1,671,832 63,606

1,671,832 63,606

4,519,585 4,519,585 9,045,814

4,258,934 393,596 4,652,530 11,787,369

4,232,201 0 4,232,201 8,435,622

Non controlling interest Total equity LIABILITIES AND S/HOLDERS' EQUITY

1,449,062 1,449,062 (12,050,149) (12,246,346) 1,671,830 (19,024) 4,715,782 571,320 5,287,102 12,571,330

STANDARD ALLIANCE INSURANCE PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR PERIOD ENDED 30 SEPTEMBER 2016 Group Company Group Company

REVENUE Gross Premium written

Notes 27

Unearned premium Reinsurance premium expenses

28

Net premium income Fees and Commission income

29

Net Underwriting income Claims expenses

30

Claims exp.recoveries from reins. Net Claims expenses Underwriting expenses

31

Total underwriting expenses Underwriting Profit

30-Sep-16

30-Sep-16

30-Sep-15

30-Sep-15

YTD

YTD

YTD

YTD

N'000

N'000

N'000

N'000

3,883,573

2,095,504

3,992,526

2,527,933

230,967

119,833

-

-

4,114,540

2,215,337

3,992,526

2,527,933

(627,789)

32

Net realised (loss)/gain on inv. property

33

Forex gain/loss

(623,354)

(467,278)

3,486,751

1,869,998

3,369,172

2,060,655

154,577

31,781

103,225

85,639

3,641,328

1,901,779

3,472,397

2,146,294

(1,127,944)

(516,822)

(1,475,036)

680,525

(280,309)

163,703

(1,161,676)

(590,407)

(1,152,824)

(335,647)

(1,161,212)

(445,495)

(1,433,133)

(171,944)

(2,322,888)

(1,035,902)

1,729,835

1,149,509

1,110,392

63,018

33,682

69,609

(145,000)

(145,000)

(6,092) -

-

(443,623)

(443,623)

313,360

(760,762)

847,635

2,208,195

Investment income

(345,339)

-

170,355

-

Management expenses

34

(903,729)

(847,864)

(1,051,257)

(996,893)

Finance charges

35

(26,992)

(23,606)

(47,894)

(28,089)

Unrealised Fair value gains/(losses)

4.1

(6,259)

(3,446)

(14,494)

(14,494) 153,765

Gain on Disposal of Quoted Shares

-

-

153,765

Impairments/Write back of provisions

-

-

504,784

-

-

(86,605)

821,500

474,314

496,490

654,074

Share of profit/(loss) of associates

10.2

(Loss)/Profit before taxation

504,784 -

Income tax

20

(94,863)

(94,863)

(196,222)

(196,222)

Deferred tax

21

(9,486)

(9,486)

(19,622)

(19,622)

(Loss)/Profit after taxation

717,151

369,965

280,646

438,230

(82,629)

(82,629)

(178,747)

(178,747)

Total other comprehensive income

(82,629)

(82,629)

(178,747)

(178,747)

Total compre(loss) income for the yr

634,522

287,336

101,899

259,483

4.14

5.45

Other comprehensive income Can subsequently be reclassified to P or L FV gains on quoted shares (AVFS)

EPS : Basic/Diluted (Kobo)

26

6.85

3.95

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENT FOR PERIOD ENDED SEPTEMBER 30, 2016 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

At 1 January 2016

Share capital N'000

Share premium N'000

5,996,587

7,667,476

SEPTEMBER 30, 2016 Revaluation Fair value reserve reserve N'000 N'000 1,671,831

63,605

Contigency Reserve N'000 1,386,197

Retained earnings N'000

Non Controlling N'000

(12,553,447)

Total N'000

-

4,232,249 369,966

Profit for the year

-

-

-

-

-

369,966

-

Appropriation for Contingency reserve for the yr

-

-

-

-

62,865

(62,865)

-

-

FV gain on quoted shares(AVFS)

-

-

-

(82,629)

-

-

-

(82,629)

Pre and post acquisition reserves

-

-

-

-

-

Revaluation Surplus

-

196,197

571,320

-

767,517

-

-

Transactions with owners

-

Acqusition of shares

-

-

-

-

-

-

Goodwiil

At 1 January 2015

5,996,587

7,667,476

-

-

1,671,831

Ordinary Share capital

Share Premium

Revaluation Reserve

N'000

N'000

N'000

5,996,587

7,667,475

(19,024)

N'000

1,114,518

1,449,062

N'000

500,536

-

-

-

-

Appr.for Contingency reserve for the year

-

-

-

-

Fair value gain on quoted shares (AVFS)

-

-

-

Revaluation surplus on building

-

-

Allotment of treasury shares

-

-

Transactions with owners

-

Transfers for the year

5,996,587

-

31ST DECEMBER, 2015 Fair value Contigency Reserve Reserve

Loss for the year

At 31 December 2015

-

-

Transfers for the year At June 30, 2016

-

191,827

(12,050,149)

571,320

5,287,103

Retained Earnings

Non Controlling

Total

N'000

N'000

N'000

(13,220,960) 836,970

343,085

3,644,664

50,511

887,481

(191,827)

-

-

-

(436,930)

-

-

-

557,314

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

7,667,475

557,314

1,671,832

(436,930)

1,243,423

-

63,606

1,435,250

(12,575,817)

