guinea insurance plc march 31, 2018 management account

0 downloads 94 Views 1MB Size Report
Mar 31, 2018 - Change. 31/12/2017. Note. =N=000. =N=000. %. =N=000. Assets. Cash and cash equivalents. 14. 910,606. 854,
GUINEA INSURANCE PLC MARCH 31, 2018 MANAGEMENT ACCOUNT

GUINEA INSURANCE PLC MANAGEMENT ACCOUNT FOR PERIOD ENDED MARCH 31, 2018 FINANCIAL HIGHLIGHTS

Major Statement Of Financial Position Items As At 31 March 2018 Total Assets Total liabilities Insurance Contract liabilities Shareholder's Funds Major Statement Of Profit Or Loss Items For The Period Ended 31 March 2018 Gross Premium Written Gross Premuim Income Net Premuim Income Claims Expenses Profit/ (Loss) Before Tax Taxation Profit/ (Loss) For The Year

3/31/2018 N'000

% 3/31/2017 Change N'000

4,320,423 913,002 444,221 3,407,421

3,922,269 1,066,598 606,069 2,855,671

281,589 295,074 268,141 9,694 1,891 (605) 1,286

270,914 206,870 141,746 (9,020) -31,590 (14,450) (41,755)

1

10 14 27 19

4 43 89 -207 -106 96 -103

GUINEA INSURANCE PLC STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 March, 2018 3/31/2018 3/31/2017

Notes

=N=000

=N=000

% VARIANCE ACTUAL 2018 TO ACTUAL 2017

Gross premium written Changes in unearned premuim Gross premium income Reinsurance expenses

1 1 1 1.2

281,589 13,485 295,074 (26,933)

270,914 (64,043) 206,870 (65,124)

4 (121) 43 59

Net premium income Fees and commission income

1.2 2

268,141 5,468

141,746 14,228

89 (62)

273,609 9,694 (73,351)

155,974 (9,020) (48,472)

75 207 (51)

98,482 23,383 (737) (152,718)

113 34

9

209,952 31,243 377 78 (239,759)

(100) 57

10

1,891 (605)

(31,590) (14,450)

(106) (96)

1,286

(46,040)

(103)

4,285

(100)

1,286

(41,755)

(103)

8,448

8,127

Net underwriting Income Claims expenses Underwriting expenses Underwriting result Investment Income Net realized gains and losses Net fair value gains Other operating income Impairment reversal / charge Finance cost Management expenses Profit/(Loss) before taxation Income tax expenses

3 4

5 6 7 8 9.1

Profit/Loss after taxation Other comprehensive income Net gain/(loss) on available-for-sale financial 13.1 assets Net (loss)/gains on ppe - land & building 13.2 Remeasurement gains on defined benefit Income tax relating to OCI Total comprehensive( loss)/Profit for the year, net of tax Contigency Reserve Earning/(Loss) per share Basic(kobo)

-

12

0.0

2

(0.7)

4

GUINEA INSURANCE PLC STATEMENT OF FINANCIAL POSITION As At 31 March 2018

Note Assets Cash and cash equivalents Financial assets: Available-for-sale financial assets Trade receivables Reinsurance assets Deferred acquisition costs Other receivables and prepayments Investment properties Intangible Asset Property, plant and equipment Statutory deposit

