Jun 30, 2017 - The accounting policies adopted by the Company in the preparation of .... above relate to the Company's a
STANDARD ALLIANCE INSURANCE PLC
Unaudited Financial Statements for the period ended 30 June 2017
CERTIFICATION PURSUANT TO SECTION 60(2) OF INVESTMENT AND SECURITIES ACT NO.29 OF 2007 We the undersigned hereby certify the following with regards to our unaudited report for the quarter ended 30 June 2017 that: (a) We have reviewed the report; (b) To the best of our knowledge, the report does not contain: (i) Any untrue statement of a material fact, or (ii)Omit to state a material fact, which would make the statements, misleading in the light of circumstances under which such statements were made; (c) To the best of our knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operations of the company as of, and for the periods presented in the report; (d) We: (i) are responsible for establishing and maintaining internal controls; (ii) have designed such internal controls to ensure that material information relating to the Group is made known to such officers by others within the entity particularly during the period in which the periodic reports are being prepared; (iii)have evaluated the effectiveness of the Group’s internal controls as of date within 90 days prior to the report; (iv) have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date; (e) We have disclosed to the auditors of the Group and audit committee: (i) all significant deficiencies in the design or operations of internal controls which would adversely affect the Group’s ability to record, process, summarize and report financial data have been identified. (ii) any fraud, whether or not material, that involves management or other employees who have significant roles in the Group’s internal controls; (f) We have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Mr. Oludare Sonde Chief Finance Officer FRC/2014/ICAN/00000005647
Mr. Bode Akinboye Chief Executive Officer FRC/2013/ICAN/00000005139
STANDARD ALLIANCE INSURANCE PLC STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 ASSETS
NOTES
Cash and Cash Equivalents
3
Financial Assets
4
30-Jun-17
31-Dec-16
N'000
N'000
993,643
485,013
-
At fair value through profit or loss
39,364
29,303
-
Loans & Receivables
88,031
84,095
-
Available for sale investment
429,770
342,674
-
Held to maturities
2,000
314,678
Trade Receivables
5
278,565
16,340
Reinsurance Assets
6
880,351
955,467
Deferred Acqusition Costs
7
117,910
117,910
Other Receivables and Prepayments
8
68,846
44,294
Investment Properties
10
3,824,589
3,824,589
Goodwill & Other Intangible Assets
12
183,812
13,480
Property, Plant and Equipment
13
6,174,536
6,257,177
Statutory Deposits TOTAL ASSETS
14
535,000 13,616,416
535,000 13,020,020
LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Insurance Contract Liabilities
15
Investment Contract Liabilities
4,887,872
5,022,163
704,968
590,676
Trade Payables
16
109,797
75,670
Other Payables and Accruals
17
493,746
538,464
Financial Liabilities
18
1,184,415
1,269,650
Finance Lease Obligation
19
60,415
80,676
Taxation
20
288,798
204,136
Deferred Tax Liabilities TOTAL LIABILITIES
21
595,852 8,325,863
586,662 8,368,097
Ordinary Share Capital
22
6,454,912
5,996,587
Share Premium
22b
7,667,475
7,667,476
Contigency Reserve
24
1,564,926
1,505,600
Retained Earnings
25
(13,560,353)
(13,870,648)
Revaluation Reserves
26
3,076,501
3,076,501
Fair Value Reserves
27
SHAREHOLDERS' EQUITY
87,096 5,290,557
Non controlling interest Total equity LIABILITIES AND S/HOLDERS' EQUITY
Mr. Oludare Sonde Chief Finance Officer FRC/2014/ICAN/00000005647
5,290,557 13,616,416
4,375,516 276,408 4,651,924 13,020,020
STANDARD ALLIANCE INSURANCE PLC STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR PERIOD ENDED 30 JUNE 2017
REVENUE Gross Premium written
Notes 27
Unearned premium
Reinsurance premium expenses
28
Net premium income Fees and Commission income
29
Net Underwriting income Claims expenses
