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