393,596

4,652,529

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENT FOR THE PERIOD ENDED SEPTEMBER 30, 2016 CONSOLIDATED STATEMENT OF CASH FLOW Group Company Group 30-Sep-16 30-Sep-16 31-Dec-15 CASH-FlOWS FROM OPERATING ACTIVITIES N'000 N'000 N'000 Premium received from policy holders 3,665,744 1,985,238 5,556,658 Cash received on DA 933,833 1,278,175 Interest received on investments 105,238 48,077 170,496 Dividend received 308 160 22,393 Rent and sundry income 16,709 14,485 49,569 Other income 296 296 12,469 Claim paid (net of recoveries) (913,620) (454,520) (1,779,930) Fees and commission 154,577 31,781 338,141 Cash payments for reinsurance (575,565) (345,339) (812,519) Brokers commissions and allowances (403,588) (250,377) (867,072) Agents allowances and commissions (152,536) Cash payments to employees, suppliers and others (1,311,256) (832,832) (1,901,942) Loans against policy (16,877) Staff Loan repayment 3,139 Cash withdrawals on DA (1,255,001) (1,551,036) 251,401 196,969 515,402 Tax paid: Income tax (72,750) (43,826) (67,353) Value Added Tax (VAT) (3,498) NET OUTFLOWS FROM OPERATING ACTIVITIES 178,651 153,143 444,551

Company 31-Dec-15 N'000 3,052,766 86,103 15,881 33,821 10,487 (839,174) 52,044 (602,574) (428,416) (1,030,310)

350,628 (67,353) 283,275

CASH FLOWS FROM INVESTING ACTIVITIES

Purhase of Property plant and Equipment Purchase of HTM Financial Asset Purhase of Intangible assets Sale of Shares Income from investment property Proceeds from sale of Property, Plant and Equipment Acquisition of Interest in Blueberry project NET CASH INFLOWS FROM INVESTING ACTIVITIES

(35,001) (83,540) (7,500) 8,802 (117,239)

(32,116) (32,116)

(155,119) 204,677 (3,620) 210,000 1,218 (75,328) 181,828

(114,290) 204,677 (3,620) 210,000 1,218 (75,328) 222,657

(4,629) (46,115) (44,597) (95,341) (33,929) 1,317,865 1,283,934

(1,243) (37,320) (44,597) (83,160) 37,867 730,785 768,652

(286,350) (248,476) (43,950) 94,578 (484,198) 142,181 1,175,685 1,317,866

(263,349) (248,476) (43,950) 79,392

294,299 989,638 1,283,937

127,131 641,524 768,655

240,753 1,077,113 1,317,866

67,521 663,264

CASH FLOWS FROM FINANCING ACTIVITIES

Finance charges Repayment of borrowing - Daewoo securities bond Loan obtained from FCMB Lease financing (net) Repayment of Term Loan Payment of preference dividend Proceeds from sale of treasury shares NET CASH OUTFLOWS TO FINANCING ACTIVITIES NET INC./(DEC) IN CASH AND CASH EQUIVALENTS

Cash and cash equivalent at 1 January NET CASH AND CASH EQUIVALENTS AT 31 MAR

(476,383) 29,549 701,236 730,785

NET CASH AND CASH EQUIVALENTS COMPRISE:

Current and domiciliary accounts balances Short term deposits - Local banks Unreconciled bank balances Bank overdraft

730,785

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS 1

THE COMPANY Please see the descrption of the Company as presented on pages below

2

ACCOUNTING POLICIES The accounting policies adopted by the Company in the preparation of these financial statements and which have been consistently applied over the periods are as fully disclosed

3

CASH AND CASH EQUIVALENTS

Group

Company

Group

Company

30-Sep-16 N'000

30-Sep-16 N'000

31-Dec-15 N'000

31-Dec-15 N'000 1,500

Cash at hand

2,253

2,095

1,500

Cash in bank - Unclaimed dividend

2,383

2,383

2,383

2,383

122,654

236,870

63,638

-

-

294,300

127,132

240,753

67,521

989,637

641,524

1,077,113

663,264

1,283,937

768,656

1,317,866

730,785

Current and Domicilliary accounts

Short term deposits with other Financial Institutions

289,664

-

-

768,656

1,317,866

730,785

Impairment provision (Note 3.1) 1,283,937 3.1 Impairment provision At 1 January

-

-

-

-

Impairment charged for the year (Note 35)

-

-

-

-

Impairment charges written back

-

-

-

-

Impairment provision now written off

-

-

-

-

-

-

-

18,365

At 30 September 2016 4

-

FINANCIAL ASSETS At fair value through Profit or loss (Note 4.1)

32,928

14,898

36,395

Loans & Receivables (Note 4.2)

89,978

9,927

80,224

12,629

432,046

351,319

433,948

433,948

376,144

550,567

464,942

Available for sale (Note 4.3)

554,952 4.1 Financial assets at fair value through Profit or loss Quoted securities Cost Cost of Disposal Fair value changes Market value The fair value changes are further analysed thus: At 1 January Fair value gains/(losses) during the year At 30 September 2016

391,859

309,921

416,371

334,433

0

-

(24,512)

(24,512)

(358,931)

(295,023)

(355,464)

(291,556)

32,928

14,898

36,395

18,365

.

.

