Mutual Benefits Assurance PlcNSENG: MBENEFIT

Unaudited financial statements for the period ended 30 june 2025

Aug 13, 2025 at 2:28 PM UTC · Issued by Mutual Benefits Assurance Plc

MUTUAL BENEFITS ASSURANCE PLC UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025 MUTUAL BENEFITS ASSURANCE PLC UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025 CONTENTS PAGE

Corporate Information 2

Financial Highlights 3

Shareholding Structure and Free Float Status 4

Certification Pursuant to Section 60(2) of Investment and Securities Act No. 29 of 2007 5

Consolidated and Separate Financial Statements

Consolidated and Separate Statements of Profit or Loss 6

Consolidated and Separate Statements of Other Comprehensive Income 7

Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income for the Quarter 8

Consolidated and Separate Statements of Financial Position 9

Consolidated Statement of Changes in Equity - Group 10

Separate Statement of Changes in Equity - Company 11

Consolidated and Separate Statements of Cash Flows 12

Notes to the Consolidated and Separate Financial Statements 13

MUTUAL BENEFITS ASSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025

CORPORATE INFORMATION

Directors Dr. Akin Ogunbiyi Chairman

Mr. Olufemi Asenuga Managing Director/CEO

Mr. Adebiyi Ashiru-Mobolaji Managing Director, Mutual Benefit Life Assurance Limited Mr. Joseph Oladokun Executive Director, Technical

Mr. Adesoye Olatunji Non-Executive Director

Mr. Akinboye Oyewumi Non-Executive Director

Mr Abidemi Sonoiki Non-Executive Director (Independent)

Alh Lateef Bakare Non-Executive Director (Independent) Mrs Omowunmi Eniola-Jegede Non-Executive Director

Alh Lamis Sheu Dikko Non-Executive Director (Independent) (Appointed wef 01/01/2025) Mrs Asia El-Rufai Non-Executive Director (Appointed wef 01/01/2025)

Registered Office Aret Adams House

233 Ikorodu Road, Ilupeju, Lagos

Auditor KPMG Professional Services KPMG Tower

Bishop Aboyade Cole Street Victoria Island

Lagos

Company Secretary Babajide Ibitayo (Esq) FRC/2013/NBA/00000003123

Bankers Access Bank Plc Mutual Benefits Microfinance Bank Limited Fidelity Bank Plc Ecobank Nigeria Limited

First City Monument Bank Plc Stanbic IBTC Bank Nigeria Plc

First Bank of Nigeria Limited Unity Bank Plc

Guaranty Trust Bank Limited Wema Bank Plc

Keystone Bank Limited United Bank for Africa Plc

Sterling Bank Plc Heritage Bank Limited

Zenith Bank Plc Polaris Bank Limited

Re-insurers African Reinsurance Corporation Continental Reinsurance Plc FBS Reinsurance Plc

WAICA Reinsurance Corporation Plc Aveni Reinsurance Limited

Nigerian Reinsurance Corporation

Actuaries Zamara Consulting Actuaries Nigeria Limited FRC/2021/004/00000023786

Registrar Apel Capital Registrars Limited FRC/2021/00000014019

Estate Surveyors & Valuers Bamiji Makinde Consulting

FRC/2015/NIESV/0000001080

Arigbede & Co Estate Surveyors and Valuers FRC/2014/NIESV/00000004634

RC No 269837

Tax Identification Number 00171272-0001

MUTUAL BENEFITS ASSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025

FINANCIAL HIGHLIGHTS

STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the period ended 30 June 2025 GROUP COMPANY

30 JUN-2025

30 JUN-2024

30 JUN-2025

30 JUN-2024

in thousands of Nigerian Naira YTD YTD % YTD YTD %

Insurance revenue	41,195,472	28,493,656	45	25,069,528	16,646,673	51
Insurance service expense	(29,494,020)	(25,752,314)	15	(18,735,691)	(13,038,562)	44
Net expenses from reinsurance contracts held	(3,726,117)	(3,385,724)	10	(2,805,370)	(1,846,781)	52
Insurance service result	7,975,335	(644,381)	1,338	3,528,467	1,761,330	100
Net investment income	7,430,566	6,155,925	21	3,029,491	3,181,307	(5)
Net insurance and investment results	14,407,630	5,005,500	188	6,511,494	4,725,624	38
Profit before income tax	12,285,319	3,168,116	288	6,185,363	4,100,049	51
Profit for the period	11,593,757	2,445,559	374	5,984,644	3,636,223	65
Total other comprehensive income for the period, net of tax	143,197	7,881,643	(98)	(87,380)	686,282	(113)
Total comprehensive Income for the period, net of tax	11,736,955	10,327,202	14	5,897,264	4,322,505	36
Earnings per share: Basic and diluted	56	12		30	18
STATEMENTS OF FINANCIAL POSITION
As at
in thousands of Nigerian Naira 30 JUN-2025 31 DEC-2024			%	30 JUN-2025 31 DEC-2024		%
Total assets	164,215,443	147,133,519	12	61,699,350	54,799,654	13
Insurance contract liabilities	47,226,963	47,010,697	0	23,446,221	25,328,061	(7)
Investment contract liabilities	34,783,083	34,176,638	2	-	-	-
Total liabilities	97,692,892	92,347,922	6	31,916,159	30,913,727	3
Shareholders' fund 61,138,279 50,271,433			22 29,783,191 23,885,927			25

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025

SHAREHOLDING STRUCTURE AND FREE FLOAT STATUS

Share Price at end of reporting period: N1.10 (31 December 2024: N0.61)

