Quarter 1 - financial statement for 2025

Contents Pages

Corporate Information i-iii

Results at a glance iv

Statement of Corporate Responsibility for the financial statements vi

Certification By Company Secretary vii

Certification pursuant to section 60(2) of Investment and Securities Act No 29 viii

Corporate Governance Report ix - xx

Risk Management Declaration xxi

Statement of Significant Accounting Policies 1 - 37

Statement of Financial Position 38

Statement of Profit or Loss and Other Comprehensive income 39

Statement of Changes in Equity 40 - 41

Statement of Cash Flows 42

Notes to the Financial Statements 43 - 62

Tax Identification Number 02306657-0001

Corporate Head Office LASACO House

Plot 16, ACME Road Ogba Industrial Estate Ikeja

Lagos State.

Tel: (234) 01 - 2120557

E-mail: info@lasacoassurance.com Website: https://www.lasacoassurance.com

Registrars APEL Capital & Trust Limited

8, Alhaji Bashorun Street

Off Norman Williams Crescent, South West, Ikoyi

Lagos

Telephone: 01- 873928, 7401444-5

Mobile No: 07046126698

Bankers Guaranty Trust Bank Limited First Bank of Nigeria Limited Ecobank Nigeria Limited Zenith Bank Nigeria Plc United Bank for Africa Plc Polaris Bank Limited Sterling Bank Plc

Corporate Information (Cont'd)

Auditor BDO Professional Services (Chartered Accountants) ADOL House, 15 CIPM Avenue Central Business District Alausa, Ikeja, Lagos.

P.O.Box 4929,GPO, Marina Lagos. https://www.bdo-ng.com

Actuary Becoda Consulting Ltd 7 Ibiyinka Lorunbe close Victoria Island

Lagos Nigeria

Estate Valuers Oletubo & Co Estate Surveyors & Valuers

9, Arapasanwu Street, off oluwaloimu Off Amore Street,

Toyin Street, Ikeja

Fola Oyekan & Associates Estate Surveyors & Valuers

13, Ogunlana Drive , Surulere, Lagos

Solicitors Obioha Jude Idigbe & Co

10 Marina Onikan Lagos.

Lawrence Osayemi & Co 38/40 Orlando Martins Street Off Igbosere Road

Lagos.

Abdulkareem & Abdulkareem

7 Gray Street

Behind Yaba Chief Magistrate Court Yaba Lagos.

Reinsurers African Reinsurers Corporation Continental Reinsurance Corporation SWISS Reinsurance Company

WAICA Reinsurance Pool

Our Vision To be a market leader in Insurance and Financial Services in Nigeria, creating and sustaining an exceptional brand and providing long term value to our Stakeholders.

Corporate Information (Cont'd)

Our Mission

We are committed to be the Insurance and Financial Services Company of choice in Nigeria, providing Products and Services of Superior Quality, using modern tools and a well motivated workforce to create long term value for all our Stakeholders.

Core Values Excellence Professionalism Integrity Customer Focus Trust Accountability Creativity Teamwork

Quality Policy Statement

LASACO Assurance Plc is committed to delivering Insurance and Financial Services Of Superior Quality, surpassing customers expectations and ensuring strict compliance with regulatory/statutory requirements.

We are committed to continually improving the effectiveness of our Quality Management System.

We establish measurable goals and objectives at Departmental levels which we review as the need arises ensuring timely, effective implementation of Company strategy.

Shareholding Structure/Free Float Status

Declaration:

LASACO Assurance Plc with a free float percentage of 47.39% as at 31st March 2025, is compliant with The Exchange's free float requirements for companies listed on the Main Board.

LASACO ASSURANCE PLC vi

UN-AUDITED FINANCIAL STATEMENTS, 31 March 2025

STATEMENT OF CORPORATE RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Further to the provisions of section 405 of the Companies and Allied Matters Act (CAMA), 2020, we, the Managing Director/CEO and Chief Financial Officer, hereby certify the financial statements of Lasaco Assurance Plc for the period ended 31 March 2025 as follows:

1. That we have reviewed the audited financial statements of the Company for the period ended 31st March 2025

2. That the audited financial statements do not contain any untrue statement of material fact or omit to state a material fact which would make the statements misleading, in the light of the circumstances under which such statement was made.