30
Claims exp.recoveries from reins. Net Claims expenses Underwriting expenses
31
Total underwriting expenses Underwriting Profit Investment income
30-Jun-17
30-Jun-16
YTD
YTD
N'000
N'000
3,146,920
2,671,338
-
164,726
3,146,920
2,836,064
(450,900) 2,696,020
2,314,281
53,087
122,877
2,749,107
2,437,158
(888,472)
(1,061,971)
190,087
155,556
(698,385)
(906,415)
(750,787)
(780,653)
(1,449,172)
(1,687,068)
1,299,935 32
71,220
Net realised (loss)/gain on inv. propty33
-
Forex gain/loss
(521,783)
7,634
750,090 (13,121) (443,657)
Operating expenses
34
(891,997)
(568,080)
Finance charges
35
(11,600)
(13,936)
5,661
(1,878)
Unrealised Fair value gains/(losses) 4.1 Gain on Disposal of Quoted Shares
-
-
Impairments/Write back of provisions
-
-
Share of profit/(loss) of associates
-
-
10.2
(Loss)/Profit before taxation
480,852
(290,582)
Income tax
20
(91,904)
(18,939)
Deferred tax
21
(9,190)
(1,894)
(Loss)/Profit after taxation
379,759
(311,415)
Other comprehensive income -
Can subsequently be reclassified to P or L FV gains on quoted shares (AVFS)
26
Transfer between Units Total other comprehensive income Total compre(loss) income for the yr
EPS : Basic/Diluted (Kobo)
87,096 -
33,726 -
87,096
33,726
466,855
(277,689)
4.01
(2.42)
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENT FOR PERIOD ENDED JUNE 30, 2017 STATEMENT OF CHANGES IN EQUITY Share capital N'000 At 1 January 2017
5,996,587
JUNE 30, 2017 Share Revaluation Fair value premium reserve reserve N'000 N'000 N'000 7,667,476
3,076,501
Profit for the year
-
-
-
Appropriation for Contingency reserve for the yr
-
-
FV gain on quoted shares(AVFS)
-
-
Adjustments for Inv. in Subsidiary
-
Revaluation Surplus
-
Contigency Reserve N'000 1,505,600
Retained earnings N'000 (13,870,648)
Deposit for Shares N'000 276,408
Total N'000 4,651,924
-
-
358,423
-
358,423
-
-
59,326
(59,326)
-
-
-
87,096
-
-
-
87,096
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transactions with owners
-
Acqusition of shares Goodwiil Transfers for the year At June 30, 2017
At 1 January 2016
(286,548)
458,325 6,454,912
7,667,476
-
-
3,076,501
Share Premium
N'000
N'000
N'000
5,996,587
7,667,475
1,616,101
-
-
-
Appr.for Contingency reserve for the year
-
-
Fair value gain on quoted shares (AVFS)
-
-
Revaluation surplus on building
-
-
Allotment of treasury shares
-
-
Transactions with owners
-
Transfers for the year
5,996,587
-
87,096
1,564,926
31ST DECEMBER, 2016 Revaluation Fair value Contigency Reserve Reserve Reserve
Ordinary Share capital
Loss for the year
At 31 December 2016
(286,548)
N'000
N'000
-
1,411,579
11,198
10,140
(13,560,353)
-
479,663 5,290,558
Retained Earnings
Non Controlling
Total
N'000
N'000
N'000
(12,552,146)
393,596
4,533,192
(1,224,481)
(117,188)
(1,278,063)
63,606
-
-
-
94,021
(94,021)
-
-
(63,606)
-
-
(63,606)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,667,475
1,460,400
3,076,501
-
1,505,600
(13,870,648)
1,460,400
276,408
4,651,923
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENT FOR THE PERIOD ENDED JUNE 30, 2017 COMPOSITE STATEMENT OF CASH FLOW 30-Jun-17 CASH-FlOWS FROM OPERATING ACTIVITIES N'000 Premium received from policy holders 2,711,274 Cash received on DA 817,124 Interest received on investments 32,347 Dividend received 95 Rent and sundry income 16,013 Other income 10,006 Claim paid (net of recoveries) (838,441) Fees and commission 53,087 Cash payments for reinsurance (262,694) Brokers commissions and allowances (212,521) Agents allowances and commissions (152,142) Cash pmt to employees, suppliers and others (1,015,108) Loans against policy (6,291) Staff Loan repayment (1,067) Cash withdrawals on DA (702,833) 448,849 Tax paid: Income tax (10,000) Value Added Tax (VAT) NET O/FLOWS FROM OPERATING ACTIVITIES 438,849
31-Dec-16 N'000 4,411,839 1,321,679 100,444 750 14,175 5,388 (1,248,777) 95,974 (773,676) (672,823) (1,732,363) (15,448) (1,739,759) (232,597) (94,251) (2,986) (329,834)
CASH FLOWS FROM INVESTING ACTIVITIES