30-Jun-25			31-Dec-24
Description	Unit	Percentage	Unit	Percentage
Issued Share Capital	20,061,622,397	100%	20,061,622,397	100%
Substantial Shareholdings(5% and above) Charles Enterprises LLC	8,481,044,445	42.27%	8,481,044,445	42.27%
Arubiewe Farms Limited	4,409,119,444	21.98%	4,409,119,444	21.98%
Ogunbiyi Akinade Akanmu	1,100,000,000	5.48%	1,100,000,000	5.48%
CIL Risk & Asset Management Limited	816,525,303	4.07%	816,525,303	4.07%
Ogunbiyi Adedotun	611,991,460	3.05%	611,991,460	3.05%
Total Substantial Shareholdings	15,418,680,652	76.86%	15,418,680,652	76.86%
Directors' Shareholdings (direct and indirect),
excluding directors with substantial interests
Joseph Oladokun	1,000,000	0.00%	1,000,000	0.00%
Olufemi Asenuga	21,593,150	0.11%	21,593,150	0.11%
Adebiyi Ashiru-Mobolaji	8,012,654	0.04%	8,012,654	0.04%
Abidemi Sonoiki	100,000	0.00%	100,000	0.00%
Total Directors' Shareholdings	30,705,804	0.15%	30,705,804	0.15%
Other Influential Shareholdings Charks Investment Limited	254,222,278	1.27%	254,222,278	1.27%
Total Influential Shareholdings	254,222,278	1.27%	254,222,278	1.27%
Free Floats in Units and Percentage	4,358,013,663	21.72%	4,358,013,663	21.72%
Free Float in Value	4,793,815,029		2,658,388,334

Declaration:

Mutual Benefits Assurance Plc with a free float percentage of 21.72% and value of N4,793,815,029 as at 30 June 2025, is compliant with The Exchange's free float requirements for companies listed on the Main Board.

Mutual Benefits Assurance Plc with a free float percentage of 21.72% and value of N2,658,388,334 as at 31 December 2024, is compliant with The Exchange's free float requirements for companies listed on the Main Board.

Jide Ibitayo Company Secretary

FRC/2013/NBA/00000003123

Aret Adams House 233 Ikorodu Road Ilupeju, Lagos

Date: 29 July 2025

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025 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 financial statements for the period ended 30 June 2025 that:

We have reviewed the report and to the best of our knowledge, the report does not contain:
1. Any untrue statement of a material fact, or
2. 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 operation of the Group as of, and for the periods presented in the report.
We: i)
ii)
iii) iv)
are responsible for establishing and maintaining internal controls;
have designed such internal controls to ensure that material information relating to the Company and its consolidated subsidiaries is made known to such officers by other officers within those entities particularly during the period in which these reports are being prepared;
have evaluated the effectiveness of the Group's internal controls as of date of the report;
have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that da
We have disclosed the following information to the Audit Committee:
1. all significant deficiencies in the design or operation of internal controls which would adversely affect the Group's ability to record, process, summarize and report financial data and have identified for the Group's auditors any material weakness in internal controls, and
2. any fraud, whether or not material, that involves management or other employees who have significant roles in the Group'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. Abayomi Ogunwo Mr. Olufemi Asenuga

FRC/2015/ICAN/00000011225 FRC/2013/CIIN/00000003104

Chief Financial Officer Managing Director/CEO

Date: 29 July 2025 Date: 29 July 2025

CONSOLIDATED AND SEPARATE STATEMENTS OF PROFIT OR LOSS FOR THE PERIOD ENDED 30 JUNE 2025

GROUP COMPANY

in thousands of Nigerian Naira Notes

30 JUN-2025 YTD

30 JUN-2024 YTD

30 JUN-2025 YTD

30 JUN-2024 YTD

Insurance revenue 4.1 41,195,472 28,493,656 25,069,528 16,646,673

Insurance service expense 4.2 (29,494,020) (25,752,314) (18,735,691) (13,038,562)

Insurance service result before reinsurance contracts held 11,701,452 2,741,343 6,333,837 3,608,111

Net income/(expenses) from reinsurance contracts held 4.3.1 (3,726,117) (3,385,724) (2,805,370) (1,846,781)

Insurance service result 7,975,335 (644,381) 3,528,467 1,761,330

Profit on investment contracts 5 2,081,090 648,779 - -

Interest revenue calculated using the effective interest method 6 4,948,113 2,740,811 2,595,785 1,083,842

Net fair value gain on assets at FVTPL 7 54,814 (64,355) 54,814 (64,355)

Impairment loss on financial assets 8 (32,343) - - -

Net foreign exchange (losses)/gains 9 368,254 2,703,960 368,254 2,035,090

Other investment income 10 10,638 126,730 10,638 126,730

Net investment income 7,430,566 6,155,925 3,029,491 3,181,307

Net finance expenses from insurance contracts issued 11.1 (1,197,072) (706,519) (125,591) (341,304)

Net finance income from reinsurance contracts held 11.2 198,801 200,475 79,127 124,291

Net insurance finance expenses (998,271) (506,043) (46,464) (217,013)

Net insurance and investment results 14,407,630 5,005,500 6,511,494 4,725,624

Other income 12 82,148 62,722 21,046 29,612

Other employee benefit expenses 13 (694,950) (417,826) (197,211) (121,009)

Other operating expenses 14 (1,782,319) (1,671,542) (149,966) (534,178)

Other finance costs 15 (130,734) (75,248) - -

Other finance income 16 403,544 264,509 - -

Profit before income tax 12,285,319 3,168,116 6,185,363 4,100,049

Income tax expense 17 (691,561) (722,557) (200,719) (463,826)

Profit for the period 11,593,757 2,445,559 5,984,644 3,636,223

Profit attributable to:

Owners of the parent 11,273,113 2,410,347 5,984,644 3,636,223

Non-controlling interests 320,644 35,212 - -

11,593,757 2,445,559 5,984,644 3,636,223

Earnings per share:

Earnings per share for profit attributable to equity holders of parent

Basic and diluted (kobo) 18 56 12 30 18

The accounting policies and the accompanying notes form an integral part of these financial statements.