3. That the audited financial statements and all other financial information included in the statements fairly present, in all material respects, the financial condition and results of operation of the Company as of and for, the period ended 31st March 2025

4. That we are responsible for establishing and maintaining internal controls and have designed such internal controls to ensure that material information relating to the Company is made known to the officer by other officers of the company, during the period 31 March 2025

5. That we have evaluated the effectiveness of the Company's internal controls within 90 days prior to the date of audited financial statements, and certify that the Company's internal controls are effective as of that date.

6. That there were no significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective action with regard to significant deficiencies and material weaknesses.

7. That we have disclosed the following information to the Group and Company's Auditors and Audit

   Committee:

   1. There is no fraud that involves management or other employees who have a significant role in

      the Company's internal control.

   2. There are no significant deficiencies in the design or operation of internal controls which could adversely affect the Company's ability to record, process, summarise, and report financial data, and have identified for the Company's auditors any material weaknesses in internal controls.

Mr. Razzaq Abiodun Mr. Akinwale Sofile

Managing Director/CEO Chief Finance Officer

FRC/2021/004/00000024290 FRC/2012/ICAN/00000000494

CERTIFICATION BY COMPANY SECRETARY

In my capacity as Company Secretary, I hereby certify, in terms of the Companies and Allied Matters Act, 2020, that for the period ended 31 March 2025, the Company has lodged all such returns as are required of a Company in terms of this Act, and that all such returns are, to the best of my knowledge and belief, true, correct and up to date.

Gertude Olutekunbi (Mrs.) Company Secretary FRC/2015/NBA/00000011389

Lagos, Nigeria

vii

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 un-audited udited Financial Statements for the period ended 31 March 2025 that:

• We have reviewed the report;

• To the best of our knowledge, the report does not contain:

  • Any untrue statement of a material fact, or

  • Omit to state a material fact, which would make the statements, misleading in the light of circumstances under which such statements were made;

• 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 year presented in the report.

• We:

  • Are responsible for establishing and maintaining internal controls.

  • Have designed such internal controls to ensure that material information relating to the Company is made known to such officers by others within those entries particularly during the year in which the periodic reports are being prepared;

  • Have evaluated the effectiveness of the Company's internal controls as of date within 90 days prior to the report;

  • Have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date;

• We have disclosed to the auditors of the Company and audit committee:

  • All significant deficiency in the design or operation of internal controls which would adversely affect the Company's ability to record, process, summarise and report financial data and have identified for the Company's auditor any material weakness in internal controls, and

  • Any fraud, whether or not material, that involves management or other employees who have significant

    role in the Company's internal controls;

• 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. Razzaq Abiodun Mr. Akinwale Sofile

Managing Director/CEO Chief Finance Officer

FRC/2021/004/00000024290 FRC/2012/ICAN/00000000494

In accordance with the general requirements of the Nigerian Code of Corporate Governance 2018 (NCCG Code) and the Securities and Exchange Commission Corporate Governance Guideline (SCGG), we hereby highlight those key principles and practices that form the basis of the high standards of corporate conduct for which LASACO is known for.

At LASACO, we conduct our business activities in accordance with the highest degree of ethical standards of good governance, integrity and in full compliance with the law, while taking into account the interest of stakeholders. We reach out to our employees, business partners, associates and stakeholders at large to secure their commitment and participation in upholding high standards of conduct in the performance of their duties.

The Board of Directors are responsible for setting, reviewing and guiding corporate strategy, major plans of action, risk policy, annual budgets and business plans; setting performance objectives, monitoring implementation and management performance; and overseeing major capital expenditures, acquisitions and investments. In order to fulfill their responsibilities, we ensure that Board members have access to accurate, relevant and timely information and that Board Members devote sufficient time to their responsibilities and duties.

