Continental Reinsurance Plc. For the period ended 31 March, 2018. JAN-MAR. JAN-MAR. 2018. 2017. Note. =N='000. =N='000.
CONTINENTAL REINSURANCE PLC UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2018
Continental Reinsurance Plc Unaudited Consolidated Financial Statements For the period ended 31 March, 2018 Contents
Page
Statement of Comprehensive income-Group
1
Statement of Comprehensive income-Company
2
Statement of Financial Position
3
Statement of Changes in Equity-Group
4
Statement of Changes in Equity-Company
5
Statement of Cash Flows
6
Notes to the Financial Statements
7 - 18
Continental Reinsurance Plc Consolidated Statement of Profit or Loss and other Comprehensive Income For the period ended 31 March, 2018 GROUP
Note Gross written Premium
JAN-MAR 2018 =N='000
JAN-MAR 2017 =N='000
7,715,512
6,565,316
1.1 1.2
7,790,018 (800,225) 6,989,794
5,995,576 (725,750) 5,269,826
2.1
3,391,395
2,746,806
Insurance claims and loss adjustment expenses recoverable from retrocessionaire Net insurance benefits and claims
2.1
(112,038) 3,279,357
(97,571) 2,649,235
Underwriting expenses Insurance benefits and underwriting expenses
2.2
2,786,876 6,066,234
2,382,093 5,031,328
3
923,560 557,752
238,498 432,269
4 5 5.1 5.2 6.1 6.2
64,276 (403,336) (213,417) 0
157,171 159,624 (281,870) -
8
928,835 (216,358) 712,477
705,693 (190,037) 515,656
712,477
515,656
28,617
-
-
328,297
28,617
14,573 342,870
741,094
858,526
647,980 64,497 712,477
455,624 60,032 515,656
676,597 64,497 741,094
798,494 60,032 858,526
7
5
Insurance premium revenue Insurance premium ceded to retrocessionaires Net insurance premium revenue Insurance benefits Insurance claims and loss adjustment expenses
Underwriting profit Net Interest income Net gains on financial assets designated at fair value through profit or loss Other income Foreign exchange gain/(loss) Income from investment in subsidiary Administration expenses Impairment of financial assets Profit before taxation Income tax expense Profit after taxation Profit for the year Other comprehensive income:
Other comprehensive income/(loss) to be reclasified to P & L in subsequent periods: Remeasurement gains on available for sale financial assets 7 Reclassification adjustments to gain on available for sale financial assets included in profit and loss 7 Exchange difference on translation of foreign operations Other comprehensive income/(loss) not to be reclasified to P & L in subsequent periods: Actuarial (loss)/gains on defined benefit plans 26 Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax Total Comprehensive Income for the year
Profit attributable to: Equity holders of the parent Non-controlling interest
Total comprehensive income attributable to: Equity holders of the parent Non-controlling interest
Earnings per share Basic (kobo)
10
1
Continental Reinsurance Plc Statement of Profit or Loss and other Comprehensive Income For the period ended 31 March, 2018 COMPANY
Note Gross written Premium
JAN-MAR 2018 =N='000
JAN-MAR 2017 =N='000
5,701,580
4,535,195
1.1 1.2
5,648,265 (484,671) 5,163,595
3,658,341 (436,186) 3,222,155
2.1
2,567,513
1,602,090
Insurance claims and loss adjustment expenses recoverable from retrocessionaire Net insurance benefits and claims
2.1
(72,523) 2,494,990
(64,990) 1,537,100
Underwriting expenses Insurance benefits and underwriting expenses
2.2
1,954,582 4,449,572
1,722,087 3,259,187
Insurance premium revenue Insurance premium ceded to retrocessionaires Net insurance premium revenue Insurance benefits Insurance claims and loss adjustment expenses
Underwriting profit Net Interest income Net gains on financial assets designated at fair value through profit or loss Other income Foreign exchange gain/(loss) Income from investment in subsidiary Administration expenses Impairment of financial assets Profit before taxation Income tax expense Profit after taxation
3
714,023 437,540
(37,032) 374,147
4 5 5.1 5.2 6.1 6.2
49,743 (332,592) (147,785) 0
154,843 201,586 (216,731) -
8
720,930 (180,232) 540,697
476,814 (119,203) 357,610
540,697
357,610
28,617 -
-
28,617
11,937 11,937
569,314
369,547
540,697 540,697
357,610 357,610
569,314 569,314
369,547 369,547
5
3
Profit for the year Other comprehensive income: Other comprehensive income/(loss) to be reclasified to P & L in subsequent periods: Remeasurement gains on available for sale financial assets 7 Reclassification adjustments to gain on available for sale financial assets includedin profit and loss 7 Exchange difference on translation of foreign operations Other comprehensive income/(loss) not to be reclasified to P & L in subsequent periods: Actuarial (loss)/gains on defined benefit plans 26 Income tax relating to component of other comprehensive income Other comprehensive income for the year, net of tax Total Comprehensive Income for the year