31-03-18 =N=000

31-03-17 =N=000

% Change %

31/12/2017 =N=000

14

910,606

854,280

15 16 17 18 19 20 21 22 23

394,196 651 145,269 32,874 26,408 1,770,000 799 705,967 333,654

138,059 23,801 134,434 55,086 126,572 1,572,500 1,607 700,930 315,000

186 -97 8 -40 -79 13 -50 1 6

394,196 24,027 205,047 32,241 37,914 1,770,000 998 715,864 333,654

4,320,423

3,922,269

10

4,402,946

444,221 23,295 90,066 24,818 118,552 75,649 136,400 913,002

606,069 51,508 127,356 16,114 159,089 106,463 1,066,598

27 55 29 -54 25 29

14

540,047 41,738 122,376 23,652 117,947 75,651 75,400 996,811

3,070,000 337,545 451,354 (712,126) 260,647

3,070,000 337,545 373,427 (975,687) 50,386

0 0 21 -27 417

3,070,000 337,545 442,907 (704,964) 260,647

Total equity

3,407,421

2,855,671

19

3,406,135

Total liabilities and equity

4,320,423

3,922,269

10

4,402,946

Total assets

Liabilities and Equity Liabilities Insurance contract liabilities Trade payables Other payables and accruals Employee benefit obligations Current tax payable Deferred tax liabilities Financial liabilities Deposit for shares Total liabilities Equity Issued share capital Share premium Contingency reserve Retained losses Available-for-sale reserve and others

24 25 26 27 21 21

29 30 31

______________________

MR. PIUS EDOBOR ED, FINANCE & ADMIN FRC/2013/ICAN/000000004638

3

7

889,005

______________________________

MR. BABATUNDE OSHADIYA MANAGING DIRECTOR FRC/2013/CIIN/00000002257

GUINEA INSURANCE PLC STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 March, 2018 3/31/2018 =N=000 Operating activities: Premium received Commission received Commission paid Reinsurance premium paid Gross claim paid Recoveries Payments to employees Other operating cash receipts/(payments) Other income received Tax paid Net cash flow from operating activities

3/31/2017 =N=000

304,965 5,468 (45,903) (26,933) (30,534) 1,171 (81,202) (133,395) 455 (5,909)

247,113 14,228 (48,382) (65,124) (35,347) 4,081 (71,265) (65,970) (10,949) (31,614)

Investing activities: Investment income received Purchase of property and equipment Proceed from sale of equipment Purchase of Intangible Assets Proceed from loans and recievables Addtions to investment properties Net cash flows from investing activities

31,243 (4,110) 377

23,383 (8,513) -

27,510

14,870

Financing activities: Deposit for shares Interest repayment on finance lease principal repayment on finance lease Net cash flows from financing activities

-

(737) (797) (1,534)

21,601

(18,279)

889,005

872,559

Net increase in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalent Cash and cash equivalents at 1 January Cash and cash equivalents at 31 March, 2018

910,606

4

854,280

GUINEA INSURANCE PLC STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 March, 2018

Issued share capital

Retained earnings

Share premium

Contingenc y reserve

=N=000

=N=000

=N=000

=N=000

For the period ended 31 December, 2017

As at 1 January 2017 Profit / Loss for the year Transfer to contingency reserve Other comprehensive income Issues/ reclassification As At 31 March 2018

3,070,000 -

(704,964) 1,286 (8,448)

3,070,000

(712,126)

=N=000

=N=000

337,545 337,545

442,907 8,448 451,354

Availablefor-sale financial assets =N=000

Asset revaluatio n =N=000

243,693

10,000

243,693

10,000

=N=000

=N=000

-

Total equity =N=000 3,389,181 1,286 3,390,467

For the period ended 31 March 2017

As at 1 January 2017 Profit for the year Transfer to contingency reserve Other comprehensive income Issues As at 31 March 2017

3,070,000 -

(921,520) (46,040) (8,127)

3,070,000

(975,687)

=N=000

337,545 337,545

5

=N=000

365,300 8,127 373,427

46,102

-

4,285

-

50,387

-

=N=000 2,897,427 (46,040) 4,285 2,855,672

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS 1 Net insurance premium revenue

1

3/31/2018 =N=000

Gross premium income on insurance contracts Gross premium written in the year 281,589 Change in unearned premiums provision 13,485 Total gross premium income 295,074