We have completed and submitted the new Financial Reporting Council Template for reporting compliance with Nigerian Code of Corporate Governance 2018 and uploaded it on the NGX Issuers portal.

The Matters Reserved For the Board

The Board of Directors' major performance enhancing and direction-setting responsibilities include the following matters:

1. Strategy formulation, policy thrust and Management policies

2. Integrity of financial controls and reports

3. Risk assessment and internal controls

4. Board and top executive appointments

5. Creating and sustaining appropriate relationships with all stakeholders

6. Selection, Performance Appraisal and Remuneration of Executive Directors

7. Succession Planning

8. Corporate Responsibility through the approval of relevant policies

9. Approves and reviews the matters reserved for the Board and the terms of reference for

10. Determines the remuneration for Non-Executive Directors

11. Sets the procedure for determining the remuneration of the company's Independent Auditors

12. Nominates members of the Board committees and determines the scope of delegated

13. Develops and enforces a code of conduct for Non-executive Directors and a binding

14. Ensures compliance with all relevant laws and regulations by the Company and its officers.

The Board was made up of Five Non-executive Directors, One being Independent Director and Three Executive Directors . At LASACO, the position of the Chairman is separate and distinct from that of the Managing Director/Chief Executive Officer. The Chairman is a Non-executive Director.

COMMITTEES OF THE BOARD

The Board performs its various duties and responsibilities through Four (4) Committees: the Finance, General Purposes and Investment Committee, the Establishment and Corporate Governance Committee, the Audit, Risk Management and Compliance Committee and the Statutory Shareholders' Audit Committee. All Board Committees make recommendations for consideration and approval by the full Board.

At the management level, a Management Committee presided over by the Managing Director/Chief Executive Officer and comprising the Deputy Managing Directors, General Managers and a Principal Manager meet regularly once in a fortnight.

1. FINANCE, GENERAL PURPOSES AND INVESTMENT COMMITTEE

   The Committee was chaired by a Non-executive Director and made up of Three other Non-executive Directors and the three Executive Directors for a total membership of seven (7) members.

   The following are the key terms of reference of the Finance and Investment Committee:

   1. To review the Company's operational standards and performance.

   2. To oversee financial reporting, policies and processes as well as compliance level.

   3. To oversee internal controls and compliance within the company.

   4. To oversee capital and operating expenditures, specific projects and their financing within the overall Business Plan and Budget approved by the Board.

   5. To ensure that there are no conflicts of interest by Directors and Top Managers in the Company in the conduct of business.

   6. To proffer suggestions on optimal use of the Company's resources.

1. THE BOARD NOMINATION, REMUNERATION AND CORPORATE GOVERNANCE COMMITTEE

   The Board Nomination, Remuneration, and Governance Committee consist of Four Non-executive Directors, one of whom chaired the Committee and were joined by the three Executive Directors.

   The Terms of reference of the Board Nomination, Remuneration, and Governance Committee are as follows:

   1. To define the criteria and the procedure for the appointments and promotion of key officers of the company from manager cadres and above.

   2. To oversee proper administration of the Board approved Performance based Appraisal and Remuneration System.

   3. To review from time to time the organizational structure and succession planning proposals of the group and make appropriate recommendations to the full Board

   4. Oversees the implementation of Board approved Performance Goals and objectives for the Executive Directors and Top Management.

   3 AUDIT, RISK MANAGEMENT AND COMPLIANCE COMMITTEE

   The Audit, Risk Management and Compliance Committee was made up of four non-Executive Directors, were joined by the Three Executive Directors.

   The Terms of reference of the Audit, Risk Management and Compliance Committee are as follows:

   1. The Committee shall be responsible for the review of the integrity of the data and information provided in the Audit and/or Financial Reports.

   2. To provide oversight functions with regards to both the company's financial with regard to both the company's financial statement and its internal control and risk management functions.

