continental reinsurance plc unaudited consolidated financial ...

CONTINENTAL REINSURANCE PLC UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2016

Continental Reinsurance Plc Unaudited Consolidated Financial Statements For the period ended 30 September, 2016 Contents

Page

Statement of Comprehensive income

1

Statement of Financial Position

2

Statement of Changes in Equity

3

Statement of Cash Flows

4

Notes to the Financial Statements

5 - 15

Continental Reinsurance Plc Consolidated Statement of Profit or Loss and other Comprehensive Income For the period ended 30 September, 2016 GROUP

Note Gross written Premium

JAN-SEPT 2016 =N='000

GROUP

JAN-SEPT 2015 =N='000

JUL-SEPT 2016 =N='000

JUL-SEPT 2015 =N='000

17,513,825

15,109,917

5,589,010

4,040,640

1.1 1.2

18,119,845 (1,968,563) 16,151,282

14,714,955 (1,801,491) 12,913,464

6,310,260 (768,312) 5,541,948

3,898,272 (784,064) 3,114,208

2.1

8,496,251

6,626,844

3,061,352

964,389

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

2.1

(130,736) 8,365,516

(290,652) 6,336,192

14,133 3,075,486

(151,287) 813,102

Underwriting expenses Insurance benefits and underwriting expenses

2.2

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

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

7,039,043 15,404,558

5,300,462 11,636,654

3

746,723 910,425

1,276,810 800,358

4 5 5.1 5.2 6.1 6.2

11,805 150,957 4,037,425 (359,595) (465,762)

19,176 499,733 318,073 (369,266) (472,240)

(1,168) 61,364 1,636,099 (125,420) 115,581

(5,986) 279,592 (81,544) (122,031) (296,553)

8

5,031,978 (1,280,671) 3,751,307

2,072,644 (535,027) 1,537,617

2,023,508 (519,899) 1,503,609

677,905 (174,207) 503,698

3,751,307

1,537,617

1,503,609

503,698

Profit for the year

2,488,682 5,564,168 (22,220) 359,271

1,640,385 2,453,487 660,721 243,706

Other comprehensive income: Other comprehensive income/(loss) to be reclasified to P & L in subsequent periods: Remeasurement gains on available for sale financial assets 7 Reclassification adjustments to gain on available for sale financial assets included in profit and loss 7 Exchange difference on translation of foreign operations

(7,325) -

Other comprehensive income/(loss) not to be reclasified to P & L in subsequent periods: Actuarial (loss)/gains on defined benefit plans 26 Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax Total Comprehensive Income for the year

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

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

Earnings per share Basic (kobo)

10

1

328,297

(18,689) -

-

(153,397) (7,325)

14,573 342,870

(18,689)

(153,397)

3,743,981

1,880,487

1,484,920

350,301

3,605,752 145,555 3,751,307

1,477,585 60,032 1,537,617

1,503,609 1,503,609

503,698 503,698

3,598,427 145,555 3,743,981

1,820,455 60,032 1,880,487

1,484,920 1,484,920

350,301 350,301

36

15

Continental Reinsurance Plc Statement of Profit or Loss and other Comprehensive Income For the period ended 30 September, 2016 COMPANY

JAN-SEPT 2016 =N='000

Note Gross written Premium

COMPANY

JAN-SEPT 2015 =N='000

JUL-SEPT 2016 =N='000

JUL-SEPT 2015 =N='000

13,365,853

11,750,666

3,798,739

3,026,904

1.1 1.2

13,754,075 (1,624,252) 12,129,823

11,320,967 (1,330,835) 9,990,132

4,243,318 (627,582) 3,615,737

2,711,960 (514,533) 2,197,427

2.1

6,701,739

5,237,118

2,243,783

625,276

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

2.1

(122,517) 6,579,222

(290,652) 4,946,466

(32,899) 2,210,884

(151,287) 473,989

Underwriting expenses Insurance benefits and underwriting expenses

2.2

5,431,267 12,010,489

4,128,431 9,074,897

1,822,127 4,033,011

3

119,334 667,078

915,235 667,038

(417,274) 245,853

509,747 246,454

4 5 5.1 5.2 6.1 6.2

10,509 144,604 4,175,095 (264,460) (393,765)

19,176 416,931 300,607 (299,917) (419,749)

(1,340) 59,297 1,741,729 (91,280) 113,497

(5,986) 207,327 (99,010) (111,801) (266,336)