Profit attributable to: Equity holders of the parent Non-controlling interest
Total comprehensive income attributable to: Equity holders of the parent Non-controlling interest
Earnings per share Basic (kobo)
10
2
Continental Reinsurance Plc Consolidated Statement of Financial Position As at 31 March 2018
Assets Cash and cash equivalents Financial assets -Financial asset designated as fair value -Loans and other receivables -Available-for-sale investments -Held to maturity investments Reinsurance receivables Retrocession assets Deferred acquisition costs Investment in Subsidiary Other assets Investment properties Intangible assets Property, plant and equipment Statutory deposits Total assets Liabilities Insurance contract liabilities Reinsurance creditors Other liabilities Retirement benefit obligations Current income tax Deferred taxation Total liabilities Equity Share capital Share premium Contingency reserve Retained earnings Available-for-sale reserve Foreign currency translation reserve Equity attributed to holder of parent Non-controlling interest Total equity Total Liabilities & equities
Chief Ajibola Ogunshola Chairman FRC:2017/IODN/00000016052
Note
GROUP COMPANY 31 March 31 December 31 December 31 March 31 December 2018 20172018 Budget2018 2017 =N='000 =N='000=N='000 =N='000 =N='000
11
12,912,215
9,079,093
10,357,076
12 13 14.1 14.2 15 16 17 18.1 18 19 20 21 22
2,223,376 452,133 1,788,943 9,838,108 11,794,687 3,118,890 2,169,200 1,014,644 2,756,171 20,547 2,465,921 1,000,000 51,554,836
2,159,476 492,278 2,121,225 7,613,318 9,922,254 2,759,666 2,291,853 329,430 2,857,111 20,168 2,488,615 1,000,000 43,134,489
399,660 1,759,885 8,053,538 8,003,206 2,143,760 1,501,752 2,272,473 940,503 2,756,171 20,228 2,364,696 1,000,000 41,572,949
6,680,113 439,081 2,090,531 6,065,330 6,184,435 1,877,676 1,501,752 2,272,473 756,128 2,857,111 19,849 2,379,583 1,000,000 34,124,061
23 24 25 26 8 9
18,397,548 4,586,674 4,379,023 288,154 1,785,603 318,773 29,755,774
17,965,990 1,356,210 860,223 306,457 1,550,357 318,212 22,357,449
12,875,744 4,153,749 4,318,785 288,154 1,745,432 218,855 23,600,719
12,470,590 941,364 1,249,989 275,150 1,565,199 218,853 16,721,145
27 28 29 30 31
5,186,372 3,915,451 4,619,032 4,266,205 359,208 2,044,532 20,390,800 1,408,262 21,799,062
5,186,372 3,915,451 4,462,002 3,775,255 329,978 1,764,220 19,433,277 1,343,765 20,777,041
5,186,372 3,915,451 4,570,062 3,935,245 365,101
5,186,372 3,915,451 4,413,032 3,551,577 336,484
17,972,230
17,402,916
17,972,230
17,402,916
51,554,836
43,134,489
41,572,949
34,124,061
Dr. Olufemi Oyetunji Group Managing Director FRC/2013/NSA/00000000685
Nkem Odibeli Chief Financial Officer
The Financial Reporting Council (FRC) of Nigeria has granted a waiver which allows the Chief Financial Officer to sign the unaudited Financial Statements for the first quarter ended March 31st, 2018 without indicating any FRC number.
3
Continental Reinsurance Plc Consolidated Statement of Changes in Equity For the period ended 31 March, 2018
Notes Balance at 1 January 2018 Profit or loss for the period Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners
7
Attributable to equity holders-Group Foreign Exchange Share Retained Contingency Available for Translation Share capital premium earnings reserve sale reserve Reserve =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 5,186,372 3,915,451 3,775,255 4,462,002 329,978 1,764,220 -
-
-
-
647,980 (157,030)
157,030
-
-
29,230
-
280,312
Noncontrolling interest Total equity =N='000 1,343,765 20,777,042 64,497 712,477 29,230 280,312
-
-
490,950
157,030
29,230
280,312
-
-
-
-
-
-
At 31 March, 2018
5,186,372
3,915,451
4,266,205
4,619,032
359,208
2,044,532
1,408,262
21,799,062
Balance at 1 January 2017 Change in shareholding Profit or loss for the year Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve
5,186,372
3,915,451
4,003,471
333,265
2,088,662
-
-
2,874,421 461,398 (124,893)
1,326,780 54,258
-
-
19,728,422 515,656 (146,437) (24,582)
Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners
5,186,372
3,915,451
3,210,926
4,128,364
186,138
-
-
-
-
-
At 31 March, 2017
5,186,372
3,915,451
3,210,926
4,128,364
186,138
25.1
64,497
-
124,893 (147,127)
690 (24,582)
4
2,064,080
1,022,019
1,381,728
20,073,060 -
2,064,080
1,381,728
20,073,060
Continental Reinsurance Plc Statement of Changes in Equity For the period ended 31 March, 2018
