CONTINENTAL REINSURANCE PLC UNAUDITED CONSOLIDATED ...

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Continental Reinsurance Plc. For the period ended 31 March, 2018. JAN-MAR. JAN-MAR. 2018. 2017. Note. =N='000. =N='000.
CONTINENTAL REINSURANCE PLC UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2018

Continental Reinsurance Plc Unaudited Consolidated Financial Statements For the period ended 31 March, 2018 Contents

Page

Statement of Comprehensive income-Group

1

Statement of Comprehensive income-Company

2

Statement of Financial Position

3

Statement of Changes in Equity-Group

4

Statement of Changes in Equity-Company

5

Statement of Cash Flows

6

Notes to the Financial Statements

7 - 18

Continental Reinsurance Plc Consolidated Statement of Profit or Loss and other Comprehensive Income For the period ended 31 March, 2018 GROUP

Note Gross written Premium

JAN-MAR 2018 =N='000

JAN-MAR 2017 =N='000

7,715,512

6,565,316

1.1 1.2

7,790,018 (800,225) 6,989,794

5,995,576 (725,750) 5,269,826

2.1

3,391,395

2,746,806

Insurance claims and loss adjustment expenses recoverable from retrocessionaire Net insurance benefits and claims

2.1

(112,038) 3,279,357

(97,571) 2,649,235

Underwriting expenses Insurance benefits and underwriting expenses

2.2

2,786,876 6,066,234

2,382,093 5,031,328

3

923,560 557,752

238,498 432,269

4 5 5.1 5.2 6.1 6.2

64,276 (403,336) (213,417) 0

157,171 159,624 (281,870) -

8

928,835 (216,358) 712,477

705,693 (190,037) 515,656

712,477

515,656

28,617

-

-

328,297

28,617

14,573 342,870

741,094

858,526

647,980 64,497 712,477

455,624 60,032 515,656

676,597 64,497 741,094

798,494 60,032 858,526

7

5

Insurance premium revenue Insurance premium ceded to retrocessionaires Net insurance premium revenue Insurance benefits Insurance claims and loss adjustment expenses

Underwriting profit Net Interest income Net gains on financial assets designated at fair value through profit or loss Other income Foreign exchange gain/(loss) Income from investment in subsidiary Administration expenses Impairment of financial assets Profit before taxation Income tax expense Profit after taxation Profit for the year Other comprehensive income:

Other comprehensive income/(loss) to be reclasified to P & L in subsequent periods: Remeasurement gains on available for sale financial assets 7 Reclassification adjustments to gain on available for sale financial assets included in profit and loss 7 Exchange difference on translation of foreign operations Other comprehensive income/(loss) not to be reclasified to P & L in subsequent periods: Actuarial (loss)/gains on defined benefit plans 26 Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax Total Comprehensive Income for the year

Profit attributable to: Equity holders of the parent Non-controlling interest

Total comprehensive income attributable to: Equity holders of the parent Non-controlling interest

Earnings per share Basic (kobo)

10

1

Continental Reinsurance Plc Statement of Profit or Loss and other Comprehensive Income For the period ended 31 March, 2018 COMPANY

Note Gross written Premium

JAN-MAR 2018 =N='000

JAN-MAR 2017 =N='000

5,701,580

4,535,195

1.1 1.2

5,648,265 (484,671) 5,163,595

3,658,341 (436,186) 3,222,155

2.1

2,567,513

1,602,090

Insurance claims and loss adjustment expenses recoverable from retrocessionaire Net insurance benefits and claims

2.1

(72,523) 2,494,990

(64,990) 1,537,100

Underwriting expenses Insurance benefits and underwriting expenses

2.2

1,954,582 4,449,572

1,722,087 3,259,187

Insurance premium revenue Insurance premium ceded to retrocessionaires Net insurance premium revenue Insurance benefits Insurance claims and loss adjustment expenses

Underwriting profit Net Interest income Net gains on financial assets designated at fair value through profit or loss Other income Foreign exchange gain/(loss) Income from investment in subsidiary Administration expenses Impairment of financial assets Profit before taxation Income tax expense Profit after taxation

3

714,023 437,540

(37,032) 374,147

4 5 5.1 5.2 6.1 6.2

49,743 (332,592) (147,785) 0

154,843 201,586 (216,731) -

8

720,930 (180,232) 540,697

476,814 (119,203) 357,610

540,697

357,610

28,617 -

-

28,617

11,937 11,937

569,314

369,547

540,697 540,697

357,610 357,610

569,314 569,314

369,547 369,547

5

3

Profit for the year Other comprehensive income: Other comprehensive income/(loss) to be reclasified to P & L in subsequent periods: Remeasurement gains on available for sale financial assets 7 Reclassification adjustments to gain on available for sale financial assets includedin profit and loss 7 Exchange difference on translation of foreign operations Other comprehensive income/(loss) not to be reclasified to P & L in subsequent periods: Actuarial (loss)/gains on defined benefit plans 26 Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax Total Comprehensive Income for the year

