Jul 27, 2017 - Deferred acquisition cost represent commissions on unearned ... acquisition cost during the year is as sh
CONSOLIDATED HALLMARK INSURANCE PLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT PERIOD ENDED 30 June 2017
June 2017 N Assets Cash and cash equivalents Financial assets: -At fair value through profit or loss -Loans and receivables -Available for sale assets -Held to maturity Deposit for shares Finance lease receivables Trade receivables Reinsurance assets Deferred acquisition cost Other receivables & prepayments Investment in subsidiaries Inventories Intangible Assets Investment properties Property and equipment Statutory deposits
2.
1,352,617,032
3.1 3.2 3.3 3.4 4. 5. 6. 7. 8. 9. 10. 11. 12.0 12.1 12.2 13.
Group June 2016 N
December 2016 N
June 2017 N
1,836,824,537
1,171,761,318
141,506,761 284,126,811 60,950,000 2,487,273,245 218,627,064 279,692,700 1,301,794,097 229,579,067 243,649,487 11,462,630 893,882,395 955,169,775 300,000,000
3,321,073,120 160,721,188 254,538,139 60,950,000 275,124,839 188,873,023 206,397,204 691,913,416 190,525,298 196,247,561 3,360,467 14,311,505 892,123,677 983,805,142 300,000,000
170,013,089 237,335,789 60,950,000 1,654,142,565 162,290,265 182,091,091 546,323,978 229,579,067 177,968,732 3,920,887 13,119,349 893,882,395 974,022,626 300,000,000
8,760,331,064
7,739,964,579
14. 15. 16. 17. 18.2 18.3
3,707,849,659 65,275,507 155,148,064 5,380,929 249,895,311 174,900,327 4,358,449,797
19.1 20.1. 20.2 21.
Total liabilities and equity and reserves
Total assets
Company June 2016 N
December 2016 N 1,587,501,284
134,855,406 181,940,850 60,950,000 2,487,273,245 180,000,000 279,692,700 1,301,794,097 229,579,067 280,407,510 300,000,000 10,795,876 809,221,395 925,950,614 300,000,000
2,887,900,486 259,388,557 56,666,226 2,000,000 232,369,586 50,250,000 98,228,955 651,767,868 237,135,305 157,988,859 250,000,000 793,460,682 920,697,065 300,000,000
7,442,464,370
8,654,222,078
6,897,853,589
7,392,512,630
2,409,319,707 339,568,098 142,315,616 5,473,737 218,546,055 157,789,768 3,273,012,981
2,410,701,988 87,511,062 179,731,068 151,314 191,465,212 170,103,017 3,039,663,660
3,707,849,659 65,275,507 145,617,742 5,046,938 214,312,091 174,422,385 4,312,524,322
2,271,797,500 76,363,582 148,965,000 161,565,688 95,460,524 2,754,152,294
2,410,701,988 87,511,062 195,101,601 13,502 162,558,597 169,625,075 3,025,511,825
3,000,000,000 1,324,329,482 12,552,665 64,999,120 4,401,881,267
3,000,000,000 1,158,004,746 7,950,303 300,996,549 4,466,951,598
3,000,000,000 1,230,030,314 9,279,386 163,491,009 4,402,800,709
3,000,000,000 1,324,329,482 17,368,274 4,341,697,756
3,000,000,000 995,686,050 148,015,245 4,143,701,295
3,000,000,000 1,230,030,314 136,970,491 4,367,000,805
8,760,331,064
7,739,964,579
7,442,464,370
8,654,222,078
6,897,853,589 -
7,392,512,630
163,699,494 211,761,875 60,950,000 1,654,142,565 180,000,000 182,091,091 546,323,978 229,579,067 213,530,118 300,000,000 12,383,037 809,221,395 941,328,726 300,000,000
Liabilities Insurance contract liabilities Trade payables Other payables and provision Retirement benefit obligations Income tax liabilities Deferred tax liabilities Total liabilities Equity and reserves Issued and paid up share capital Contingency reserve Statutory reserve Retained earnings Total equity and reserves
The consolidated financial statements were approved by the Board of Directors on 20 July, 2017
Chief Andrew D. S. Odigie Vice Chairman FRC/2013/ICAN/00000004421
Eddie A. Efekoha Managing Director FRC/2013/CIIN/00000002189
Page 1 of 30
Babatunde Daramola Chief Financial Officer FRC/2013/ICAN/00000000564
CONSOLIDATED HALLMARK INSURANCE PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 June 2017 Group
Notes Gross premium written
June 2017 N
3,436,658,604
5,826,950,292
3,294,943,654 (1,362,145,665) 1,932,797,989 145,370,920 2,078,168,909 (768,129,812) 161,283,263 (606,846,549) (657,281,801) 814,040,559 192,156,293 103,378,931 -
5,708,277,060 (2,199,995,287)
3,140,836,764 (1,040,408,400)
5,708,277,060 (2,199,995,287)
3,508,281,773 203,707,669
2,100,428,364 214,465,757
3,711,989,442
2,314,894,121
(1,730,652,330) 343,508,618 (1,387,143,712)
(1,929,193,108) 1,016,791,754 (912,401,354)
(1,256,318,222)
(774,452,837)
1,068,527,508 472,982,693
628,039,930 325,564,551
183,860,805 (9,310,327)
7,826,318 (290,329)
3,294,943,654 (1,362,145,665) 1,932,797,989 145,370,920 2,078,168,909 (768,129,812) 161,283,263 (606,846,549) (664,480,366) 806,841,995 192,156,293 65,404,832 -
(16,160,071) (671,073,695) 422,342,017 (163,203,286) 259,138,731 259,138,731 259,138,731 (99,222,743)
(6,783,170) (1,340,451,352) 368,133,127 (173,145,284)
(7,327,084) (742,808,669) 211,004,717 (116,307,766)
(16,160,071) (645,664,724) 402,578,325 (156,566,299) 246,012,026 246,012,026 246,012,026 (99,222,743)
(6,783,170) (1,281,059,193) 361,974,108 (163,358,219)
25.
2,100,428,364 214,465,757 2,314,894,121
26.
Underwriting profit Investment income
27.
Other operating income Impairment (charge)/write back Net fair value gains on financial assets at fair value through profit or loss Management expenses Profit before taxation Income tax expense
28. 29. 30. 31. 18.1
(1,929,193,108) 1,016,791,754 (912,401,354) (774,452,837) 628,039,930 387,371,342 16,517,560 (4,211,216) (7,327,084) (773,482,135) 246,908,397 (127,827,841)
Profit after taxation
119,080,557
Total comprehensive income for the year
119,080,557
Profit attributable to: Equity holders of the parents'
119,080,557
Continency reserve
(94,299,168) 24,781,389
Basic and diluted earnings per share (Kobo)
32.
31 December 2016 N
3,315,836,764
Net premium income Fee and commission income
Underwriting expenses
Company June 2016
5,826,950,292
3,140,836,764 (1,040,408,400)
25a 25b.
June 2017 N
3,436,658,604
23. 24.
Claims expenses Claims recoveries from reinsurers Claims incurred
31 December 2016 N
3,315,836,764
Gross premium income Reinsurance premium expenses
Net underwriting income
June 2016
-
1.98
4.32
Page 2 of 30
194,987,843
94,696,951
194,987,843
94,696,951
194,987,843
94,696,951
(174,700,711)
(94,299,168)
3,508,281,773 203,707,669 3,711,989,442 (1,730,652,330) 343,508,618 (1,387,143,712) (1,271,473,425) 1,053,372,305 472,982,693 122,768,443 693,030
198,615,888 198,615,888
198,615,888 (171,248,311)
20,287,132
397,783
146,789,283
27,367,577
3.25
1.58
4.10
3.31
CONSOLIDATED HALLMARK INSURANCE PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT PERIOD ENDED 30 June 2017 The Group Issued share capital N At 1 January 2016 Changes in equity for 2016: Profit for the year Other comprehensive income for the year Total comprehensive income for the year Transactions with owners: Transfer to contigency reserves Transfer to statutory reserves Dividends declared during the year Non-controlling interest arising on business combination Contribution by and to owners of the business
3,000,000,000
Contingency reserves N 1,058,782,003
-
-
Statutory reserve N 5,826,986
-
Retained earnings N
Total equity N
203,203,878
4,267,812,867
194,987,843 194,987,843
194,987,843 194,987,843
(60,000,000) (60,000,000)
-
171,248,311 -
3,452,400 -
(174,700,711) (60,000,000)
-
171,248,311
3,452,400
(234,700,711)
At 31 December 2016
3,000,000,000
1,230,030,314
9,279,386
163,491,009
4,402,800,709
At 1 January 2017
3,000,000,000
1,230,030,314
9,279,386
163,491,009
4,402,800,709
119,080,557 119,080,557
119,080,557 119,080,557
(120,000,000) (120,000,000)
Changes in equity for 2017: Profit for the year Other comprehensive income for the year Total comprehensive loss for the year Transactions with owners: Transfer within reserves Dividends relating to prior periods paid during the year Non-controlling interest arising on business combination Contribution by and to owners of the business At June 2017
-
-
-
-
94,299,168 -
3,273,279 -
(97,572,447) (120,000,000)
-
94,299,168
3,273,279
(217,572,447)
1,324,329,482
12,552,665
64,999,120
3,000,000,000
Page 3 of 30
4,401,881,267
CONSOLIDATED HALLMARK INSURANCE PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT PERIOD ENDED 30 June 2017 The Company Issued share capital N At 1 January 2016
Contigency reserves N
Retained earnings N
Total equity N
3,000,000,000
1,058,782,003
170,295,943
4,229,077,946
-
-
197,922,859 197,922,859
197,922,859 197,922,859
-
171,248,311
-
171,248,311
(171,248,311) (60,000,000) (231,248,311)
(60,000,000) (60,000,000)
At 31 December 2016
3,000,000,000
1,230,030,314
136,970,491
4,367,000,805
At 1 January 2017
3,000,000,000
1,230,030,314
136,970,491
4,367,000,805
-
-
94,696,951 94,696,951
94,696,951 94,696,951
-
94,299,168
-
94,299,168
(94,299,168) (120,000,000) (214,299,168)
(120,000,000) (120,000,000)
3,000,000,000
1,324,329,482
Changes in equity for 2016: Profit for the year Other comprehensive income for the year Total comprehensive income for the year Transactions with owners: Transfer within reserves Dividends relating to prior periods paid during the year Contribution by and to owners of the business
Changes in equity for 2017: Profit for the year Other comprehensive income for the year Total comprehensive income for the year Transactions with owners: Transfer within reserves Dividends relating to prior periods paid during the year Contribution by and to owners of the business At June 2017
Page 4 of 30
17,368,274
4,341,697,756
CONSOLIDATED HALLMARK INSURANCE PLC CONSOLIDATED STATEMENT OF CASH FLOWS AT PERIOD ENDED 30 June 2017 Group June 31 DECEMBER 2017 2016 N N
Notes Cash flows from operating activities Premium received from policy holders Reinsurance receipts in respect of claims Commission received Other operating receipts Cash paid to and on behalf of employees Reinsurance premium paid Claims paid Underwriting expenses Other operating cash payments Company income tax paid
25b. 25. 33. 25a
18.2
2,886,048,216 180,100,638 214,465,757 7,826,318 (295,121,908) (962,786,045) (807,045,436) (774,452,837) (430,640,278) (74,990,758)
Net cash (used in)/ from operating activities Cash flows from investing activities Purchase of property and equipment Fair value change and additions to investment properties Increase in investment in subsidiaries Proceeds from sale of property and equipment Purchase of financial assets Proceeds from sale of financial assets Dividend received Interest received
5,700,840,079 377,127,939 214,772,393 314,604,224 (513,986,990) (2,112,575,021) (1,657,293,652) (1,305,872,268) (798,539,118) (64,030,627)
Company June 31 DECEMBER 2017 2016 N N 2,886,048,216 180,100,638 214,465,757 7,826,318 (284,277,482) (962,786,045) (807,045,436) (774,452,837) (416,172,287) (63,716,065)
5,700,840,079 377,127,939 214,772,393 122,768,443 (492,007,345) (2,112,575,021) (1,657,293,652) (1,310,527,194) (653,320,688) (64,030,627)
(56,596,333)
155,046,960
(20,009,223)
125,754,328
12.2
(30,382,050)
(149,033,735)
(30,382,050)
(121,549,513)
12. 10. 12.2 3.