CONSOLIDATED AND SEPARATE STATEMENTS OF OTHER COMPREHENSIVE INCOME

GROUP

COMPANY

in thousands of Nigerian Naira	Notes	30 JUN-2025 YTD	30 JUN-2024 YTD	30 JUN-2025 YTD	30 JUN-2024 YTD

Profit for the period		11,593,757	2,445,559	5,984,644	3,636,223
Other comprehensive income (net of tax):
Items that may be reclassified to the profit or loss account in subsequent periods:
Exchange differences on translation of foreign operations		888,735	6,353,525	-	-
Finance income / (expenses) from insurance contracts issued	11.1	(826,430)	1,667,816	(85,242)	825,980
Finance income / (expenses) from reinsurance contracts held	11.2	113,070	(284,477)	30,040	(284,477)
		175,375	7,736,864	(55,202)	541,503
Other comprehensive income not to be reclassified to profit or loss in subsequent periods (net of tax)
Net revaluation (losses)/gains on equity instrument at FVOCI	20.1.1	(32,178)	144,779	(32,178)	144,779
		(32,178)	144,779	(32,178)	144,779

Total other comprehensive income for the period, net of tax		143,197	7,881,643	(87,380)	686,282

Total comprehensive income for the period, net of tax		11,736,955	10,327,202	5,897,264	4,322,505
Total comprehensive income/(loss) attributable to: Owners of the parent		10,866,846	8,474,770	5,897,264	4,322,505
Non-controlling interests	47	870,109	1,852,431	-	-
		11,736,955	10,327,202	5,897,264	4,322,505
The accounting policies and the accompanying notes form an integral part of these financial	statements.

MUTUAL BENEFITS ASSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025

CONSOLIDATED AND SEPARATE STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS (QUARTER) ENDED 30 JUNE 2025

GROUP COMPANY

Three months

ended 30 June 2025 ended	30 June 2024	ended 30 June 2025 ended	30 June 2024
in thousands of Nigerian Naira
Insurance revenue 21,865,713	15,907,529	13,952,466	8,769,420
Insurance service expense (9,753,567)	(14,743,941)	(5,349,162)	(7,193,550)
Insurance service result before reinsurance contracts held 12,112,146	1,163,588	8,603,304	1,575,870
Net (expenses) / income from reinsurance contracts held (6,872,341)	(1,401,212)	(5,813,294)	(1,038,906)
Insurance service result 5,239,805	(237,624)	2,790,010	536,964
Profit on investment contracts 1,119,314	388,486	-	-
Interest revenue calculated using the effective interest method 2,500,669	1,196,179	1,301,377	546,134
Net fair value gain/(loss) on assets at FVTPL 15,099	(133,498)	15,099	(133,498)
Impairment reversal/(loss) on financial assets (2,115)	135,081	-	135,081
Net foreign exchange (loss)/gain 467,156	(1,306,717)	467,156	(1,306,717)
Other investment income 10,638	126,729	10,638	126,729
Net investment income 4,110,762	406,260	1,794,270	(632,271)
Net finance (expenses)/income from insurance contracts issued (790,884)	(393,850)	85,234	(164,410)
Net finance (expenses)/income from reinsurance contracts held (16,954)	106,552	(136,628)	64,365
Net insurance finance expenses (807,838)	(287,299)	(51,394)	(100,045)
Net insurance and Investment results 8,542,728	(118,663)	4,532,886	(195,352)
Other income 20,670	28,445	6,573	11,890
Other employee benefit expenses (199,080)	(240,437)	(110,232)	(87,224)
Other operating expenses (671,494)	(884,560)	(72,091)	(297,478)
Other finance costs (65,367)	(37,624)	-	-
Other finance income 201,772	132,255	-	-
Profit/(loss) before income tax 7,829,229	(1,120,584)	4,357,136	(568,164)
Income tax (expense)/credit (371,001)	(58,566)	(117,379)	81,237
Profit/(loss) for the period 7,458,228	(1,179,150)	4,239,757	(486,927)
Profit/(loss) attributable to: Owners of the parent 7,292,925	(1,197,898)	4,239,757	(486,927)
Non-controlling interests 165,303	18,747	-	-
7,458,228	(1,179,150)	4,239,757	(486,927)
Other comprehensive income (net of tax):
Items that may be reclassified to the profit or loss account in subsequent periods:
Exchange differences on translation of foreign operations 952,106	906,944	-	-
Finance income / (expenses) from insurance contracts issued (1,505,940)	25,443	(705,793)	173,578
Finance income / (expenses) from reinsurance contracts held 1,084,202	(76,190)	1,001,184	(76,190)
530,368	856,196	295,391	97,388
Other comprehensive income not to be reclassified to profit or loss in subsequent periods (net of tax)
Net revaluation gains /(losses) on equity instrument at FVOCI -	47,461	-	47,461
-	47,461	-	47,461

Total other comprehensive income / (loss) for the period, net of tax 530,368	903,657	295,391	144,849

Total comprehensive income/(loss) for the period, net of tax 7,988,596	(275,493)	4,535,148	(342,078)
Total comprehensive income/(loss) attributable to: Owners of the parent 7,380,920	(561,108)	4,535,148	(342,078)
Non-controlling interests 607,676	285,615	-	-
7,988,596	(275,493)	4,535,148	(342,078)
Basic and diluted earnings/(loss) per share (kobo) 36	(6)	21	(2)
The accounting policies and the accompanying notes form an integral part of these financial statements.