(355,464)

(291,556)

(337,147)

(275,484)

(3,466)

(3,466)

(18,317)

(16,072)

(358,930)

(295,023)

(355,464)

(291,556)

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS Group 4.2 Loans & Receivables

30-Sep-16 N'000

Loan against policy

30-Sep-16 N'000

Group

Company

31-Dec-15 N'000

31-Dec-15 N'000

0

-

0

0

9,927

9,927

17,049

12,629

80,051

-

63,175

0

89,978

9,927

80,224

12,629

SA Properties (Note 4.3.1) Staff Debtors

Company

4.2.1 SA Properties -

1,890,433

1,890,433

At 1 January

-

Interest income for the year

-

-

-

-

At 30 September

-

-

1,890,433

1,890,433

Impairment provision

-

-

-

-

-

-

1,890,433

1,890,433

-

(1,890,433)

(1,890,433)

0

0

-

-

Acquisition of buildings for resale

-

Provision for Dimunition

-

At 30 June

-

-

Amount represents investment by the Company in Standard Alliance Properties Limited under a joint venture arrangement for property business. The terms of the arrangement include annual interst income and share of profit.

4.3 Available for sale financial assets Investment in Bluberry Project Quoted shares in Transcorp Plc (Note 4.3.2)

30-Sep-16 N'000

30-Sep-16 N'000

31-Dec-15 N'000

31-Dec-15 N'000

177,628

177,628

177,628

177,628

173,691

173,691

256,320

256,320

0

-

-

-

80,727

-

-

-

351,319

433,948

433,948

Preference Shares in Lagoon Homes Other Financial Asset

432,046 4.3.1 Investment in Blueberry Project

This represents the company's investment in Blueberry Technology Solutions Limited under joint venture arrangement for the provision of Electronic National Drivers' and Vehicles Identification system for the Kaduna State Government. Under the terms of agreement revenue from 177,628 177,628 177,628 177,628 the project is to be shared by both parties. 4.3.2 Investment in quoted shares Cost At 1 January Addition during the year Disposal during the year At 30 September 2016 Fair Value Gain Market Value

120,835

120,835

147,235

-

0

0

0

(26,400)

(26,400)

120,835

120,835

120,835

120,835

52,856

52,856

135,485

135,485

173,691

173,691

256,320

256,320

0

147,235

The fair value changes are further analysed thus: At 1 January Fair value gain/(loss) realised on disposal Fair value gain/(loss) during the year At 30 September 2016

135,485

135,485

572,415

572,415

0

0

(145,200)

(145,200)

(82,629)

(82,629)

(291,730)

(291,730)

52,856

52,856

135,485

135,485

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENT FOR THE PERIOD ENDED SEPTEMBER 30, 2016 Group NOTES TO THE FINANCIAL STATEMENTS 30-Sep-16 N'000 4.3.4 5% 5year Redeemable Preference Shares in Lagoon Homes Savings andyear, Loans During the the Ltd Company converted its term deposits with Lagoon Homes Savings and Loans Limited to preference shares Less Impairmrnt Provision 5

TRADE RECEIVABLES Premium receivable Dues from brokers Impairment allowance

225,434 0 225,434

6

REINSURANCE ASSETS Claims recoverable Deferred reinsurance cost

1,315,688 190,359 1,506,047

Company

Group

Company

30-Sep-16 N'000 -

31-Dec-15 N'000

31-Dec-15 N'000

162,848 (162,848) -

162,848 (162,848) -

225,434 -

49,994

49,994

225,434

49,994

49,994

910,094 124,504

750,428 282,556

368,169 124,504

1,034,598

1,032,984

492,673

All of the above amounts are of current tenor. 7

DEFERRED ACQUISITION COSTS Motor Aviation Engineering Fire General Accident Marine Bond Oil & Gas Life The movement in deferred acquisition cost are: At 1 January Additions during the year Amortization for the year Life At September 30

8

OTHER RECEIVABLES AND PREPAYMENTS Prepayments Loans and Receivables (Note 8.1) Staff Debtors Sundry Inter Company Receivable

8.1 Loans and Receivables Current account with related companies Write off during the year Impairment allowance

22,067

22,067

21,848

21,848

171 8,274 19,972 31,551 17,197 5,848 4,200 0

171 8,274 19,972 31,551 17,197 5,848 4,200 -

170 8,192 19,774 31,239 17,026 5,791 4,159 23,039

170 8,192 19,774 31,239 17,026 5,791 4,159 -

109,280

109,280

131,238

108,199

108,198 0 1,082 0 109,280

108,198 1,082 109,280

125,904 872,406 (867,072)

96,442 440,173 (428,416)

131,238

108,199

18,501 9,928 0 30,180 301,231

5,541 9,928 28,243

35,804 28,614 656

12,003 16,114 -

359,840

43,712

65,074

28,117

162,848 (162,848)

162,848 (162,848)

-

-

-

-

-

9 NON CURRENT ASSETS HELD FOR SALE At 1 January Additions during the year Life 10 INVESTMENT PROPERTIES At 1 January Additions during the year Disposal during the year Changes in FV At September 30 These comprise the following properties: 250 Hecters of farmland at Mydumbi, Kaduna - Zaria 10 2 B/room Terrace hs and a wing of 4 B/room duplex 6 storey lettable office complex 11 units of '4-Bedroom terrace houses at New County Lekki Property on No 1207, Yakubu Gowown Street, Abuja Fair value changes in Investment Property Life