Purhase of Property plant and Equipment Purchase of HTM Financial Asset Purhase of Intangible assets Investment in Financial Asset through P or L Income from investment property Proceeds from sale of PPE Acquisition of Interest in Blueberry project NET CASH INFLOWS FROM INVESTING ACTIVITIES
(577) 83,940 83,363
(44,211) 275,010 (15,000) (100) 17,816 4,500 238,015
(1,256) (12,322) (13,578) 508,635 485,011 993,643
(45,399) (56,062) (56,022) (157,483) (249,302) 734,315 485,013
711,279 282,364 993,643
283,355 201,658 485,013
CASH FLOWS FROM FINANCING ACTIVITIES
Finance charges Repayment of borrowing - Daewoo securities bond Loan obtained from FCMB Lease financing (net) Repayment of Term Loan Payment of preference dividend Proceeds from sale of treasury shares NET CASH OUTFLOWS TO FINANCING ACTIVITIES NET INC./(DEC) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalent at 1 January NET CASH AND CASH EQUIVALENTS AT 31 DEC NET CASH AND CASH EQUIVALENTS COMPRISE:
Current and domiciliary accounts balances Short term deposits - Local banks Unreconciled bank balances Bank overdraft
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017
NOTES TO THE FINANCIAL STATEMENTS
1
THE COMPANY Please see the descrption of the Company as presented on pages below
2
ACCOUNTING POLICIES The accounting policies adopted by the Company in the preparation of these financial statements and which have been consistently applied over the periods are as fully disclosed
3
CASH AND CASH EQUIVALENT 30-Jun-17
31-Dec-16
N'000
N'000
Cash at hand
8,139
2,183
Cash in bank - Unclaimed dividend
2,507
2,476
700,633
278,696
Current and Domicilliary accounts
-
Short term deposits with other Financial Institutions
711,279
283,355
282,364
201,658
993,643
485,013 -
Impairment provision (Note 3.1)
4
993,643
485,013
At fair value through Profit or loss (Note 4.1)
39,364
29,303
Loans & Receivables (Note 4.2)
88,031
84,095
429,770
342,674
2,000
314,678
559,164
770,750
FINANCIAL ASSETS
Available for sale (Note 4.3) Held to maturity
4.1 Financial assets at fair value through Profit or loss Quoted securities 391,859
Cost Cost of Disposal Fair value changes Market value
391,859
0
100
(352,495)
(362,656)
39,364
29,303
. The fair value changes are further analysed thus: At 1 January Fair value gains/(losses) during the year At 30 June
(362,655) 10,060 (352,595)
(355,464) (7,192) (362,656)
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017
NOTES TO THE FINANCIAL STATEMENTS
4.2 Loans & Receivables
Company
Group
30-Jun-17
31-Dec-16
N'000
N'000
0
0
5,333
78,623
SA Properties (Note 4.3.1) Staff Debtors Loan against policy
84,914
5,472
90,247
84,095
Amount represents investment by the Company in Standard Alliance Properties Limited under a joint venture arrangement for property business. The terms of the arrangement include annual interest income and share of profit
4.3 Available for sale financial assets
Investment in Bluberry Project Quoted shares in Transcorp Plc (Note 4.3.2)
30-Jun-17
31-Dec-16
N'000
N'000
188,628
188,628
241,142
154,056
Preference Shares in Lagoon Homes
0
-
Other Financial Asset
0
-
429,770
342,684
4.3.1 Investment in Blueberry Project This represents the company's investment in Blueberry Technology Solutions Limited under joint venture arrangement for the provision of Electronic National Drivers' and Vehicles Identification system for the Kadune State Government. Under the terms of the agreement, revenue from the project is to be shared by both parties
188,628
188,628
4.3.2 Investment in quoted shares Cost At 1 January
120,835
Addition during the year
-
Disposal during the year
-
120,835 0 0 120,835
At 30 June
120,835
Fair Value Gain
120,307
33,211
Market Value
241,142
154,046
33,211
135,485
The fair value changes are further analysed thus: At 1 January Fair value gain/(loss) realised on disposal
0
0
Fair value gain/(loss) during the year
87,096
(102,274)
At 30 June
120,307
33,211