1,450,828 (1,279,021,640) 612,970,348 2,572,882 384,798,460
(5,862,395) 6,708,974 (1,548,611,151) 355,580,747 4,585,551 255,673,820
1,450,828 (916,613,850) 344,249,778 2,572,882 322,991,669
(5,862,395) (230,000,000) 6,708,974 (1,548,611,151) 355,580,747 29,585,551 255,673,820
(307,611,172)
(1,080,958,189)
(275,730,743)
(1,258,473,967)
(120,000,000)
(60,000,000)
(120,000,000)
(60,000,000)
(120,000,000)
(60,000,000)
(120,000,000)
(60,000,000)
(484,207,505) 1,836,824,537
(985,911,229) 2,822,735,767
(415,739,966) 1,587,501,284
(1,192,719,640) 2,780,220,925
1,352,617,032
1,836,824,537
1,171,761,318
1,587,501,284
27. 27.
Net cash from investing activities Cash flows from financing activities Dividend paid
21.
Net cash used in financing activities Increase in cash and cash equivalents Cash and cash equivalents at Beginning Cash and cash equivalent at End
2
The accompanying notes form an integral part of this statement of cash flows.
Page 5 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 1. Corporate information 1.1 The Group The group comprises of Consolidated Hallmark Insurance Plc and its subsidiary - CHI Capital Limited. CHI Capital Limited also has two wholly owned subsidiaries, Grand Treasurers Limited and CHI Support Services. 1.2 The Company Consolidated Hallmark Insurance Plc (formerly Consolidated Risk Insurers Plc) was incorporated on 2 August 1991. The Company changed its name from Consolidated Risk Insurers Plc to Consolidated Hallmark Insurance Plc following its merger with Hallmark Assurance Plc and The Nigerian General Insurance Company Limited in line with the consolidation reform of NAICOM announced in 2006. Consolidated Hallmark Insurance Plc came into effect from 1 March 2007. 1.3 Principal activities During the year under review, the Company engaged in general insurance business and maintained offices in major cities with Corporate headquarters at 266 Moshood Abiola way, Lagos. The principal activities of the subsidiaries are portfolio management, short term lending, equipment leasing and auto tracking services. Group June 2017 N 2.
Cash and cash equivalents Cash in hand Balance with banks Call deposits Fixed deposits (Note 2.1) Impairment charge (Note 2.2)
2,949,126 109,298,332 14,471,177 1,225,898,727 1,352,617,362 (330) 1,352,617,032
December 2016 N
3,045,944 201,753,578 10,945,865 1,621,079,150 1,836,824,537 1,836,824,537
Company June December 2017 2016 N N 2,949,126 4,574,170 14,471,177 1,149,767,175 1,171,761,648 (330) 1,171,761,318
3,045,944 141,892,518 10,945,865 1,431,616,957 1,587,501,284 1,587,501,284
2.1 The Fixed deposits have a short term maturity of 30-90 days and the effect of discounting immaterial.
2.2 Impairment charge At 1 January Written off in the year Provision no longer required (Note 29) At June 2017 3.
Financial assets At fair value through profit or loss (Note 3.1) Loans and receivables measured at amortised cost (Note 3.2) Available for sale (Note 3.3) Held to maturity (Note 3.4)
3.1 At fair value through profit or loss At 1 January Additions Disposals Transfers to cash and WHT receivables
330 330
-
330 330
-
141,506,761
170,013,089
134,855,406
163,699,494
284,126,811 60,950,000 2,487,273,245 2,973,856,817
237,335,789 60,950,000 1,654,142,565 2,122,441,443
181,940,850 60,950,000 2,487,273,245 2,865,019,501
211,761,875 60,950,000 1,654,142,565 2,090,553,934
Fair value gains/(loss) (Note 30) At June 2017
170,013,089 337,760 (21,517,004) 148,833,845 (7,327,084) 141,506,761
323,785,254 785,000 (4,282,422) 320,287,832 (150,274,743) 170,013,089
163,699,494 (21,517,004) 142,182,490 (7,327,084) 134,855,406
318,256,659 (4,282,422) 313,974,237 (150,274,743) 163,699,494
Current Non Current
141,506,761 -
170,013,089 -
134,855,406 -
163,699,494 -
Financial assets at fair value through profit or loss of the group represents investment where there is a ready and liquid quoted market, which are acquired for the purpose of short-term trade, and where mark-to-market valuations are possible on every trading day. Assets under this category have been acquired by management with the intent of short term trading.
Page 6 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group June 2017 N 3.2
Loans and receivables Staff loans Loan issued to corporate individuals (Note 3.2.1)
Current Non Current 3.2.1 Loan issued to corporate / individuals At 1 January Addition Repayment Impairment on loans issued to corporate and individuals (Note 3.2.4) At the end 3.2.2 Analysis by performance: Performing (Note 3.2) Non-performing (Note 3.2.1)
3.2.3 Analysis by maturity: Due within one year Due within one - five years Due after five years
Movement in impairment - loans and 3.2.4 receivables : At 1 January Addition (Note 29) Provision no longer required At the end 3.3
December 2016 N
Company June December 2016 2017 N N
177,150,681 106,976,130 284,126,811
203,485,300 33,850,489 237,335,789
177,150,681 4,790,169 181,940,850
203,485,300 8,276,575 211,761,875
133,530,958 150,595,852
141,492,415 95,843,374
94,530,242 87,410,608
143,652,919 68,108,956
131,126,947 105,807,458 (31,957,645) 204,976,760
126,402,527 210,115,198 (205,390,778) 131,126,947
(98,000,630) 106,976,130
(97,276,457) 33,850,489
(93,185,875) 4,790,169
(93,185,875) 8,276,575
284,126,811 98,000,630 382,127,441
237,335,789 97,276,457 334,612,247
181,940,850 93,185,875 275,126,725
211,761,875 93,185,875 304,947,750
133,530,958 158,596,483 90,000,000 382,127,441
323,517,416 8,596,483 2,498,348 334,612,247
94,530,242 90,596,483 90,000,000 275,126,725
293,852,920 8,596,483 2,498,348 304,947,750
101,462,451 134,408,271 130,639,916 (3,486,407) (163,585,736) 97,976,044 101,462,451
97,276,457 724,173 98,000,630
95,695,221 2,274,266 (693,030) 97,276,457
93,185,875 93,185,875
93,878,905 (693,030) 93,185,875
Available for sale assets At 1 January Addition Exchange gains Impairment on available for sale At the end
60,950,000 60,950,000
60,950,000 60,950,000
60,950,000 60,950,000
60,950,000 60,950,000
Current Non Current
60,950,000
60,950,000
60,950,000
60,950,000
Available for sale assets are the unquoted equity securities of the group and are measured at cost because their fair value could not be reliably measured. At period end there is no indication of impairment. Available for sale equities is analysed as follows:
Planet Capital Limited (Formerly Strategy and Arbitrage Limited) Energy & Allied Insurance Pool Nigeria limited
Page 7 of 30
No. of shares 2,000,000 -
Cost per unit N1
Total Cost 2,000,000 58,950,000
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group June 2017 N 3.4 Held to maturity assets At 1 January At initial recognition - additions Value at maturity Disposal Amortised interest (Note 27)
a)
b)
December 2016 N
1,706,977,787 939,187,844 2,646,165,631 (380,662,957) 221,770,571
479,575,123 1,227,402,664 1,706,977,787 (170,307,420) 117,472,198
1,706,977,787 939,187,844 2,646,165,631 (380,662,957) 221,770,571
479,575,123 1,227,402,664 1,706,977,787 (170,307,420) 117,472,198
At the end
2,487,273,245
1,654,142,565
2,487,273,245 -
1,654,142,565 -
Held to maturity assets are analysed as follows: Debts securities Listed Unlisted
2,487,273,245 -
1,654,142,565 -
2,487,273,245 -
1,654,142,565 -
At the end
2,487,273,245
1,654,142,565
2,487,273,245
1,654,142,565
Current Non-current
221,770,571 2,265,502,674 2,487,273,245
1,027,712,519 626,430,046 1,654,142,565
221,770,571 2,265,502,674 2,487,273,245
1,027,712,519 626,430,046 1,654,142,565
11,619,475 51,089,041 55,293,151
13,990,993 51,109,589 51,016,096
11,619,475 51,089,041 55,293,151
13,990,993 51,109,589 51,016,096
35,024,902
41,781,157
35,024,902
41,781,157
397,898,159
99,300,908 486,703,501
397,898,159
99,300,908 486,703,501
174,997,717
158,545,821
174,997,717
158,545,821
391,726,343
355,160,541
391,726,343
355,160,541
197,305,629
179,225,644
197,305,629
179,225,644
239,783,848
217,308,315
239,783,848
217,308,315
154,762,314
-
154,762,314
-
376,697
-
376,697
-
32,724,532
-
32,724,532
-
207,630,846
-
207,630,846
-
225,601,720
-
225,601,720
-
189,143,840
-
189,143,840
-
67,783,604
-
67,783,604
-
36,964,191
-
36,964,191
-
17,547,236 2,487,273,245
1,654,142,565
17,547,236 2,487,273,245
1,654,142,565
180,000,000
180,000,000
At the reporting date, no held to maturity assets were past due or impaired 15.25% NAHCO Bond series 2 2013/2020 FCMB NGN SERIES 2 BOND 2015/2020 FCMB NGN SERIES 2 BOND 2016/2023 13.5% Lagos State Government Bond series 2 2013/2020 LAGOS STATE PROGRAMME 2 SERIES 2 FIXED RATE BOND ISSUANCE (2013/2020) Wemabank commercial paper Omo 18.45% 24/08/2017 FG TREASURE BILL FCMB Omo 18.45% 10/08/2017 FG TREASURE BILL FCMB Omo 18.25% 27/07/2017 FG TREASURE BILL FCMB Omo 18.25% 27/07/2017 FG TREASURE BILL CAPITAL EXPRESS Omo 18.25% 18/01/2018 FG TREASURE BILL AIICO CAPITAL TREASURY BILLS 18.50% FEB. 1 2018 AIICO CAPITAL LTD TREASURY BILLS 18.50% FEB. 1 2018 AIICO CAPITAL LTD TREASURY BILLS 18.4336% FEB. 1 2018 FSDH MERCHANT BANK LIMITED TREASURY BILLS 18.4336% FEB. 1 2018 FSDH MERCHANT BANK LIMITED TREASURY BILLS 18.4336% FEB. 1 2018 FSDH MERCHANT BANK LIMITED TREASURY BILLS 18.4336% FEB. 1 2018 FSDH MERCHANT BANK LIMITED TREASURY BILLS 13.69% MARCH. 2 2017 AIICO Capital Limited TREASURY BILLS 13.69% MARCH. 2 2017 AIICO Capital Limited At the end
4.