-

-

-

1,890,433.00 -

1,890,433 -

1,890,433 -

1,890,433

1,890,433

1,890,433

1,150,000 0 0

2,527,001 (350,000) 1,127,562

1,435,000 (350,000) 65,000

1,150,000

3,304,563

1,150,000

50,000

50,000

50,000

50,000

0 0 1,100,000

1,100,000

1,100,000

1,100,000

0 0

0 2,154,563

-

3,304,563

1,150,000

1,890,433 1,890,433

3,304,563 0 3,304,563

2,154,563 3,304,563

1,150,000

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS

11

INVESTMENTS IN SUBSIDIARY

Group

Subsidiary Company

Group

Company

30-Sep-16

30-Sep-16

31-Dec-15

31-Dec-15

N'000

N'000 N'000

N'000

N'000

SA Life Ltd. Cost

-

1,938,497

Share of post acquisition reserves (Note 10.1)

-

(1,531,769)

150, 000

-

1,938,497

-

(1,531,769)

-

Carrying amount at 30 June

-

406,728

-

-

406,728

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS Group 30-Sep-16 N'000 12 GOODWILL AND INTANGIBLE ASSET

Company 30-Sep-16 N'000

Group 31-Dec-15 N'000

Company 31-Dec-15 N'000

COMPUTER SOFTWARE COST AT 1 January Additions

AMORTISATION AT 1 January Amortisation for the year

136,549 7,500

43,432 -

132,928

39,812

3,620

3,620

144,049

43,432

136,548

43,432

124,791

35,190

103,103

32,126

3,664

1,082

21,688

3,065

128,455

36,272

124,791

35,191

15,594

7,160

11,758

8,242

CARRYING AMOUNT

The intangible asset above relate to the Company's accounting software packages (Turnquest) bought from Turnkey Africa, a Company registered in Nairobi, Kenya.

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS 13

PROPERTY, PLANT AND EQUIPMENT 30-Sep-16

31-Dec-15

Group

COST

At 1/1/2016

Land

Building

Motor vehicles

Furniture and fittings

Computer and other equipments

Total

Total

N'000

N'000

N'000

N'000

N'000

N'000

N'000

859,212

224,300

452,138

4,149,150

3,608,682

957

4,814

36,391

154,859

455,000

2,158,500

Additions

-

-

30,620

Revaluation surplus

-

-

-

Reclassification

-

Disposals At June 30, 2016 DEPRECIATION At 1/1/2016 Charge for the year Disposals At June 30, 2016

455,000

-

-

-

-

-

557,314

-

-

-

(157,314)

-

(28,804)

-

2,158,500

861,028

233

723,942

150,266

35,975

72,288

14,402

36,208

(28,804) 767,426

164,668

400,886

(28,687) 1,369,305

2,122,292

93,602

60,589

56,066

2,786,260

2,158,267

135,269

74,035

75,323

2,897,894

225,257

456,952

(28,804)

(14,390)

4,156,737

4,149,151

376,817

1,251,258

1,236,513

24,069

146,734

28,206 (13,461) 1,251,258

CARRYING AMOUNT At 30 September 2016 31 December 2015

455,000 455,000

2,897,894

Company

COST At 1/1/2016 Additions

Land

Building

Motor vehicles

Furniture and fittings

N'000

N'000

N'000

N'000

455,000

2,155,000

N'000

N'000

3,514,623

3,014,723

507

989

32,116

114,290

-

-

0

557,314

Revaluation surplus (Note 25)

-

-

-

Reclassification

-

455,000

Total

278,515

30,620

At September 30, 2016

Total

131,525

-

31-Dec-15

494,583

-

Disposals

Computer and other equipments N'000

30-Sep-16

-

-

-

-

(157,314)

-

(14,390)

2,155,000

525,203

132,032

279,504

3,546,739

3,514,623

-

423,993

89,117

231,003

744,113

792,117

103,946

(34,175)

DEPRECIATION At 1/1/2016 Charge for the year

-

35,917

44,690

7,188

16,151

Disposals

-

-

-

-

-

At September 30, 2016

-

35,917

468,683

96,305

247,154

848,059

744,113

2,119,083

56,520

35,727

32,350

2,698,680

2,770,510

2,155,000

70,590

42,408

47,512

2,770,510

2,770,510

-

-

13,829

CARRYING AMOUNT

At 30 September 2016 31 December 2015

455,000 455,000

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS

14

STATUTORY DEPOSIT

Group

Company

Group

Company

30-Sep-16 N'000

30-Sep-16 N'000

31-Dec-15 N'000

31-Dec-15 N'000

335,000

335,000

335,000

535,000

This represents the mandatory deposit maintained with Central Bank of Nigeria in accordance with the Insurance Act CAP 117 LFN 2004 as a general business insurance company.The deposit is entirely non-current.