Attributable to equity holders-Company
Notes Balance at 1 January 2018 Profit or loss for the period Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners
7
Share Retained Contingency Available for Share capital premium earnings reserve sale reserve Total equity =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 5,186,372 3,915,451 3,551,577 4,413,032 336,484 17,402,916 540,697 540,697 (157,030) 157,030 28,617 28,617 -
-
383,668
157,030
28,617
569,315
-
-
-
-
-
-
At 31 March, 2018
5,186,372
3,915,451
3,935,245
4,570,062
365,101
17,972,230
Balance at 1 January 2017
5,186,372
3,915,451
2,408,676
3,754,688
340,912
-
-
-
-
15,606,099 357,610 (148,409) -
Total comprehensive income or loss Transaction with owners Dividend Total Transactions with owners
5,186,372
3,915,451
2,641,392
3,879,581
192,503
15,815,300
-
-
-
-
-
-
At 31 March, 2017
5,186,372
3,915,451
2,641,392
3,879,581
192,503
15,815,300
Profit or loss for the year Transfer of contingency reserve Other comprehensive income Fair value of equity financial assets Foreign exchange translation reserve
25.1
357,610 (124,893)
124,893 (148,409)
5
Continental Reinsurance Plc Statement of Cash flows For the period ended 31 March, 2018
Group
Company
31 March
31 March
31 March
31 March
2018 N' 000
2017 N' 000
2018 N' 000
2017 N' 000
Cash flows from operating activities Premium received from policy holders Retrocession receipts in respect of claims Acquisition costs paid Retrocession premium paid Employees benefit and other admin expenses paid Other operating cash receipts/payments Claims paid Income taxes paid
5,581,243 297,944 (1,701,721) (337,957) (1,041,886) 3,776,044 (3,376,797) -
Net cash flows (outflow)/inflow from operating activities
3,196,870
Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Investment in subsidiary Proceeds from disposal of property, plant and equipment Purchase of investment securities Proceeds on redemption /sales of investments Purchase of investment property Proceeds from sale of investment property Rent Received Interest received Dividend received
(1,676) (2,798) 67 (1,670,815) 1,655,975 100,940 34,279 513,132 8,717
Net cash generated/(used) in investing activities
637,820
4,829,172 64,989 (1,459,764) (1,108,356) (971,289) 83,482 (1,446,352) (8,118)
(24,799) (16) (386,614) 847,244 29,040 419,751 9,301 893,907
4,565,916 297,944 (1,361,377) (281,631) (740,989) 3,596,399 (2,707,180) (0)
3,634,235 64,989 (1,149,421) (846,074) (764,795) 59,630 (1,208,088) 0
3,369,081
(209,524)
(1,676) (2,798) 67 (1,505,239) 1,303,917 100,940 34,279 459,385 8,586
(577) (498,292) (16) (297,396) 770,222 29,040 395,991 9,194
397,461
408,167
Cash flows from financing activities Dividend expense
0
(337,211)
0
(337,211)
Net cash used in financing activities
0
(337,211)
0
(337,211) (138,568)
Net increase in cash and cash equivalents
3,834,689
548,578
3,766,542
Cash and cash equivalents at start of year
7,363,001
6,822,392
4,964,023
4,014,648
88,014
103,546
0
91,022
Cash and cash equivalents at end of period
11,285,705
7,474,516
8,730,565
3,967,102
Cash and cash Equivalent Balances held with other banks: Cash in hand - Current account and cash in hand Domiciliary account Balances held with foreign banks: - Placements with banks and other financial institutions Treasury bill Cash and Cash Equivalent at end
2018 N' 000 1,307 97,112 179,322 1,257,387 8,609,577 1,140,998 11,285,704
2017 N' 000
2018 N' 000 997 13,297 179,322 1,257,387 6,138,562 1,140,998 8,730,565
2017 N' 000 507 228,070 283,259 866,721 2,298,544 290,000 3,967,101
Effect of exchange rate changes on cash and cash equivalents
6
945 334,726 283,259 2,449,635 4,115,950 290,000 7,474,515
Continental Reinsurance Plc Notes to the Consolidated Financial Statements
1 Revenue 1.1 Insurance premium revenue Premium revenue arising from insurance contracts issued Life insurance contracts – Gross Premium – Change in life insurance contract liabilities - Change in ceded unepired risk reserve Non life insurance contracts – Gross Premium – Change in unearned premium provision Total Premium revenue arising from insurance contracts issued
GROUP JAN-MAR JAN-MAR 2018 2017 =N='000 =N='000
777,565 72,399 (61,539) 6,937,947 63,646 7,790,018
1.2 Insurance premium ceded to retrocessionaire Premium revenue ceded to retrocessionaire on insurance contracts issued Life insurance contracts Non life insurance contracts Total Premium revenue ceded to retrocessionaire on insurance contracts
700,894 72,399 (61,539) 5,000,686 (64,175) 5,648,265
558,121 (25,129) 3,977,073 (851,725) 3,658,341
683,590 116,635
107,179 618,570
105,134 379,536