8

4,458,395 (1,114,599) 3,343,796

1,599,321 (399,831) 1,199,490

1,650,482 (412,621) 1,237,862

480,395 (120,100) 360,296

3,343,796

1,199,490

1,237,862

360,296

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

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

1,213,691 1,687,680

Other comprehensive income: Other comprehensive income/(loss) to be reclasified to P & L in subsequent periods: Remeasurement gains on available for sale financial assets 7 Reclassification adjustments to gain on available for sale financial assets includedin profit and loss 7 Exchange difference on translation of foreign operations

(2,418) -

Other comprehensive income/(loss) not to be reclasified to P & L in subsequent periods: Actuarial (loss)/gains on defined benefit plans 26 Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax

(2,418)

-

11,937 11,937

(13,782) -

-

(13,782)

-

Total Comprehensive Income for the year

3,341,378

1,211,427

1,224,080

360,296

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

3,343,796

1,237,862

3,343,796

1,199,490 1,199,490

1,237,862

360,296 360,296

3,341,378 3,341,378

1,211,427 1,211,427

1,224,080 1,224,080

360,296 360,296

32

12

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

Earnings per share Basic (kobo)

10

2

Continental Reinsurance Plc Consolidated Statement of Financial Position GROUP As at 30 September 2016

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

Note

30 September 2016 =N='000

COMPANY

31 December 2015 =N='000

30 September 2016 =N='000

31 December 2015 =N='000

11

8,756,571

7,702,575

5,699,148

12 13 14.1 14.2 15 16 17

2,019,555 449,861 2,218,903 6,883,774 11,593,331 1,092,139 1,600,551 363,946 2,235,646 7,445 1,176,487 1,000,000 39,398,210

1,224,258 364,041 2,194,682 3,894,558 7,258,399 727,581 1,458,436 31,056 2,685,646 1,127,498 1,000,000 29,668,730

102,695 356,251 2,158,720 6,100,836 8,954,545 418,218 1,095,144 1,649,571 1,457,377 2,235,646 7,445 1,059,882 1,000,000 32,295,479

5,792,358 104,247 302,083 2,150,894 3,438,340 5,793,094 396,648 1,107,837 1,649,571 1,062,703 2,685,646 1,048,051 1,000,000 26,531,472

23 24 25 26 8 9

13,234,346 3,441,560 2,518,547 257,251 1,089,097 158,191 20,698,991

11,081,953 884,117 1,092,154 278,372 722,035 72,908 14,131,539

9,986,693 2,748,344 1,904,415 213,897 1,060,084 68,777 15,982,207

9,153,563 847,009 1,318,129 278,372 648,999 68,777 12,314,849

27 28 29 30 31

5,186,372 3,915,451 3,776,789 3,819,607 176,575 546,018 17,420,815 1,278,405 18,699,219

5,186,372 3,915,451 3,414,608 1,820,765 182,183 (116,756) 14,402,623 1,134,568 15,537,191

5,186,372 3,915,451 3,612,666 3,418,231 180,553

5,186,372 3,915,451 3,250,484 1,681,345 182,971

16,313,273

14,216,623

16,313,272

14,216,623

39,398,210

29,668,730

32,295,479

26,531,472

18 19 20 21 22

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

Mr. Musa Kolo General Manager-Finance FRC/2012/ICAN/00000000473

3

Continental Reinsurance Plc Consolidated Statement of Changes in Equity For the period ended 30 September, 2016

Attributable to equity holders-Group

Notes Balance at 1 January 2016 Profit or loss for the period Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve

Retained Contingency Share capital Share premium earnings reserve =N='000 =N='000 =N='000 =N='000 5,186,372 3,915,451 1,820,765 3,414,608 -

-

-

-

-

-

-

-

3,243,571

362,181

-

-

(1,244,729) (1,244,729)

At 30 September, 2016

5,186,372

3,915,451

Balance at 1 January 2015 At acquisition Change in shareholding Profit or loss for the year Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve

5,186,372

3,915,451

-

-

-

-

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

5,186,372

3,915,451

-

-

At 30 September, 2015

5,186,372

3,915,451

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

7

25.1

3,605,752 (362,181)

362,181

Foreign Exchange NonAvailable for Translation controlling sale reserve Reserve interest Total equity =N='000 =N='000 =N='000 182,183 (116,756) 1,134,568 15,537,191 145,555 3,751,307 (5,608) (1,718) (7,325) 662,774 662,774 (5,608)

662,774

-

-

-

3,819,607

3,776,789

176,575

546,018

1,714,433

2,785,131

297,704

(101,723)

1,477,585 (288,165) -

288,165 -

(38,170)

143,837

(1,244,729) (1,244,729) 1,278,405 979,012 60,032

17,589

4

2,903,853 (1,141,002) (1,141,002) 1,762,851

3,073,296

259,534

-

-

3,073,296

259,534

(84,134)