   3. To review the terms of engagement and recommend the appointment or reappointment and compensation of External Auditors to the Board and the Shareholders.

   1. THE STATUTORY SHAREHOLDERS' AUDIT COMMITTEE

      The Statutory Shareholders Audit Committee was made up of five(5) members comprising two representatives of the shareholders who were re-elected at the 2023 Annual General Meeting held on 25th October 2024 for a period of one year till the conclusion of the 2024 Annual General Meeting; and two representatives of the Board of Directors nominated by the Board.

      The Chairman of the Audit Committee in 2025 is Mr. Matthew Akinlade, FCA, a Shareholders' representative. The meetings of the Committee were attended by the Company's Internal Audit representatives represented by BDO Professional Services, the Company's Independent External Auditors. The Company Secretary is the Secretary of the Committee.

      The Terms of Reference of the Committee

      The following were the terms of reference of the Committee as provided in section 359(6) of the Companies and Allied Matters Act CAP C20 laws of the Federation of Nigeria, 2004:

      1. Ascertain whether the accounting and reporting policies of the Company are in accordance with legal requirements and agreed ethical practices;

      2. Review the scope of planning of audit requirements.

      3. Review the findings on management matters in conjunction with the External Auditors and departmental responses thereon;

      4. Keep under review the effectiveness of the Company's system of accounting and internal control.

      5. Make recommendations to the Board with regard to the appointment, removal and remuneration of the External Auditors of the Company.

      6. Authorize the internal auditor to carry out investigation into activities of the Company which may be of interest or concern to the committee.

         POLICIES UPLOADED ON THE WEBSITE INLINE WITH THE NIGERIAN CODE OF CORPORATE GOVERNANCE 2018

         1. WHISTLE BLOWING

         2. SECURITY TRADING

         3. SHAREHOLDERS ENGEGEMENT

         4. STAKEHOLDERS MANAGEMENT

   LASACO ASSURANCE PLC xxi UN-AUDITED FINANCIAL STATEMENTS, 31 MARCH 2025 RISK MANAGEMENT DECLARATION

   The Board Risk Management Committee of LASACO Assurance Plc hereby declares as follows:

   The Company has systems in place for the purpose of ensuring compliance with NAICOM guideline;

   The Board is satisfied with the efficacy of the processes and systems surrounding the production of financial information of the Company;

   The Company has in place a Risk Management Strategy, developed in accordance with the requirements of NAICOM guideline on Enterprise Risk Management (ERM), setting out its approach to risk management; and

   The systems that are in place for managing and monitoring risks, and the risk management framework, are appropriate to the Company, having regard to such factors as the size, business mix and complexity of the Company's operations.

   
   
   Mr. Razzaq Abiodun Mrs. Olateju Philips Managing Director/CEO Chairman FRC/2021/004/00000024290 FRC/2013/IODN/00000002517

   The following are the significant accounting policies adopted by the Company in the preparation of these financial statements. These accounting policies have been consistently applied for all years presented.

   1. General Information

      1. LASACO Assurance Plc ("LASACO" or ''the Company") is a public limited liability Company domiciled in Nigeria. The Company's registered and Corporate Office is Plot 16, ACME Road, Ogba Industrial Estate,Ikeja Lagos.

         The Company was incorporated on 20 December 1979 under the Company Decree of 1968. The Company then, known as Lagos State Assurance Company Limited obtained license as an insurer on 7 July 1980 and commenced business on 1 August 1980. It became a public limited liability Company in 1991 when the Company's shares were listed on the Nigerian Stock Exchange. The Company secured a life insurance business license from National Insurance Commission (NAICOM) in 2007. The Company then separated the life business and transferred the related assets and liabilities to its subsidiary, LASACO Life Assurance Company Limited . On 1 January 2009 LASACO Life Assurance Co. Ltd commenced business. The Company operates from its corporate office in Lagos and whilst it maintains branches in major cities of the Federation.

         The purpose of the merger is to enable the Company operate as a composite Insurance Company as against the group structure in operation before the merger.