Company June 2017 N
December 2016 N
Deposit for shares
-
-
This represents fund deposited by the company for additional shares in Chi Capital Limited. 5.
Finance lease receivables At 1 January Addition Repayment Gross investment Unearned income Net investment (Note 5.1) Impairment on finance lease receivables (Note 5.2) At the end
5.1 Current Non-current Analysis by performance Performing Non-performing Analysis by maturity Due within one year Due between one - five years
5.2 Movement in impairment - finance lease receivables: At 1 January Charge for the year (Note 29) At the end
6.
Trade receivables Due from insurance companies Due from insurance brokers and agents Impairment allowance (Note 6.1)
Current Non-current
178,954,617 232,964,406 (125,112,739) 286,806,284 (50,565,284) 236,241,000 (17,613,936) 218,627,064
181,031,249 177,678,768 (141,477,667) 217,232,350 (38,277,733) 178,954,617 (16,664,352) 162,290,265
-
-
199,063,474 37,177,526
148,336,298 30,618,319
218,627,064 17,613,936 236,241,000
162,290,265 16,664,352 178,954,617
-
-
162,462,006 73,778,994 236,241,000
83,963,156 94,991,461 178,954,617
-
-
16,664,352 949,584
8,935,263 7,729,089
-
-
17,613,936
16,664,352
-
-
19,097,360 260,595,340 279,692,700 279,692,700
25,015,653 157,075,438 182,091,091 182,091,091
19,097,360 260,595,340 279,692,700 279,692,700
25,015,653 157,075,438 182,091,091 182,091,091
279,692,700 -
182,091,091 -
279,692,700 -
182,091,091 -
-
Page 8 of 30
-
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group June 2017 N 6.1
Impairment allowance At 1 January Written off in the year Charge for the year (Note 29) At the end
31 December 2016 N
-
-
-
Company June 31 December 2017 2016 N N
-
-
-
Basis of impairment An impairment rate is derived based on the likelihood that a premium debt will not be paid and will fall into default. The Company first assesses whether objective evidence of impairment exists individually for receivables that are individually significant and are impaired accordingly. If the company determines that no objective evidence of impairment exists for an individually assessed receivable, whether significant or not, it includes the receivable in a group of receivables with similar credit risk characteristics and collectively assesses them for impairment. The impairment rate is derived based on the historical collection rate of outstanding premium over three different periods and the average rate derived is applied to the carrying amounts at the reporting dates to determine impaired receivables.
Group June 2017 N 7.
31 December 2016 N
Company June 31 December 2017 2016 N N
Reinsurance assets Prepaid reinsurance (Note 7.1) Reinsurers share of outstanding claims (Note 7.2)
242,618,573 1,059,175,524
298,005,373 248,318,605
242,618,573 1,059,175,524
298,005,373 248,318,605
At the end
1,301,794,097
546,323,978
1,301,794,097
546,323,978
Current Non-current
1,301,794,097 -
546,323,978 -
1,301,794,097 -
546,323,978 -
The Company assesses its reinsurance assets for impairment. If there is objective evidence that the reinsurance assets are impaired, the Company reduces the carrying amount of the reinsurance assets to its recoverable amount and recognizes that impairment loss in the income statement. The Company has a reinsurance agreement with African Reinsurance Corporation, and Continental Reinsurance Plc. Based on the financial position and performance during the period under review, they are solvent and had never defaulted on their obligations. Consequently, there are no indications of impairment as at the reporting date. Group June 2017 N 7.1
7.2
7.3
Prepaid reinsurance Fire General accident Motor Marine Bond Engineering Aviation Oil & gas
Reinsurers share of outstanding claims Fire General accident Motor Marine Bond Engineering Aviation Oil & gas
Reinsurance assets: Movement in prepaid reinsurance: At 1 January Additions during the year (Note 24) Amortization during the year (Note 24) At the end
8.
Deferred acquisition cost At 1 January Acquistion cost during the year Less: Amortisation during the year (Note 26) At the end Current Non-current
31 December 2016 N
Company 31 December June 2017 2016 N N
60,624,355 16,064,737 2,268,223 28,596,334 1,143,515 5,874,020 65,548,089 62,499,300 242,618,573
75,104,355 22,917,137 4,816,223 40,096,334 2,343,515 7,376,020 67,050,489 78,301,300 298,005,373
60,624,355 16,064,737 2,268,223 28,596,334 1,143,515 5,874,020 65,548,089 62,499,300 242,618,573
75,104,355 22,917,137 4,816,223 40,096,334 2,343,515 7,376,020 67,050,489 78,301,300 298,005,373
746,015,823 32,255,190 11,247,203 14,524,937 757,097 19,225,565 229,803,834 5,345,875 1,059,175,525
141,789,565 29,210,186 6,247,203 45,000,355 63,428 14,255,659 6,406,334 5,345,875 248,318,605
746,015,823 32,255,190 11,247,203 14,524,937 757,097 19,225,565 229,803,834 5,345,875 1,059,175,524
141,789,565 29,210,186 6,247,203 45,000,355 63,428 14,255,659 6,406,334 5,345,875 248,318,605
298,005,373 985,021,600 1,283,026,973 (1,040,408,400) 242,618,573
409,975,490 2,088,025,170 2,498,000,660 (2,199,995,287) 298,005,373
298,005,373 985,021,600 1,283,026,973 (1,040,408,400) 242,618,573
409,975,490 2,088,025,170 2,498,000,660 (2,199,995,287) 298,005,373
229,579,067 580,725,341 (580,725,341) 229,579,067
190,525,298 843,634,488 (804,580,719) 229,579,067
229,579,067 580,725,341 (580,725,341) 229,579,067
190,525,298 843,634,488 (804,580,719) 229,579,067
229,579,067 -
229,579,067 -
229,579,067 -
229,579,067 -
Deferred acquisition cost represent commissions on unearned premium relating to the unexpired risk. The movement in the deferred acquisition cost during the year is as shown above. Page 9 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group June 2017 N 8.1
9.
Deferred acquisition cost analysis Fire General accident Motor Marine Bond Engineering Aviation Oil & gas
Other receivables and prepayments Staff advances & prepayment Account receivables Intercompany Receivables Witholding tax credit Prepayments (Note 9.1) Impairment allowance (Note 29)
Current Non-current
9.1
Prepayments Prepaid rent Other prepayments
Current Non-current 10.
December 2016 N
Company June 2017 N
December 2016 N
41,961,538 55,711,526 55,521,601 20,902,304 2,190,179 9,634,091 13,763,383 29,894,445 229,579,067
41,961,538 55,711,526 55,521,601 20,902,304 2,190,179 9,634,091 13,763,383 29,894,445 229,579,067
41,961,538 55,711,526 55,521,601 20,902,304 2,190,179 9,634,091 13,763,383 29,894,445 229,579,067
41,961,538 55,711,526 55,521,601 20,902,304 2,190,179 9,634,091 13,763,383 29,894,445 229,579,067
117,552,193 41,579,876 60,117,439 24,399,979 243,649,487 243,649,487
22,374,467 67,171,613 58,105,915 30,316,738 177,968,732 177,968,732
117,552,193 31,557,247 46,780,652 60,117,439 24,399,979 280,407,510 280,407,510
22,374,467 62,681,514 40,051,485 58,105,915 30,316,738 213,530,118 213,530,118
243,649,487 -
177,968,732 -
280,407,510 -
213,530,118 -
18,848,080 5,551,899 24,399,979
28,284,485 2,032,253 30,316,738
18,848,080 5,551,899 24,399,979
28,284,485 2,032,253 30,316,738
24,399,979 -
30,316,738 -
24,399,979 -
30,316,738 -
300,000,000
300,000,000
Investment in subsidiaries CHI Capital (Note 10.1)
-
-
10.1 CHI Capital Limited is a fully owned subsidiary of Consolidated Hallmark Insurance Plc. It carries on the business of consumer leasing. CHI Capital Limited acquired 100% interest in Grand Treasurers Limited, a CBN licensed finance company, in December 2010 with the purpose of carrying on financing activities. CHI Capital Limited also owns 100% interest in CHI Support Services Limited which is into the business of vehicle tracking.