Increase/ (Decrease) in Unearned premium

Gross premium Income

3/31/2018

3/31/2018

3/31/2018

N’000 Motor Fire Marine & Aviation Miscellaneous General Accident Oil and Gas

Changes In unearned Premium per class of 1 insurance business

78,322 30,631 27,413 100,072 45,151 281,589

Unearned Premium As At 1/1/2017 N’000

Motor Fire Marine & Aviation Miscellaneous General Accident Oil and Gas

Motor Fire Marine & Aviation Miscellaneous General Accident

270,914 (64,043) 206,870

Gross premium written

1

Gross Premium Income

3/31/2017 =N=000

N’000

N’000

(1,890) (7,518) 12,598 8,463 (25,137) -13,485

80,212 38,149 14,815 91,610 70,288 295,074

Increase/ (Decrease) in Unearned premium

Unearned Premium As At

N’000

3/31/2018 N’000

66,420 30,699 8,713 56,306 56,279 218,416

(1,890) (7,518) 12,598 8,463 (25,137) -13,485

64,530 23,180 21,311 64,769 31,142 204,931

Gross premium written 3/31/2017 N’000

Increase/ (Decrease) in Unearned premium 3/31/2017 N’000

Gross premium Income 3/31/2017 N’000

53,708 62,716 5,959

8,393 6,229 301

45,316 56,488 5,658

130,678 17,851 270,914

78,572 -29,451 64,043

52,107 47301.82283 206,870

7

1.2 Re-insurance expenses

31/3/2018

31/3/2017

(26,933) 268,141

(65,124) 141,746

Total reinsurance expenses Total net insurance premium revenue

2 Fees and commission income Reinsurance commission income Total fees and commission income

5,468 5,468

14,228 14,228

30,534 (1,171) (82,338) 43,281 (9,694)

35,347 (4,081) (58,353) 36,107 9,020

Fire

Motor

General accident

3 Claims expenses Gross claims paid Claims ceded to reinsurers Gross change in outstanding claims Change in outstanding cliams ceded to reinsurers

4

Underwriting expenses Note 2017 Amortised aquisition cost (Note 18) Maintenace cost

5

Marine and aviation

7,918

9,781

24,670

2,882

45,251

32,391

6,377 16,158

13,719 38,389

615 3,497

28,100 73,351

16,081 48,472

(0) 245

(0) 1,425

1,417

54

9,128

20,453 31,243

5 Interest income on cash and cash equivalents Due to Policy holders Due to shareholders

2017

7,389 15,307

Investment income Rental income from investment properties Rental income from land and building Available-for-sale financial assets: Dividend income Interest income on statutory deposit Interest income on cash and cash equivalents

Total 2018

21,904 23,383

9,978 10,475

15,540 6,364

20,453

21,904

7

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS 6

Gain on sale of property, plant and equipment 2018 =N=000

7

Property, plant and equipment: Realised gains on disposal

377

Total net realised gains and losses

377

-

-

Other operating income Recoveries from other receivables and sundry Income Provision no longer required Exchange gain Travel insurance/ Sundry Income

9.1

42

-

35 78

-

-

9.2

Management expenses Depreciation on property, plant and equipment Armotisation of Software Auditors’ remuneration Employee benefits expense (Note 9.2) Exchange differentials Legal and professional fees Rent and Rates Administrative Total management expenses

-

14,413

22,196

2,250 81,202 74,573 2,631 64,690 239,759

2,750 71,265 6,449 3,131 46,926 152,718

78,102 3,100 81,202

68,324 2,941 71,265

Employee benefits expense Wages and salaries Defined benefit plan cost Pension costs Total employee benefits expense

9.3

-

Impairment charge/reversal Trade receivables Availaible for sale financial assets (Note 16b) Available for sale for sale financial asset Impairment Impairment of other recievables

9

-

Net fair value gains on investment properties Fair value gains on investment properties (Note 20)

8

2017 =N=000

Finance cost

2018 -

8

2017 737 737

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 10 Income tax

Notes

The major components of income tax expense for the period are 10 Income tax expense Per profit or loss Current income tax: Company income tax minimum Education tax Underprovision for tax in the prior years Deferred tax Fair value gains/losses on investment properties Employee benefits Property, plant and equipment Revaluation loss on building