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENT FOR THE PERIOD ENDED JUNE 30 2017 NOTES TO THE FINANCIAL STATEMENTS 30-Jun-17 N'000 4.3.4 5% 5year Redeemable Preference Shares in Lagoon Homes Savings andyear, Loans During the theLtd Company converted its term deposits with Lagoon Homes Savings and Loans Limited to preference shares Less Impairmrnt Provision
-
31-Dec-16 N'000
-
162,848 -
-
(162,848)
-
-
TRADE RECEIVABLES
5
Premium receivable Dues from brokers
278,565 278,565
6
16,340
-
Impairment allowance
16,340
REINSURANCE ASSETS Claims recoverable
742,501
772,125
Deferred reinsurance cost
137,850
183,342
880,351
955,467
All of the above amounts are of current tenor. DEFERRED ACQUISITION COSTS Motor
7
23,058
Aviation
23,058
959
959
5,190
8,192
Fire
27,028
19,774
General Accident
13,968
7,926
Marine
7,545
17,026
Bond
5,943
5,791
Oil & Gas
3,194
4,159
31,025
31,025
117,910
117,910
86,885
131,238
Engineering
Life The movement in deferred acquisition cost are: At 1 January Additions during the year Amortization for the year Life At June 30
385,360
-
(398,688)
31,025 117,910
OTHER RECEIVABLES AND PREPAYMENTS Prepayments Loans and Receivables (Note 8.1)
8
-
Staff Debtors Sundry
117,910
31,711
12,062
3,118
31,576
2,216
-
31,801
656
-
Inter Company Receivable
68,846
44,294
Current account with related companies
320,857
-
Others
-
-
Write off during the year
-
8.1 Loans and Receivables
-
Impairment allowance
320,856.68
-
9 NON CURRENT ASSETS HELD FOR SALE At 1 January
-
-
Additions during the year
-
-
Changes in FV Aviation
-
-
-
10 INVESTMENT PROPERTIES At 1 January
3,824,589
Additions during the year
-
Disposal during the year
-
Changes in FV At June 30
2,177,001 0 1,647,588
3,824,589
3,824,589
These comprise the following properties:
Property on Plot 456, Cadastral Zone B13, Abuja
580,000
580,000
250 Hecters of farmland at Mydumbi, Kaduna - Zaria
100,000
100,000
10 2 B/room Terrace hs and a wing of 4 B/room duplex
495,000
495,000
6 storey lettable office complex
599,589
599,589
1,200,000
1,200,000
850,000
850,000
11 units of '4-Bedroom terrace houses at New County Lekki Property on No 1207, Yakubu Gowown Street, Abuja
3,824,589
3,824,589
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS
12
30-Jun-17
31-Dec-16
N'000
N'000
GOODWILL AND INTANGIBLE ASSET COMPUTER SOFTWARE COST AT 1 January Additions-Goodwill arising from conversion MI
15,000
-
171,777
15,000
186,777
15,000
AMORTISATION AT 1 January
1,520
-
Amortisation for the period
1,445
1,520
2,965
1,520
183,812
13,481
CARRYING AMOUNT
The intangible asset above relate to the Company's accounting software packages (GIBS)
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS 13
PROPERTY, PLANT AND EQUIPMENT
COST
At 1/1/2017
31-Dec-16
Land
Building
Motor vehicles
Furniture and fittings
Computer and other equipments
Total
Total
N'000
N'000
N'000
N'000
N'000
N'000
N'000
2,490,433
3,583,067
225,377
451,580
7,593,807
4,149,151
55
55
44,211
Additions
-
-
Transfer from NCAHFS
-
-
Revaluation surplus
-
-
Reclassification
-
Disposals At June 30, 2017
30-Jun-17
843,350
`
-
-
-
-
-
-
1,890,433
-
-
-
-
1,622,666
-
-
-
-
(646,031)
2,490,433
3,583,067
197,319
-
303 29,865
225,377
451,635
- 646,031.00
(57,082) (55,573)
6,947,831
7,593,806
1,336,629
1,251,258
82,356
194,044
(646,031) 772,954
(108,673) 1,336,629
DEPRECIATION At 1/1/2017 Charge for the year Disposals At June 30, 2017
-
30,168
759,792 29,804
169,547 9,102
406,987 13,585
(646,031) 143,565
178,650
420,572
3,552,899
53,754
46,728
31,064
6,174,536
3,582,763
83,556
55,830
44,595
6,257,177
CARRYING AMOUNT At 30 June 2017 31 December 2016
2,490,433 2,490,433
6,257,177
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017
NOTES TO THE FINANCIAL STATEMENTS
14
STATUTORY DEPOSIT
30-Jun-17
31-Dec-16
N'000
N'000
535,000
535,000
This represents the mandatory deposit maintained with Central Bank of Nigeria in accordance with the Insurance Act CAP 117 LFN 2004 as a general business insurance company.The deposit is entirely noncurrent.