15

INSURANCE CONTRACT LIABILITIES Unearned Premium reserve (Note 15.1)

2,079,004

683,004

1,054,125

803,535

Outstanding claims (Note 15.2)

2,109,553

1,496,258

3,350,616

1,423,312

4,188,557

2,179,262

4,404,741

2,226,847

The insurance contract liabilities balances above are covered by the company's dedicated assets as thus Cash and cash equivalent (Note 3) Financial assets (Note 4) Investment Properties (Note 9) Statutory Deposit

INVESTMENT CONTRACT LIABILITIES Deposit Administration Fund Withdrawals during the year

15.1 Unearned Premium Reserve Aviation Bond Engineering Fire General Accident Marine Motor Oil & Gas Life

15.2 Outstanding Claims Accrued Claims (Note 15.2.1) Provision for claims (IBNR) (Note 15.2.2)

15.2.1 Accrued Claims At 1 January Reported claims in the current year Claims paid during the current year

837,109 224,355 2,792,093 335,000 4,188,557

768,656 204,490 871,116 335,000 2,179,262

1,317,866 550,567 2,001,308 535,000 4,404,741

729,285 452,313 710,249 335,000 2,226,847

1,703,643 (1,255,001) 448,642

-

-

-

2,079,004

1,459 25,150 38,525 80,495 143,808 80,035 162,428 151,104 683,004

1,716 29,588 45,324 94,701 169,186 94,159 191,092 177,769 250,590 1,054,125

1,716 29,588 45,324 94,701 169,186 94,159 191,092 177,769 803,535

2,011,954

1,398,659

1,768,744

1,097,984

97,599 2,109,553

97,599

1,581,872

325,328

1,496,258

3,350,616

1,423,312

1,097,984

1,097,984

1,593,010

1,184,508

1,358,289

744,994

2,053,771

800,034

(444,319)

(1,877,258)

(886,558)

1,459 25,150 38,525 80,495 143,808 80,035 162,428 151,104 1,396,000

(444,319) 2,011,954

1,398,659

1,769,523

1,097,984

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS 15.2.2 Claims incurred but not reported (IBNR) At 1 January Movement charged to claims expenses

Group

Company

Group

Company

30-Sep-16

30-Sep-16

31-Dec-15

31-Dec-15

N'000 325,328

N'000 325,328

(227,729) 97,599

N'000

N'000

(227,729)

325,328 1,256,544

325,328 0

97,599

1,581,872

325,328

The breakdown of the outstanding claims per class of general business is: Aviation

16

117,084

117,084

150,478

150,478

Bond

30,066

30,066

48,634

48,634

Engineering

35,514

35,514

36,813

36,813

Fire

357,197

357,197

269,153

269,153

General Accident

157,399

225,804

225,804

157,399

Marine

55,874

55,874

28,641

28,641

Motor

113,319

113,319

156,611

156,611

Oil & Gas

463,800

463,800

250,255

250,255

Life

613,295 2,011,953

1,398,658

670,760 1,768,744

1,097,984

121,584

8,191

157,331

75,986

Due to Government Agencies

19,439

9,218

Rent received in advance (Note 17.1)

11,977

7,144

31,499 19,315

23,950 12,354

Due to Staff

59,547

27,803

57,090

29,814

Accrued Expenses

50,937

8,211

120,588

81,062

Unclaimed Dividend

2,383

2,383

2,383

2,383

Other credit balances

359,938

314,137

63,752

192,186

Preference dividend payable (Note 17.2)

175,000

175,000

175,000

175,000

679,221

543,896

469,627

516,749

Current

490,016

418,088

469,627

516,749

Non-Current

189,206

125,809

679,222

543,897

TRADE PAYABLES Due to Reinsurers

17

OTHER PAYABLES AND ACCRUALS

The above amounts are further analysed as: -

-

469,627

516,749

17.1 Rent received in advance This is the rent received from the office space let out in the HO building and from the investment properties @ new county estate

7,144

11,977

19,315

12,354

175,000

175,000

-

-

175,000

175,000

17.2 Preference dividend payable At 1 January Paid during the year Due for the year

175,000

175,000 175,000

175,000

STANDARD ALLIANCE INSURANCE PLC

FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016

NOTES TO THE FINANCIAL STATEMENTS

Group

Company

Group

Company

30-Sep-16

30-Sep-16

31-Dec-15

31-Dec-15

N'000 18

N'000

N'000

N'000

FINANCIAL LIABILITIES/BORROWINGS Daewoo Securities Bond (Note 18.1) First City Monument Bank Plc - Term Loan(Note 18.2)

1,090,834

1,090,834

647,541

96,714

96,714

148,377

647,541 148,377

Bank Overdrafts

0

-

-

Unreconciled bank balances

0

-

-

1,187,548

1,187,548

795,918

795,918

18.1 Daewoo Securities Facility Balance, at beginning of the year

647,541

647,541

-

-

Additions during the year(Exchange Rate Differential)

443,293

443,293

-

-

-

-

-

1,090,834

-

-

Repayments during the year Balance, at end of year

0 1,090,834

N'000

N'000

18.2 First City Monument Bank Plc -Term Loan Balance, at beginning of the year Additions during the year Repayments during the year Balance, at end of year

148,377 0

148,377 -

(51,663)

(51,663)

96,714

96,714

192,327 (43,950)

192,327 (43,950)

148,377

148,377

The loan attracts interest at the rate of 18% per annum.