MUTUAL BENEFITS ASSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025

CONSOLIDATED AND SEPARATE STATEMENTS OF FINANCIAL POSITION

GROUP COMPANY

in thousands of Nigerian Naira	Notes	30 JUN-2025	31 DEC-2024	30 JUN-2025	31 DEC-2024
ASSETS
Cash and cash equivalents	19	50,656,362	49,164,513	15,865,291	19,781,495
Financial assets
Financial assets at fair value through OCI	20.1	497,210	529,389	403,837	436,016
Financial assets at fair value through profit or loss	20.2	360,721	348,636	360,721	348,636
Financial assets at amortised cost	20.3	77,325,447	67,392,629	19,863,666	13,974,384
Financial assets held for trading pledged as collateral	21	406,716	363,988	406,716	363,988
Reinsurance contract Assets	22.1	11,931,755	11,898,714	10,422,510	9,590,288
Trade receivables	23	5,806,133	1,266,923	4,437,038	382,090
Other receivables and prepayments	24	2,295,739	1,554,955	364,245	342,652
Investment properties	25	5,845,000	5,845,000	100,000	100,000
Investments in subsidiaries	26	-	-	6,220,000	6,220,000
Intangible assets	27	918,116	896,967	213,450	235,558
Property, plant and equipment	28	6,948,474	6,648,035	2,501,139	2,483,810
Statutory deposit	29	500,000	500,000	300,000	300,000
Deferred tax assets	30	723,770	723,770	240,737	240,737
Total assets		164,215,443	147,133,519	61,699,350	54,799,654
LIABILITIES
Insurance contract liabilities	31	47,226,963	47,010,697	23,446,221	25,328,061
Reinsurance contract liabilities	22.2	3,541,637	2,147,782	3,461,245	1,643,580
Investment contract liabilities	32	34,783,083	34,176,638	-	-
Trade payables	33	3,146,412	2,901,017	2,388,635	1,766,233
Other liabilities	34	5,805,892	3,551,844	1,154,504	697,332
Deposit liabilities	35	1,282,296	724,647	-	-
Borrowings	36	400,870	400,870	400,870	400,870
Current income tax liabilities	37	852,827	781,516	411,773	424,740
Deferred tax liabilities	38	652,911	652,911	652,911	652,911
Total liabilities		97,692,892	92,347,922	31,916,159	30,913,727
EQUITY
Share capital	39	10,030,811	10,030,811	10,030,811	10,030,811
Share Premium	39.2	276,486	276,486	276,486	276,486
Treasury shares	40	(250)	(250)	(250)	(250)
Foreign currency translation reserve	41	15,949,814	15,588,183	-	-
Contingency reserve	42	9,561,753	7,984,617	7,175,997	5,979,068
Fair value reserve	43	(228,501)	(196,323)	209,930	242,108
Revaluation reserve	44	1,536,429	1,536,429	1,355,693	1,355,693
Insurance finance reserves	45	2,060,195	2,795,915	939,102	994,304
Retained Earnings	46	21,951,543	12,255,565	9,795,422	5,007,707
Total ordinary shareholders' equity		61,138,279	50,271,433	29,783,191	23,885,927
Owners of the parent		61,138,279	50,271,433	29,783,191	23,885,927
Non-controlling interests in equity	47	5,384,273	4,514,164	-	-
Total equity		66,522,552	54,785,597	29,783,191	23,885,927
Total liabilities and equity		164,215,443	147,133,519	61,699,350	54,799,654

The consolidated and separate financial statements and notes to the consolidated and separate financial statements were approved and authorised for issue by the Board of Directors on 29 July 2025 and were signed on its behalf by:

Dr. Akin Ogunbiyi	Mr. Olufemi Asenuga
FRC/2013/CIIN/00000003114	FRC/2013/CIIN/00000003104
Chairman	Managing Director/ CEO

Mr. Abayomi Ogunwo FRC/2015/ICAN/00000011225

Chief Finance Officer

The accounting policies and the accompanying notes form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY- GROUP