Income tax expense reported in profit or loss Reported in other comprehensive income Deferred tax relating to items recorgnised in other comprehensive income (OCI) during the year: Re-measurement gains on defined benefit plans Income tax expense charged to OCI

2018 =N=000

2017 =N=000

(605) -

(14,450)

(605)

(14,450) -

-

-

(605)

-

-

-

-

-

N'000 1,891

N'000 (31,590) -

10 Reconciliation of tax charge Profit/(Loss) before taxation Tax at Nigerian's statutory income tax rate of 30% Income not subject to tax Non–deductible expenses Minimum tax Tax effect of capital allowance Education tax @ 2% of assessable profit Unused tax losses Tax rate differencial on fair value gains Total tax charge for the year

(14,450) -

-

-

-

-

-

11 Dividends paid and proposed No dividend was proposed or paid by the Company for the period ended March 31, 2018

9

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 12

(Loss)/earnings per share (LPS)/EPS Basic (LPS)/EPS amounts are calculated by dividing the (loss)/profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding at the reporting date. The following reflects the income and share data used in the basic and diluted (LPS)/EPS computations: 2018

(loss)/profit attributable to ordinary shareholders (N'000) Weighted average number of ordinary shares for basic EPS ('000)

1,286

6,140,000

Basic and diluted (loss)/earnings per ordinary share (kobo) 0.0

2017

(46,040)

6,140,000

(0.7)

13.1 Net unrealized (loss)/gains on available-for-sale finacial assets 2018 2017 =N=000 =N=000 Unrealised (loss)/gains on available-forsale financial assets Reclasification adjustments to gains included in profit or loss

Total net unrealised (loss)/gains on available-for-sale financial assets

-

4,285

-

4,285

-

4,285

13.2 Net unrealized (loss)/gains on ppe - land & building 2018 =N=000 Unrealised (loss)/gains on ppe - land & building Reclasification adjustments to gains included in profit or loss

-

Total net unrealised (loss)/gains on ppe - land & building -

10

-

2017 =N=000 -

-

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 14 Cash and cash equivalents

Cash at banks and on hand Short-term deposits (including demand and time deposits) Total cash and cash equivalents

2018 =N=000 49,961

2017 =N=000 (53,580) 907,860

860,645 910,606

854,280

444,221 466,385 910,606

606,069 248,211 854,280

Representing: Policyholder's fund Shareholder's fund

Short–term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company. All placements are subject to an average variable interest rate obtainable in the market. The carrying amounts disclosed above reasonably approximate fair value at the reporting date.

15 Financial assets

Available-for-sale financial assets Total financial instruments

2018 =N=000

2017 =N=000

394,196 394,196

138,059 138,059

15 Available-for-sale financial assets comprises:

Listed equity securities at fair value Unlisted equity securities at cost Total available-for-sale financial assets

2017 =N=000 99,768 294,428 394,196

11

2016 =N=000 100,256 37,803 138,059

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 15 Financial assets - continued

2017 Available-forsale =N=000 133,775 4,285 394,196

15.2 Carrying values of financial instruments At 1 January 2017 Fair value loss recorded in OCI At 1 January 2018 Impairment reversal Fair value gain /(loss) recorded in OCI Addition As At March 31, 2018

394,196

Total =N=000 133,775 4,285 394,196 394,196

Fair value of financial assets and financial liabilities not carried at fair values The following describes the methodologies and assumptions used to determine fair values for those financial instruments which are not already recorded at fair value in the financial statements. Assets for which fair value approximates carrying value For financial assets and financial liabilities that have less than three month’s maturity such as demand deposits and those without specified maturity such as statutory deposit, other receivables and other payables, the carrying amounts approximate to their fair value. Unquoted investments carried at cost Certain unquoted investments for which fair values could not be reliably estimated have been carried at cost less impairment. There are no active markets for these financial instruments, fair value information are therefore not available, this makes it impracticable for the Company to fair value these investments. They have therefore been disclosed at cost less impairment. The carrying amount is the expected recoverable amount on these investments.The Company does not intend to dispose of these investments. 15.3 Determination of fair value and fair values hierarchy The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: ► Level 1: Quoted (unadjusted) prices in active markets for identical assets ► Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly, and ► Level 3: Techniques which use inputs which have a signifcant effect on the recorded fair value that are not based on observable market data.