Profit attributable to: Equity holders of the parent Non-controlling interest

Total comprehensive income attributable to: Equity holders of the parent Non-controlling interest

Earnings per share Basic (kobo)

10

2

Continental Reinsurance Plc Consolidated Statement of Financial Position As at 31 March 2018

Assets Cash and cash equivalents Financial assets -Financial asset designated as fair value -Loans and other receivables -Available-for-sale investments -Held to maturity investments Reinsurance receivables Retrocession assets Deferred acquisition costs Investment in Subsidiary Other assets Investment properties Intangible assets Property, plant and equipment Statutory deposits Total assets Liabilities Insurance contract liabilities Reinsurance creditors Other liabilities Retirement benefit obligations Current income tax Deferred taxation Total liabilities Equity Share capital Share premium Contingency reserve Retained earnings Available-for-sale reserve Foreign currency translation reserve Equity attributed to holder of parent Non-controlling interest Total equity Total Liabilities & equities

Chief Ajibola Ogunshola Chairman FRC:2017/IODN/00000016052

Note

GROUP COMPANY 31 March 31 December 31 December 31 March 31 December 2018 20172018 Budget2018 2017 =N='000 =N='000=N='000 =N='000 =N='000

11

12,912,215

9,079,093

10,357,076

12 13 14.1 14.2 15 16 17 18.1 18 19 20 21 22

2,223,376 452,133 1,788,943 9,838,108 11,794,687 3,118,890 2,169,200 1,014,644 2,756,171 20,547 2,465,921 1,000,000 51,554,836

2,159,476 492,278 2,121,225 7,613,318 9,922,254 2,759,666 2,291,853 329,430 2,857,111 20,168 2,488,615 1,000,000 43,134,489

399,660 1,759,885 8,053,538 8,003,206 2,143,760 1,501,752 2,272,473 940,503 2,756,171 20,228 2,364,696 1,000,000 41,572,949

6,680,113 439,081 2,090,531 6,065,330 6,184,435 1,877,676 1,501,752 2,272,473 756,128 2,857,111 19,849 2,379,583 1,000,000 34,124,061

23 24 25 26 8 9

18,397,548 4,586,674 4,379,023 288,154 1,785,603 318,773 29,755,774

17,965,990 1,356,210 860,223 306,457 1,550,357 318,212 22,357,449

12,875,744 4,153,749 4,318,785 288,154 1,745,432 218,855 23,600,719

12,470,590 941,364 1,249,989 275,150 1,565,199 218,853 16,721,145

27 28 29 30 31

5,186,372 3,915,451 4,619,032 4,266,205 359,208 2,044,532 20,390,800 1,408,262 21,799,062

5,186,372 3,915,451 4,462,002 3,775,255 329,978 1,764,220 19,433,277 1,343,765 20,777,041

5,186,372 3,915,451 4,570,062 3,935,245 365,101

5,186,372 3,915,451 4,413,032 3,551,577 336,484

17,972,230

17,402,916

17,972,230

17,402,916

51,554,836

43,134,489

41,572,949

34,124,061

Dr. Olufemi Oyetunji Group Managing Director FRC/2013/NSA/00000000685

Nkem Odibeli Chief Financial Officer

The Financial Reporting Council (FRC) of Nigeria has granted a waiver which allows the Chief Financial Officer to sign the unaudited Financial Statements for the first quarter ended March 31st, 2018 without indicating any FRC number.

3

Continental Reinsurance Plc Consolidated Statement of Changes in Equity For the period ended 31 March, 2018

Notes Balance at 1 January 2018 Profit or loss for the period Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners

7

Attributable to equity holders-Group Foreign Exchange Share Retained Contingency Available for Translation Share capital premium earnings reserve sale reserve Reserve =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 5,186,372 3,915,451 3,775,255 4,462,002 329,978 1,764,220 -

-

-

-

647,980 (157,030)

157,030

-

-

29,230

-

280,312

Noncontrolling interest Total equity =N='000 1,343,765 20,777,042 64,497 712,477 29,230 280,312

-

-

490,950

157,030

29,230

280,312

-

-

-

-

-

-

At 31 March, 2018

5,186,372

3,915,451

4,266,205

4,619,032

359,208

2,044,532

1,408,262

21,799,062

Balance at 1 January 2017 Change in shareholding Profit or loss for the year Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve

5,186,372

3,915,451

4,003,471

333,265

2,088,662

-

-

2,874,421 461,398 (124,893)

1,326,780 54,258

-

-

19,728,422 515,656 (146,437) (24,582)

Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners

5,186,372

3,915,451

3,210,926

4,128,364

186,138

-

-

-

-

-

At 31 March, 2017

5,186,372

3,915,451

3,210,926

4,128,364

186,138

25.1

64,497

-

124,893 (147,127)

690 (24,582)

4

2,064,080

1,022,019

1,381,728

20,073,060 -

2,064,080

1,381,728

20,073,060

Continental Reinsurance Plc Statement of Changes in Equity For the period ended 31 March, 2018