Current maturities

59,777

59,777

80,593

80,593

Non-current maturities

36,937

36,937

67,784

67,784

148,377

148,377

0 96,714

96,714

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENT FOR PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS

19

Group

Company

Group

Company

30-Sep-16

30-Sep-16

31-Dec-15

31-Dec-15

N'000

N'000

N'000

N'000

FINANCE LEASE OBLIGATIONS Balance, at beginning of the period

111,800

42,120

32,408 122,247

(49,908)

(41,112)

147,145 (52,567)

(42,855)

86,790

70,688

136,698

111,800

136,698

Additions during the period Repayments during the period Balance, at end of period

0

The Company obtained lease facilities totalling =N=48,836,000 at 21% rate of interest from Diamond Bank to finance the acquisition of motor vehicles during 2013 These motor vehicles are included in the property, plant and equipment of the Company as at March 31, 2016 The rentals due as at 30 September are further analysed as follows Less than 3 months

21,750

16,859

26,990

26,990

Between 3 and 6 months

27,867

23,392

14,578

14,578

Between 6 and 12 months

25,781

21,536

36,524

22,780

Over 12 months

11,392

8,901

58,606

47,452

86,790

70,688

136,698

111,800

Current income tax liabilities

20

N'000

N'000

N'000

N'000

Per Statement of comprehensive income 94,863

Company income tax

94,863

Education tax

-

-

Information technology development levy

-

-

94,863 Per Statement of Financial Position

N'000

92,007

64,077

8,717

94,863 N'000

8,717

(169,165)

(169,165)

(68,441)

(96,371)

N'000

N'000

Balance at beginning of the year Company income tax

214,013 -

Education tax Information technology development levy Tax expense for the year

-

170,561

323,287

314,362

-

26,520

19,923

-

-

-

214,013

170,561

349,807

334,285

65,939

94,863

92,007

64,077

8,717

8,717

Provisions for the year: Company income tax Education tax Information technology development levy

-

-

-

-

-

Overprovision in prior years

-

(169,165)

(169,165)

Payments during the year: Company income tax Education tax Information technology development levy At 30 September 2016 21

(35,000)

(35,000)

(58,693)

(58,693)

(8,826)

(8,826)

(8,660)

(8,660)

-

-

-

-

236,126

221,598

214,013

170,561

326,273

305,560

326,273

305,560

9,486

9,486

335,759

315,046

9,486

9,486

DEFERRED TAX LIABILITIES At 1 January Charge for the year (Note 21.1) At 30 September 2016

-

-

326,273

305,560

21.1 Charge for the year Profitt or loss charge on timing differences of carrying amounts of taxable assets Tax recorded in other comprehensive income

0 - Charge on timing difference of carrying amount of taxable assets - Revaluation surplus on building (Note 25.1)

0

- Fair value gains on available for sale investments (Note 25.2) 0 9,486 22

-

-

-

-

-

-

-

-

9,486

-

-

ORDINARY SHARE CAPITAL 14,000,000,000 units of ordinary shares of 50k each 7,000,000

7,000,000

7,000,000

7,000,000

- 11,993,173,000 units of ordinary shares for 2012. 5,996,587

5,996,587

7,000,000

7,000,000

7,000,000

7,000,000

22.2 Issued and Fully Paid Share Capital: Ordinary shares 5,996,587

5,996,587

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS

24

Group

Company

Group

Company

30-Sep-16

30-Sep-16

31-Dec-15

31-Dec-15

N'000

N'000

N'000

N'000

CONTINGENCY RESERVE Contingency reserve is provided for at the rate of 3% of the total premium or 20% of net profit (whichever is greater for the year) in accordance with section 22 (1)(b) of the Insurance Act 2003. At 1 January Charge for the year

1,386,197

1,386,197

1,243,423

1,243,423

62,865

62,865

168,156

142,773

Post acquisition reserve

0

-

-

-

1,449,062

1,449,062

1,411,579

1,386,196

(12,553,447)

(12,553,447)

(13,220,960)

(13,220,960)

25 ACCUMULATED LOSS At 1 January (Loss)/Profit for the year

369,966

369,966

836,970

810,238

Appropriation to contingency reserve

(62,865)

(62,865)

(168,156)

(142,773)

Pre and Post acquisition adjustments

196,197

0

-

-

(12,050,149)

(12,246,346)

(12,552,146)

(12,553,495)

At 1 January

1,671,832

1,671,832

1,114,518

1,114,518

Addition during the year(Note 12)

1,671,832

1,671,832

557,314 1,671,832

557,314 1,671,832

26 REVALUATION RESERVES

27

FAIR VALUE RESERVE This is the net accumulated changes in fair value of available for sale assets. Further details are: At 1 Jan Transfer to P or L during the year Fair value loss

63,605 0

63,605 0

500,536 (436,930)

500,536 (436,930)

(82,629)

(82,629)

(19,024)

(19,024)

0 63,606

0 63,606

0

(145,200)

(145,200)

Fair value reserves include the net accumulated changes in the FV of available for sale assets Further details are: Transfer to P or L Fair value (loss)/gains on available for sale - (Note 4.3.2) Deffered Tax on fair value gains for the year

0 (82,629) (82,629)

(82,629) (82,629)

-

291,730.00

-

291,730.00

-

-

(436,930)

(436,930)