15
INSURANCE CONTRACT LIABILITIES Unearned Premium reserve (Note 15.1)
2,698,680
1,091,889
Outstanding claims (Note 15.2)
2,189,192
3,930,274
4,887,872
5,022,163
The insurance contract liabilities balances above are covered by the company's dedicated assets as thus
480,494
Cash and cash equivalent (Note 3)
993,643
Financial assets (Note 4)
433,442
576,650
1,916,949
2,072,888
Investment Properties (Note 9) Statutory Deposit
335,000
335,000
3,679,034
3,465,032
INVESTMENT CONTRACT LIABILITIES Deposit Administration Fund Withdrawals during the year
15.1
(702,833)
2,123,743 (1,533,067)
704,968
590,676
Aviation
13,894
13,894
Bond
29,778
29,778
Unearned Premium Reserve
Engineering Fire
49,855
49,855
231,209
231,209
95,553
95,553
Marine
123,667
123,667
Motor
186,398
186,398
General Accident
Oil & Gas Life
15.2
1,407,801
81,180
81,180
1,887,146
280,355
2,698,680
1,091,889
1,895,529
1,987,728
Outstanding Claims Accrued Claims (Note 15.2.1)
293,663
1,942,546
2,189,192
3,930,274
At 1 January
1,338,313
1,768,744
Reported claims in the current year
1,060,299
Provision for claims (IBNR) (Note 15.2.2)
15.2.1 Accrued Claims
Claims paid during the current year
(503,083) 1,895,529
1,750,891 (1,531,907) 1,987,728
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017
NOTES TO THE FINANCIAL STATEMENTS 30-Jun-17 15.2.2 Claims incurred but not reported (IBNR) At 1 January
N'000 293,663
31-Dec-16 N'000 1,942,546
0
0
293,663
1,942,546
Aviation
73,394
103,957
Bond
18,505
18,505
Engineering
29,959
43,851
Fire
225,128
325,154
General Accident
279,913
221,244
Movement charged to claims expenses
The breakdown of the outstanding claims per class of general business is:
16
Marine
51,138
57,514
Motor
68,944
109,751
Oil & Gas
459,940
458,357
Life
688,608
649,395
1,895,529
1,987,728
109,796
75,670
32,903
43,538
TRADE PAYABLES Due to Reinsurers
17
OTHER PAYABLES AND ACCRUALS Due to Government Agencies Rent received in advance (Note 17.1) Due to Staff Accrued Expenses
8,411
4,523
58,838
80,025
119,045
152,289
Unclaimed Dividend
2,383
2,476
Other credit balances
97,164
80,613
175,000
175,000
493,744
538,464
Current
316,027
538,464
Non-Current
177,717
Preference dividend payable (Note 17.2)
The above amounts are further analysed as:
-
493,744
538,464
17.1 Rent received in advance This is the rent received from the office space let out in the HO building and from the investment properties @ new county estate
8,411
4,523
175,000
175,000
17.2 Preference dividend payable At 1 January Paid during the year Due for the year
-
-
175,000
175,000
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS 30-Jun-17 N'000 18
FINANCIAL LIABILITIES/BORROWINGS Daewoo Securities Bond (Note 18.1) First City Monument Bank Plc - Term Loan(Note 18.2) Bank Overdrafts Unreconciled bank balances
18.1 Daewoo Securities Facility Balance, at beginning of the year Additions during the year(Exchange Rate Differential) Repayments during the period Balance, at end of period
1,116,336 68,079 1,184,415
1,177,335 0 (61,000) 1,116,335
31-Dec-16 N'000 1,177,335 92,315 1,269,650
N'000