         The merger process was concluded on 16 December 2014 with conclusion of the Court Ordered Meeting and final Court approval. This is in line with Section30(1)(b) of the Insurance Act.

         All assets and liabilities of LASACO Life Assurance Ltd have been transferred to LASACO Assurance Plc, hence LASACO Life Assurance Co Ltd cease to operate as an Insurance Company and as a subsidiary of LASACO Assurance Plc with effect from 17 December 2014.

      2. Principal activity

      The Company is principally engaged in the provision of various classes of insurance such as general accident, fire, motor, engineering, marine, bond insurances and life assurance businesses. The Company also transacts insurance business for aviation, oil & gas and other special risks.

      These financial statements were authorized by the Board of Directors on 29th April 2025.

   2. Summary of Significant Accounting Policies

      The principal accounting policies applied in the preparation of these Financial Statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

   3. Going Concern

      These financial statements have been prepared on the going concern basis. The Company has no intention or need to reduce substantially its business operations, the management believes that the going concern assumption is appropriate for the Company due to sufficient capital adequacy ratio and projected liquidity, based on historical experience that short-term obligations will be refinanced in the normal course of the business. Liquidity ratio and continuous evaluation of current ratio of the Company is carried out by the Company to ensure that there are no going concern threats to the operations of the Company.

   4. Basis of Preparation and Compliance with International Financial Reporting Standards

      The Group's financial statements for the period ended 31 March 2025 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), Companies and Allied Matters Act, 2020, Insurance Act CAP I17, LFN 2004 and Prudential Guidelines issued by National insurance Commisson and Investment and Securities Act 2007.

      1. Foreign currency translation

         1. Functional and Presentation Currency

            The financial statements are presented in Nigerian currency (Naira) which is the Company's functional currency. Except otherwise indicated, financial information presented in Naira have been rounded to the nearest thousand (₦ '000)

         2. Transactions and balances in foreign currencies

            Transactions denominated in foreign currencies are recorded in Naira at the rate of exchange ruling at the date of each transaction. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included in the profit and loss account. Monetary assets and liabilities denominated in foreign currencies at the statement of financial position date are translated at that date. Exchange gains arising from the revaluation of monetary assets and liabilities are recognized in the income statement while those on non-monetary items are recognized in other comprehensive income. For non-monetary financial assets fair value through other comprehensive income, unrealized exchange differences are recorded directly in equity until the asset is disposed or impaired.

      2. Basis of measurement

         The financial statements are prepared on the historical cost basis except for the following:

         • Financial instruments at fair value through profit or loss;

         • Financial assets classified as FVOCI which are measured at fair value through other comprehensive income;

         • Financial assets which are measured at amortised costs;

         • Land and building (included in property and equipment) which are measured at fair value through other comprehensive income; and

         • Investment properties which are measured at fair value.

         • Insurance contract which are measured in line with the requirements of IFRS 17

   5. Critical Accounting Estimates, Judgments and Assumptions

      The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate and that the Company's financial statements therefore present the financial positions and results fairly. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed.

      1. Business model assessment

         For financial assets that are held for the purpose of collecting contractual cash flows, the Company has assessed whether the contractual terms of these assets are solely payments of principal and interest on the principal amount outstanding.

      2. Allowances for credit losses

         Judgment is required by management in the estimation of the amount and timing of future cash flows when determining an impairment loss for debt instruments measured at amortised cost and fair value through other comprehensive income. In estimating these cash flows, the Company makes judgments about the borrower's financial situation and value of other collateral (where applicable). These estimates are based on assumptions about a number of factors and actual results may differ, resulting in future changes to the impairment allowance.

         A collective assessment of impairment takes into account data from the debt portfolio (such as credit quality, levels of arrears, credit utilisation, loan to collateral ratios etc.), and concentrations of risk and economic data (including levels of unemployment, changes in foreign exchanges, real estate prices indices, country risk and the performance of different individual groups).