Attributable to equity holders-Company

Notes Balance at 1 January 2018 Profit or loss for the period Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners

7

Share Retained Contingency Available for Share capital premium earnings reserve sale reserve Total equity =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 5,186,372 3,915,451 3,551,577 4,413,032 336,484 17,402,916 540,697 540,697 (157,030) 157,030 28,617 28,617 -

-

383,668

157,030

28,617

569,315

-

-

-

-

-

-

At 31 March, 2018

5,186,372

3,915,451

3,935,245

4,570,062

365,101

17,972,230

Balance at 1 January 2017

5,186,372

3,915,451

2,408,676

3,754,688

340,912

-

-

-

-

15,606,099 357,610 (148,409) -

Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners

5,186,372

3,915,451

2,641,392

3,879,581

192,503

15,815,300

-

-

-

-

-

-

At 31 March, 2017

5,186,372

3,915,451

2,641,392

3,879,581

192,503

15,815,300

Profit or loss for the year Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve

25.1

357,610 (124,893)

124,893 (148,409)

5

Continental Reinsurance Plc Statement of Cash flows For the period ended 31 March, 2018

Group

Company

31 March

31 March

31 March

31 March

2018 N' 000

2017 N' 000

2018 N' 000

2017 N' 000

Cash flows from operating activities Premium received from policy holders Retrocession receipts in respect of claims Acquisition costs paid Retrocession premium paid Employees benefit and other admin expenses paid Other operating cash receipts/payments Claims paid Income taxes paid

5,581,243 297,944 (1,701,721) (337,957) (1,041,886) 3,776,044 (3,376,797) -

Net cash flows (outflow)/inflow from operating activities

3,196,870

Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Investment in subsidiary Proceeds from disposal of property, plant and equipment Purchase of investment securities Proceeds on redemption /sales of investments Purchase of investment property Proceeds from sale of investment property Rent Received Interest received Dividend received

(1,676) (2,798) 67 (1,670,815) 1,655,975 100,940 34,279 513,132 8,717

Net cash generated/(used) in investing activities

637,820

4,829,172 64,989 (1,459,764) (1,108,356) (971,289) 83,482 (1,446,352) (8,118)

(24,799) (16) (386,614) 847,244 29,040 419,751 9,301 893,907

4,565,916 297,944 (1,361,377) (281,631) (740,989) 3,596,399 (2,707,180) (0)

3,634,235 64,989 (1,149,421) (846,074) (764,795) 59,630 (1,208,088) 0

3,369,081

(209,524)

(1,676) (2,798) 67 (1,505,239) 1,303,917 100,940 34,279 459,385 8,586

(577) (498,292) (16) (297,396) 770,222 29,040 395,991 9,194

397,461

408,167

Cash flows from financing activities Dividend expense

0

(337,211)

0

(337,211)

Net cash used in financing activities

0

(337,211)

0

(337,211) (138,568)

Net increase in cash and cash equivalents

3,834,689

548,578

3,766,542

Cash and cash equivalents at start of year

7,363,001

6,822,392

4,964,023

4,014,648

88,014

103,546

0

91,022

Cash and cash equivalents at end of period

11,285,705

7,474,516

8,730,565

3,967,102

Cash and cash Equivalent Balances held with other banks: Cash in hand - Current account and cash in hand Domiciliary account Balances held with foreign banks: - Placements with banks and other financial institutions Treasury bill Cash and Cash Equivalent at end

2018 N' 000 1,307 97,112 179,322 1,257,387 8,609,577 1,140,998 11,285,704

2017 N' 000

2018 N' 000 997 13,297 179,322 1,257,387 6,138,562 1,140,998 8,730,565

2017 N' 000 507 228,070 283,259 866,721 2,298,544 290,000 3,967,101

Effect of exchange rate changes on cash and cash equivalents

6

945 334,726 283,259 2,449,635 4,115,950 290,000 7,474,515

Continental Reinsurance Plc Notes to the Consolidated Financial Statements

1 Revenue 1.1 Insurance premium revenue Premium revenue arising from insurance contracts issued Life insurance contracts – Gross Premium – Change in life insurance contract liabilities - Change in ceded unepired risk reserve Non life insurance contracts – Gross Premium – Change in unearned premium provision Total Premium revenue arising from insurance contracts issued

GROUP JAN-MAR JAN-MAR 2018 2017 =N='000 =N='000

777,565 72,399 (61,539) 6,937,947 63,646 7,790,018

1.2 Insurance premium ceded to retrocessionaire Premium revenue ceded to retrocessionaire on insurance contracts issued Life insurance contracts Non life insurance contracts Total Premium revenue ceded to retrocessionaire on insurance contracts