4,406,756

1,039,044

18,699,219 14,776,380 1,537,617 (38,170) 17,589 16,293,416 (1,141,002) (1,141,002)

(84,134)

1,039,044

15,152,414

Continental Reinsurance Plc Statement of Changes in Equity For the period ended 30 September, 2016

Attributable to equity holders-Company

Notes Balance at 1 January 2016 Profit or loss for the period Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners

7

Retained Contingency Available for Share capital Share premium earnings reserve sale reserve Total equity =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 5,186,372 3,915,451 1,681,345 3,250,484 182,971 14,216,623 3,343,796 3,343,796 (362,182) 362,182 - 2,418 (2,418) -

-

2,981,615

-

-

(1,244,729) (1,244,729)

At 31 September 30, 2016

5,186,372

3,915,451

Balance at 1 January 2015

5,186,372

3,915,451

-

-

-

-

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

5,186,372

3,915,451

-

-

At 30 September 2015

5,186,372

3,915,451

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

25.1

5

362,182

(2,418)

3,341,378

-

-

3,418,231

3,612,666

180,553

16,313,272

1,526,328

2,705,666

292,842

13,626,659 1,199,490 (37,976) -

1,199,490 (319,864) -

2,405,953 (1,141,002) (1,141,002) 1,264,951

319,864 -

(37,976)

3,025,530

254,866

-

-

3,025,530

254,866

(1,244,729) (1,244,729)

14,788,173 (1,141,002) (1,141,002) 13,647,171

Continental Reinsurance Plc Statement of Cash flows For the period ended 30 September, 2016

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

Group 30 Sept.

30 Sept.

30 Sept.

2016 N' 000

2015 N' 000

2016 N' 000

2015 N' 000

11,332,523 175,804 (4,149,081) (1,775,552) (2,429,551) 4,760,817 (4,410,370) (913,610)

8,526,544 90,008 (2,538,683) (984,428) (1,494,865) 410,125 (2,602,262) (313,145)

9,810,637 121,194 (3,969,498) (1,567,000) (1,978,881) 4,029,248 (4,016,537) (703,514)

2,590,980

1,093,294

1,725,649

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

Company

30 Sept.

(222,867) (8,122) 1,538 (777,358) 645,100 450,000 55,932 861,571 37,414 1,043,207

(55,890) 651,435 176,900 41,809 498,451 102,870 1,415,575

(140,468) (8,122) 1,538 (751,957) 461,628 450,000 55,932 688,923 36,688 794,161

7,165,163 79,653 (2,188,520) (863,533) (1,067,761) 328,100 (2,224,155) (269,953) 958,994

(55,890) 632,140 145,000 41,809 418,866 102,870 1,284,795

Cash flows from financing activities Dividend expense

(592,065)

(15,380)

(592,065)

(15,380)

Net cash used in financing activities

(592,065)

(15,380)

(592,065)

(15,380)

Net increase in cash and cash equivalents

3,042,123

2,493,489

1,927,745

2,228,409

Cash and cash equivalents at start of year

7,962,050

5,878,360

6,019,005

4,337,192

58,974

0

58,974

0

Cash and cash equivalents at end of period

11,063,147

8,371,849

8,005,724

6,565,601

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

2016 N' 000 436 109,749 153,270 367,113 8,126,003 2,306,576 11,063,147

2015 N' 000 339 167,765 730,461 267,702 5,509,480 1,696,102 8,371,849

2015 N' 000 151 9,355 153,270 367,113 5,169,259 2,306,576 8,005,724

2015 N' 000 242 169,951 680,956 267,701 3,750,649 1,696,102 6,565,601

Effect of exchange rate changes on cash and cash equivalents

6

Continental Reinsurance Plc Notes to the Consolidated Financial Statements

1 Revenue 1.1 Insurance premium revenue Premium revenue arising from insurance contracts issued Life insurance contracts – Gross Premium – Change in life insurance contract liabilities - Change in ceded unepired risk reserve Non life insurance contracts – Gross Premium – Change in unearned premium provision Total Premium revenue arising from insurance contracts issued 1.2 Insurance premium ceded to retrocessionaire Premium revenue ceded to retrocessionaire on insurance contracts issued Life insurance contracts Non life insurance contracts Total Premium revenue ceded to retrocessionaire on insurance contracts Net insurance premium revenue 2