83,718 352,468
800,225
725,750
484,671
436,186
6,989,794
5,269,826
5,163,595
3,222,155
292,866 3,427,425 (104,435) (224,461) 3,391,395
482,218 2,264,588 2,746,806
250,631 2,619,246 (104,435) (197,929) 2,567,513
433,265 1,168,825 1,602,090
(112,038) 3,279,357
(97,571) 2,649,235
(72,523) 2,494,990
(64,990) 1,537,100
Costs incurred for the acquisition of insurance contracts 1,656,445 Costs incurred for the maintenance of insurance contracts 301,961 828,470 Management expenses (See Note 6.1) 2,786,876 Total underwriting expenses
1,397,282 271,114 713,696 2,382,093
1,161,222 200,155 593,205 1,954,582
967,775 181,645 572,667 1,722,087
Total insurance benefits and underwriting expenses 6,066,234
5,031,328
4,449,572
3,259,187
125,459 28,757 278,053 432,269
123,417 43,553 270,570 437,540
93,330 28,757 252,061 374,147
Net insurance premium revenue 2
714,529 -25,129 5,850,786 -544,611 5,995,576
COMPANY JAN-MAR JAN-MAR 2018 2017 =N='000 =N='000
Insurance benefits and underwriting expenses
2.1 Insurance claims and loss adjustment expenses Life insurance contracts Non life insurance contracts ceded oustanding claim reserve - Non Life ceded oustanding claim reserve - Life Total cost of policyholder benefits Insurance claims and loss adjustment expenses recoverable from retrocessionaire Net insurance benefits and claims 2.2 Underwriting expenses
3
Net Interest income 200,252 Cash and bank balances interest income Statutory deposits interest income 43,553 Held-to-maturity and loans and receivables interest income313,946 557,752 Net Interest income
7
Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued
4
5
GROUP JAN-MAR JAN-MAR Net fair value gains on assets at fair value through 2018 profit or loss 2017 =N='000 =N='000 Net fair value gains/ (losses) on financial assets designated at fair value through profit 0 Fair value gains on investment property 0 Total -
COMPANY JAN-MAR 2018 =N='000
JAN-MAR 2017 =N='000 -
-
8,586
9,194
Other income Available-for-sale – Dividends 8,717 – Gain on disposal of available-for-sale securities: Equity Bond Income on investment property 29,487 – Gain/(Loss) on disposal of investment properties –(Loss)/gain on disposal of property, plant and equipment 67 Other income 26,005 64,276
9,301 27,779 83,803 30,601 0 (16) 5,701 157,171
29,487 67 11,603 49,743
27,779 83,803 30,601 (16) 3,481 154,843
(403,336) (403,336)
159,624 159,624
(332,592) (332,592)
201,586 201,586
236,663 196,265 (836,263) (403,336)
110,200 26,053 23,371 159,624
236,663 196,265 (765,519) (332,592)
140,200 32,843 28,543 201,586
713,696 281,870 995,566
593,205 147,785 740,989
572,667 216,731 789,397
30,514 4,791 415,081 545,181 995,566
20,188 24,000 340,281 356,520 740,989
19,447 293 318,460 451,198 789,397
194,797 193,529 26,755 415,081
190,688 106,679 42,913 340,281
194,797 96,909 26,755 318,460
5.1 Foreign exchange gain/(loss) Foreign exchange gain/(loss)
Breakdown of foreign exchange 5.1a gain/(loss) Investment assets Bank balances Reinsurance receivables
6
Operating expenses
6.1 Management and administration expenses 828,470 213,417 1,041,886
Management expenses (note 2.2) Administration expenses
Management and administration expenses comprises the following: 33,759 Depreciation and amortisation 26,610 Auditor's remuneration 491,639 Employee benefits expenses (a) Other operating expenses 489,879 1,041,886 Total management and administrative expenses (a) Employee benefit expense Wages and salaries (local) Wages and salaries (other regions) Defined Contributory Plan
190,688 258,037 42,913 491,639
8
Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued
6
Other operating expenses (cont'd)
GROUP JAN-MAR JAN-MAR 2018 2017 =N='000 =N='000
6.2 Impairment of financial assets Reinsurance receivables Retrocessionaire's share of receivables
7
(0) (0)
(0) (0)
JAN-MAR 2017 =N='000 -
Net unrealised gain /(loss) on financial assets Unrealised gain/(loss) on financial asset - Available-for-sale 28,617 – Equity instruments – Debt Instruments Total 28,617 Reclassification adjusmentsto gans included in profit an loss Income tax relating to component of other comprehensive incomeOther comprehensive income for the year, net of tax 28,617
8
0 -
COMPANY JAN-MAR 2018 =N='000
Taxation Per statement of comprehensive income: Income tax based on profit for the year Education tax Back duty charge prior year Deferred taxation (Note 9)
JAN-MAR 2018 =N='000 216,358 216,358 216,358
Per statement of financial position: At 1 January Based on profit for the year Payments during the year
1,550,357 216,358 18,888 1,785,603
9
0 0 0 -
28,617 28,617 28,617
-