700,894 72,399 (61,539) 5,000,686 (64,175) 5,648,265

558,121 (25,129) 3,977,073 (851,725) 3,658,341

683,590 116,635

107,179 618,570

105,134 379,536

83,718 352,468

800,225

725,750

484,671

436,186

6,989,794

5,269,826

5,163,595

3,222,155

292,866 3,427,425 (104,435) (224,461) 3,391,395

482,218 2,264,588 2,746,806

250,631 2,619,246 (104,435) (197,929) 2,567,513

433,265 1,168,825 1,602,090

(112,038) 3,279,357

(97,571) 2,649,235

(72,523) 2,494,990

(64,990) 1,537,100

Costs incurred for the acquisition of insurance contracts 1,656,445 Costs incurred for the maintenance of insurance contracts 301,961 828,470 Management expenses (See Note 6.1) 2,786,876 Total underwriting expenses

1,397,282 271,114 713,696 2,382,093

1,161,222 200,155 593,205 1,954,582

967,775 181,645 572,667 1,722,087

Total insurance benefits and underwriting expenses 6,066,234

5,031,328

4,449,572

3,259,187

125,459 28,757 278,053 432,269

123,417 43,553 270,570 437,540

93,330 28,757 252,061 374,147

Net insurance premium revenue 2

714,529 -25,129 5,850,786 -544,611 5,995,576

COMPANY JAN-MAR JAN-MAR 2018 2017 =N='000 =N='000

Insurance benefits and underwriting expenses

2.1 Insurance claims and loss adjustment expenses Life insurance contracts Non life insurance contracts ceded oustanding claim reserve - Non Life ceded oustanding claim reserve - Life Total cost of policyholder benefits Insurance claims and loss adjustment expenses recoverable from retrocessionaire Net insurance benefits and claims 2.2 Underwriting expenses

3

Net Interest income 200,252 Cash and bank balances interest income Statutory deposits interest income 43,553 Held-to-maturity and loans and receivables interest income313,946 557,752 Net Interest income

7

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued

4

5

GROUP JAN-MAR JAN-MAR Net fair value gains on assets at fair value through 2018 profit or loss 2017 =N='000 =N='000 Net fair value gains/ (losses) on financial assets designated at fair value through profit 0 Fair value gains on investment property 0 Total -

COMPANY JAN-MAR 2018 =N='000

JAN-MAR 2017 =N='000 -

-

8,586

9,194

Other income Available-for-sale – Dividends 8,717 – Gain on disposal of available-for-sale securities: Equity Bond Income on investment property 29,487 – Gain/(Loss) on disposal of investment properties –(Loss)/gain on disposal of property, plant and equipment 67 Other income 26,005 64,276

9,301 27,779 83,803 30,601 0 (16) 5,701 157,171

29,487 67 11,603 49,743

27,779 83,803 30,601 (16) 3,481 154,843

(403,336) (403,336)

159,624 159,624

(332,592) (332,592)

201,586 201,586

236,663 196,265 (836,263) (403,336)

110,200 26,053 23,371 159,624

236,663 196,265 (765,519) (332,592)

140,200 32,843 28,543 201,586

713,696 281,870 995,566

593,205 147,785 740,989

572,667 216,731 789,397

30,514 4,791 415,081 545,181 995,566

20,188 24,000 340,281 356,520 740,989

19,447 293 318,460 451,198 789,397

194,797 193,529 26,755 415,081

190,688 106,679 42,913 340,281

194,797 96,909 26,755 318,460

5.1 Foreign exchange gain/(loss) Foreign exchange gain/(loss)

Breakdown of foreign exchange 5.1a gain/(loss) Investment assets Bank balances Reinsurance receivables

6

Operating expenses

6.1 Management and administration expenses 828,470 213,417 1,041,886

Management expenses (note 2.2) Administration expenses

Management and administration expenses comprises the following: 33,759 Depreciation and amortisation 26,610 Auditor's remuneration 491,639 Employee benefits expenses (a) Other operating expenses 489,879 1,041,886 Total management and administrative expenses (a) Employee benefit expense Wages and salaries (local) Wages and salaries (other regions) Defined Contributory Plan

190,688 258,037 42,913 491,639

8

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued

6

Other operating expenses (cont'd)

GROUP JAN-MAR JAN-MAR 2018 2017 =N='000 =N='000

6.2 Impairment of financial assets Reinsurance receivables Retrocessionaire's share of receivables

7

(0) (0)

(0) (0)

JAN-MAR 2017 =N='000 -

Net unrealised gain /(loss) on financial assets Unrealised gain/(loss) on financial asset - Available-for-sale 28,617 – Equity instruments – Debt Instruments Total 28,617 Reclassification adjusmentsto gans included in profit an loss Income tax relating to component of other comprehensive incomeOther comprehensive income for the year, net of tax 28,617

8

0 -

COMPANY JAN-MAR 2018 =N='000

Taxation Per statement of comprehensive income: Income tax based on profit for the year Education tax Back duty charge prior year Deferred taxation (Note 9)

JAN-MAR 2018 =N='000 216,358 216,358 216,358

Per statement of financial position: At 1 January Based on profit for the year Payments during the year