CHI PLC N
CHI Capital Limited N
CHI Microinsurance N
Elimination N
Total N
Condensed result of consolidated entities - 2017 10.2 Condensed financial position Assets Cash and cash equivalents Financial assets Deposit for shares Finance lease receivables Trade receivables Reinsurance assets Deferred acquisition cost Other receivables and prepayment Investment in subsidiaries Investment properties Inventories Intangible Assets Property and equipment Statutory deposits Total assets
1,171,761,318 2,865,019,501 180,000,000 279,692,700 1,301,794,097 229,579,067 280,407,510 300,000,000 809,221,395 10,795,876 925,950,614 300,000,000 8,654,222,078
125,333,318 108,837,316 218,627,064 10,022,629 84,661,000 666,754 29,219,161 577,367,242
Liabilities Insurance contract liabilities Trade payables Provision and other payables Staff retirement benefit Tax liabilities Deffered tax Share capital Statutory reserve Retained earnings Total liabilities and equity
3,707,849,659 65,275,507 145,617,742 5,046,938 214,312,091 174,422,385 3,000,000,000 1,324,329,482 17,368,274 8,654,222,078
236,310,974 333,991 35,583,220 477,942 250,000,000 12,552,665 42,108,450 577,367,242
Page 10 of 30
55,522,396 (180,000,000) (46,780,652) (300,000,000) -
55,522,396
(526,780,652)
(226,780,652) 50,000,000 5,522,396 55,522,396
(300,000,000) (526,780,652)
1,352,617,032 2,973,856,817 218,627,064 279,692,700 1,301,794,097 229,579,067 243,649,487 893,882,395 11,462,630 955,169,775 300,000,000 8,760,331,064
3,707,849,659 65,275,507 155,148,064 5,380,929 249,895,311 174,900,327 3,000,000,000 1,336,882,147 64,999,120 8,760,331,064
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 CHI CHI PLC N 10.2
10.2
Elimination N
Total N
Condensed result of consolidated entities - 2017 Condensed profit and loss Underwriting profit Investment income Other operating income Total operating income Impairment charge Net fair value gains/(losses) on financial assets at fair value through profit or loss Management expenses Profit before taxation Taxation Profit after taxation
10.2
CHI
Capital Microinsurance N N
628,039,930 325,564,551 7,826,318 961,430,799 (290,329)
66,360,555 66,360,555 (3,920,887)
(7,327,084) (742,808,669) 211,004,717 (116,307,766) 94,696,951
(30,673,466) 31,766,202 (11,520,075) 20,246,127
4,137,478 4,137,478
4,137,478 4,137,478
-
628,039,930 325,564,551 78,324,351 1,031,928,832 (4,211,216)
-
(7,327,084) (773,482,135) 246,908,397 (127,827,841) 119,080,556
-
Condensed result of consolidated entities - 2016
Condensed financial position Cash and cash equivalents Financial assets Deposit for shares Finance lease receivables Trade receivables Reinsurance assets
1,587,501,284 2,090,553,934 180,000,000 182,091,091 546,323,978
197,938,334 31,887,509 162,290,265 -
Deferred acquisition costs Other receivables and prepayment Investment in subsidiaries Investment properties Property and equipment Inventories Statutory deposits Total assets
229,579,067 213,530,118 300,000,000 809,221,395 12,383,037 941,328,726 300,000,000 7,392,512,630
31,952,439 84,661,000 3,920,887 736,312 32,693,901 546,080,647
Liabilities Insurance contract liabilities Trade payables Other payables and provision Retirement benefit obligation Income tax liabilities Deferred tax liabilities Share capital Statutory reserve Retained earnings Total liabilities and equity
2,426,766,048 87,511,062 179,037,541 13,502 162,558,597 169,625,075 3,000,000,000 1,230,030,314 136,970,491 7,392,512,630
232,143,292 137,812 28,906,615 477,942 250,000,000 9,279,386 25,135,600 546,080,647
806,841,995 192,156,293 65,404,832 1,064,403,120 -
45,172,664 45,172,664 -
51,384,918 (180,000,000) (67,513,825) (300,000,000) -
51,384,918
(547,513,825)
(247,513,825) 50,000,000 1,384,918 51,384,918
1,836,824,536 2,122,441,443 162,290,265 182,091,091 546,323,978 229,579,067 177,968,732 893,882,395 3,920,887 13,119,349 974,022,627 300,000,000 7,442,464,370
(547,513,825)
2,426,766,048 87,511,062 163,667,008 151,314 191,465,212 170,103,017 3,000,000,000 1,239,309,700 163,491,009 7,442,464,370
7,198,565 (7,198,565) -
814,040,560 192,156,293 103,378,931 1,109,575,784 -
(300,000,000) -
Condensed result of consolidated entities - 2016 Condensed profit and loss Underwriting profit Investment income Other operating income Total operating income Impairment charge Net fair value gains on financial assets at fair value through profit or loss Management expenses Profit before taxation Taxation Profit after taxation
(16,160,071) (645,664,724) 402,578,325 (156,566,299) 246,012,026
Page 11 of 30
(25,408,969) 19,763,696 (6,636,987) 13,126,709
-
(16,160,071) (671,073,693) 422,342,020 (163,203,286) 259,138,734
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group June 2017 N 11.
Inventories At 1 January Auto track devices Used
Company June 31 December 2017 2016 N N
(3,920,887) -
6,520,134 (1,225,967) 5,294,167 (1,373,280) 3,920,887
23,074,700 23,074,700
22,265,000 809,700 23,074,700
21,337,500 21,337,500
21,337,500 21,337,500
Accumulated amortization At 1 January Addition June
9,955,351 1,656,719 11,612,070
5,797,129 4,158,222 9,955,351
8,954,463 1,587,161 10,541,624
5,745,067 3,209,396 8,954,463
Carrying amount At End
11,462,630
13,119,349
10,795,876
12,383,037
12.1 Investment properties At 1 January Addition Fair value change June
893,882,395 893,882,395
888,020,000 5,862,395 893,882,395
809,221,395 809,221,395
803,359,000 5,862,395 809,221,395
Impairment allowance (Note 29)
12.0 Intangible assets Cost At 1 January Addition June
3,920,887 -
31 December 2016 N
3,920,887
-
-
-
-
Investment properties Investment properties are made up of buildings and properties held by the company to earn rentals or for capital appreciation or both and are accounted for in line with International Accounting Standard (IAS) 40. Some of these properties retained the title of one of the legacy companies making up Consolidated Hallmark Insurance Plc. There is no dispute as to the title of Consolidated Hallmark Insurance Plc to these properties. However, in line with NAICOM requirement, provided below is the list of these properties and status of efforts to change their name to Consolidated Hallmark Insurance Plc.
S/N 1
TYPE OF ADDRESS ASSET Company Plot A/5 Pocket Layout (Clerk Building Quarters) Owerri, Imo State.
AMOUNT N
CURRENT TITLE HOLDER
STATUS ON CHANGE OF TITLE
207,680,000 Consolidated Hallmark Insurance Plc.
Title over this property has been transferred to Consolidated Hallmark Insurance Plc. Title now changed from Hallmark Assurance Plc to the name of Consolidated Hallmark Insurance Plc. Title over this property has been transferred to Consolidated Hallmark Insurance Plc. Title over this property has been transferred to Consolidated Hallmark Insurance Plc. Title over this property has been transferred to Consolidated Hallmark Insurance Plc.
2
Building
219, 220 and 221, Akukwe Street, Works Layout, Owerri, Imo State
240,270,000 Consolidated Hallmark Insurance Plc.
3
Building
No. 30, East Street, Rivers Layout Aba, Abia State.
109,580,000 Consolidated Hallmark Insurance Plc.
4
Building
Plot 33, Chief Ogbonda Layout, Rumuogba, Port Harcourt.
130,314,000 Consolidated Hallmark Insurance Plc.
5
Land
Plot 3, Sea Gate Estate, Phase 1, Lekki Peninsula, Eti-Osa.
47,020,000 Consolidated Hallmark Insurance Plc.
6
Building
Rivers State Housing Estate, Abuloma PH
48,012,395 Consolidated Hallmark Insurance Plc.
Title over this property has been transferred to Consolidated Hallmark Insurance Plc.
7
Land
Plot 14, 1(W) Road, First Avenue, Lugbe Estate, Abuja.
23,275,000 Hallmark Assurance Plc (Legacy Company)
8
Shops
Trade Fair Shopping Complex
The Company made payments to the Federal Housing Authority during the year and is awaiting final approval from them. Already exist in the name of Consolidated Hallmark Insurance Plc.
3,070,000 Consolidated Hallmark Insurance Plc. 809,221,395
CHI Capital Limited Thomas Estate,Orile Ibama, Ajah, Lagos Total
84,661,000 893,882,395
Page 12 of 30
CHI Capital Limited
Already exist in the name of CHI Capital Limited
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 12.2 12.2a
Property and equipment 2017 The group Land N Costs At 1 January Additions in the year Disposals in the year June
Building N
Office Equipment N
Furniture & Fittings N
Motor Vehicles N
Computer Equipment N
Total N
286,099,948 286,099,948
536,339,722 536,339,722
101,370,202 941,000 102,311,202
118,714,084 5,138,050 123,852,134
419,230,497 19,377,250 (7,780,000) 430,827,747
213,960,444 4,925,750 218,886,194
1,675,714,897 30,382,050 (7,780,000) 1,698,316,947
Accumulated depreciation At 1 January 2017 Depreciation charge for the period Disposals in the period June
-
107,326,721 5,319,315 112,646,036
72,538,148 3,950,145 76,488,293
97,720,403 3,242,507 100,962,910
231,268,023 29,856,662 (4,378,740) 256,745,945
192,838,976 3,694,600 (229,588) 196,303,988
Accummulated impairment losses
-
-
-
-
-
-
-
Carrying value June
286,099,948
423,693,686
25,822,909
22,889,224
174,081,802
22,582,206
955,169,775
At 1 January 2017
286,099,948
429,013,001
28,832,054
20,993,681
187,962,474
21,121,468
974,022,626
701,692,271 46,063,229 (4,608,328) 743,147,172
Some fixed assets were professionally re-valued as at 31 December 2006, by Messrs Adegboyega Sanusi & Co. on the basis of open market values. These values were incorporated in the books at that date. The surplus arising on the revaluation over the written down values was treated in the NGAAP financial statements as fixed assets revaluation reserve. However, in compliance with IFRS (i.e. IAS 16) the revalued amount was taken as deemed cost at transition date and the revaluation reserve was transferred to revenue reserve. During the year ended 31 December 2011, the landed property of CHI Capital Limited were professionally re-valued at N84 million by Messrs Adegboyega Sanusi & Co. Estate Surveyors & Valuers on the basis of open market value between a willing seller and buyer. The sum of N65,495,775 was then recognised as revaluation reserve in the financial statements.