12

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 15 Financial assets - continued Level 1 Level 2 As At 31 March 31, 2018 =N=000 =N=000 Available-for-sale financial assets: 99,768 Equity securities Total financial assets

16 Trade receivables

Gross insurance receivables Impairment allowance Total trade receivables

99,768

-

2018 =N=000

2017 =N=000

10,549

33,699

(9,898) 651

(9,898) 23,801

The carrying amounts disclosed above approximate fair value at the reporting date and are net of impairment charges. 16 Movement in impairment At begining of the year Additions

9,898 -

9,898 -

Impairment Reversal

-

-

At end of the year

9,898

9,898

17 Reinsurance asset

2018 =N=000

2017 =N=000

71,045 74,224 145,269

45,990 88,444 134,434

Reinsurers's share of reserve for outstanding claims Prepaid reinsurance Total reinsurance asset

Reinsurance assets are not impaired as balances are set-off against payables from retrocession at the end of every quarter.

13

Level 3 =N=000

Total =N=000

294,428

394,196

294,428

394,196

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 18

Deferred acquisition cost These represents commission paid to brokers on unearned premium relating to the unexpired tenure of risks. Fire

Motor

General accident

Marine and aviation

Total

At 1 January 2018 Commission incured during the year Amortisation (Note 4) As At March 31, 2018

6,257 6,301

7,998 9,915

16,308 24,161

1,660 5,525

32,222 45,903

(7,918) 4,641

(9,781) 8,131

(24,670) 15,799

(2,882) 4,303

(45,251) 32,874

At 1 January 2017 Commission incured during the year Amortisation (Note 4) As At March 31, 2017

13,634 12,690

10,602 6,149

13,819 28,523

1,040 1,019

39,095 48,382

(11,540) 14,784

(5,277) 11,475

(14,123) 28,219

(1,451) 609

(32,391) 55,086

14

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 19 Other receivables and prepayment

2018 =N=000

2017 =N=000

0 -

0 -

2,312 12,099 217,444

1,808 7,004 217,444

96,367 6,355 6,028 340,606 (314,198)

93,609 3,785 8,397 332,047 (205,476)

-

-

26,408

126,572

Due from starcrest Loan to Guinea coop Staff upfront and advances Accrued interest Due from Global Scansystems Deposit for computerization and others Others Prepayments Impairment charged on other receivables Impairment on staff salary advances

The carrying amounts disclosed above reasonable approximate the fair value at the reporting date. All other receivable amounts are collectible within one year and the prepayment utilisable within one year.

20 Investment properties At the beginning of the year Disposal Fair value adjustments At the end of the year

2018 =N=000 1,770,000 1,770,000

2017 =N=000 1,572,500 1,572,500

Investment properties are stated at fair value, which has been determined based on valuations performed by Ubosi Eleh & Co.(FRCN/2014/NIESV/00000003997), accredited independent valuers,The valuer is a specialist in valuing these types of investment properties. The determination of fair value ofthe investment property was supported by market evidence. The modalities and process of valuationutilized extensive analysis of market data and other sectors specific peculiarities corroborated withavailable data derived from previous experiences. Valuations are performed on an annual basis and the fair value gains and losses were recorded within the profit or loss.