1,550,357 216,358 18,888 1,785,603

9

0 0 0 -

28,617 28,617 28,617

-

JAN-MAR 2017 =N='000 190,037 190,037 190,037

JAN-MAR 2018 =N='000 180,232 180,232 180,232

JAN-MAR 2017 =N='000 119,203 119,203 119,203

692,602 1,566,385 (708,630) 1,550,357

1,565,199 180,232 (0) 1,745,432

631,518 1,636,621 (702,940) 1,565,199

Continental Reinsurance Plc Notes to the Consolidated Financial Statements GROUP 9

Deferred taxation Deferred income tax (assets)/liabilities are attributable to the following items: Deferred tax liabilities Balance b/f Recognised in profit and loss Property plants and equipment Unrealised FX gain Employee benefits Total recognised in profit and loss

31-Mar 2018 =N='000

COMPANY 31-Dec 2017 =N='000

318,212 2 2

31-Mar 2018 =N='000

793,806 (49,742) (425,852) (475,594)

31-Dec 2017 =N='000

218,853 1.87 2

686,907 (49,742) (418,311) (468,053)

Recognised in other comprehensive income Employee benefit Available for sale financial assets

Net

10

560 560

-

-

-

-

318,773

318,212

218,855

218,853

Earnings per share Basic earnings per share amounts is calculated by dividing the net profit for the year attributable to ordinary share holders by the weighted average number of ordinary shares outstanding at the reporting date. GROUP The following reflects the income and share data used in the basic earnings per share computations:

31-Mar 2018 =N='000

Weighted average number of ordinary shares in issue as at year end ('000) Basis earnings per ordinary share (kobo)

COMPANY 31-Mar 31-Dec 2018 2017 =N='000 =N='000

31-Dec 2017 =N='000

Net profit attributable to ordinary shareholders (=N='000) 712,477

11

-

3,118,635

540,697

2,514,962

10,372,744

10,372,744

10,372,744

10,372,744

7

30

5

24

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements. GROUP COMPANY Cash and cash equivalents 31-Mar 31-Dec 31-Mar 31-Dec 2018 2017 2018 2017 =N='000 =N='000 =N='000 Cash in hand Balances held with local banks: - Current account - Domiciliary account Balances held with foreign banks Placements with banks and other financial institutions

1,307

996

997

839

97,112 179,322 1,257,387

211,938 207,170 590,326

13,297 179,322 1,257,387

11,377,086 12,912,215

8,068,663 9,079,093

8,906,071 10,357,076

145,736 207,170 590,326 5,736,042 6,680,113

Included in placements with banks and other financial institutions are tenored deposits of the group (N3b) with original maturity of more than three months. The carrying amounts disclosed above reasonably approximate fair value at the reporting date. The cash and cash equivalents position for cash flow purposes is disclosed in the statement of cash flow.

10

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued

12

Financial assets designated at fair value through profit or loss Managed Funds External Portfolio Management

13

Loans and other receivables

Staff Loans and advances Other advances Impairment on other advances Total Loans and other receivables

14

Investment Securities Analysis of investment securities Equity Debt

GROUP 31-Mar 31-Dec 2018 2017 =N='000 =N='000 2,223,376 2,223,376

2,159,476 2,159,476

GROUP 31-Mar 31-Dec 2018 2017 =N='000 =N='000 483,583 375,491 (406,941) 452,133

COMPANY 31-Mar 31-Dec 2018 2017 =N='000 -

COMPANY 31-Mar 31-Dec 2018 2017 =N='000

462,584 436,635 (406,941) 492,278

GROUP 31-Mar 31-Dec 2018 2017 =N='000 =N='000

-

431,110 375,491 (406,941) 399,660

409,387 436,635 (406,941) 439,081

COMPANY 31-Mar 31-Dec 2018 2017 =N='000

1,759,885 9,867,165 11,627,051

1,944,109 7,790,434 9,734,543

1,759,885 8,053,538 9,813,423

1,925,253 6,230,608 8,155,861

Available-for-sale: Equity instruments Debt instruments Total available-for-sale

1,759,885 29,057 1,788,943

1,744,048 377,177 2,121,225

1,759,885 1,759,885

1,742,269 348,262 2,090,531

Held-to-maturity Debt instruments

9,838,108

7,613,318

8,053,538

6,065,330

11,627,051

9,734,543

9,813,423

8,155,861

928,205 831,680 1,759,885

1,944,109 1,944,109

928,205 831,680 1,759,885

1,925,253 1,925,253

Analysis by class 14.1

14.2

Total Investment securities Equity Instruments Securities at Available-for-sale - Fair value Quoted Unquoted Total equity instruments

These equities instruments are measured at fair value and classified as available-for-sale Debt Instruments Securities at Available-for-sale -Fair Bonds

31-Mar 2018 =N='000

31-Dec 2017 =N='000

31-Mar 2018

31-Dec 2017 =N='000

29,057 29,057

377,177 377,177

-

348,262 348,262

5,626,064 4,212,043.96 9,838,108

4,757,744 2,855,574 7,613,318

5,555,782 2,497,756 8,053,538

3,919,774 2,145,556 6,065,330

9,867,165

7,990,495

8,053,538

6,413,592

Securities at held-to-maturity - amortised Listed Unlisted

Total debt instruments

None of these investment securities have been pledged to third party as collateral.