18.2 First City Monument Bank Plc -Term Loan Balance, at beginning of the year Additions during the year Repayments during the year Balance, at end of period The loan attracts interest at the rate of 18% per annum. Current maturities Non-current maturities
92,315 0 (24,236) 68,079
31,142 36,937 0 68,079
148,377 (56,062) 92,315
92,315 92,315
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENT FOR PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS 30-Jun-17 N'000 19 FINANCE LEASE OBLIGATIONS Balance, at beginning of the period 80,676 Additions during the period 0 Repayments during the period (17,529) 63,147 Balance, at end of period
31-Dec-16 N'000 136,698 24,000 (80,022) 80,676
In 2015, the company acquired a lease facility of NGN 69,800,000 from Lotus Capital Halal Investments at an interest rate of 16% for a period of 36 months to finance various vehicles. This is in addition to the lease facility of NGN 24,000,000 from CFS financial Services in 2016, at an interest rate of 23% for a period of 36 months. These motor vehicles are included in the property, plant and equipment of the The rentals due as at 30 June are further analysed as follows
Less than 3 months Between 3 and 6 months Between 6 and 12 months Over 12 months
21,262 22,272 15,472 4,140 63,146
19,344 19,214 11,929 30,189 80,676
20 Current income tax liabilities Per Statement of comprehensive income Company income tax Education tax Information technology development levy
N'000 0 0
Per Statement of Financial Position Balance at beginning of the year Company income tax Education tax Information technology development levy Tax expense for the year Provisions for the year: Company income tax Education tax Information technology development levy Overprovision in prior years
N'000
N'000 74,934 9,440 0 84,374 N'000
206,895 206,895
187,436 26,577 214,013
91,903 -
74,934 9,440 -
Payments during the year: Company income tax Education tax Information technology development levy
(10,000) 0 -
(83,227) (11,024) -
At 30 June 2017
288,798
204,136
DEFERRED TAX LIABILITIES At 1 January Charge for the year (Note 21.1)
586,662 9,190
382,004 204,658
At 31 March 2017
595,852
586,662
22 ORDINARY SHARE CAPITAL 22.1 Authorised 14,000,000,000 units of ordinary shares of 50k each7,000,000 7,000,000
7,000,000 7,000,000
22.2 Issued and Fully Paid Share Capital: Ordinary shares - 11,993,173,000 units of ordinary shares
5,996,587
21
Shares of Minority Interest in Life for conversion to SA Ins. Shares -916,650,000 - 12,909,823,450 units of ordinary shares
5,996,587
458,325 6,454,912
5,996,587
The Company was granted a licence to operate as a composite company in the first quarter of the year after a successful merger with its subsidiary, Standard Alliance Life Assurance Limited. Under the scheme of arrangement for the merger, 7 shares of Standard Alliance Life Assurance Limited were exchanged for 5 shares in Standard Alliance Insurance Plc, This resulted in the creation of 916,650,000 units of Standard Alliance Insurance Plc shares of 50k each. The effect of this is reflected in Note 2 above.