JAN-MAR 2017 =N='000 190,037 190,037 190,037
JAN-MAR 2018 =N='000 180,232 180,232 180,232
JAN-MAR 2017 =N='000 119,203 119,203 119,203
692,602 1,566,385 (708,630) 1,550,357
1,565,199 180,232 (0) 1,745,432
631,518 1,636,621 (702,940) 1,565,199
Continental Reinsurance Plc Notes to the Consolidated Financial Statements GROUP 9
Deferred taxation Deferred income tax (assets)/liabilities are attributable to the following items: Deferred tax liabilities Balance b/f Recognised in profit and loss Property plants and equipment Unrealised FX gain Employee benefits Total recognised in profit and loss
31-Mar 2018 =N='000
COMPANY 31-Dec 2017 =N='000
318,212 2 2
31-Mar 2018 =N='000
793,806 (49,742) (425,852) (475,594)
31-Dec 2017 =N='000
218,853 1.87 2
686,907 (49,742) (418,311) (468,053)
Recognised in other comprehensive income Employee benefit Available for sale financial assets
Net
10
560 560
-
-
-
-
318,773
318,212
218,855
218,853
Earnings per share Basic earnings per share amounts is calculated by dividing the net profit for the year attributable to ordinary share holders by the weighted average number of ordinary shares outstanding at the reporting date. GROUP The following reflects the income and share data used in the basic earnings per share computations:
31-Mar 2018 =N='000
Weighted average number of ordinary shares in issue as at year end ('000) Basis earnings per ordinary share (kobo)
COMPANY 31-Mar 31-Dec 2018 2017 =N='000 =N='000
31-Dec 2017 =N='000
Net profit attributable to ordinary shareholders (=N='000) 712,477
11
-
3,118,635
540,697
2,514,962
10,372,744
10,372,744
10,372,744
10,372,744
7
30
5
24
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements. GROUP COMPANY Cash and cash equivalents 31-Mar 31-Dec 31-Mar 31-Dec 2018 2017 2018 2017 =N='000 =N='000 =N='000 Cash in hand Balances held with local banks: - Current account - Domiciliary account Balances held with foreign banks Placements with banks and other financial institutions
1,307
996
997
839
97,112 179,322 1,257,387
211,938 207,170 590,326
13,297 179,322 1,257,387
11,377,086 12,912,215
8,068,663 9,079,093
8,906,071 10,357,076
145,736 207,170 590,326 5,736,042 6,680,113
Included in placements with banks and other financial institutions are tenored deposits of the group (N3b) with original maturity of more than three months. The carrying amounts disclosed above reasonably approximate fair value at the reporting date. The cash and cash equivalents position for cash flow purposes is disclosed in the statement of cash flow.
10
Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued
12
Financial assets designated at fair value through profit or loss Managed Funds External Portfolio Management
13
Loans and other receivables
Staff Loans and advances Other advances Impairment on other advances Total Loans and other receivables
14
Investment Securities Analysis of investment securities Equity Debt
GROUP 31-Mar 31-Dec 2018 2017 =N='000 =N='000 2,223,376 2,223,376
2,159,476 2,159,476
GROUP 31-Mar 31-Dec 2018 2017 =N='000 =N='000 483,583 375,491 (406,941) 452,133
COMPANY 31-Mar 31-Dec 2018 2017 =N='000 -
COMPANY 31-Mar 31-Dec 2018 2017 =N='000
462,584 436,635 (406,941) 492,278
GROUP 31-Mar 31-Dec 2018 2017 =N='000 =N='000
-
431,110 375,491 (406,941) 399,660
409,387 436,635 (406,941) 439,081
COMPANY 31-Mar 31-Dec 2018 2017 =N='000
1,759,885 9,867,165 11,627,051
1,944,109 7,790,434 9,734,543
1,759,885 8,053,538 9,813,423
1,925,253 6,230,608 8,155,861
Available-for-sale: Equity instruments Debt instruments Total available-for-sale
1,759,885 29,057 1,788,943
1,744,048 377,177 2,121,225
1,759,885 1,759,885
1,742,269 348,262 2,090,531
Held-to-maturity Debt instruments
9,838,108
7,613,318
8,053,538
6,065,330
11,627,051
9,734,543
9,813,423
8,155,861
928,205 831,680 1,759,885
1,944,109 1,944,109
928,205 831,680 1,759,885
1,925,253 1,925,253
Analysis by class 14.1
14.2
Total Investment securities Equity Instruments Securities at Available-for-sale - Fair value Quoted Unquoted Total equity instruments
These equities instruments are measured at fair value and classified as available-for-sale Debt Instruments Securities at Available-for-sale -Fair Bonds
31-Mar 2018 =N='000
31-Dec 2017 =N='000
31-Mar 2018
31-Dec 2017 =N='000
29,057 29,057
377,177 377,177
-
348,262 348,262
5,626,064 4,212,043.96 9,838,108
4,757,744 2,855,574 7,613,318
5,555,782 2,497,756 8,053,538
3,919,774 2,145,556 6,065,330
9,867,165
7,990,495
8,053,538
6,413,592
Securities at held-to-maturity - amortised Listed Unlisted
Total debt instruments
None of these investment securities have been pledged to third party as collateral.