         These critical assumptions have been applied consistently to all years presented, except as follows:

         The Company applied the impairment requirements under IFRS 9 since 1 January 2018 and no changes to the assumptions used for the calculation for allowance for impairment in 2025 using the expected credit loss model.

      3. Impairment of financial assets

      The Company has applied some judgment in carrying out an assessment of whether credit risk on the financial asset has increased significantly since initial recognition and incorporating forward-looking information in the measurement of Expected Credit Losses (ECL).

      The impairment requirements of IFRS 9 apply to all debt instruments that are measured at amortised cost. The determination of impairment loss and allowance moves from the incurred credit loss model whereby credit losses are recognised when a defined loss event occurs under IAS 39, to expected credit loss model under IFRS 9, where expected credit losses are recognised upon initial recognition of the financial asset based on expectation of potential credit losses at the time of initial recognition.

      Staged Approach to the determination of Expected Credit Losses

      IFRS 9 outlines a three-stage model for impairment based on changes in credit quality since initial recognition. These stages are as outlined below:

      Stage 1 The Company recognises a credit loss allowance at an amount equal to the 12 month expected credit losses. This represents the portion of lifetime expected credit losses from default events that are expected within 12 months of the reporting date, assuming that credit risk has not increased significantly after the initial recognition.

      Stage 2 The Company recognises a credit loss allowance at an amount equal to the lifetime expected credit losses (LTECL) for those financial assets that are considered to have experienced a significant increase in credit risk since initial recognition. This requires the computation of ECL based on Lifetime probabilities of default that represents the probability of a default occurring over the remaining lifetime of the financial assets. Allowance for credit losses is higher in this stage because of an increase in credit risk and the impact of a longer time horizon being considered compared to 12 months in stage 1.

      Stage 3 The Company recognises a loss allowance at an amount equal to life-time expected credit losses, reflecting a probability of default (PD) of 100% via the recoverable cash flows for the asset. For those financial assets that are credit impaired. The Company's definition of default is aligned with the regulatory definition. The treatment of the loans and other receivables in stage 3 remains substantially the same as the treatment of impaired financial assets under IAS 39 except for the portfolios of assets purchased or originated as credit impaired.

      The Company does not originate or purchase credit impaired loans or receivables.

      The determination of whether a financial asset is credit impaired focuses exclusively on default risk, without taking into consideration the effect of credit risk mitigants such as collateral or guarantees. Specifically, the financial asset is credit impaired and in stage 3 when: the Company considers the obligor is unlikely to pay its credit obligations to the Company. The termination may include forbearance actions, where a concession has been granted to the borrower or economic or legal reasons that a qualitative indicators of credit impairment; or contractual payments of either principal or interest by the obligor are pass due by more than 90 days.

      For financial assets considered to be credit impaired, the ECL allowance covers the amount of loss the Company is expected to suffer. The estimation of ECLs is done on a case by case basis for non-homogenous portfolios, or by applying portfolio based parameters to individual financial assets in this portfolios by the Company's ECL model for homogenous portfolios.

   6. Judgments, Estimates and Assumptions

      The estimates and underlying assumptions are reviewed on an on-going basis. Revision to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period or if the revision affects both current and future periods.

      Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are described below:

      1. Income Taxes

         Significant estimates are required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognizes liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions.

      2. Retirement Benefits

         The present value of the retirement benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Any changes in these assumptions will impact the carrying amount of gratuity obligations. The assumptions used in determining the net cost (income) for gratuity include the discount rate, rate of return on assets, future salary increments and mortality rates.

         The Company determines the appropriate discount rate at the end of the period. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the gratuity obligations. In determining the appropriate discount rate, the Company considers the interest rates of high-quality government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related gratuity liability. Other key assumptions for gratuity obligations are based in part on current market conditions.

         In most cases, no explicit assumptions are made regarding the future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historical claims development data on which the projections are based. Additional qualitative judgment is used to assess the extent to which past trends may not apply in future, (e.g. to reflect one-off occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the likely outcome from the range of possible outcomes, taking account of all the uncertainties involved.