11

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued 15

Reinsurance receivables

Due from ceding companies Due from ceding companies (Pipeline) Premium reserves retained by ceding companies

GROUP 31-Mar 31-Dec 2018 2017 =N='000 =N='000 8,084,181 3,685,445

1,306,777 13,076,403 Impairment on reinsurance receivables(Note 15.1 ) (1,281,716) 11,794,687 15.1

16

5,611,209 2,554,071

340,397 11,203,970 (1,281,716) 9,922,254

898,950 9,064,231 (1,061,024) 8,003,206

4,691,388 2,554,071 7,245,459 (1,061,024) 6,184,435

1,536,477 (810,979) 556,218 1,281,716

1,061,024 (0) 1,061,024

1,297,185 (669,753) 433,591 1,061,024

(0)

556,218

(0)

433,591

(0)

556,218

(0)

433,591

Retrocession Assets

1,782,804

1,853,942

789,839

717,465

717,466

717,465

189,141

-

1,015,259 717,465

189,141

591,271 (161,791) 3,118,890

350,049 (161,791) 2,759,666

609,106 (161,791) 2,143,760

306,743 (161,791) 1,877,676

161,791 0 161,791

114,410 47,381 161,791

161,791 0 161,791

114,410 47,381 161,791

Reconcilliation of impairment on retro assets At 1 January Write off during the year Charge for the year Recovery during the year

17

1,281,716 (0) 1,281,716

Breakdown of charge for the year impairment on gross receivables reversal of exchange gain on impaired reinsurance receivables Net charge to income statement

Retrocessionaires’ share of claims recoverable Retrocessionaires’ share of reserve for outstanding claims Retrocession share of unearned premium resereve Retrocessionaires' share of life insurance contract liabilities Impairment of retro assets Total retrocession assets

16.1

7,218,432 3,645,142

Reconcilliation of impairment on reinsurance receivables At 1 January Write off during the year Charge for the year Recovery during the year

15.1a

COMPANY 31-Mar 31-Dec 2018 2017 =N='000

Deferred acquisition costs

At 1 January Net deferral during the year

31-Mar 2018 =N='000 2,291,853 (122,653) 2,169,200

31-Dec 2017 =N='000 1,532,809 759,043.77 2,291,853

12

31-Mar 2018 =N='000 1,501,752 1,501,752

31-Dec 2017 =N='000 782,628 719,123.68 1,501,752

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued GROUP 18

Other Assets

31-Mar 2018 =N='000

Prepayments Intercompany balances Deposit for shares (Note 18 a) Proposed head office W.I.P Other Impairment on others

COMPANY 31-Mar 31-Dec 2018 2017 =N='000 =N='000

31-Dec 2017 =N='000

381,563 11,000 751,873 1,144,437 (129,793) 1,014,644

97,532 11,000 350,690 459,222 (129,793) 329,430

334,413 825,452 11,000 175,466 1,346,331 (405,828) 940,503

28,657 43,320 309,586 381,563

29,832 67,700 97,532

23,049 38,890 272,475 334,413

23,253 50,916 74,169

754,653 94,419 849,072

222,816 4,168 731 227,715

18a Prepayments Office rent Staff upfront Other prepaid services

18bIntercompany balances Payable to related parties on retro Payable to related parties on reinsurance contracts

18c Others Interest receivables WHT recoverable Sundry receivables

-

-

875,655 (50,203) 825,452

264,205 1,168 486,500 751,873

245,816 4,168 100,706 350,690

234,205 1,168 (59,908) 175,466

GROUP 31-Mar 2018 =N='000 18.1

19

COMPANY 31-Mar 31-Dec 2018 2017 =N='000 =N='000

31-Dec 2017 =N='000

Investment in Subsidiary Continental Reinsurance Limited, Nairobi Kenya Continental Reinsurance Limited, Gaborone, Botswana

Investment Properties

Opening Fair value adjustments Additions Disposal during the year Closing

-

31-Mar 2018 =N='000 2,857,111 100,939.94 2,756,171

Group 20 Intangible assets

31-Dec 2017 =N='000 2,868,728 -11,617 2,857,111

Company

Computer software =N='000

Computer software =N='000

Cost: At 1 January 2018 Cost capitalised At 31 March 2018

85,697 2,798 88,495

85,378 2,798 88,177

Accumulated amortisation and impairment: At 1 January 2018 Amortisation for the year At 31 March 2018