Page 13 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017
12.2a
Property and equipment The group 2016 Land
Building N
Costs At 1 January Additions in the year Disposals in the year At 31 December 2016
Office Furniture & Motor Computer Equipment Fittings Vehicles Equipment Total N N N N N
N
286,099,948 286,099,948
536,339,722 536,339,722
83,679,352 17,853,350 (162,500) 101,370,202
107,872,857 11,982,227 (1,141,000) 118,714,084
338,825,681 111,310,500 (30,905,684) 419,230,497
208,436,224 7,397,336 (1,873,116) 213,960,444
1,561,253,784 148,543,413 (34,082,300) 1,675,714,897
Accumulated depreciation At 1 January Depreciation charge for the year Disposals in the year At 31 December 2016
-
96,570,538 10,756,183 107,326,721
66,185,219 6,505,796 (152,866) 72,538,148
93,249,714 5,611,689 (1,141,000) 97,720,403
199,919,550 59,216,084 (27,867,611) 231,268,023
188,279,419 6,415,528 (1,855,972) 192,838,976
644,204,440 88,505,280 (31,017,449) 701,692,271
Accummulated impairment losses
-
-
-
-
-
-
-
286,099,948 286,099,948
429,013,001 439,769,184
28,832,054 17,494,133
20,993,681 14,623,143
187,962,474 138,906,131
21,121,468 20,156,805
974,022,626 917,049,344
Carrying value At 31 December 2016 At 31 December 2015
Page 14 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 12.2b
Property and equipment 2017 The company Land N Costs At 1 January Additions Disposals June
Building N
Office Equipment N
Furniture & Fittings N
Motor Vehicles N
Computer Equipment N
382,284,183 19,377,250 (7,780,000) 393,881,433
213,129,621 4,925,750
193,428,299 3,494,600 196,922,899
696,439,215 42,358,900 (4,378,740) 734,419,375
Total N
286,099,948
536,339,722
101,200,381 941,000
118,714,084 5,138,050
286,099,948
536,339,722
102,141,381
123,852,134
-
107,326,721 5,319,315
72,484,689 3,700,069
97,720,404 3,117,462
112,646,036
76,184,758
100,837,866
225,479,102 26,727,454 (4,378,740) 247,827,816
Carrying value June
286,099,948
423,693,686
25,956,623
23,014,268
146,053,617
21,132,472
925,950,614
At 31 December 2016
286,099,948
429,013,001
28,715,693
20,993,680
156,805,081
19,701,322
941,328,726
Accumulated depreciation At 1 January Depreciation charge for the period Disposals June
218,055,371
1,637,767,939 30,382,050 (7,780,000) 1,660,369,989
Some items of property and equipment were professionally re-valued as at 31 December 2006, by Messrs Adegboyega Sanusi & Co. on the basis of open market values. These values were incorporated in the books at that date. The surplus arising on the revaluation over the written down values was treated in the NGAAP financial statements as revaluation surplus. However, in compliance with IFRS (i.e IAS 16) the revalued amount was taken as deemed cost at transition date and the surplus on revaluation was transferred to retained earnings.
Page 15 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Property and equipment (Cont'd) 2016 The company Land N Costs At 1 January Additions Disposals At 31 December 2016 Accumulated depreciation At 1 January Depreciation charge for the year Disposals At 31 December 2016 Carrying value At 31 December 2016 At 31 December 2015
Building N
Office Equipment N
Furniture & Fittings N
Motor Vehicles N
Computer Equipment N
Total N
107,872,857 11,982,227 (1,141,000) 118,714,084
327,710,680 84,945,000 (30,371,491) 382,284,189
207,661,473 6,823,936 (1,355,789) 213,129,620
1,549,249,208 121,549,513 (33,030,780) 1,637,767,941
286,099,948
536,339,722
286,099,948
536,339,722
83,564,528 17,798,350 (162,500) 101,200,378
-
96,570,538 10,756,183 107,326,721
66,155,857 6,481,698 (152,866) 72,484,689
93,249,715 5,611,689 (1,141,000) 97,720,404
196,402,613 56,944,100 (27,867,611) 225,479,102
187,946,133 6,837,787 (1,355,621) 193,428,299
640,324,856 86,631,457 (30,517,098) 696,439,215
286,099,948 286,099,948
429,013,001 439,769,184
28,715,689 17,408,672
20,993,680 14,623,142
156,805,087 131,308,067
19,701,321 19,715,340
941,328,726 908,924,352
Page 16 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group 2017 N 13.
Statutory deposits
2016 N
Company 2017 N
2016 N
300,000,000
300,000,000
300,000,000
300,000,000
2,091,057,151 1,616,792,508
968,909,480 1,441,792,508
2,091,057,151 1,616,792,508
968,909,480 1,441,792,508
3,707,849,659
2,410,701,988
3,707,849,659
2,410,701,988
Group Provision for IBNR N 147,207,500 80,327,608 185,546,097 52,434,352 2,480,898 9,586,420 33,044,377 47,938,652 558,565,904
Gross Reserve N 968,698,966 292,024,222 331,358,820 61,031,390 3,742,013 27,746,275 352,641,592 53,813,873 2,091,057,151
Outstanding Claim N 821,491,466 211,696,614 145,812,723 8,597,038 1,261,115 18,159,855 319,597,215 5,875,221 1,532,491,247
Company Provision for IBNR N 147,207,500 80,327,608 185,546,097 52,434,352 2,480,898 9,586,420 33,044,377 47,938,652 558,565,904
Gross Reserve N 968,698,966 292,024,222 331,358,820 61,031,390 3,742,013 27,746,275 352,641,592 53,813,873 2,091,057,151
Reserve for outstanding claims - 2016 Outstanding Provision for Claim IBNR N N Fire 84,369,661 147,207,500 General accident 189,071,074 80,327,608 Motor 80,902,057 185,546,098 Marine 8,379,859 52,434,352 Bond 30,000 2,480,898 Engineering 25,120,925 9,586,420 Aviation 8,400,000 33,044,377 Oil & gas 14,070,000 47,938,652 410,343,576 558,565,904
Gross Reserve N 231,577,161 269,398,682 266,448,154 60,814,211 2,510,898 34,707,345 41,444,377 62,008,652 968,909,480
Outstanding Claim N 84,369,661 189,071,074 80,902,056 8,379,859 30,000 25,120,925 8,400,000 14,070,000 410,343,575
Provision for IBNR N 147,207,500 80,327,608 185,546,098 52,434,352 2,480,898 9,586,420 33,044,377 47,938,652 558,565,905
Gross Reserve N 231,577,161 269,398,682 266,448,154 60,814,211 2,510,898 34,707,345 41,444,377 62,008,652 968,909,480
This represents the amount deposited with the Central Bank of 14.
Insurance contract liabilities Reserve for outstanding claims (Note 14.1) Unearned premium reserve (Note 14.2)
14.1 Reserve for outstanding claims - 2017
Fire General accident Motor Marine Bond Engineering Aviation Oil & gas
Outstanding Claim N 821,491,466 211,696,614 145,812,723 8,597,038 1,261,115 18,159,855 319,597,215 5,875,221 1,532,491,247
Group 2017 N 14.2 Unearned premium reserve Fire General accident Motor Marine Oil & Gas Engineering Aviation Bond
249,341,981 319,606,184 560,987,181 119,047,594 210,849,770 64,316,378 79,662,480 12,980,940 1,616,792,508
2016 N
222,411,236 286,553,511 506,744,947 106,613,671 179,991,537 58,263,594 69,557,327 11,656,685 1,441,792,508
Group 2017 N 14.2a Unearned Commission received Fire General accident Motor Marine Oil & Gas Engineering Aviation Bond
941,301 661,870 652,801 1,617,958 7,428,580 4,761,551 16,064,061
2016 N 941,301 661,870 652,800 1,617,958 7,428,580 4,761,551 16,064,060
Page 17 of 30
Company 2017 N 249,341,981 319,606,184 560,987,181 119,047,594 210,849,770 64,316,378 79,662,480 12,980,940 1,616,792,508
222,411,236 286,553,511 506,744,947 106,613,671 179,991,537 58,263,594 69,557,327 11,656,685 1,441,792,508
Company 2017 N 941,301 661,870 652,801 1,617,958 7,428,580 4,761,551 16,064,061
2016 N
2016 N 941,301 661,870 652,800 1,617,958 7,428,580 4,761,551 16,064,060
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group 2017 N 14.3
15.
Funds representing insurance contract liabilities Balance with banks Fixed placement Treasury bill & Bonds Available for sale assets At fair value through profit or loss
Trade payables Due to insurance companies Due to reinsurance companies - local Other trade payables
Current Non-current 16.
Other payables and provision Audit fees VAT payable Witholding tax payable Unclaimed dividend payable (Note 16.1) Due to CHI Capital Accrued expenses Unearned Commission received Sundry creditors
Current Non-current 16.1
Company 2017 N
2016 N
1,057,674,030 2,487,273,245 60,950,000 134,855,406
10,945,865 1,341,626,500 1,179,635,507 -
1,057,674,030 2,487,273,245 60,950,000 134,855,406
10,945,865 1,341,626,500 1,179,635,507 -
3,740,752,681
2,532,207,872
3,740,752,681
2,532,207,872
65,275,507 65,275,507
66,438,027 21,073,035 87,511,062
65,275,507 65,275,507
66,438,027 21,073,035 87,511,062
65,275,507 -
87,511,062 -
65,275,507 -
87,511,062 -
6,166,311 1,231,381 81,904,931 16,064,061 49,781,380 155,148,064
7,500,000 11,666,311 635,340 72,747,541 23,933,656 16,064,060 47,184,159 179,731,068
6,166,311 1,231,381 81,904,931 16,064,061 40,251,058 145,617,742
5,500,000 11,666,311 635,340 72,747,541 27,462,340 23,933,656 16,064,060 37,092,353 195,101,601
155,148,064 -
179,731,068 -
145,617,742 -
195,101,601 -
Unclaimed dividend payable represents amount of dividend which shareholders are yet to collect from the company's registrars and which, in line with the relevant rules of the Securities and Exchange Commission, have been returned to the Company to be held in a separate investment trust account. The balance in the fund is N81,904,931 (made up of principal of N81,511,521. and accrued interest of N393,410).
Group 2017 N 17.
2016 N
Retirement benefit obligation Defined contribution pension plan At 1 January Provision during the period (Note 33) Payment during the period June
151,314 17,475,115 (12,245,500) 5,380,929
Page 18 of 30
2016 N
184,444 35,657,920 (35,691,050) 151,314
Company 2017 N
13,502 17,322,715 (12,289,279) 5,046,938
2016 N
4,430 35,048,320 (35,039,248) 13,502
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group 2017 N 18.
Taxation
18.1
Income tax expense Income tax Education tax Under/(over)provision in previous year
123,030,531 4,797,310 127,827,841 4,797,310 132,625,151
Deferred tax (Note 18.3)
2016 N
103,944,290 7,035,961 32,351,284 143,331,535 29,813,749 173,145,284
Company 2017 N
111,510,456 4,797,310 116,307,766 4,797,310 121,105,076
2016 N
94,757,836 6,317,189 32,351,284 133,426,309 29,931,910 163,358,219
18.1.1 The Nigerian Information Technology Development Agency (NITDA) Act was signed into law on 24 April 2007. Section 12(2a) of the Act demands that, 1% of profit before tax should be paid to the Nigerian Information Technology Development Agency. In line with the Act, the Company has provided for NITDA levy at the specified rate. Group 2017 N 18.2
18.3
Current income tax liabilities At 1 January Transfer from VAT and WHT payable Payments during the period
2016 N
Company 2017 N
2016 N
Charge for the period June
191,465,212 5,593,016 (74,990,758) 122,067,470 127,827,841 249,895,311
120,730,104 (72,478,265) 48,251,839 143,213,373 191,465,212
162,558,597 5,593,016 (63,716,065) 104,435,548 116,307,766 214,312,091
93,162,912 (64,030,625) 29,132,287 133,426,309 162,558,597
Deferred tax liabilities At 1 January Charge for the period (Note 18.1) June
170,103,017 4,797,310 174,900,327
140,289,268 29,813,749 170,103,017
169,625,075 4,797,310 174,422,385
139,693,165 29,931,910 169,625,075
Reconciliation of effective tax rate Profit after tax
119,080,557
194,987,843
94,696,951
197,922,859
Total income tax expense Income Education (Over)/under-provision Deferred tax (Note 18.3)
123,030,530 4,797,310 4,797,310
103,944,290 7,035,961 32,351,284 29,813,749
111,510,456 4,797,310 4,797,310
94,757,836 6,317,189 32,351,284 29,931,910
132,625,150
173,145,284
121,105,076
163,358,219
251,705,707
368,133,127
215,802,027
361,281,078
The Company has adopted the International Accounting Standards (IAS 12) on accounting for taxation, which is now computed using liability method. 18.4
Profit for the period before excluding income tax Effective tax rate
53%
Page 19 of 30
47%
56%
45%
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group 2017 N 19.