         Similar judgments, estimates and assumptions are employed in the assessment of adequacy of provisions for unearned premium. Judgment is also required in determining whether the pattern of insurance service provided by a contract requires amortisation of unearned premium on a basis other than time apportionment.

      3. Fair Valuation of Investment Properties

         The fair value of investment properties is based on the nature, location and condition of the specific asset. The fair value is determined by reference to observable market prices. The fair value of investment property does not reflect the related future benefits from this future expenditure. These valuations are performed annually by external appraisers. Assumptions are made about expected future cash flows and the discounting rates.

      4. Liability for remaining coverage (LRC) and Liability for incurred claims (LIC)

         The measurement of a group's liability resulting from the insurance contracts that it issues requires significant use of estimates and judgments. The Company estimates the liability for future insurance contract obligations, taking into account the expected cash flows for fulfilling these contracts. This involves making assumptions about future claim payments, premium income, and discount rates.

      5. Reinsurance contracts

         The Company assesses the impact of the reinsurance contracts that it holds on its financial statements, including estimating the expected recoveries from reinsurers. This involves evaluating the terms of reinsurance agreements, the creditworthiness of reinsurers, and the effect on the measurement of reinsurance contract assets and liabilities.

      6. Fulfillment Cash Flows

         In estimating its liabilities and assets as it relate to insurance and reinsurance contracts, the company makes significant assumptions relating to the future cash flows that will arise from fulfilling insurance contracts, considering variables such as claims experience, lapses, and policyholder behavior. These estimates require judgment and are influenced by historical data and actuarial projections. The Company incorporates, in an unbiased way, all reasonable and supportable information that is available without undue cost or effort at the reporting date. This information includes both internal and external historical data about claims and other experiences, updated to reflect current expectations of future events. The estimates of future cash flows reflect the Group's view of current conditions at the reporting date, using market variables consistent with observable market prices, where applicable.

      7. Risk adjustment

         In the measurement of risk adjustment, the Company makes use of significant judgments including estimations, actuarial projections, and historical data in determining reasonable compensation for bearing non-financial risks as it relates to insurance contracts that its issued. It also employs similar assumptions and methodologies in estimating the expected reinsurance portion or recoverable as it relates to risk adjustment.

      8. IFRS 17 Transition

         The measurement of the Company liability for the IFRS 17 transition resulting from the insurance contracts that it issues requires significant use of estimates and judgments. The Company estimates the IFRS 17 transition insurance contract obligations, taking into account the contract's fulfillment cashflows. The Company has applied the full retrospective approach to the transition to all short-term insurance contracts in force at the transition date.

         For all groups of insurance and Reinsurance contracts for which the full retrospective approach was impracticable modified retrospective approach was adopted. This involves making assumptions about future claim payments, premium income, and discount rates.

      9. Discount rates

         The determination of appropriate discount rates to value future cash flows is critical in the application of IFRS 17. The company considers factors such as the time value of money, credit risks, and liquidity premiums in selecting its discount rates. Significant judgment is used by the Company to ensure that the selected rates reflect the characteristics of the cashflows and the risks associated with insurance contracts.

   7. Changes in Material Accounting Policies

      1. Material Accounting Policy Information

   The Company adopted Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) from 1 January 2023. Although the amendments did not result in any changes to the accounting policies themselves, they impacted the accounting policy information disclosed in the financial statements. The amendments require the disclosure of 'material', rather than 'significant', accounting policies. The amendments also guide the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements. Management reviewed the accounting policies and made updates to the information disclosed in Note 2 Material accounting policies (2022: Significant accounting policies) in certain instances in line with the amendments.

   NOTES TO THE FINANCIAL STATEMENTS

   1. SIGNIFICANT ACCOUNTING POLICIES

      Significant accounting policies are defined as those that are reflective of significant judgements and uncertainties and potentially give rise to different results under different assumptions and conditions.

      The accounting policies set out below have been consistently applied to all periods presented in these financial statements.