GROUP JAN-SEPT JAN-SEPT 2016 2015 =N='000 =N='000

COMPANY JAN-SEPT JAN-SEPT 2016 2015 =N='000 =N='000

GROUP JUL-SEPT JUL-SEPT 2016 2015 =N='000 =N='000

COMPANY JUL-SEPT JUL-SEPT 2016 2015 =N='000 =N='000

2,064,212 187,622 (28,143) 15,449,613 446,541 18,119,845

1,879,750 224,905 -33,736 13,230,167 -586,131 14,714,955

1,939,732 187,622 (28,143) 11,426,121 228,744 13,754,075

1,779,609 224,905 -33,736 9,971,057 -620,868 11,320,967

451,585 68,085 (10,213) 5,137,426 663,377 6,310,260

319,638 127,102 (19,066) 3,721,002 (250,404) 3,898,272

414,366 68,085 (10,213) 3,384,373 386,707 4,243,318

298,648 127,102 (19,066) 2,728,256 (422,980) 2,711,960

1,658,931 309,632

281,962 1,519,529

290,960 1,333,292

266,941 1,063,894

700,574 67,738

47,945 736,119

62,155 565,427

44,797 469,736

1,968,563

1,801,491

1,624,252

1,330,835

768,312

784,064

627,582

514,533

16,151,282

12,913,464

12,129,823

9,990,132

5,541,948

3,114,208

3,615,737

2,197,427

316,391 643,352 4,646 964,389

269,486 1,981,821 (7,524) 2,243,783

290,521 323,480 11,275 625,276

(151,287) 813,102

(32,899) 2,210,884

(151,287) 473,989

Insurance benefits and underwriting expenses

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

1,160,303 7,384,340 (48,391) 8,496,251

1,168,358 5,498,197 (39,711) 6,626,844

1,139,388 5,610,743 (48,391) 6,701,739

1,120,393 4,149,807 (33,082) 5,237,118

253,102 2,815,774 (7,524) 3,061,352

(130,736) 8,365,516

(290,652) 6,336,192

(122,517) 6,579,222

(290,652) 4,946,466

14,133 3,075,486

Costs incurred for the acquisition of insurance contracts 4,632,369 Costs incurred for the maintenance of insurance contracts560,508 1,846,165 Management expenses (See Note 6.1) 7,039,043 Total underwriting expenses

3,516,423 377,963 1,406,076 5,300,462

3,632,112 350,079 1,449,077 5,431,267

2,725,810 264,170 1,138,451 4,128,431

1,638,152 156,383 694,147 2,488,682

1,026,909 101,460 512,016 1,640,385

1,191,067 78,956 552,104 1,822,127

739,215 93,487 380,989 1,213,691

Total insurance benefits and underwriting expenses15,404,558

11,636,654

12,010,489

9,074,897

5,564,168

2,453,487

4,033,011

1,687,680

236,441 85,345 478,572 800,358

214,105 84,632 368,341 667,078

178,673 85,345 403,020 667,038

124,316 25,875 209,080 359,271

61,058 25,875 158,920 245,853

72,362 33,202 140,890 246,454

2.2 Underwriting expenses

3

Net Interest income 339,914 Cash and bank balances interest income Statutory deposits interest income 84,632 Held-to-maturity and loans and receivables interest income485,878 910,425 Net Interest income

7

51,569 (24,305) 216,442 243,706

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued

4

5

GROUP JAN-SEPT JAN-SEPT Net fair value gains on assets at fair value through profit 2016 or loss 2015 =N='000 =N='000 Net fair value gains/ (losses) on financial assets designated at fair value through profit 11,805 19,176 Fair value gains on investment property 0 Total 11,805 19,176

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

6

COMPANY JUL-SEPT 2016 =N='000

JUL-SEPT 2015 =N='000

JUL-SEPT 2015 =N='000

10,509 10,509

19,176 0 19,176

(1,168) (1,168)

129,902 (14,389) 18,844 20,285 39,067 1,725 84,158 279,592

22,300 29,513 17 7,468 59,297

128,387 (14,389) 18,844 20,286 39,067 1,725 13,407 207,327

(5,986) (5,986)

(1,340) (1,340)

(5,986) (5,986)

37,414

233,145

36,688

231,257

27,779 61,242 1,439 23,083 150,957

18,844

18,844

81,308 53,600 1,725 111,111 499,733

27,779 61,242 1,439 17,455 144,604

81,309 53,600 1,725 30,196 416,931

22,614 29,513 17 9,221 61,364

4,037,425 4,037,425

318,073 318,073

4,175,095 4,175,095

300,607 300,607

1,636,099 1,636,099

(81,544) (81,544)

1,741,729 1,741,729

(99,010) (99,010)

1,744,986 320,544 1,971,895 4,037,425

156,231 150,733 11,109 318,073

1,744,986 320,544 2,109,565 4,175,095

156,231 138,020 6,357 300,607

804,229 115,082 716,788 1,636,099

(40,053) (38,643) (2,848) (81,544)