22b SHARE PREMIUM 7,667,475 7,667,475
7,667,475 7,667,475
7,667,475
7,667,475
Post Merger Adjustment
Share premium comprises additional paid in capital in excess of the pair value. This reserve is not ordinarily available for distrbution
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS
24
CONTINGENCY RESERVE Contingency reserve is provided for at the rate of 3% of the total premium or 20% of net profit (whichever is greater for the year) in accordance with section 22 (1)(b) of the Insurance Act 2003. At 1 January Charge for the year Post Merger Adjustment
25 ACCUMULATED LOSS At 1 January (Loss)/Profit for the year Appropriation to contingency reserve Intra Company Transfer Pre Merger adjustments
30-Jun-17 N'000
31-Dec-16 N'000
1,669,441 69,915 (174,430) 1,564,926
1,411,579 94,021 1,505,600
(13,870,648) 358,423 (59,326) 11,198 (13,560,353)
(12,552,146) (1,224,481) (94,021) (13,870,648)
(13,560,057.00)
(13,870,648)
Post Merger adjustments OTHER RESERVES Revaluation Reserve (Note 25.1) Fair Value Reserve (Note 25.2) 26 REVALUATION RESERVES At 1 January Addition during the year(Note 12)
27
FAIR VALUE RESERVE This is the net accumulated changes in fair value of available for sale assets. Further details are: At 1 Jan Transfer to P or L during the year Fair value loss
Fair value reserves include the net accumulated changes in the FV of available for sale assets Further details are: Transfer to P or L Fair value (loss)/gains on available for sale - (Note 4.3.2) Deffered Tax on fair value gains for the year
3,076,501 3,076,501 3,076,501 3,076,501
1,616,101 1,460,400 3,076,501 1,460,400 1,460,400
87,096 87,096
63,606 (63,606) 0 0
87,906 87,906
(63,606) (63,606)
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS
27 GROSS PREM.INCOME
Aviation
Bonds
N'000 Premium written Inward reinsurance premium
N'000
13,883
N'000
19,154
N'000
91,490 -
General Accident N'000
94,737 -
385,643 -
Motor Accident N'000
Marine N'000 574,039 -
Oil & Gas N'000
193,050 -
605,527
30-Jun-17
30-Jun-16
N'000
N'000
Life
1,169,397
3,146,920
13,883 -
19,154 -
91,490 -
94,737 -
385,643 -
574,039 -
193,050 -
605,527 -
1,169,397
Gross premium
13,883
19,154
91,490
94,737
385,643
574,039
193,050
605,527
1,169,397
3,146,920
2,836,064
2,546
6,249
15,641
8,333
11,009
287,927
119,194
450,900
521,783
-
-
2,671,338
Movements in unexpired risks
-
-
Fire
3,146,920
28 REINSURANCE PREMIUM EXPENSES Expense
-
Engineering
-
164,726 2,836,064 -
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS 30-Jun-17 N'000 29
COMMISSION EARNED ON REINSURANCE Aviation
994
Engineeering
1,719
1,860
Fire
5,083
9,346
General Accident
2,500
11,880
Marine
3,027
3,471
Motor
0
0
Oil & Gas
0
1,909
Life
40,057
93,416
53,086
122,877
831,452
631,223
CLAIMS EXPENSES Claim paid Increase in outstanding Claims (Note 14.2.1) Gross claims incurred
(227,730)
0
1,061,971
888,472
UNDERWRITING EXPENSES Acquisition Cost Aviation Bond
-
-
9
1,505.00
7,471
3,815
Engineering
13,630
9,622
Fire
16,500
19,570
General Accident
41,494
59,368
Marine
22,200
63,965
Motor
23,469
27,194
Oil & Gas
16,423
3,849
Others
20,105
6,960
Life - Acquisition Cost/Brokers Commission
84,835
66,077
96,302
98,208
Agents Allowance and Commission Medical Expenses Salaries and other admin expenses
32
658,478
57,020
Increase/(Decrease)in Claims IBNR(Note 14.2.2)
31
1
0 700
Bond
30
30-Jun-16 N'000
-
495 284,785
381,087
625,558
743,380
Maintenance Cost
27,144
37,273
Changes in Insurance Contract
98,085
-
750,787
780,653
Interest on deposits
32,347
60,034
Lease rental income
9,911
18,112
INVESTMENT INCOME
Dividend received Sundry income
2
95
(64)
28,865
78,084
71,218
0
Profit/Loss on Investment Contract
-
Investment Income on Annuity
-
Investment Income on Insurance Contract
-
Fair Value Gain on Investment Properties
-
-
0
7,634
-
Gain on disposal of Quoted Shares
(1,256)
-
Others