11
Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued 15
Reinsurance receivables
Due from ceding companies Due from ceding companies (Pipeline) Premium reserves retained by ceding companies
GROUP 31-Mar 31-Dec 2018 2017 =N='000 =N='000 8,084,181 3,685,445
1,306,777 13,076,403 Impairment on reinsurance receivables(Note 15.1 ) (1,281,716) 11,794,687 15.1
16
5,611,209 2,554,071
340,397 11,203,970 (1,281,716) 9,922,254
898,950 9,064,231 (1,061,024) 8,003,206
4,691,388 2,554,071 7,245,459 (1,061,024) 6,184,435
1,536,477 (810,979) 556,218 1,281,716
1,061,024 (0) 1,061,024
1,297,185 (669,753) 433,591 1,061,024
(0)
556,218
(0)
433,591
(0)
556,218
(0)
433,591
Retrocession Assets
1,782,804
1,853,942
789,839
717,465
717,466
717,465
189,141
-
1,015,259 717,465
189,141
591,271 (161,791) 3,118,890
350,049 (161,791) 2,759,666
609,106 (161,791) 2,143,760
306,743 (161,791) 1,877,676
161,791 0 161,791
114,410 47,381 161,791
161,791 0 161,791
114,410 47,381 161,791
Reconcilliation of impairment on retro assets At 1 January Write off during the year Charge for the year Recovery during the year
17
1,281,716 (0) 1,281,716
Breakdown of charge for the year impairment on gross receivables reversal of exchange gain on impaired reinsurance receivables Net charge to income statement
Retrocessionaires’ share of claims recoverable Retrocessionaires’ share of reserve for outstanding claims Retrocession share of unearned premium resereve Retrocessionaires' share of life insurance contract liabilities Impairment of retro assets Total retrocession assets
16.1
7,218,432 3,645,142
Reconcilliation of impairment on reinsurance receivables At 1 January Write off during the year Charge for the year Recovery during the year
15.1a
COMPANY 31-Mar 31-Dec 2018 2017 =N='000
Deferred acquisition costs
At 1 January Net deferral during the year
31-Mar 2018 =N='000 2,291,853 (122,653) 2,169,200
31-Dec 2017 =N='000 1,532,809 759,043.77 2,291,853
12
31-Mar 2018 =N='000 1,501,752 1,501,752
31-Dec 2017 =N='000 782,628 719,123.68 1,501,752
Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued GROUP 18
Other Assets
31-Mar 2018 =N='000
Prepayments Intercompany balances Deposit for shares (Note 18 a) Proposed head office W.I.P Other Impairment on others
COMPANY 31-Mar 31-Dec 2018 2017 =N='000 =N='000
31-Dec 2017 =N='000
381,563 11,000 751,873 1,144,437 (129,793) 1,014,644
97,532 11,000 350,690 459,222 (129,793) 329,430
334,413 825,452 11,000 175,466 1,346,331 (405,828) 940,503
28,657 43,320 309,586 381,563
29,832 67,700 97,532
23,049 38,890 272,475 334,413
23,253 50,916 74,169
754,653 94,419 849,072
222,816 4,168 731 227,715
18a Prepayments Office rent Staff upfront Other prepaid services
18bIntercompany balances Payable to related parties on retro Payable to related parties on reinsurance contracts
18c Others Interest receivables WHT recoverable Sundry receivables
-
-
875,655 (50,203) 825,452
264,205 1,168 486,500 751,873
245,816 4,168 100,706 350,690
234,205 1,168 (59,908) 175,466
GROUP 31-Mar 2018 =N='000 18.1
19
COMPANY 31-Mar 31-Dec 2018 2017 =N='000 =N='000
31-Dec 2017 =N='000
Investment in Subsidiary Continental Reinsurance Limited, Nairobi Kenya Continental Reinsurance Limited, Gaborone, Botswana
Investment Properties
Opening Fair value adjustments Additions Disposal during the year Closing
-
31-Mar 2018 =N='000 2,857,111 100,939.94 2,756,171
Group 20 Intangible assets
31-Dec 2017 =N='000 2,868,728 -11,617 2,857,111
Company
Computer software =N='000
Computer software =N='000
Cost: At 1 January 2018 Cost capitalised At 31 March 2018
85,697 2,798 88,495
85,378 2,798 88,177
Accumulated amortisation and impairment: At 1 January 2018 Amortisation for the year At 31 March 2018
65,529 2,419 67,948
65,530 2,419 67,949
NBV At 31 March 2018
20,547
20,228
NBV At 31 December 2017
20,168
19,849
13
74,169 849,072 11,000 227,715 1,161,956 (405,828) 756,128
-
1,572,699 699,774 2,272,473
1,572,699 699,774 2,272,473
31-Mar 2018 =N='000 2,857,111 100,939.94 2,756,171
31-Dec 2017 =N='000 2,868,728 -11,617 2,857,111
Continental Reinsurance Plc Notes to the Consolidated Financial Statements - Continued Group Freehold 21 Property, plant and equipment property =N='000 Cost/Valuation: At 1 January 2018 868,892 Additions Disposals Reclassification At 31 March, 2018 868,892