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS

27 GROSS PREM.INCOME Aviation

Bonds

Engineering

Fire

General Accident

N'000

Premium written

16,986

N'000

47,491

N'000

62,684

N'000

283,112

N'000

350,817

Motor Marine N'000

358,836

Company

Group

Group

Company

30-Sep-16

30-Sep-16

30-Sep-15

30-Sep-15

N'000

N'000

N'000

N'000

Oil & Gas

Accident N'000

336,573

N'000

610,683

2,067,182

3,689,828

2,512,392

2,527,933

Inward reinsurance premium

Movements in unexpired risks

Gross premium

46

-

4,835

1,152

12,606

6,734

1,658

1,291

28,322

193,745

-

17,032

47,491

67,519

284,264

363,423

365,570

338,231

611,974

2,095,504

3,883,573

257

4,438

6,799

14,205

25,378

14,124

28,664

25,968

119,833

230,967 -

2014 17,289

51,929

74,318

298,469

388,801

379,694

366,895

637,942

2,215,337

4,114,540

2,512,392

2,527,933

10,677

4,836

-

34,124

40,706

15,322

-

239,675

345,340

627,789

312,310

467,278

2,512,392 -

2,527,933 -

28 REINSURANCE PREMIUM EXPENSES Expense

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS

29

Group

Company

Group

Company

30-Sep-16 N'000

30-Sep-16 N'000

30-Sep-15 N'000

30-Sep-15 N'000

-

-

COMMISSION EARNED ON REINSURANCE 0

0

Bond

1,330

1,330

26

Engineeering

2,936

2,936

1,283

Fire

11,090

11,090

24,964

921

General Accident

12,212

12,212

10,214

1,083

4,214

4,214

22,357

653

0

0

26,733

(467)

Aviation

Marine Motor Oil & Gas Life

30

-

103,226

1,752

Claim paid

666,734

444,319

1,515,363

801,089

Increase in outstanding Claims (Note 14.2.1)

688,940

300,233

(40,327)

(227,730)

(227,730)

-

CLAIMS EXPENSES

1,127,944

(40,327) -

516,822

1,475,036

760,762

11,758

UNDERWRITING EXPENSES Acquisition Cost

9

11,758

9,476

9,476

7,555

7,555

Engineering

15,671

15,671

24,667

24,667

Fire

44,087

44,087

36,656

36,656

General Accident

74,750

74,750

102,393

102,393

Marine

72,739

72,739

98,033

98,033

Motor

34,585

34,585

51,494

51,494

6,320

6,320

10,386

10,386

11,857

11,857

42,197

42,197

Aviation Bond

Oil & Gas Others Life - Acquisition Cost/Brokers Commission Agents Allowance and Commission Medical Expenses Salaries and other admin expenses Maintenance Cost Deffered commision

9.00

133,036

-

69,791

-

152,536

-

156,401

-

-

248

-

-

489,276

531,606

-

1,086,672

269,494

1,100,855

385,139

66,153

66,153

60,355

60,355

-

-

-

-

1,152,825

335,647

1,161,210

445,494

Interest on deposits

54,218

48,077

24,024

24,024

Lease rental income

14,485

14,485

22,238

22,238

Dividend received

160

160

15,665

15,665

Sundry income

296

296

7,681

7,681

69,159

63,018

69,608

69,608

INVESTMENT INCOME

(107,499)

-

(69,983)

-

30,025

-

5,637

-

Investment Income on Insurance Contract

0

-

27,560

-

Fair Value Gain on Investment Properties

0

-

0

-

0

-

0

-

Profit/Loss on Investment Contract Investment Income on Annuity

Foreign Exchange difference

(443,623)

Gain on disposal of Quoted Shares Others

0

Loss/Gain on investment property disposal

(443,623) 0

2,225 (449,713)

33

63 17,586

31,782

Gross claims incurred

32

-

171

154,578

Increase/(Decrease)in Claims IBNR(Note 14.2.2)

31

0

0 122,796

(609)

(380,605)

858 33,680

69,608

-

-

-

-

-

-

-

-

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS 34

Group

Company

571,047

336,468

447,073

255,829

74,564

46,946

66,402

26,515

Director fees and allowances

48,485

16,184

73,711

46,735

Insurance expenses

15,596

9,244

14,890

3,651

Rent and rates

45,960

18,222

49,562

15,254

Repairs and maintenance

146,453

121,193

130,518

94,168

Depreciation and amortisation

159,764

114,493

139,167

79,790

67,830

59,666

155,143

146,397

Professional fees

9,908

5,547

11,714

5,810

Printing and stationery

23,944

20,505

17,855

16,753

Advertisement

10,340

7,903

84,354

84,354

839

839

695

695

Telephone and postages

15,418

10,369

19,445

14,929

Other administrative expenses

13,965

8,343

35,105

31,931

1,691

1,691

34,485

20,613

151

151

4,335

4,335

4,500

0

5,000

5,000

Fines and Penalties

39,612

13,940

28,954 -

-

Misc office expenses

34,276

34,276

42,942

42,942

Travelling, outstation and hotel expenses

17,152

2,527

31,067

11,704

3,467

3,467

1,056

1,056

Share capital expenses

14,025

0

84,314

58,331

Corporate expenses

20,415

15,890

56,148

30,104

Others

67,113

0

6,600

1,406,515

847,864

1,540,533

996,896

1,406,515

847,864

1,540,533

996,896

847,864

1,051,257

Bank charges

Books and periodicals

Supervisory levies Staff training and development Audit fee

Annual General Meeting expenses

Management Expenses Total Less - Allocation to Underwriting Expenses

FINANCIAL CHARGES Bank interests

(489,276)