-
Foreign Exchange difference
0 78,084
77,596 33
Loss/Gain on investment property disposal
-
-
-
-
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS 34
MANAGEMENT EXPENSES 297,667
348,947
Other staff costs
45,359
67,226
Director fees and allowances
47,614
25,525
Salaries and allowances
7,400
3,908
39,866
31,214
165,547
106,630
84,312
96,626
160,578
54,019
6,214
6,500
Printing and stationery
29,246
8,733
Advertisement
45,417
7,030
Insurance expenses Rent and rates Repairs and maintenance Depreciation and amortisation Professional fees Bank charges
902
534
Telephone and postages
21,685
10,938
Other administrative expenses
22,037
5,332
Supervisory levies
28,349
1,691
Books and periodicals
Staff training and development
9,133
151
Audit fee
3,000
3,000
1,349
13,940
Misc office expenses
19,797
15,193
Travelling, outstation and hotel expenses
29,073
11,154
Fines and Penalties
0
Share capital expenses
0
12,676
6,322
29,497
Corporate expenses Others
Management Expenses Total Less - Allocation to Underwriting Expenses
35
-
Annual General Meeting expenses
FINANCIAL CHARGES
105,915
62,044
1,176,782
922,508
1,176,782
922,508
(284,784)
(354,556)
891,998
567,952
Jun-17 N'000
Jun-16 N'000
10,344
12,904
Lease charges
1,256
2,281
Interest on Daewoo bond
-
Bank interests
11,600
15,185
STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2017 NOTES TO THE FINANCIAL STATEMENTS 39 BUSINESS SEGMENT INFORMATION
The Company currently identifies product lines as its operating segments. These operating segments are monitored by the company's Managing Director who makes strategic decisions on the basis of segment operational needs and results. The Company operates principally in non life general insurance business. Its major products are aviation, fire engineering, general accident, marine, motor, bond, and oil and gas policies. The result of the segment operations for the year which include items directly attributable to each segement as well as those items that can be allocated on a reasonable basis are highlighted below
General Aviation
Engineering
N'000
Fire
N'000
Oil
Accident
N'000
Marine
N'000
Motor
N'000
Bond
N'000
30-Jun-17
N'000
30-Jun-16
Life
& Gas N'000
N'000
N'000
N'000
605,527
1,169,397
3,146,920
2,671,338
Premium Income Premium written (Increase)/Decrease in Unearned premium
13,883 -
Gross Premium written in the year Reinsurance premium expenses
13,883
Commission received on reinsurance
385,643 -
574,039 -
193,050
-
(15,641)
85,241
79,096
377,310
563,030
1,719
5,083
2,500
3,027
13,883
86,960
84,179
379,810
566,057
193,050
17,308
284
3,180
49,476
66,885
1,729
51,947
(1,397)
(8,333)
574,039
19,154 -
(6,249) 13,883
385,643
193,050 -
94,737
-
Underwriting income
94,737 -
91,490
-
Net premium written
91,490 -
(11,009) 193,050
19,154
605,527
(2,546)
(287,927)
16,608
-
(119,195)
164,726
3,146,920
2,836,064
(450,900)
(521,783)
1,050,202
2,696,020
40,058
53,087
122,877
317,600
1,090,260
2,749,107
2,437,159
70
329,513
385,388
888,472
700
317,600
1,169,397
-
-
2,314,281
Less Expenses Claim paid Dec/Inc in prov. For O/S Claims Claims expenses recoveries from reinsurers Net Claims expenses
(1,061,971)
(1,338)
(107,046)
(21,631)
(58,675)
(190,087)
155,556
284
-
1,842
(57,570)
45,254
332
51,947
-
70
329,513
-
326,713
698,385
(906,415)
Underwriting expenses Commission paid less deferred cost
1,505
13,630
16,500
41,494
22,200
23,469
3,815
16,423
311,436
450,472
(468,391)
Other underwriting expenses
331
2,179
2,256
9,185
13,672
4,598
456
14,422
253,215
300,314
(312,261)
Total underwriting expenses
1,836
15,809
18,756
50,679
35,872
28,067
4,271
30,845
564,651
750,786
(780,652)
Total Expenses
2,120
17,651
(38,814)
95,933
36,204
80,014
4,341
360,358
891,364
1,449,171
(1,687,067)
11,763
69,309
122,993
283,877
529,853
113,036
12,967
(42,758)
198,896
1,299,936
Underwriting profit
750,092