Share capital Authorised: 10 billion ordinary shares of 50k each
19.1 Issued and fully paid: 6 billion ordinary shares of 50k each June
2016 N
Company 2017 N
2016 N
5,000,000,000
5,000,000,000
5,000,000,000
5,000,000,000
3,000,000,000
3,000,000,000
3,000,000,000
3,000,000,000
1,230,030,314 94,299,168 1,324,329,482
1,058,782,003 171,248,311 1,230,030,314
1,230,030,314 94,299,168 1,324,329,482
1,058,782,003 171,248,311 1,230,030,314
9,279,386 3,273,279
5,826,986 3,452,400
The holder of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at meetings of the Group.
20.
Other reserves
20.1. Contingency reserve At 1 January Transfer from income statement (Note 21) June In line with sections 21(1) and (2) and 22(16) of the Insurance Act 2003, Insurance companies in Nigeria are required to transfer to the statutory contingency reserve, the higher of 20% of net profits and 3% of total premium. 20.2 Statutory reserve At 1 January Transfer from income statement (Note 21)
-
-
June 12,552,665 9,279,386 In line with Central Bank of Nigeria guideline, Finance companies in Nigeria are required to transfer a minimum of 15% of its profit before tax to statutory reserve until the reserve fund equals the Paid-up Capital and a minimum of 10% thereafter. This applies to Grand Treasurers Limited a sub-subsidiary within the group. 21.
Retained earnings At 1 January Dividend declared and paid in the year based on the previous year published accounts Transfer to contigency reserve (Note 20.1) Transfer from income statement Transfer to statutory reserve (Note 20.2) June
163,491,009 (120,000,000) (94,299,168) 119,080,557 (3,273,279) 64,999,120
203,203,878 (60,000,000) (171,248,311) 194,987,843 (3,452,400) 163,491,009
136,970,491 (120,000,000) (94,299,168) 94,696,951 17,368,274
170,295,943 (60,000,000) (171,248,311) 197,922,859 136,970,491
Retained earnings are the carried forward recogni sed income net of expenses plus current period p rofit attributable to shareholders. 22.
Profit before taxation Profit before taxation is stated after Depreciation of property and equipment Auditors' remuneration Directors' remuneration: - Fees Profit on disposal of property and equipment Foreign exchange (gains)/loss
44,470,667 (700)
92,663,502 7,500,000
42,358,900 (700)
89,840,853 5,500,000
5,037,500 (5,617,562)
5,250,000 (4,195,293) (110,125,307)
5,037,500 (5,617,562)
5,250,000 (4,195,293) (110,125,307)
Page 20 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 23. Gross premium earned analysed as follows:
Fire General accident Motor Aviation Oil & Gas Marine Engineering Bond
Direct premium N 494,035,113 519,702,790 780,490,017 333,042,749 724,160,093 309,616,619 79,571,953 32,628,672 3,273,248,006
Increase/ Inward decrease in reinsurance unearned Gross premium premium premium earned N N N 13,991,335 (26,930,745) 481,095,703 8,623,021 (33,052,673) 495,273,138 4,321,890 (54,242,234) 730,569,673 214,476 (10,105,153) 323,152,072 11,410,107 (30,858,233) 704,711,966 746,586 (12,433,923) 297,929,282 3,281,343 (6,052,784) 76,800,512 (1,324,255) 31,304,417 42,588,758 (175,000,000) 3,140,836,764
Gross premium earned analysed as follows:
Direct premium N Fire General accident Motor Aviation Oil & Gas Marine Engineering Bond
Increase/ Inward decrease in reinsurance unearned Gross premium premium premium earned N N N
467,281,496 408,261,913 814,803,790 823,173,190 592,500,035 193,360,467 78,858,620 17,640,613 3,395,880,124
9,995,358 3,477,544 4,900,440 6,535,284 13,147,832 1,394,260 1,327,762 40,778,480
Group 2017 N 24. Reinsurance expense The reinsurance expense is analysed as follows: Reinsurance premium cost (Increase)/decrease in prepaid reinsurance Reinsurance expense (Note 7.3) 25. Fee and commission Fire General accident Motor Aviation Oil & Gas Marine Engineering Bond
2016 N
(43,426,730) (45,142,052) (35,704,856) (25,016,708) 8,346,382 (291,814) (66,550) (412,622) (141,714,950)
433,850,124 366,597,406 783,999,375 804,691,766 613,994,249 194,462,912 80,119,831 17,227,991 3,294,943,654
Company 2017 N
2016 N
985,021,600
2,088,025,170
985,021,600
2,088,025,170
55,386,800 1,040,408,400
111,970,117 2,199,995,287
55,386,800 1,040,408,400
111,970,117 2,199,995,287
51,837,038 32,103,524 2,992,188 65,367,891 38,659,866 9,185,154 14,320,096 214,465,757
30,913,825 7,530,983 1,624,446 9,195,571 20,440,221 5,298,146 9,581,685 84,584,876
51,837,038 32,103,524 2,992,188 65,367,891 38,659,866 9,185,154 14,320,096 214,465,757
30,913,825 7,530,983 1,624,446 9,195,571 20,440,221 5,298,146 9,581,685 84,584,876
Page 21 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group Claims expenses June 2017 N 25a
Claims expenses Claims paid during the year Opening IBNR and outstanding claims Closing IBNR and outstanding claims (Note 14.1) Gross claims expenses
25b. Claims recoverable Opening claims recoverable Claims recovered Closing claims recoverable Net recoverable Net claims expenses
26.
Claims expenses June 2016 N
Company Claims Claims expenses expenses June June 2017 2016 N N
807,045,436 (968,909,480) 2,091,057,151 1,929,193,108
719,195,133 (895,550,802) 944,485,481 768,129,812
807,045,436 (968,909,480) 2,091,057,151 1,929,193,108
719,195,133 (895,550,802) 944,485,481 768,129,812
(248,318,604) 180,100,638 1,085,009,720
281,937,926 161,283,263 (281,937,926)
(248,318,604) 180,100,638 1,085,009,720
281,937,926 161,283,263 (281,937,926)
1,016,791,754
161,283,263
1,016,791,754
161,283,263
912,401,354
606,846,549
912,401,354
606,846,549
Acquisition expenses N 100,337,506 106,054,330 92,349,874 59,374,842 138,033,889 62,566,981 16,658,219 5,349,700 580,725,341
Maintenance expenses N 21,736,210 32,621,501 73,510,907 10,853,776 30,641,786 16,486,813 6,184,816 1,691,687 193,727,496
Acquisition expenses N 100,337,506 106,054,330 92,349,874 59,374,842 138,033,889 62,566,981 16,658,219 5,349,700 580,725,341
Maintenance expenses N 21,736,210 32,621,501 73,510,907 10,853,776 30,641,786 16,486,813 6,184,816 1,691,687 193,727,496
Acquisition expenses N 55,012,710 57,197,324 52,277,293 14,681,626 21,847,869 22,240,666 8,664,625 2,251,496 234,173,610
Maintenance expenses N 83,382,928 78,933,708 80,669,221 30,234,131 33,716,928 34,086,639 16,003,387 1,376,935 358,403,877
Acquisition expenses N 55,012,710 57,197,324 52,277,293 14,681,626 21,847,869 22,240,666 8,664,625 2,251,496 234,173,610
Maintenance expenses N 83,382,928 78,933,708 80,669,221 30,234,131 33,716,928 34,086,639 16,003,387 1,376,935 358,403,877
Underwriting expenses Underwriting expenses- 2017
Fire General accident Motor Aviation Oil & Gas Marine Engineering Bond
Underwriting expenses- 2016
Fire General accident Motor Aviation Oil & Gas Marine Engineering Bond
Page 22 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group June 2017 N 27.
Investment income Interest received Amortised gain(loss) on held to maturity (Note 3.4) Dividend received
27.1 Investment income Investment income attributable to policyholders' fund Investment income attributable to shareholders' fund
28.
29.