Motor vehicles =N='000
Furniture and fittings =N='000
365,690 365,690
193,754 577 194,331
Building W.I.P =N='000 1,378,792 (0) 1,378,792
Office partitioning =N='000
Computer equipment =N='000
82,273 82,273
125,850 1,100 126,950
Total =N='000
Accumulated depreciation: At 1 January 2018 Charge for the year Disposal Reclassification
-
233,534 16,168 -
129,668 4,596 -
-
73,065 1,048 -
90,370 2,557 -
3,015,252 1,676 3,016,927 526,637 24,369 -
At 31 March, 2018
-
249,702
134,264
-
74,113
92,927
551,006
NBV At 31 March 2018
868,892
115,988
60,067
1,378,792
8,160
34,023
2,465,921
NBV At 31 December 2017
868,892
132,156
64,086
1,378,792
9,208
35,480
2,488,615
Furniture and fittings =N='000
Building W.I.P =N='000
Office partitioning =N='000
Computer equipment =N='000
71,197 71,197
87,780 1,100 88,880
2,774,966 1,676 2,776,642
65,679 709 66,388
72,309 1,550 73,859
395,383 16,563 411,946
Company 21 Property, plant and equipment
Cost/Valuation: At 1 January 2018 Additions Disposals Reclassification At 31 March, 2018 Accumulated depreciation: At 1 January 2018 Charge for the year Disposal Reclassification At 31 March, 2018
Freehold property =N='000 868,892 868,892
-
Motor vehicles =N='000 253,335 253,335
114,969 577 115,546
177,818 11,268 189,086
79,577 3,036 82,613
1,378,792 (0)
1,378,792
-
-
Total =N='000
NBV At 31 March 2018
868,892
64,249
32,933
1,378,792
4,809
15,021
2,364,696
NBV At 31 December 2017
868,892
75,517
35,392
1,378,792
5,518
15,471
2,379,583
14
Continental Reinsurance Plc Notes to the Consolidated Financial Statements -Continued GROUP 22
Statutory deposits
31-Mar 2018 =N='000
31-Dec 2017 =N='000
1,000,000
1,000,000
31-Mar 2018 =N='000
COMPANY 31-Dec 2017 =N='000
1,000,000
1,000,000
Statutory deposit represents the amount deposited with the Central Bank of Nigeria in accordance with section 9(1) and section 10(3) of Insurance Act 2003. This is restricted cash as management does not have access to the balances in its day to day activities. Statutory deposits are measured at cost. 23
Insurance contract liabilities
31-Mar 2018 =N='000
Insurance Reserve fund for Unearned Premium (Note 23.1) ReserveReserve for Outanding for Outstanding Claims Claims (Note 23.2) Insurance Lifefund-Life (Note 23.3) Total insurance liabilities Total retrocessionaire's share of insurance liabilities (Note 16) Net insurance contracts 23.1
23.2
23.3
24
Reserve for Unearned Premium At 1 January Increase in the year Release of unearned premium during the year
Reserve for Outstanding Claims At 1 January Claims incurred including IBNR Claims paid during the year
Insurance liabilities on life policy holders At 1 January (Decrease)/Increase in retrocessionaire's share Changes in life policy contracts
Reinsurance creditors
Due to retrocessionaires Due to retrocessionaires Due to ceding Due tocompanies ceding companies
-
31-Dec 2017 =N='000
31-Mar 2018 =N='000
31-Dec 2017 =N='000
8,240,336 7,910,161 16,150,497 2,247,051 18,397,548
8,281,665 7,254,013 15,535,678 2,430,312 17,965,990
5,439,860 5,574,784 11,014,645 1,861,099 12,875,744
5,125,005 5,179,229 10,304,234 2,166,356 12,470,590
(3,118,890) 15,278,657
(2,759,666) 15,206,324
(2,143,760) 10,731,984
(1,877,676) 10,592,914
8,281,665 7,015,648 (7,056,977) 8,240,336
4,923,170 25,963,551 (22,605,057) 8,281,665
5,125,005 5,000,686 (4,685,831) 5,439,860
2,772,852 17,295,784 (14,943,631) 5,125,005
7,254,013 3,403,906 (2,747,758) 7,910,161
6,883,940 12,197,651 (11,827,579) 7,254,013
5,179,229 2,619,246 (2,223,691) 5,574,784
5,775,330 7,953,283 (8,549,384) 5,179,229
1,938,205 589,311 (97,204) 2,430,312
2,166,356 (305,257) 1,861,099
1,588,966 415,770 161,620 2,166,356
2,430,312 183,261 2,247,051
31-Mar 2018 =N='000
31-Dec 2017 =N='000
809,815 3,776,859 4,586,674
589,921 766,289 1,356,210
This represents the amount payable to insurance and reinsurance companies
15
31-Mar 2018 =N='000 481,350 3,672,400 4,153,749
31-Dec 2017 =N='000 278,310 663,054 941,364
Continental Reinsurance Plc Notes to the Consolidated Financial Statements -Continued 25
Other liabilities