(502,786) 903,729

Sep-16

Sep-16

Dec-15

N'000

N'000

N'000

23,606

23,606

Dec-15 N'000 27,321 768

3,386

-

2,017

Interest on Daewoo bond

-

-

-

23,606

996,896

45,877

Lease charges

26,992 36

Group

Other staff costs

Salaries and allowances

35

Company

MANAGEMENT EXPENSES

0

47,894

28,089

IMPAIRMENT CHARGES Impairment charges are:

36

Cash and cash equivalent (Note 3.1)

-

-

Current account balances (Note 8.1.1)

-

-

93

Write back of impaired deposit (Note 3.1)

-

-

513

-

606

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

INFORMATION TECHNOLOGY DEVELOPMENT LEVY At 1 January Appropriation for the year

-

-

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS

Group

Company

Group

Company

The Nigerian Information Technology Development Agency (NITDA) Act was signed into law on 24 Apri, 2007. Section 12(a) of the Act stipulates that specified companies contribute 1% of their profit before tax to the Nigerian Informaion Technology Development Agency. 37

PROFIT BEFORE TAXATION Profit before taxation is stated after charging/(crediting):

38

Depreciation

146,635

103,946

117,414

77,821

Amortization

3,664

1,082

2,134

2,134

Auditors' remuneration

18,440

13,940

5,000

5,000

Director's remuneration

48,486

16,184

46,735

46,735

49,994

49,994

158,091

32,646

2,095,504

2,095,504

3,438,727

2,527,931

2,145,498

2,145,498

3,596,818

2,560,577

PREMIUM RECEIPTS FROM POLICY HOLDERS Premium due from policyholders at 1 January Gross Premium written in the year Less: Premium debts written off Premium due from policyholders at 31 March Premium receipts in the year

0 (225,434) 1,920,064

(225,434) 1,920,064

(125,445) (73,322) 3,398,051

(73,322) 2,487,255

STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2016 NOTES TO THE FINANCIAL STATEMENTS 39 BUSINESS SEGMENT INFORMATION The Company currently identifies product lines as its operating segments. These operating segments are monitored by the company's Managing Director who makes strategic decisions on the basis of segment operational needs and results. The Company operates principally in non life general insurance business. Its major products are aviation, fire engineering, general accident, marine, motor, bond, and oil and gas policies. The result of the segment operations for the year which include items directly attributable to each segement as well as those items that can be allocated on a reasonable basis are highlighted below Subsdiary Company General Aviation

Engineering

Fire

Accident

Oil Marine

Motor

Bond

30-Sep-16

Company 30-Sep-15

& Gas

N'000

N'000

N'000

N'000

N'000

N'000

N'000

N'000

N'000

N'000

17,032

67,519

284,264

363,423

365,570

338,231

47,491

611,974

2,095,504

2,512,392

257

6,799

14,205

25,378

14,124

28,664

4,438

25,968

119,833

-

17,289

74,318

298,469

388,801

379,694

366,895

51,929

637,942

2,215,337

2,512,392

(4,836)

(239,675)

47,093

398,267

Premium Income Premium written (Increase)/Decrease in Unearned premium Gross Premium written in the year Reinsurance premium expenses Net premium written Commission received on reinsurance Underwriting income

(10,677) 6,612

74,318

(34,124)

(40,706)

(15,322)

264,345

348,095

364,372

366,895

(345,340) 1,869,997

(312,310) 2,200,082

-

2,936

11,090

12,212

4,214

-

1,330

-

31,782

44,212

6,612

77,254

275,435

360,307

368,586

366,895

48,423

398,267

1,901,779

2,244,295

Less Expenses Claim paid Dec/Inc in prov. For O/S Claims Claims incurred but not reported (IBNR)

Claims expenses recoveries from reinsurers Net Claims expenses

14,079

44,040

140,957

45,225

24,126

121,430

22,703

31,758

444,318

592,756

-

(33,411)

86,745

68,060

27,233

(43,373)

(18,567)

213,544

300,231

-

8,107

(7,613)

(43,863)

(37,090)

(1,985)

(42,970)

(17,008)

(85,308)

(227,730)

22,186

3,016

183,839

76,195

49,374

35,087

(12,872)

159,994

516,819

592,756

(680,524)

(293,456)

(163,705)

299,300

257,637

261,783 454,551

-

(398,533)

-

(221,050)

(54,967)

(5,974)

22,186

(395,517)

183,839

(144,855)

(5,593)

29,113

(12,872)

-

15,671

44,087

74,750

72,739

34,585

9,476

6,320

159,994

-

Underwriting expenses Commission paid less deferred cost

9

Other underwriting expenses

634

2,514

10,582

13,529

13,609

12,591

1,768

22,782

78,009

Total underwriting expenses

643

18,185

54,669

88,279

86,348

47,176

11,244

29,102

335,646

716,334

22,829

(377,332)

238,508

(56,576)

80,755

76,289

(1,628)

189,096

171,941

1,015,634

(16,217)

454,586

36,927

416,883

287,831

290,606

50,051

209,171

1,729,838

1,228,662

Total Expenses Underwriting profit