Other operating income Profit on disposal of property and equipment Interest on staff receivables Rent income on investment properties Recoveries in the year Exchange gain (loss) Other income
Impairment on charge Cash and cash equivalent (Note 2.2) Loans and receivables (Note 3.2) Finance Lease receivable (Note 5.1) Trade receivables (Note 6.1) Other receivables (Note 9) Inventories (Note 11)
June 2016 N
Company June 2017 N
June 2016 N
163,027,889 221,770,571 2,572,882 387,371,342
169,432,569 20,529,521 2,194,203 192,156,293
101,221,098 221,770,571 2,572,882 325,564,551
169,432,569 20,529,521 2,194,203 192,156,293
221,770,571 165,600,771 387,371,342
148,763,123 43,393,170 192,156,293
221,770,571 103,793,980 325,564,551
148,763,123 43,393,170 192,156,293
(1,950,432) 2,084,427 2,064,761 10,000 5,617,562 8,691,242 16,517,560
330 289,999 3,920,887 4,211,216
Page 23 of 30
2,613,915 5,614,050 390,600 24,000 56,762,267 37,974,099 103,378,931
-
(1,950,432) 2,084,427 2,064,761 10,000 5,617,562 7,826,318
330 289,999 290,329
2,613,915 5,614,050 390,600 24,000 56,762,267 65,404,832
-
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group June 2017 N 30. Net fair value gains on financial assets at fair value through profit or loss Fair value through profit or loss (Note 3.1) Investment property (Note 12.1) Others Fair value gains/loss
June 2016 N
Company June 2017 N
June 2016 N
7,327,084 7,327,084
16,160,071 16,160,071
7,327,084 7,327,084
16,160,071 16,160,071
Staff cost (Note 33) 295,121,908 Rent, insurance and maintenance 59,872,477 Depreciation of property and equipment 43,390,930 Auditors' remuneration Directors' remuneration: - Fees (Note 45) 5,037,500 - Allowance & Expenses 29,580,259 Professional charges 29,117,154 Printing and telecommunication 21,914,065 Electricity Diesel,Travelling& Motor runing expenses14,205,067 Advertising, & Entertainment 86,741,279 Travelling and motor vehicle expenses 43,206,992 Rates, Insurance levy and utilities 52,016,284 Office running,bank charges,AGM expenses 26,460,289 Subcription&Office security exp. 19,644,723 Others 47,173,208
246,820,584 67,407,821 42,865,220 4,002,500 51,762,773 15,039,388 27,608,659 44,189,448 50,910,343 30,955,276 24,566,108 14,810,573 50,135,000
284,277,482 59,122,477 42,358,900 -
236,026,958 60,211,906 42,236,632 4,002,500
5,037,500 29,580,259 29,117,154 21,414,065 13,205,067 86,487,229 33,650,996 52,016,284 26,460,289 19,644,723 40,436,244
51,762,773 14,907,948 25,436,659 44,160,784 48,214,578 30,955,276 24,031,303 14,810,573 48,906,835
773,482,135
671,073,693
742,808,669
645,664,724
119,080,557
259,138,733
94,696,951
246,012,026
6,000,000,000
6,000,000,000
6,000,000,000
6,000,000,000
1.98
4.32
1.58
4.10
1.98
4.32
1.58
4.10
This represents increase in the value of financial assets at fair value through profit or loss during the year. 31. Management expenses
32. Basic/diluted earnings per share Profit/(loss) after taxation Number of shares Earnings/(loss) per share (kobo) Basic Diluted Earnings/(loss) per share have been computed on profit/(loss) after taxation attributable to ordinary shareholders and
Group June 2017 N
June 2016 N
Company June 2017 N
June 2016 N
33. Staff costs Wages and salaries Medical Staff training Defined contribution pension plan (Note 17.1)
34. Chairman's and Directors' emoluments, pensions and compensation for loss of office Emoluments: Chairman Other Directors Other emolument of executives Emolument of highest paid Director
234,148,090 12,840,128 30,658,575 17,475,115
198,798,321 13,249,054 17,920,720 16,852,489
223,456,202 12,840,128 30,658,437 17,322,715
188,106,433 13,249,054 17,920,582 16,750,889
295,121,908
246,820,584
284,277,482
236,026,958
750,000 750,000 4,500,000 4,500,000 8,160,000 8,160,000 12,000,000 12,000,000 Page 24 of 30
750,000 4,500,000 8,160,000 12,000,000
750,000 4,500,000 8,160,000 12,000,000
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Group 2017 2016 Number Number 35.
36.
Staff Average number of persons employed in the financial year and staff costs were as follows: Managerial Senior staff Junior staff
25 105 98 228
31 110 103 244
24 99 93 216
30 104 98 232
Nil Nil Nil 10
Nil Nil Nil 9
Nil Nil Nil 10
Nil Nil Nil 9
Nil
Nil
Nil
Nil
7 30 26 14 1 10 14 3 123 228
7 30 26 14 1 11 15 3 137 244
6 30 26 14 1 10 13 3 113 216
6 30 26 14 1 10 14 3 128 232
The number of Directors excluding the Chairman whose emoluments were within the following ranges were: N Nil 100,001 200,001 Above
-
N 100,000 200,000 300,000 300,000
Emolument Number of Directors who have waived their rights to receive emoluments 37.
Company 2017 2016 Number Number
Employees remunerated at higher rates The number of employees in respect of emoluments within the following ranges were: N N 200,001 300,000 300,001 400,000 400,001 500,000 500,001 600,000 600,001 700,000 700,001 800,000 800,001 900,000 900,001 1,000,000 1,000,001 and above
38.
Capital commitments There were no capital commitments at 30 June 2017.
39.
Contingent liabilities There were no material contingent liabilities at 30 June 2017.
40.
Comparative figures Where necessary, comparative figures have been adjusted to conform with changes in presentation of the current year in accordance with the International Accounting Standards (IAS 1).
Page 25 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 41.
Segment Information An operating segment is a component of the Group engaged in business activities from which it can earn revenues whose operating results are reviewed regularly by the Group’s Executive Management in order to make decisions about resources to be allocated to segments and assessing segments performance. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, which is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Group’s Executive Management. The Group is organized into two operating segments, these segments and their respective operations are as follows:
General Insurance Business: This segment provides cover for indemnifying customers’ properties,and compensation for other parties that have suffered damage as a result of customers’ accidents. Major sources of revenue in this segment are mainly from insurance premium, investment income, commission received,net fair value gains on financial assets at fair value through profit or loss. CHI Capital Ltd: This is a subsidiary of Consolidated Hallmark Insurance Plc. The company is registered by CAC to offer consumer leasing and support services to Consolidated Hallmark Insurance Plc (the parent company). In addition, it owns Grand Treasurers Ltd who is registered by CBN to offer wide range financial services and products domestically to suit customer’s long- and short-term financial needs. These products include L.P.O financing, Consumer Lease, Working Capital financing, Auto lease, Project financing and intermediation and Financial Management Consultancy Services. Revenue from this segment is derived primarily from interest income, fee income, investment income and net fair value gains on financial assets at fair value through profit and loss. Segment information by company and subsidiaries: General Insurance N At June 2017 Operating income Operating expenses Operating profit Taxation Profit for the period
957,950,864 (742,808,669) 215,142,195 (116,307,766) 98,834,429
Finance and support services N 66,360,555 (34,594,353) 31,766,202 (11,520,075) 20,246,127
Elimination N -
Total N 1,024,311,419 (777,403,022) 246,908,397 (127,827,841) 119,080,556
Total assets
8,654,222,078
632,889,638
(526,780,652)
8,760,331,064
Total liabilities
4,312,524,322
272,706,127
(226,780,652)
4,358,449,797
Share capital and reserves
4,341,697,756
360,183,511
(300,000,000)
4,401,881,267
Depreciation ROCE
42,358,900 2%
3,704,329 6%
118,063,222 (1,281,059,193) 362,665,996 (163,358,219) 199,307,777
99,169,617 (68,702,486) 30,467,132 (9,787,065) 20,680,066
(25,000,000) (25,000,000) (25,000,000)
192,232,839 (1,349,761,679) 368,133,128 (173,145,284) 194,987,843
Total assets
7,392,512,630
597,465,565
(547,513,825)
7,442,464,370
Total liabilities
3,025,511,825
261,665,660
(247,513,825)
3,039,663,659
Share capital and reserves
4,367,000,805
335,799,905
(300,000,000)
4,402,800,710
As at 31 December 2016 Operating income Operating expenses Operating profit Taxation Profit for the year
Depreciation ROCE
89,840,853 5%
Page 26 of 30
2,822,649 6%
-
-
46,063,229 3%
92,663,502 4%
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 42. Contraventions The company did not contravened any provisions or guidelines of any regulator during the period under review.
43. Reinsurance treaty The Company has a reinsurance agreement with African Reinsurance Corporation, and Continental Reinsurance Plc to reinsure the risks associated with fire and consequential loss, General accident, Marine cargo, motor, aviation and special risks etc. according to agreed quota share, surplus treaty or excess of loss treaty. This agreement was last modified 31 December 2016. 44. Related party transactions There are no significant business dealings with its related parties during the year under review.
Parent: The Group is controlled by Consolidated Hallmark Insurance Plc. which is the parent company, whose shares are widely held. Consolidated Hallmark Insurance Plc, is a General Business Insurance Company licensed by the National Insurance Commission. Subsidiaries: Consolidated Hallmark Insurance Plc holds 100% interest in CHI Capital Limited. Transactions between Consolidated Hallmark Plc and this subsidiary is eliminated on consolidation and already disclosed in Note 10.2 Key management personnel: Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group or Company, directly or indirectly, including any director (whether executive or otherwise). It includes close members of their families who may be expected to influence or be influenced by that individual in their dealings with the Group. The significant related party transaction in the course of the reporting period are as stated below with the subsidiary company, CHI Capital Limited. 2017 2016 June June Entity 8,691,242 6,219,360 Income from Auto-insurance support services CHI Capital Limited 8,691,242 6,219,360 Auto-insurance support services expenses CHI PLC Group June 31 December 2017 2016 N N 45. Compensation of key management personnel: Directors fees
5,037,500
5,250,000
Company June 31 December 2017 2016 N N 5,037,500
5,250,000
46. Events after the reporting period: No event or transaction has occurred since the reporting date, which would have had a material effect on the financial statements as at that date or which needs to be mentioned in the financial statement in the interests of fair presentation of the Group's financial position as at the reporting date or its result for the year then ended. 47. Capital management The Group’s objectives with respect to capital management are to maintain a capital base that adequately meets regulatory requirements and to utilize capital allocations efficiently and effectively. Capital levels are determined either based on internal assessment or regulatory requirements. The Nigerian Insurance Act 2003 stipulates the minimum capital requirement for a non life insurance company as an amount not less than 15% of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid up capital whichever is greater. The act defines what constitutes admissible assets liabilities. The regulators generally expect companies to comply with capital adequacy requirements and the Company has consistently exceeded this minimum over the years. The regulator has the authority to request more extensive reporting and can place restrictions on the Company’s operations if the Company falls below this requirement as deemed neccesary. All of the Groups capital is Tier 1 (core capital) which consists of share capital and reserves created by appropriation of retained earnings. The following sources of funds are available to the group to meet its capital growth requirements: 1. Profits from operations: The group had regularly appropriated from its profit to grow its capital. 2. Issue of shares: The Group can successfully access the capital market to raise the desired funds for its operations and needs. 3. Loans (long term/short term): this remains a source of capital even though the group had never had cause to access this source for funding its operations. Compliance with statutory solvency margin requirement: The company at the end of the 2016 financial year maintained admisible assets of N7,178,081,979 which exceeded the total admissible liabilities of N2,855,886,749 The solvency margin was computed in line with the requirements of Section 24 of the insurance Act 2003, latest NAICOM guidelines. This showed a solvency margin of N1,322,195,230 in excess of the minimum requirement of N3billion for General Insurance Business by 44%. Thus, the solvency margin above satisfies the requirement of the regulatory requirement. Page 27 of 30
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017
48.