   2. CONSOLIDATION

      1. Subsidiaries

         The financial statements of the subsidiary is consolidated from the date the Group acquires control, up to the date that such effective control ceases. For the purpose of these financial statements, subsidiaries are entities over which the Group, directly or indirectly, has power to govern the financial and operating policies so as to obtain benefits from their activities.

         Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions (transactions with owners). Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the Group.

         Inter- company transactions, balances and unrealised gains on transactions between Companies within the Group are eliminated on consolidation. Unrealised losses are also eliminated in the same manner as unrealised gains, but only to the extent that there is no evidence of impairment. Accounting policies of the subsidiary has been changed where necessary to ensure consistency with the policies adopted by the Group. Investment in the subsidiary in the separate financial statements of the Company entity is measured at cost.

         Acquistion - related costs are expensed as incurred.

         If the business combination is achieved in stages, fair value of the acquirer's previously held equity interest in the acquiree is re- measured to fair value at the acquisition date through profit or loss.

      2. Disposal of subsidiaries

      On loss of control, the Group derecognises the assets and liabilities of the subsidiary, any controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, that retained interest is accounted for as an equity, accounted investment or as a financial asset under the Amortized Cost or Fair Value Through Other Comprehensive Income category depending on business model intended and the level of influence retained.

   3. CASH AND CASH EQUIVALENTS

      Cash and cash equivalents include notes and coins on hand and highly liquid financial assets with original maturities of less than three months, which are subject to insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments. Due to their short-term nature, the carrying value of cash and cash equivalents approximates their fair value, hence they are carried at fair value in the statement of financial position.

   4. FINANCIAL ASSETS

      In 2018 financial year, the Company has applied IFRS 9 Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRS Standards that are effective for an annual period that begins on or after 1 January 2018.

      UN-AUDITED FINANCIAL STATEMENT FOR THE PERIOD ENDED 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS

      1. Recognition and initial measurement

         Financial assets and liabilities, with the exception of other loans and receivables, are initially recognised on the trade date i.e. the date that the Company becomes a party to the contractual provisions of the instruments

         This includes regular way trades: purcahses or sales of financial assets that requires delivery of assets within the time frame generally established by regulation or conviction in the market place. Other loans and receivables are recognised when fund are transferred to the policy holder's accounts.

         A financial assets or financial liability is measured initially at fair value or minus, for an item not at fair value through profit or loss, direct and incremental transanctions costs that are directly attributable to its acquisition or issue. Transaction costs of financial assets and liabilities carried at fair value through profit or loss are expensed in profit or loss at initial recognition.

      2. Classification and Measurement

         Initial measurement of a financial asset or liability shall be at fair value plus transaction costs that are directly attributable to its purchase or issuance. For instruments measured at fair value through profit or loss, transaction costs shall be recognized immediately in profit or loss. Financial assets include placement with banks, treasury bills and equity instruments.

         The Company classifies its financial assets into the following categories in line with the provisions of IFRS 9:

         1. those to be measured at fair value through profit or loss (FVTPL)

         2. those to be measured at amortised cost ; and

         3. those to be measured at fair value through other comprehensive income (FVOCI)

The classification depends on the Group's business model (ie business model test) for managing financial assets and the contractual terms of the financial assets cash flows(i.e. solely payments of principal and interest - SPPI test.)

The Company also classify its financial liabilities as liabilities at fair value through profit or loss and liabilities at amortised cost. Management determines the classification of the financial instruments at initial recognition.

A Classification of Financial Assets

a) Financial assets measured at amortised cost

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

• The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is determined using the effective interest method and reported in profit or loss as 'Investment income'.

The amortised cost of a financial instrument is defined as the amount at which it was measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the 'effective interest method' of any difference between that initial amount and the maturity amount, and minus any loss allowance. The effective interest method is a method of calculating the amortised cost of a financial instrument (or group of instruments) and of allocating the interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts over the expected life of the instrument or, when appropriate, a shorter period, to the instrument's net carrying amount.