16

2018 N’000

2017 N’000

1,770,000

0 1,572,500

1,770,000

1,572,500

Opening balance at 1 January Fair value adjustments

2018 N’000 1,770,000 -

2017 N’000 1,572,500 -

Closing balance as at March 31, 2018

1,770,000

1,572,500

Representing:

Policyholders’ funds Shareholders’ funds

Description of valuation techniques used and key inputs to valuation on investment properties The valuation of the properties is based on the price for which comparable land and properties are being exchanged hands on or are being marketed for sale. (investment method ) By nature, detailed information on concluded transactions is difficult to come by. We have thereforerelied on past transactions and recent adverts in deriving the value of properties. least,eight properties property were analysed There arethe nosubject restrictions on the At reliability of investment or theand remittance of income and proceeds of disposal. The Company has no contractual obligations to purchase, construct or develop investment property or for repairs or enhancement. 2018 N'000

2017 N'000

-

-

-

-

Rental income derived from investment properties Direct operating expenses (including repairs & maintenance) Profit arising from investment properties carried at fair value

16

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 21

Taxation

21.1 Current tax payable At the beginning of the year Amounts recorded in the income statements Tax on extra-ordinary item Payments made on-account during the year Deferred Tax Asset Write back of over provision At the end of the year

2018 =N=000

117,947

2017 =N=000

605

155,588 14,450

-

(10,949) 159,089

118,552

Income Statement Deferred tax expense/(credit) Accelerated depreciation for tax purposes Revaluation loss on building Fair value gains/(losses) on investment properties Employee benefit obiligation Total deferred tax expense/(credit)

-

-

-

-

Statement of financial position 21.2 Deferred tax liabilities/(assets) Fair value gains/(losses) on investment properties Tax assets Tax expense during the period through OCI Deferred tax liabilities

75,649

106,463 106,463

75,649 -

106,463 -

75,649

106,463

75,649

-

Reconciliation of deferred tax liabilities is as shown below: At the beginning of the year Amounts recorded in the income statement Reclassified to/from deferred tax asset At the end of the period Reconciliation of deferred tax asset is as shown below: At the beginning of the year Amounts recorded in the income statement Reclassified from/to deferred tax asset At the end of the period 21.3 Intangible Asset Opening Additions Amounts recorded in the income statement As at 31 December, 2017

-

-

2018 =N=000 998 (199) 799

17

2017 =N=000 1,607 1,607

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 22 Property, Plant and equipment Note

Motor Vehicles =N=000 216,487 310 216,797

Building =N=000 520,000 520,000

211,039 1,633 212,671 212,671

8,544 8,544 8,544

Carrying amount As At 31 March 2018

4,126

511,456

160,000

As at 31 March 2017

16,505

506,915

150,000

Cost At 1st January 2018 Additions Impairment Disposals As At 31 March 2018 Accumulated depreciation At 1st January 2018 Depreciation for the period 8 As At 31 March 2018 Disposals As At 31 March 2018

Land =N=000 160,000 160,000

ELEVAT Computer OR Equipment =N=000 =N=000 105,907 15,578 1,753 15,578

-

-

-

-

15,578

18

Office Furniture and Fittings =N=000 95,441 420

Work in progress =N=000 13,950 -

167 107,827

95,861

(13,950) -

103,483 439 103,922 (39) 103,883

81,399 3,599 84,998 84,998

-

3,944

10,864

-

1,745

25,766

-

Total =N=000 1,111,785 18,060 (13,783) 1,116,062

395,921 14,214 410,135 (39) 410,096

705,967 700,930

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 23

Statutory deposit This represents the amount deposited with the Central Bank of Nigeria as at March 31, 2018 ( March 31, 2017 N315,000,000) in accordance with Section 10 (3) of Insurance Act 2003. Interest income was earned at an average rate of 11% per annum (2017: 12.39%) and this has been included within investment income. 2018 2017 =N=000 =N=000 Statutory deposit 315,000 333,654

24

Insurance contract liabilities Insurance contract liabilities consist of the following: Provision for reported claims by policyholders Provisions for claims incurred but not reported (IBNR) Outstanding claims provisions (Note 24.1) Provision for unearned premiums (Note 24.2) Total insurance contract liabilities