Asset & liability Management Asset & liability Management (ALM) is the practice of managing an insurer’s financial position so that actions taken with respect to assets and liabilities are designed to address the broad set of financial risks inherent in their joint behavior. Asset & Liability management (ALM) attempts to address financial risks the group is exposed to which includes interest rate risks, foreign currency risks, equity price risks and credit risks. The major financial risk is that in the long run its investment proceeds are not sufficient to fund the obligations arising from its insurance contracts. ALM ensures that specific assets of the group is allocated to cover reinsurance and other liabilities of the group. The following tables reconcile the consolidated balance sheet to the classes and portfolios used in the Group’s ALM framework. Group 2017 Insurance fund N ASSETS Cash and cash equivalents Financial assets - At fair value through profit or loss - Loans and receivables - Available for sale -Held -to-maturity Deposit for shares Finance lease receivables Trade receivables Reinsurance assets Deferred acquisition cost Other receivables and prepayments Investment in subsidiaries Intangible Asset Inventories Investment properties Property and equipment Statutory deposit TOTAL ASSETS LIABILITIES Insurance contract liabilities Trade payable Other payables and Provision Retirement benefit obligations Income tax liabilities Deferred income tax TOTAL LIABILITIES SURPLUS
1,057,674,030 134,855,406 60,950,000 2,487,273,245
Shareholders funds N
June 2017 N
294,943,002
1,352,617,032
60,950,000 218,627,064 279,692,700 1,301,794,097 229,579,067 243,649,487 11,462,630 893,882,395 955,169,775 300,000,000 4,789,750,217
141,506,761 284,126,811 60,950,000 2,487,273,245 218,627,064 279,692,700 1,301,794,097 229,579,067 243,649,487 11,462,630 893,882,395 955,169,775 300,000,000 8,760,331,064
3,707,849,659
65,275,507 155,148,064 5,380,929 249,895,311 174,900,327 650,600,137
3,707,849,659 65,275,507 155,148,064 5,380,929 249,895,311 174,900,327 4,358,449,797
32,903,022
4,139,150,080
4,401,881,267
3,740,752,681 3,707,849,659
Group 2016 Insurance fund N ASSETS Cash and cash equivalents Financial assets - At fair value through profit or loss - Loans and receivables - Available for sale -Held -to-maturity Deposit for shares Finance lease receivables Trade receivables Reinsurance assets Deferred acquisition cost Other receivables and prepayments Investment in subsidiaries Intangible Asset Inventories Investment properties Property and equipment Statutory deposit TOTAL ASSETS LIABILITIES Insurance contract liabilities Trade payable Other payables and Provision Retirement benefit obligations Income tax liabilities Deferred income tax TOTAL LIABILITIES SURPLUS
1,784,325,749
626,376,239
2,410,701,988 2,410,701,988
2,410,701,988 -
Shareholders funds N
Dec 2016 N
170,013,089 237,335,789 60,950,000 1,027,766,326 162,290,265 182,091,091 546,323,978 229,579,067 177,968,732 13,119,349 3,920,887 893,882,395 974,022,626 300,000,000 4,979,263,594
1,836,824,537
87,511,062 179,731,068 151,314 191,465,212 170,103,017 628,961,673
2,410,701,988 87,511,062 179,731,068 151,314 191,465,212 170,103,017 3,039,663,661
4,350,301,922
4,402,800,709
Page 28 of 30
170,013,089 237,335,789 60,950,000 1,654,142,565 162,290,265 182,091,091 546,323,978 229,579,067 177,968,732 13,119,349 3,920,887 893,882,395 974,022,626 300,000,000 7,442,464,370
CONSOLIDATED HALLMARK INSURANCE PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2017 Company 2017 Insurance fund ASSETS Cash and cash equivalents Financial assets – At fair value through profit or loss - Loans and receivables – Available for sale -Held-to-maturity Deposit for shares Trade receivables Reinsurance assets Deferred acquisition cost Other receivables and prepayments Intangible Asset Investment in subsidiaries Investment properties Property, plant and equipment Statutory deposit TOTAL ASSETS LIABILITIES Insurance contract liabilities Trade payable Provision and Other payables Retirement benefit obligations Income tax liabilities Deferred income tax TOTAL LIABILITIES SURPLUS
Shareholders funds
June 2017
1,057,674,030
114,087,288
1,171,761,318
134,855,406 60,950,000 2,487,273,245
181,940,850 180,000,000 279,692,700 1,301,794,097 229,579,067 280,407,510 10,795,876 300,000,000 809,221,395 925,950,614 300,000,000 4,913,469,397
134,855,406 181,940,850 60,950,000 2,487,273,245 180,000,000 279,692,700 1,301,794,097 229,579,067 280,407,510 10,795,876 300,000,000 809,221,395 925,950,614 300,000,000 8,654,222,078
3,707,849,659
65,275,507 145,617,742 5,046,938 214,312,091 174,422,385 604,674,663
3,707,849,659 65,275,507 145,617,742 5,046,938 214,312,091 174,422,385 4,312,524,322
32,903,022
4,308,794,734
4,341,697,756
3,740,752,681 3,707,849,659
Company 2016 Insurance fund ASSETS Cash and cash equivalents Financial assets – At fair value through profit or loss - Loans and receivables – Available for sale -Held-to-maturity Deposit for shares Trade receivables Reinsurance assets Deferred acquisition cost Other receivables and prepayments Intangible Asset Investment in subsidiaries Investment properties Property, plant and equipment Statutory deposit TOTAL ASSETS LIABILITIES Insurance contract liabilities Trade payable Provision and Other payables Retirement benefit obligations Income tax liabilities Deferred income tax TOTAL LIABILITIES
49.
SURPLUS Fair value hierarchy
Shareholders funds
Dec 2016
1,974,439,083
294,133,108
1,974,439,083
331,557,775 19,379,021 2,000,000 133,173,401 50,250,000 69,245,808 651,767,868 194,835,265 141,704,560 15,592,433 250,000,000 793,460,682 905,899,680 300,000,000 4,137,407,168
1,587,501,284 163,699,494 211,761,875 60,950,000 1,654,142,565 180,000,000 182,091,091 546,323,978 229,579,067 213,530,118 12,383,037 300,000,000 809,221,395 941,328,726 300,000,000 7,392,512,630
192,031,909 87,511,062 195,101,601 13,502 162,558,597 169,625,075 806,841,745
2,410,701,988 87,511,062 195,101,601 13,502 162,558,597 169,625,075 3,025,511,825
3,330,565,423
4,367,000,805
2,218,670,079
2,218,670,079 -
The determination of fair value for each class of financial instruments was based on the particular characteristics of the instruments. Group’s accounting policy on fair value measurements is discussed under the statement of significant accounting policies. Level 1: Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities and equity securities unadjusted in active market for identical assets and liabilities. Level 2: valuation techniques based on observable inputs. This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data. Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, brokerdealer quotes, issuer spreads, benchmark securities, bids, offers and reference data.
Level 3: This includes financial instruments, the valuation of which incorporate significant inputs for the asset or liability that is not based on observable market data (unobservable inputs). Unobservable inputs are those not readily available in an active market due to market illiquidity or complexity of the product. These inputs are generally determined based on inputs of a similar nature, historic observations on the level of the input or analytical techniques.
Page 29 of 30
CONSOLIDATED HALLMARK INSURANCE PLC APPENDIX 1 REVENUE ACCOUNT FOR THE PERIOD ENDED 30 June 2017 Motor N Income Direct premium Inward reinsurance premium Gross written premium (Increase)/decrease in unexpired premium reserve Gross premium earned Deduct: Outward reinsurance premiums (Increase)/decrease in prepaid reinsurance Reinsurance cost Net premium earned Commission received (Increase)/decrease in unearned commission Total Income Gross Claims Paid (Increase)/decrease in outstanding claims provision Gross claims incurred Reinsurance claims recovery (Increase)/decrease in reinsurance recoveries Net claims incurred Acquisition expenses (Increase)/decrease in commission expenses Maintenance/operating expenses Total expenses Underwriting profit/(loss)
Fire N
Bond N
Gen. Accident N
Marine N
Aviation N
Oil & Gas N
Engineering N
2017 Total N
2016 Total N
780,490,017 4,321,890
494,035,113 13,991,335
32,628,672 -
519,702,790 8,623,021
309,616,619 746,586
333,042,749 214,476
724,160,093 11,410,107
79,571,953 3,281,343
3,273,248,006 42,588,758
3,395,880,124 40,778,480
784,811,907
508,026,448
32,628,672
528,325,811
310,363,205
333,257,225
735,570,200
82,853,296
3,315,836,764
3,436,658,604
(54,242,234) 730,569,673
(26,930,745) 481,095,703
(1,324,255) 31,304,417
(33,052,673) 495,273,138
(12,433,923) 297,929,282
(10,105,153) 323,152,072
(30,858,233) 704,711,967
(6,052,784) 76,800,512
(175,000,000) 3,140,836,764
(141,714,950) 3,294,943,654
(17,107,020)
(206,993,787)
(7,563,276)
(138,478,619)
(91,961,626)
(208,022,283)
(314,894,989)
(985,021,600)
(1,362,145,665)
(2,548,000) (19,655,020)
(14,480,000) (221,473,787)
(1,200,000) (8,763,276)
(6,852,400) (145,331,019)
(11,500,000) (103,461,626)
(1,502,400) (209,524,683)
(15,802,000) (330,696,989)
(1,502,000) (1,502,000)
(55,386,800) (1,040,408,400)
(1,362,145,665)
710,914,653 2,992,188
259,621,916 51,837,038
22,541,141 -
349,942,119 32,103,524
194,467,656 9,185,154
113,627,389 65,367,891
374,014,978 38,659,866
75,298,512 14,320,096
2,100,428,364 214,465,757
1,932,797,989 145,370,920
713,906,841
311,458,954
22,541,141
382,045,643
203,652,810
178,995,280
412,674,844
89,618,608
2,314,894,121
2,078,168,910
(302,187,687)
(220,875,049)
(4,500,000)
(185,359,054)
(22,833,517)
(12,145,346)
(47,667,196)
(11,477,587)
(807,045,436)
(719,195,133)
(64,910,666) (367,098,353) 34,749,232
(737,121,805) (957,996,854) 80,692,988
(1,231,115) (5,731,115) 33,858
(22,625,540) (207,984,594) 24,230,492
(217,179) (23,050,696) 25,249,402
(311,197,215) (323,342,561) -
8,194,779 (39,472,417) 14,000
6,961,069 (4,516,518) 15,130,666
(1,122,147,672) (1,929,193,108) 180,100,638
(48,934,679) (768,129,812) 161,283,263
(4,641,221)
223,397,500
5,000,000
604,226,257
693,669
3,045,004
-
-
4,969,907
836,691,116
-
(327,349,121)
(273,077,609)
(5,003,588)
(180,709,098)
(2,442,515)
(99,945,061)
(39,458,417)
15,584,055
(912,401,354)
(606,846,549)
(92,349,874)
(100,337,506)
(5,349,700)
(106,054,330)
(62,566,981)
(59,374,842)
(138,033,889)
(16,658,219)
(580,725,341)
(461,855,754)
(73,510,907)
(21,736,210)
(1,691,687)
(32,621,501)
(16,486,813)
(10,853,776)
(30,641,786)
(6,184,816)
(193,727,496)
(202,624,611)
(493,209,902)
(395,151,325)
(12,044,975)
(319,384,929)
(81,496,309)
(170,173,679)
(208,134,092)
(7,258,980)
(1,686,854,191)
(1,271,326,914)
220,696,939
(83,692,371)
10,496,166
62,660,714
122,156,501
204,540,752
82,359,628
Page 30 of 30
8,821,601
628,039,930
806,841,995