For the period ended 30 June 2025

Attributable to equity holders of the Company

Foreign

in thousands of Nigerian Naira	Notes	Share capital	Share premium	Treasury shares	currency translation reserve	Contingency reserve	Fair value reserve	Revaluation reserve	Insurance finance reserve	Retained earnings	Total	Non -controlling interests	Total equity
As at 1 January 2024		10,030,811	276,486	(250)	6,055,009	6,341,331	(469,009)	1,536,429	660,385	3,147,575	27,578,767	2,422,163	30,000,930
Total comprehensive income for the six months ended
30 June 2024:
Profit for the period		-	-	-	-	-	-	-		2,410,347	2,410,347	35,212	2,445,559
Other comprehensive income		-	-	-	4,529,702	-	144,779	-	1,389,943	-	6,064,424	1,817,219	7,881,643
Total comprehensive income for the year, net of tax		-		-	4,529,702	-	144,779	-	1,389,943	2,410,347	8,474,770	1,852,431	10,327,202
Transactions with owners of equity
Transfer to contingency reserve		-	-	-	-	825,335	-	-		(825,335)	-	-	-
Total transactions with owners of equity		-	-	-	-	825,335	-	-	-	(825,335)	-	-	-
As at 30 June 2024 and 1 July 2024		10,030,811	276,486	(250)	10,584,710	7,166,666	(324,230)	1,536,429	2,050,328	4,732,587	36,053,538	4,274,594	40,328,132
Total comprehensive income for the six months ended
31 December 2024:
Profit for the period		-	-	-	-	-	-	-		8,340,929	8,340,929	531,405	8,872,334
Other comprehensive income		-	-	-	5,003,473	-	127,907	-	745,587	-	5,876,967	(291,835)	5,585,131
Total comprehensive income for the period		-		-	5,003,473	-	127,907	-	745,587	8,340,929	14,217,896	239,570	14,457,466
Transactions with owners of equity
Transfer to contingency reserve		-	-	-	-	817,951	-	-		(817,951)	-	-	-
Total transactions with owners of equity		-	-	-	-	817,951	-	-	-	(817,951)	-	-	-
As at 31 December 2024		10,030,811	276,486	(250)	15,588,183	7,984,617	(196,323)	1,536,429	2,795,915	12,255,565	50,271,433	4,514,164	54,785,597
As at 1 January 2025		10,030,811	276,486	(250)	15,588,183	7,984,617	(196,323)	1,536,429	2,795,915	12,255,565	50,271,433	4,514,164	54,785,597
Total comprehensive income for the six months ended
30 June 2025:
Profit for the period		-	-	-	-	-	-	-	-	11,273,113	11,273,113	320,644	11,593,757
Other comprehensive income		-	-	-	361,631	-	(32,178)	-	(735,720)	-	(406,267)	549,465	143,198
Total comprehensive income for the period		-		-	361,631	-	(32,178)	-	(735,720)	11,273,113	10,866,846	870,109	11,736,955
Transactions with owners of equity
Transfer to contingency reserve	42	-	-	-	-	1,577,136	-	-	-	(1,577,136)	-	-	-
Total transactions with owners of equity		-	-	-	-	1,577,136	-	-	-	(1,577,136)	-	-	-
As at 30 June 2025		10,030,811	276,486	(250)	15,949,814	9,561,753	(228,501)	1,536,429	2,060,195	21,951,543	61,138,279	5,384,273	66,522,552

The accounting policies and the accompanying notes form an integral part of these financial statements.

SEPARATE STATEMENT OF CHANGES IN EQUITY- COMPANY

For the period ended 30 June 2025 in thousands of Nigerian Naira	Notes	Share capital	Share premium	Treasury shares	Contingency reserve	Fair value reserve	Revaluation reserve	finance reserve	(Accumulated losses)	Total
As at 1 January 2024		10,030,811	276,486	(250)	4,730,900	25,749	1,355,693	129,915	609,384	17,158,688
Total comprehensive income for the six months ended 30										-
June 2024: Profit for the period		-	-	-	-	-	-		3,636,223	3,636,223
Other comprehensive income		-	-	-	-	144,779	-	541,503	-	686,282
Total comprehensive income for the year, net of tax		-	-	-	-	144,779	-	541,503	3,636,223	4,322,505
Transactions with owners of equity
Transfer to contingency reserve		-	-	-	727,244	-	-	-	(727,244)	-
Total transactions with owners of equity		-	-	-	727,244	-	-	-	(727,244)	-
As at 30 June 2024 and 1 July 2024		10,030,811	276,486	(250)	5,458,144	170,528	1,355,693	671,418	3,518,363	21,481,193
Total comprehensive income for the six months ended 31
December 2024:
Profit for the period		-	-	-	-	-	-	-	2,010,268	2,010,268
Other comprehensive income		-	-	-	-	71,580	-	322,886	-	394,466
Total comprehensive income for the period		-	-	-	-	71,580	-	322,886	2,010,268	2,404,734
Transactions with owners of equity
Transfer to contingency reserve		-	-	-	520,924	-	-	-	(520,924)	-
Total transactions with owners of equity		-	-	-	520,924	-	-	-	(520,924)	-
As at 31 December 2024		10,030,811	276,486	(250)	5,979,068	242,108	1,355,693	994,304	5,007,707	23,885,927
As at 1 January 2025		10,030,811	276,486	(250)	5,979,068	242,108	1,355,693	994,304	5,007,707	23,885,927
Total comprehensive income for the six months ended 30
June 2025:
Profit for the period		-	-	-	-	-	-		5,984,644	5,984,644
Other comprehensive income		-	-	-	-	(32,178)	-	(55,202)	-	(87,380)
Total comprehensive income for the period		-	-	-	-	(32,178)	-	(55,202)	5,984,644	5,897,264
Transactions with owners of equity
Transfer to contingency reserve	42	-	-	-	1,196,929	-	-	-	(1,196,929)	-
Total transactions with owners of equity		-	-	-	1,196,929	-	-	-	(1,196,929)	-
As at 30 June 2025		10,030,811	276,486	(250)	7,175,997	209,930	1,355,693	939,102	9,795,422	29,783,191

Insurance Retained earnings/

The accounting policies and the accompanying notes form an integral part of these financial statements.