Sundry creditors Rent received Rent received in advance in advance Receipt on behalf of 3rd party Accrued Accrued expensesexpenses DividendDividend payable payable (Note 25.1) Unclaimed dividend IT development Information levy technology development levy Others Others Intercompany Balance
25.1
25.3
26
2,917 359,781 23,241 270,241 45,988 158,055 860,223
7,709 3,205,697 52,893 23,241 314,135 45,987 359,283 309,839 4,318,785
2,917 400,689 23,241 270,241 45,987 251,126.82 255,787 1,249,989
Dividends paid and proposed At 1 January Declared during the year Paid during the year
25.2
7,709 3,205,697 75,477 23,241 314,135 45,987 706,777 4,379,023
Others; Staff bonus Sundry creditors PAYE and other statutory liabilities
23,241 (0) 23,241
1,241,451 1,452,184 (2,670,394) 23,241
174,424 274,343 258,009 706,777
Intercompany balance; Receivables from related parties on retro Receivables from related parties on reinsurance contracts
87,072 70,983 158,055
-
-
23,241 0.00 23,241
1,241,451 1,452,184 (2,670,394) 23,241
174,424 160,606 24,253 359,283
251,127 251,127
138,999 170,840 309,839
155,950 99,836 255,787
Retirement benefit obligations Define contribution scheme In accordance with the provisions of the Pensions Act 2004, AS AMENDED 2014 the Company and its staff commenced a contributory pension scheme in January 2005. The contribution by employees and the Company are 8% and 10%% respectively of the employees' basic salary, housing and transport allowances. The contribution made and transfered to the pension fund administrator during the period are as follows; 31-Mar 2018 =N='000 Balance at start of period Provision during the period Transfer to PFA
31-Dec 2017 =N='000 -
31-Mar 2018 =N='000
-
31-Dec 2017 =N='000 -
0 0 0
0
0 0 0
0
Defined benefit staff gratuity scheme The company operates a defined benefit staff gratuity plan where qualifying employees receive a lump sum payment based on the number of years served after an initial qualifying period of five years and gross salary on date of retirement.
Statement of financial position obligation for: The amounts recognised in the balance sheet are determined as follows: Balance as at the beginning of the year Net Expense/Income recognised in P & L Remeasurement recognised in OCR Defined contribution scheme Fair value of plan assets Deficit of funded plans (Asset)/liability in the balance sheet
31-Mar 2018 =N='000
31-Dec 2017 =N='000
306,457 13,004 (31,307)
288,154
16
31-Mar 2018 =N='000
31-Dec 2017 =N='000
383,857 184,600 57,588 (319,589) 306,457
275,150 13,004 288,154
336,008 164,294 5,170 (230,322) 275,150
306,457
288,154
275,150
Continental Reinsurance Plc Notes to the Consolidated Financial Statements -Continued 27 Share capital
28
31-Mar 2018 =N='000
31-Dec 2017 =N='000
31-Mar 2018 =N='000
31-Dec 2017 =N='000
Authorised 20,000,000,000 Ordinary shares of 50k each
10,000,000
10,000,000
10,000,000
10,000,000
Issued and fully paid 10,372,744,000 Ordinary shares of 50k each
5,186,372
5,186,372
5,186,372
5,186,372
3,915,451
3,915,451
3,915,451
3,915,451
Share premium
Premiums from the issue of shares are reported in share premium. 29
Contingency reserve The statutory contingency reserve has been computed in accordance with Section 21 (1) of the Insurance Act, Cap I17 LFN 2004. The movements on the account are as follows: 31-Mar 2018 =N='000
Contingency Non Life Non - reserveLife Contingency Life reserve- Life Total 30
31-Dec 2017 =N='000
4,612,023 7,009 4,619,032
4,431,119 30,883 4,462,002
31-Mar 2018 =N='000 4,563,053 7,009 4,570,062
31-Dec 2017 =N='000 4,382,149 30,883 4,413,032
Retained earnings: Retained earnings comprise the undistributed profits from previous years, which have not been reclassified to the other reserves noted below.
31
Available-for-sale reserve: The fair value reserve shows the effects from the fair value measurement of financial instruments of the category available-for-sale after deduction of deferred taxes. Any gains or losses are not recognised in the statement of comprehensive income until the asset has been sold or impaired.
32
Significant accounting policies The statement of accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statement. There have not been any change in the policies and methods of computation adopted.
17