905,206 799,692 36,831 1,741,729

(40,053) (51,356) (7,601) (99,010)

4,037,425

318,073

4,175,095

300,607

1,636,099

(81,544)

1,741,729

(99,010)

-

-

1,846,165 359,595 2,205,761

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

5.2

GROUP JUL-SEPT 2016 =N='000

Other income Available-for-sale – Dividends – Gain on disposal of available-for-sale securities: Equity Bond Income on investment property – Gain/(Loss) on disposal of investment properties –(Loss)/gain on disposal of property, plant and equipment Other income

5.1

COMPANY JAN-SEPT JAN-SEPT 2016 2015 =N='000 =N='000

Income from investment in Subsidiary - Dividend received

-

-

1,406,076 369,266 1,775,342

1,449,077 264,460 1,713,537

79,099 30,478 761,279 904,486 1,775,342

633,925 569,899 28,652 1,232,476

-

-

1,138,451 299,917 1,438,368

694,147 125,420 819,567

57,784 9,563 877,441 768,749.13 1,713,537

56,859 19,355 601,793 760,361 1,438,368

560,762 158,794 0 5,504 36,219

581,120 267,669 28,652

409,383 158,795 0 0 33,615

761,279

877,441

601,793

-

0 -

512,016 122,031 634,047

552,104 91,280 643,384

380,989 111,801 492,790

37,134 413 660,466 121,554 819,567

36,052 2,991 345,131 249,873 634,047

20,800 349,180 273,404 643,384

23,529 585 219,896 248,780 492,790

258,038 403,572 (1,145) 660,466

279,628 50,111 5,504 9,888 345,131

241,208 101,342 6,630 349,180

162,500 50,112 7,284

Operating expenses

6.1 Management and administration expenses Management expenses Administration expenses

Management and administration expenses comprises the following: 100,428 Depreciation and amortisation 12,676 Auditor's remuneration 1,232,476 Employee benefits expenses (a) Other operating expenses 860,181 2,205,761 Total management and administrative expenses (a) Employee benefit expense Wages and salaries (local) Wages and salaries (other regions) Pension Defined Benefit Staff Gratuity Plan Defined Contributory Plan

8

219,896

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued

6

Other operating expenses (cont'd)

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

7

GROUP JAN-SEPT JAN-SEPT 2016 2015 =N='000 =N='000 465,762 465,762

393,765 393,765

472,240 472,240

419,749

GROUP JUL-SEPT 2016 =N='000

JUL-SEPT 2015 =N='000 296,553

419,749

(115,581) (115,581)

0 0 0 -

(18,689) (18,689) (18,689)

COMPANY JUL-SEPT 2016 =N='000

JUL-SEPT 2015 =N='000 266,336

296,553

(113,497) (113,497)

0 0 -

(13,782) (13,782) (13,782)

0 0 0 -

266,336

Net unrealised gain /(loss) on financial assets Unrealised gain/(loss) on financial asset - Available-for-sale (7,325) – Equity instruments – Debt Instruments Total (7,325) Reclassification adjusmentsto gans included in profit an loss Income tax relating to component of other comprehensive incomeOther comprehensive income for the year, net of tax (7,325)

8

COMPANY JAN-SEPT JAN-SEPT 2016 2015 =N='000 =N='000

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

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

JAN-SEPT 2016 =N='000 1,280,671.46 1,280,671 1,280,671

722,035 1,280,671 (913,610) 1,089,097

(2,418) (2,418) (2,418)

0 0 0 JAN-SEPT 2015 =N='000 535,027 0 0 535,027 535,027

458,813 717,991 (454,769) 722,035

JAN-SEPT 2016 =N='000 1,114,598.82 1,114,599 1,114,599

648,999 1,114,599 (703,515) 1,060,084

9

JAN-SEPT 2015 =N='000 399,831 0 0 399,831 399,831

391,277 542,027 (284,305) 648,999

JUL-SEPT 2016 =N='000 519,899 519,899 519,899

JUL-SEPT 2015 =N='000 174,207 174,207 174,207

JUL-SEPT 2016 =N='000 412,621 412,621 412,621

JUL-SEPT 2015 =N='000 120,100 120,100 120,100

Continental Reinsurance Plc Notes to the Consolidated Financial Statements GROUP 9

30-Sep 2016 =N='000

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

COMPANY

31-Dec 2015 =N='000

72,908

30-Sep 2016 =N='000

31-Dec 2015 =N='000

64,113

68,777

45,039

-

(4,813) 14,711 44,916 54,814

-

4,203 14,711 44,916 63,830

85,283 85,283

(46,019)

158,191

72,908

-

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

Net 10

(46,019)