2018 =N=000

239,290

239,290

204,931 444,221

20

2017 =N=000

270,311

270,311

335,758 606,069

The cash and cash equivalents as described in Note 14 serves as a cash cover for the insurance contract liabilities. 2018 =N=000

2017 =N=000

321,631

328,664

(51,807) (30,534) 239,290

(23,006) (35,347) 270,311

2018 =N=000 218,416 281,589

2017 =N=000 212,565 270,914

(295,074) 204,931

(206,870) 276,609

2018

2017

Due to reinsurance and insurance companies -23,295 local 23,295

51,508 51,508

24.1 Outstanding claims provision

At 1 January Claims incurred in the current accident period year Claims paid during the year At the end of the period 24.2 Provision for unearned premiums At 1 January Premiums written in the year (Note 1) Premums earned during the period (Note 1) At the end of the period

25

Trade payables

This represents the amount payable to insurance and reinsurance companies

26

Other payables and accruals Accrued expenses Deferred revenue (Note 26.1) Unearned Commission Other payables (Note 26.2)

36,724 6,120 13,675 33,548 90,066

50,290 2,867 19,689 57,919 127,356

Other payables represent outstanding NAICOM charges, PAYE, NSITF, ITF, NHF, union dues, witholding tax, VAT, travel insurance, stale cheque, unclaimed dividend and other creditors. 26.2 The carrying amounts disclosed above reasonably approximate fair value at the reporting date. All amounts are payable within one year (with the exception of deferred revenue).

20

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 26.1 Deferred Revenue Rental Income

2018 =N=000

2017 =N=000

At the beginning 664 4,292 Amount deferred 5,700 Amount released to the income statement (1,425) (245) Total deferred revenue 6,120 2,867 Rental income arising from operating lease on investment properties is accounted for on a straight line basis over the lease terms and is included in investment income. 27 Employee benefit obligations The amounts recognised in the statement of financial position at the reporting date are, as follows:

Defined Contribution payable Defined benefit grautity payable

2018 =N=000

2017 =N=000

21,020 3,798 24,818

8,947 7,167 16,114

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL STATEMENTS - Continued 28 Deposit for shares

2018

2017

=N=000

=N=000

136,400 136,400

-

Authorised and issued share capital

2018 =N=000

2017 =N=000

Authorised share capital 6.4 billion Ordinary shares of N0.50k each

3,200,000

3,200,000

2018 =N=000 3,070,000 3,070,000

2017 =N=000 3,070,000 3,070,000

2018 =N=000

2017 =N=000

337,545

337,545

As at 31 March 2018

29 Issued share capital

Ordinary shares issued and fully paid

At 1 January Issued during the period As at 31 March 2018

30 Share premium

At 1 January As at 31 March 2018

337,545

337,545

21

GUINEA INSURANCE PLC NOTES TO THE FINANCIAL 31

Contingency reserve Contingency reserve in respect of non-life business is the higher of 20% of net profit and 3% of premium as specified in Section 21(2) of the Insurance Act 2003.

At the beginig of the period For the period As at 31 March 2018 Retained Earnings At the beginig of the period For the period Contigency reserve As at 31 March 2018

32

Available-for-sale Financial Assets Reserve At the begining of the period For the period Reclassification from quoted to unquoted As at 31 March 2018

33

34

Employment benefit reserve At the begining of the period For the period

2018 =N=000 442,907

2017 =N=000 365,300

8,448

8,127

451,354

373,427

2018 =N=000 (704,964) 1,286 (8,448) (712,126)

2017 =N=000 (921,520) (46,040) (8,127) (975,687)

2018

2017

=N=000 243,693 -

=N=000 46,101 -

243,693

. 6,954 -

As at 31 March 2018

6,954

Asset revaluation At the begining of the period For the period

10,000 -

Reclassification from quoted to unquoted

46,101

10,000

22

-

-

-

-