MUTUAL BENEFITS ASSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025

CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 JUNE 2025

GROUP COMPANY

in thousands of Nigerian Naira

Notes

30 JUN-2025 YTD

30 JUN-2024 YTD

30 JUN-2025 YTD

30 JUN-2024 YTD

Cash flows from operating activities Cash premium received from insurance contract	23.1.1	47,269,021	34,230,902	22,597,786	18,428,869
Cash received from investment contract policy holders	32	6,703,119	6,062,711	-	-
Cash withdrawal by investment contract policy holders	32	(7,135,391)	(7,972,413)	-	-
Additions to deposit for premium	33.1	2,478,556	1,304,371	2,168,404	725,043
Reinsurance premium paid	22.3	(13,568,183)	(6,246,695)	(10,802,741)	(5,631,592)
Claim recoveries from reinsurers	22.3	8,196,177	1,821,776	5,785,225	1,439,633
Claims paid	31.3.3	(22,028,720)	(11,114,401)	(10,976,131)	(5,575,010)
Other directly attributable expenses	31.3.3	(13,501,473)	(6,812,052)	(8,980,471)	(4,561,372)
Insurance acquisition cash flows	31.3	(8,516,063)	(8,617,512)	(4,221,199)	(3,595,909)
Ceding commission received	22.3	1,924,721	948,652	1,489,092	819,184
Payments to non-attributable employees	13	(694,950)	(417,826)	(197,211)	(121,009)
Net other operating cash (paid)/received		2,259,362	5,196,888	2,505,782	1,523,686
Income tax paid	37	(620,250)	(307,940)	(213,686)	(184,505)
Net cash flows from operating activities		2,765,927	8,076,460	(845,152)	3,267,018
Investing activities: Purchase of intangible assets	27	(20,209)	(45,462)	(9,106)	(19,685)
Purchase of property, plants and equipments	28	(163,091)	(291,760)	(147,900)	(64,772)
Proceeds from sale of properties, plant and equipment		558	5,000	558	5,000
Investment income received	6.3	3,117,594	2,401,465	908,437	552,108
Dividend Income	10	6,348	1	6,348	1
Loans and recievables granted	20.3.1.1	(7,315,812)	(3,899,083)	(74,161)	(33,588)
Receipts on loans and recievables	20.3.1.1	6,922,278	2,619,449	87,350	23,445
Redemption of Placements - Maturity above 90 days at amortised cost	20.3.2.1	771,545	(0)	547,671	(0)
Purchase of treasury bills at amortised cost	20.3.3.1	(23,242,193)	(7,039,200)	(10,879,924)	(2,821,000)
Redemption of treasury bills at amortised cost	20.3.3.1	20,317,827	6,167,269	7,081,522	2,737,960
Purchase of commercial papers at amortised cost	20.3.4.1	(1,734,531)	(300,162)	(609,735)	(300,162)
Redemption of commercial papers at amortised cost	20.3.4.1	264,839	467,255	217,133	367,255
Proceeds from sale of investment properties	-		420,000	-	-
Net cash flows from investing activities		(1,642,347)	504,771	(3,439,307)	446,562
Net increase/(decrease) in cash and cash equivalents		1,123,580	8,581,231	(4,284,458)	3,713,581
Effects of exchange rate changes on cash and cash equivalents		368,269	2,703,960	368,254	2,035,090
Cash and cash equivalents as at 1 January		49,164,513	33,461,379	19,781,495	9,796,235
Cash and cash equivalents as at period end	19	50,656,362	44,746,570	15,865,291	15,544,906

The accounting policies and the accompanying notes form an integral part of these financial statements.

1. Corporate information

These financial statements are the consolidated and separate financial statements of Mutual Benefits Assurance Plc ("the Company") and its subsidiaries (hereafter referred to as the 'the Group'). The address of the registered office is: Aret Adams House, 233 Ikorodu Road, Ilupeju, Lagos.

Mutual Benefits Assurance Plc ("the Company") (RC 269837) was incorporated as a private limited liability company on 18 April 1995, granted the Certificate of Registration as an insurer by the National Insurance Commission (NAICOM) on September 1995 and commenced operations on 2 October 1995 and became a public liability company n 24 May 2001. Mutual Benefits Assurance Plc is a financial, wealth protection company in Nigeria. The Company is listed on the Nigerian Stock Exchange.

The Company invests policy holders funds and pays claims arising from insurance contract liabilities in line with the provisions of Insurance Act, CAP 117, Law of the Federal Republic of Nigeria 2004 and NAICOM prudential guidelines.

The principal activities of the subsidiaries and information of the Group's structure are disclosed in Note 26. Information

on other related party relationships of the Group is provided in Note 48.

The consolidated and separate financial statements of the Company and its subsidiaries were authorised for issue by the Board of Directors on 29 July 2025.

Going Concern

The consolidated and separate financial statements have been prepared on the going concern basis and there is no intention to curtail business operations. Capital adequacy and liquidity ratios are continuously reviewed and appropriate action taken to ensure that there are no going concern threats to the operation of the Group.

The Directors have made assessment of the Group's and the Company's ability to continue as a going concern and have

no reason to believe that the Group and the Company will not remain a going concern in the years ahead.

Basis of presentation Statement of compliance with IFRS

These consolidated and separate financial statements of the Company and its subsidiaries have been prepared in accordance with the IFRS Accounting Standards issued by the International Accounting Standards Board (IFRS Accounting Standards). Additional information required by national regulations has been included where appropriate.