65,529 2,419 67,948

65,530 2,419 67,949

NBV At 31 March 2018

20,547

20,228

NBV At 31 December 2017

20,168

19,849

13

74,169 849,072 11,000 227,715 1,161,956 (405,828) 756,128

-

1,572,699 699,774 2,272,473

1,572,699 699,774 2,272,473

31-Mar 2018 =N='000 2,857,111 100,939.94 2,756,171

31-Dec 2017 =N='000 2,868,728 -11,617 2,857,111

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued Group Freehold 21 Property, plant and equipment property =N='000 Cost/Valuation: At 1 January 2018 868,892 Additions Disposals Reclassification At 31 March, 2018 868,892

Motor vehicles =N='000

Furniture and fittings =N='000

365,690 365,690

193,754 577 194,331

Building W.I.P =N='000 1,378,792 (0) 1,378,792

Office partitioning =N='000

Computer equipment =N='000

82,273 82,273

125,850 1,100 126,950

Total =N='000

Accumulated depreciation: At 1 January 2018 Charge for the year Disposal Reclassification

-

233,534 16,168 -

129,668 4,596 -

-

73,065 1,048 -

90,370 2,557 -

3,015,252 1,676 3,016,927 526,637 24,369 -

At 31 March, 2018

-

249,702

134,264

-

74,113

92,927

551,006

NBV At 31 March 2018

868,892

115,988

60,067

1,378,792

8,160

34,023

2,465,921

NBV At 31 December 2017

868,892

132,156

64,086

1,378,792

9,208

35,480

2,488,615

Furniture and fittings =N='000

Building W.I.P =N='000

Office partitioning =N='000

Computer equipment =N='000

71,197 71,197

87,780 1,100 88,880

2,774,966 1,676 2,776,642

65,679 709 66,388

72,309 1,550 73,859

395,383 16,563 411,946

Company 21 Property, plant and equipment

Cost/Valuation: At 1 January 2018 Additions Disposals Reclassification At 31 March, 2018 Accumulated depreciation: At 1 January 2018 Charge for the year Disposal Reclassification At 31 March, 2018

Freehold property =N='000 868,892 868,892

-

Motor vehicles =N='000 253,335 253,335

114,969 577 115,546

177,818 11,268 189,086

79,577 3,036 82,613

1,378,792 (0)

1,378,792

-

-

Total =N='000

NBV At 31 March 2018

868,892

64,249

32,933

1,378,792

4,809

15,021

2,364,696

NBV At 31 December 2017

868,892

75,517

35,392

1,378,792

5,518

15,471

2,379,583

14

Continental Reinsurance Plc Notes to the Consolidated Financial Statements -Continued GROUP 22

Statutory deposits

31-Mar 2018 =N='000

31-Dec 2017 =N='000

1,000,000

1,000,000

31-Mar 2018 =N='000

COMPANY 31-Dec 2017 =N='000

1,000,000

1,000,000

Statutory deposit represents the amount deposited with the Central Bank of Nigeria in accordance with section 9(1) and section 10(3) of Insurance Act 2003. This is restricted cash as management does not have access to the balances in its day to day activities. Statutory deposits are measured at cost. 23

Insurance contract liabilities

31-Mar 2018 =N='000

Insurance Reserve fund for Unearned Premium (Note 23.1) ReserveReserve for Outanding for Outstanding Claims Claims (Note 23.2) Insurance Lifefund-Life (Note 23.3) Total insurance liabilities Total retrocessionaire's share of insurance liabilities (Note 16) Net insurance contracts 23.1

23.2

23.3

24

Reserve for Unearned Premium At 1 January Increase in the year Release of unearned premium during the year

Reserve for Outstanding Claims At 1 January Claims incurred including IBNR Claims paid during the year

Insurance liabilities on life policy holders At 1 January (Decrease)/Increase in retrocessionaire's share Changes in life policy contracts

Reinsurance creditors

Due to retrocessionaires Due to retrocessionaires Due to ceding Due tocompanies ceding companies

-

31-Dec 2017 =N='000

31-Mar 2018 =N='000

31-Dec 2017 =N='000

8,240,336 7,910,161 16,150,497 2,247,051 18,397,548

8,281,665 7,254,013 15,535,678 2,430,312 17,965,990

5,439,860 5,574,784 11,014,645 1,861,099 12,875,744

5,125,005 5,179,229 10,304,234 2,166,356 12,470,590

(3,118,890) 15,278,657

(2,759,666) 15,206,324

(2,143,760) 10,731,984

(1,877,676) 10,592,914

8,281,665 7,015,648 (7,056,977) 8,240,336

4,923,170 25,963,551 (22,605,057) 8,281,665

5,125,005 5,000,686 (4,685,831) 5,439,860

2,772,852 17,295,784 (14,943,631) 5,125,005

7,254,013 3,403,906 (2,747,758) 7,910,161

6,883,940 12,197,651 (11,827,579) 7,254,013

5,179,229 2,619,246 (2,223,691) 5,574,784

5,775,330 7,953,283 (8,549,384) 5,179,229

1,938,205 589,311 (97,204) 2,430,312

2,166,356 (305,257) 1,861,099

1,588,966 415,770 161,620 2,166,356

2,430,312 183,261 2,247,051

31-Mar 2018 =N='000

31-Dec 2017 =N='000

809,815 3,776,859 4,586,674

589,921 766,289 1,356,210

This represents the amount payable to insurance and reinsurance companies

15

31-Mar 2018 =N='000 481,350 3,672,400 4,153,749

31-Dec 2017 =N='000 278,310 663,054 941,364

Continental Reinsurance Plc Notes to the Consolidated Financial Statements -Continued 25