0 (0) 68,777

(40,092) (40,092) 68,777

Earnings per share Basic earnings per share amounts is calculated by dividing the net profit for the year attributable to ordinary share holders by the weighted average number of ordinary shares outstanding at the reporting date. GROUP COMPANY The following reflects the income and share 30-Sep 31-Dec 30-Sep 31-Dec data used in the basic earnings per share 2016 2015 2016 2015 computations: =N='000 =N='000 =N='000 =N='000 Net profit attributable to ordinary shareholders (=N='000) 3,751,307 Weighted average number of ordinary shares in issue as at year end ('000) Basis earnings per ordinary share (kobo)

11

-

2,142,788

3,343,796

1,934,387

10,372,744

10,372,744

10,372,744

10,372,744

36

21

32

19

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements. GROUP COMPANY Cash and cash equivalents 30-Sep 31-Dec 30-Sep 31-Dec 2016 2015 2016 2015 =N='000 =N='000 =N='000 Cash in hand Balances held with local banks: - Current account - Domiciliary account Balances held with foreign banks Placements with banks and other financial institutions

436

448

151

267

109,749 153,270 367,113

488,333 114,401 414,428

9,355 153,270 367,113

8,126,003 8,756,571

6,684,965 7,702,575

5,169,259 5,699,148

179,700 114,401 414,428 5,083,562 5,792,358

Placements with banks and other financial institutions 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 rates. 10

Placements with banks and other financial institutions 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 rates. The carrying amounts disclosed above reasonably approximate fair value at the reporting date.

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued 12

GROUP 30-Sep 31-Dec 2016 2015 =N='000 =N='000

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

13

2,019,555 2,019,555

GROUP 30-Sep 31-Dec 2016 2015 =N='000 =N='000

Loans and other receivables

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

14

1,224,258 1,224,258

449,861 375,491 (375,491) 449,861

364,041 375,491 (375,491) 364,041

GROUP 30-Sep 31-Dec 2016 2015 =N='000 =N='000

Investment Securities Analysis of investment securities Equity Debt

COMPANY 30-Sep 31-Dec 2016 2015 =N='000 102,695 102,695

104,247 104,247

COMPANY 30-Sep 31-Dec 2016 2015 =N='000 356,251 375,491 (375,491) 356,251

302,083 375,491 (375,491) 302,083

COMPANY 30-Sep 31-Dec 2016 2015 =N='000

1,932,932 7,169,745 9,102,677

1,944,109 4,145,131 6,089,240

1,911,834 6,347,722 8,259,556

1,925,253 3,663,981 5,589,234

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

1,932,932 285,971 2,218,903

1,944,109 250,573 2,194,682

1,911,834 246,886 2,158,720

1,925,253 225,641 2,150,894

Held-to-maturity Debt instruments

6,883,774

3,894,558

6,100,836

3,438,340

Total Investment securities

9,102,677

6,089,240

8,259,556

5,589,234

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

928,205 1,004,727 1,932,932

1,027,724 1,105,982 2,133,706

928,205 983,630 1,911,834

819,780 1,105,472 1,925,252

Analysis by class 14.1

14.2

These equities instruments are measured at fair value and classified as available-for-sale

11

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued Debt Instruments

30-Sep 2016 =N='000

Securities at Available-for-sale -Fair Bonds

31-Dec 2015 =N='000

30-Sep 2016

31-Dec 2015 =N='000

285,971 285,971

250,573 250,573

246,886 246,886

225,641 225,641

Listed Unlisted

4,162,553 2,721,221 6,883,774

2,006,411 1,888,147 3,894,558

3,448,177 2,652,659 6,100,836

1,550,193 1,888,147 3,438,340

Total debt instruments

7,169,745

4,145,131

6,347,722

3,663,981

Securities at held-to-maturity - amortised

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

15

GROUP 30-Sep 31-Dec 2016 2015 =N='000 =N='000

Reinsurance receivables

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

10,248,797 2,520,513

536,077 13,305,387 Impairment on reinsurance receivables(Note 15.1 )(1,712,055) 11,593,331 15.1

5,902,411 2,569,966

8,009,082 2,095,215

44,365 8,516,742 (1,258,343) 7,258,399

422,611 10,526,909 (1,572,364) 8,954,545

2,268,053 (1,501,765) 492,055 1,258,343

1,178,599 393,765 (0) 1,572,364

4,876,486 2,095,207 6,971,693 (1,178,599) 5,793,094

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

15.1a

COMPANY 30-Sep 31-Dec 2016 2015 =N='000

1,258,343 485,291 (31,579) 1,712,055

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

12

2,230,263 (1,448,058) 396,394 1,178,599

485,291

492,055

393,765

396,394

485,291

492,055

393,765

396,394

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued 16

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

613,778

374,745

113,411

263,991

135,150

79,779

(56,136) 270,507 1,092,139

217,686 727,581

112,088 79,779

(28,143) 253,172 418,218

204,781 396,648

The Company conducted an impairment review of the reinsurance assets but no impairment loss resulted from this exercise. The carrying amounts disclosed above approximate fair value at the reporting date. 17