The consolidated and separate financial statements comprise of the statements of profit or loss, statements of other comprehensive income, the statements of financial position, the statements of changes in equity, the statements of cash flows, summary of material accounting policies and the notes.

The consolidated and separate financial statements values are presented in Nigerian Naira (₦) rounded to the nearest thousand (₦'000), unless otherwise indicated.

The Group presents its statement of financial position broadly in order of liquidity. An analysis regarding recovery or settlement within twelve months after the reporting date (no more than 12 months) and more than 12 months after the reporting date (more than 12 months) is presented in the respective notes.

Basis of measurement

These consolidated and separate financial statements have been prepared on the historical cost basis, except for the following items, which are measured on an alternative basis on each reporting date:

Items	Measurement Bases
Item of building (property, plant and equipment)	Revalued amount
Non-derivative assets at fair value through profit or loss (FVPL)	Fair value
Non-derivative assets at fair value through other comprehensive income (FVOCI)	Fair value
Investment properties	Fair value
Insurance contract liabilities	Present value

Use of estimates and judgements

The preparation of the financial statements in conformity with IFRS Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

Information about significant areas of estimation uncertainties and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in Note 2.3.32.

Changes in accounting policy and disclosures
1. Changes in material accounting policies
  The Group does not have changes in material accounting policies in the current reporting period.
2. New and Revised Standards issued but not yet effective
  At the date of authorisation of the financial statements of the Group (and/or Company) for the year ended 31 December 2024, the following IFRS Accounting Standards, Amendments to IFRS Accounting Standards and Interpretations were in issue but not yet effective.
  Except for those IFRS Accounting Standards, Amendments to IFRS Accounting Standards and Interpretations that are not applicable to the entity, all IFRS Accounting Standards, Amendments to IFRS Accounting Standards and Interpretations will be adopted at their effective date unless otherwise indicated.
  1. IFRS 18 Presentation and Disclosures in Financial Statements
    IFRS 18 Presentation and Disclosure in Financial Statements replaces IAS 1 Presentation of Financial Statements. The new standard introduces the following key new requirements:
    - It promotes a more structured income statement, in particular, it introduces a newly defined 'operating profit' subtotal and a requirement for all income and expenses to be classified into three new distinct categories, operating, investing, and financing, based on a company's main business activities.
    - All companies are required to report the newly defined 'operating profit' subtotal - an important measure for investors' understanding of a company's operating results - i.e. investing and financing results are specifically excluded. This means that the results of equity-accounted investees are no longer part of operating profit and are presented in the 'investing' category.
    - Management-defined performance measures (MPMs) are disclosed in a single note in the financial statements.
    - Enhance guidance is provided on how to group information in the financial statements. This includes
      guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. Companies are discouraged from labelling items as 'other' and will now be required to disclose more information if they continue to do so.
      Entities are required to use the operating profit subtotal as the starting point for the statement of cash flows when presenting operating cash flows under the indirect method.
    - It also requires Companies to analyse their operating expenses directly on the face of the income statement - either by nature, by function or using a mixed presentation. If any items are presented by function on the face of the income statement (e.g. cost of sales), then a company provides more detailed disclosures about their nature

The Group is still in the process of assessing the impact of the new standard, particularly with respect to the structure of the Group's statement of profit or loss, the statement of cash flows and the additional disclosures required for MPMs. The Group is also assessing the impact on how information is grouped in the financial statements, including for items currently labelled as 'other'.

The directors are of the opinion that the impact of the application of the remaining IFRS Accounting Standards, Amendments to IFRS Accounting Standards and Interpretations will not have a material impact on the financial statements as follows:

Lack of exchangeability (Amendment to IAS 21)
Amendments to the Classification and Measurement of Financial Instruments (Amendment to IFRS 9 and IFRS 7)
Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity
Annual Improvements to IFRS Accounting Standards (Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7)
Subsidiaries without Public Accountability: Disclosures (IFRS 19)