Other liabilities

Sundry creditors Rent received Rent received in advance in advance Receipt on behalf of 3rd party Accrued Accrued expensesexpenses DividendDividend payable payable (Note 25.1) Unclaimed dividend IT development Information levy technology development levy Others Others Intercompany Balance

25.1

25.3

26

2,917 359,781 23,241 270,241 45,988 158,055 860,223

7,709 3,205,697 52,893 23,241 314,135 45,987 359,283 309,839 4,318,785

2,917 400,689 23,241 270,241 45,987 251,126.82 255,787 1,249,989

Dividends paid and proposed At 1 January Declared during the year Paid during the year

25.2

7,709 3,205,697 75,477 23,241 314,135 45,987 706,777 4,379,023

Others; Staff bonus Sundry creditors PAYE and other statutory liabilities

23,241 (0) 23,241

1,241,451 1,452,184 (2,670,394) 23,241

174,424 274,343 258,009 706,777

Intercompany balance; Receivables from related parties on retro Receivables from related parties on reinsurance contracts

87,072 70,983 158,055

-

-

23,241 0.00 23,241

1,241,451 1,452,184 (2,670,394) 23,241

174,424 160,606 24,253 359,283

251,127 251,127

138,999 170,840 309,839

155,950 99,836 255,787

Retirement benefit obligations Define contribution scheme In accordance with the provisions of the Pensions Act 2004, AS AMENDED 2014 the Company and its staff commenced a contributory pension scheme in January 2005. The contribution by employees and the Company are 8% and 10%% respectively of the employees' basic salary, housing and transport allowances. The contribution made and transfered to the pension fund administrator during the period are as follows; 31-Mar 2018 =N='000 Balance at start of period Provision during the period Transfer to PFA

31-Dec 2017 =N='000 -

31-Mar 2018 =N='000

-

31-Dec 2017 =N='000 -

0 0 0

0

0 0 0

0

Defined benefit staff gratuity scheme The company operates a defined benefit staff gratuity plan where qualifying employees receive a lump sum payment based on the number of years served after an initial qualifying period of five years and gross salary on date of retirement.

Statement of financial position obligation for: The amounts recognised in the balance sheet are determined as follows: Balance as at the beginning of the year Net Expense/Income recognised in P & L Remeasurement recognised in OCR Defined contribution scheme Fair value of plan assets Deficit of funded plans (Asset)/liability in the balance sheet

31-Mar 2018 =N='000

31-Dec 2017 =N='000

306,457 13,004 (31,307)

288,154

16

31-Mar 2018 =N='000

31-Dec 2017 =N='000

383,857 184,600 57,588 (319,589) 306,457

275,150 13,004 288,154

336,008 164,294 5,170 (230,322) 275,150

306,457

288,154

275,150

Continental Reinsurance Plc Notes to the Consolidated Financial Statements -Continued 27 Share capital

28

31-Mar 2018 =N='000

31-Dec 2017 =N='000

31-Mar 2018 =N='000

31-Dec 2017 =N='000

Authorised 20,000,000,000 Ordinary shares of 50k each

10,000,000

10,000,000

10,000,000

10,000,000

Issued and fully paid 10,372,744,000 Ordinary shares of 50k each

5,186,372

5,186,372

5,186,372

5,186,372

3,915,451

3,915,451

3,915,451

3,915,451

Share premium

Premiums from the issue of shares are reported in share premium. 29

Contingency reserve The statutory contingency reserve has been computed in accordance with Section 21 (1) of the Insurance Act, Cap I17 LFN 2004. The movements on the account are as follows: 31-Mar 2018 =N='000

Contingency Non Life Non - reserveLife Contingency Life reserve- Life Total 30

31-Dec 2017 =N='000

4,612,023 7,009 4,619,032

4,431,119 30,883 4,462,002

31-Mar 2018 =N='000 4,563,053 7,009 4,570,062

31-Dec 2017 =N='000 4,382,149 30,883 4,413,032

Retained earnings: Retained earnings comprise the undistributed profits from previous years, which have not been reclassified to the other reserves noted below.

31

Available-for-sale reserve: The fair value reserve shows the effects from the fair value measurement of financial instruments of the category available-for-sale after deduction of deferred taxes. Any gains or losses are not recognised in the statement of comprehensive income until the asset has been sold or impaired.

32

Significant accounting policies The statement of accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statement. There have not been any change in the policies and methods of computation adopted.

17