Deferred acquisition costs

30-Sep 2016 =N='000

At 1 January Net deferral during the year

1,458,436 142,115 1,600,551

18

1,759,685 3,708,844 (4,010,093) 1,458,436

GROUP 30-Sep 31-Dec 2016 2015 =N='000 =N='000

Other Assets

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

107,979 11,000 186,090 244,669 549,738 (185,792) 363,946

Impairment on others

18a

31-Dec 2015 =N='000

Prepayments

13

58,279 158,569 216,848 (185,792) 31,056

30-Sep 2016 =N='000 1,107,837 (12,693) 1,095,144

31-Dec 2015 =N='000 1,383,416 3,689,205 (3,964,784) 1,107,837

COMPANY 30-Sep 31-Dec 2016 2015 =N='000 =N='000 67,673 1,237,844 11,000 186,090 140,563 1,643,169 (185,792) 1,457,377

50,599 1,077,242 120,654 1,248,495 (185,792) 1,062,703

Office rent Staff upfront Other prepaid services

18b

18c

34,226 49,320 24,433 107,979

27,832 30,447 58,279

31,049 28,890 7,734 67,673

13,253 37,346 50,599

-

-

921,394 316,450 1,237,844

816,962 260,280 1,077,242

134,205 4,168 106,296 244,669

5,816 4,168 148,585 158,569

134,205 4,168 2,189 140,563

2,816 4,168 113,670 120,654

Intercompany balances Payable to related parties on retro Payable to related parties on reinsurance contracts

Others Interest receivables WHT recoverable Sundry receivables

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued GROUP 30-Sep 31-Dec 2016 2015 =N='000 =N='000 18.1 Investment in Subsidiary Continental Reinsurance Limited, Nairobi Kenya Continental Reinsurance Limited, Gaborone, Botswana

19

Investment Properties

30-Sep 2016 =N='000 2,685,646 (450,000) 2,235,646

Opening Fair value adjustments Additions Disposal during the year Closing

31-Dec 2015 =N='000 2,926,956 147,107 (388,417) 2,685,646

Group

Company

Computer software =N='000

Computer software =N='000

Cost: At 1 January 2016 Cost capitalised At 30 September 2016

59,063 8,122 67,185

59,063 8,122 67,185

Accumulated amortisation and impairment: At 1 January 2016 Amortisation for the year At 30 September 2016

59,063 677 59,740

59,063 677 59,740

20 Intangible assets

14

COMPANY 30-Sep 31-Dec 2016 2015 =N='000 =N='000 949,797 699,774 1,649,571

949,797 699,774 1,649,571

30-Sep 2016 =N='000 2,685,646 (450,000) 2,235,646

31-Dec 2015 =N='000 2,926,956 147,107 (388,417) 2,685,646

NBV At 30 September 2016 NBV At 31 December 2015

15

7,445

7,445

-

-

Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued Group Freehold 21 Property, plant and equipment property =N='000 Cost/Valuation: At 1 January 2016 891,986 Additions 51,434 Disposals Reclassification (74,028) At 30 September 2016 869,392

Motor vehicles =N='000

Furniture and fittings =N='000

Plant & equipment =N='000

Office partitioning =N='000

Computer equipment =N='000 93,061 5,088 (1,123) 97,026

271,007 147,772 (3,350) 415,429

179,724 18,573 (68) 198,229

-

80,006 80,006

Total =N='000

Accumulated depreciation: At 1 January 2016 Charge for the year Disposal Reclassification

-

146,010 72,897 (3,350) -

109,203 17,008 (68) -

-

59,676 4,698 -

73,397 5,148 (1,025) -

1,515,784 222,867 (4,541) (74,028) 1,660,081 388,286 99,751 (4,443) -

At 30 September 2016

-

215,557

126,143

-

64,374

77,521

483,594

NBV At 30 September 2016

869,392

199,872

72,086

-

15,632

19,505

1,176,487

NBV At 31 December 2015

891,986

124,997

70,522

-

20,330

19,663

1,127,498

Office partitioning =N='000

Computer equipment =N='000

-

70,601 70,601

75,766 3,065 (1,123) 77,708

62,460 2,478 (1,025) 63,913

1,369,284 140,468 (4,541) (74,028) 1,431,183 321,233 54,511 (4,443) 371,302

Company 21 Property, plant and equipment

Cost/Valuation: At 1 January 2016 Additions Disposals Reclassification At 30 September 2016 Accumulated depreciation: At 1 January 2016 Charge for the year Disposal Reclassification At 30 September 2016

Freehold property =N='000 891,485 51,434 (74,028) 868,891

-

Motor vehicles =N='000

Furniture and fittings =N='000

Plant & equipment =N='000

203,630 71,976 (3,350) 272,256

127,802 13,993 (68) 141,727

115,783 36,302 (3,350) 148,735

85,155 12,157 (68) 97,245

-

57,835 3,574 61,409

Total =N='000

NBV At 30 September 2016

868,891

123,521

44,482

-

9,192

13,795

1,059,882

NBV At 31 December 2015

891,485

87,847

42,647

-

12,766

13,306

1,048,051

15

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

Statutory deposits

30 September 2016 =N='000

GROUP 31 December 2015 =N='000

1,000,000

1,000,000

COMPANY 30 September 31 December 2016 2015 =N='000 =N='000 1,000,000

1,000,000

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

23

Insurance contract liabilities

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

23.2

23.3

24

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

Reserve for Outstanding Claims At 1 January Claims incurred in the current accident year Claims paid during the year

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

Reinsurance creditors

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

30 September 2016 =N='000

31 December 2015 =N='000

30 September 2016 =N='000

31 December 2015 =N='000

5,208,354 6,239,289 11,447,643 1,786,704 13,234,346

4,912,295 4,647,288 9,559,583 1,522,370 11,081,953

3,455,884 5,030,619 8,486,503 1,500,190 9,986,693

3,684,628 4,103,731 7,788,359 1,365,204 9,153,563

(1,092,139) 12,142,207

(727,581) 10,354,372

(418,218) 9,568,475

(396,648) 8,756,915

4,912,295 11,898,646 (11,602,587) 5,208,354

5,979,095 16,885,837 (17,952,637) 4,912,295

3,684,628 11,426,121 (11,654,865) 3,455,884

4,615,879 12,700,035 (13,631,286) 3,684,628

4,647,288 7,535,150 (5,943,149) 6,239,289

3,553,180 7,543,202 (6,449,094) 4,647,288

4,103,731 5,610,743 (4,683,855) 5,030,619

3,263,740 5,656,836 (4,816,845) 4,103,731

1,522,370 264,334 1,786,704

1,252,418 65,513 204,439 1,522,370

1,365,204 134,986 1,500,190

1,124,687 36,078 204,439 1,365,204

30 September 2016 =N='000 752,608 2,688,951 3,441,560

This represents the amount payable to insurance and reinsurance companies

16

31 December 2015 =N='000 60,276 823,840 884,117

30 September 2016 =N='000 117,528 2,630,816 2,748,344

31 December 2015 =N='000 60,276 786,733 847,009

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

Other liabilities

Sundry creditors Rent received Rent received in advance in advance Accrued Accrued expenses expenses DividendDividend payable payable (Note 25.1) IT development Information levy technology development levy Others Others Intercompany Balance

25.1

25.3

26

77,104 377,124 588,786 41,225 7,915 1,092,154 377,124

23,295 102,303 1,241,451 16,074 71,884 449,409 1,904,415

28,605 362,983 588,786 41,225 5,451 291,079 1,318,129 362,983

588,786 1,244,729 (592,065) 1,241,451

36,384 1,141,002 (588,600) 588,786

588,786 1,244,729 (592,065) 1,241,451

36,384 1,141,002 (588,600) 588,786

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

25.2

23,295 166,811 1,241,451 16,074 1,070,918 2,518,547

Others; Staff bonus Sundry creditors PAYE and other statutory liabilities

64,377 487,697 518,844 1,070,918

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

7,915 7,915

-

-

64,377 7,507 71,884

5,451 5,451

307,461 141,948 449,409

197,934 93,145 291,079

Retirement benefit obligations Define contribution scheme In accordance with the provisions of the Pensions Act 2004, AS AMENDED 2014 the Company and its staff commenced a contributory pension scheme in January 2005. The contribution by employees and the Company are 8% and 10%% respectively of the employees' basic salary, housing and transport allowances. The contribution made and transfered to the pension fund administrator during the period are as follows; 30 September 2016 =N='000 Balance at start of period Provision during the period Transfer to PFA

67

67

31 December 2015 =N='000 -

30 September 2016 =N='000 67

40,670 (40,603) 67

67

31 December 2015 =N='000 40,670 (40,603) 67

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

17