Material accounting policies
Except for the effect of the changes in accounting policies as disclosed in Note 2.3.32.1, if any, the group has consistently applied the following accounting policies to all periods presented in these financial statements
1. Basis of Consolidation
  The consolidated and separate financial statements comprise the financial statements of the Group and its investees that are considered subsidiaries as at 30 June 2025. Subsidiaries are investees that the Group has control over. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:
  1. Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee);
  2. Exposure, or rights, to variable returns from its involvement with the investee; and
  3. The ability to use its power over the investee to affect its returns.
  Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
  1. The contractual arrangement with the other vote holders of the investee
  2. Rights arising from other contractual arrangements
  3. The Group's voting rights and potential voting rights
  The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date when the Group ceases to control the subsidiary.
  Profit or loss and each component of OCI are attributed to the owners of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
  A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction (transactions with owners).
  If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, noncontrolling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.
2. Product classification
  Insurance contracts are those contracts where the Group (the insurer) has accepted significant insurance risk from another party (the policyholders) by agreeing to compensate the policyholders if a specified uncertain future event (the insured event) adversely affects the policyholders. As a general guideline, the Group determines whether it has significant insurance risk, by comparing benefits payable after an insured event with benefits payable if the insured event did not occur. Insurance contracts can also transfer financial risk.
  Investment contracts are those contracts that transfer significant financial risk, but not significant insurance risk. Financial risk is the risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of price or rates, credit rating or credit index or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract.
  Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its lifetime, even if the insurance risk reduces significantly during this period, unless all rights and obligations are extinguished or expire. Investment contracts can, however, be reclassified as insurance contracts after inception if insurance risk becomes significant.
3. Business combinations and goodwill
  Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any noncontrolling interests in the acquiree. For each business combination, the Group elects whether to measure the noncontrolling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.
  When the Group acquires a business, it assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
  Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement of profit or loss in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at each reporting date with changes in fair value recognised in profit or loss.
  Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss.
  After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group's cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
  Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.
4. Foreign currency translation
  The Group's consolidated financial statements are presented in Naira which is also the parent company's functional currency. Each company in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The Group uses the direct method of consolidation and on disposal of a foreign operation, the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method.
  1. Transactions and balances
    Transactions in foreign currencies are initially recorded by the Group's entities at their functional currency spot rate prevailing at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date.
    All differences arising on settlement or translation of monetary items are taken to the statement of profit or loss with the exception of differences on foreign monetary items that form part of a net investment in a foreign operation. These are recognised in OCI until the disposal of the net investment, at which time they are reclassified to profit or loss. Tax charges and credits attributable to exchange differences on these monetary items are also recorded in OCI.
    Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction and are not subsequently restated. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of a gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
  2. Group companies
    On consolidation, the assets and liabilities of foreign operations are translated into Naira at the rate of exchange prevailing at the reporting date and their statement of profit or loss is translated at exchange rates prevailing at the date of the transactions. The exchange differences arising on the translation for consolidation are recognised in Statement of Other Comprehensive Income (SOCI). On disposal of a foreign operation, the component of SOCI relating to that particular foreign operation is reclassified to Statement of Profit or Loss.
    Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and translated at the rate of exchange at the reporting date.
5. Segment reporting
  For management purposes, the Group is organised into business units based on their products and services and has three reportable operating segments; assurance business, real estate and microfinance bank.
  A segment is a distinguishable component of the Group that is engaged in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. The Group's primary format for segment reporting is based on business segments i.e life business, real estate and microfinance.
  Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the consolidated financial statements.
6. Revenue recognition
  Revenue comprises premium, fee & Commissions, investment income, value for services rendered, net of value-added tax, after eliminating revenue within the Group.
  1. Insurance revenue
    Insurance revenue not measured under the PAA
    The Group's insurance revenue represents the provision of coverage and other services arising from a group of insurance contracts at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. Insurance revenue from a group of insurance contracts is therefore the relevant portion for the period of the total consideration for the contracts, [i.e., the amount of premiums paid to the Group adjusted for financing effect (the time value of money) and excluding any distinct investment components]. For contracts not measured under the PAA, the total consideration for a group of contracts covers amounts related to the provision of services and is comprised of:
    - Insurance service expenses, excluding any amounts allocated to the loss component of the liability for remaining coverage
    - The risk adjustment for non-financial risk, excluding any amounts allocated to the loss component of the liability for remaining coverage
    - The CSM release
    - Amounts related to insurance acquisition cash flows
    Insurance revenue under the PAA
    When applying the PAA, the Group recognises insurance revenue for the period based on the passage of time by allocating premium receipts including premium experience adjustments to each period of service. However, when the expected pattern of release from risk during the coverage period differs significantly from the passage of time, then premium receipts are allocated based on the expected pattern of incurred insurance service expense.
    At the end of each reporting period, the Group considers whether there was a change in facts and circumstances indicating a need to change, on a prospective basis, the premium receipt allocation due to changes in the expected pattern of claim occurrence for new and existing groups.
    1. Loss component
      The Group has grouped contracts that are onerous at initial recognition separately from contracts in the same portfolio that are not onerous at initial recognition. Groups of insurance contracts that were not onerous at initial recognition can also subsequently become onerous if assumptions and experience change. The Group has established a loss component of the liability for remaining coverage for any onerous group depicting the future losses recognised.
      A loss component represents a notional record of the losses attributable to each group of onerous insurance contracts (or contracts profitable at inception that have become onerous). The loss component is released based on a systematic allocation of the subsequent changes in the fulfilment cash flows to:
      1. the loss component; and
      2. the liability for remaining coverage excluding the loss component.
      The loss component is also updated for subsequent changes in estimates of the fulfilment cash flows related to future service. The systematic allocation of subsequent changes to the loss component results in the total amounts allocated to the loss component being equal to zero by the end of the coverage period of a group of contracts (since the loss component will have been materialised in the form of incurred claims). The Group uses the proportion on initial recognition to determine the systematic allocation of subsequent changes in future cash flows between the loss component and the liability for remaining coverage excluding the loss component.
    2. Loss recovery component
      When the Group recognises a loss component on initial recognition of an onerous group of underlying insurance contracts
      or when further onerous underlying insurance contracts are added to a group, the Company establishes a loss-recovery component of the assets for remaining coverage for a group of reinsurance contract held depicting the recovery of the losses.
      Where a loss component has been set up subsequent to initial recognition of a group of underlying insurance contracts, the portion of income that has been recognized from related reinsurance contracts held is disclosed as a loss-recovery component.
      Where a loss-recovery component has been set up at initial recognition or subsequently, the Company adjusts the loss-recovery component to reflect changes in the loss component of an onerous group of underlying insurance contracts.
      The carrying amount of the loss-recovery component must not exceed the portion of the carrying amount of the loss component of the onerous group of underlying insurance contracts that the Company expects to recover from the group of reinsurance contracts held. On this basis, the loss-recovery component recognised at initial recognition is reduced to zero in line with reductions in the onerous group of underlying insurance contracts and is nil when loss component of the onerous group of underlying insurance contracts is nil.
  2. Insurance finance income and expense
    Insurance finance income or expenses comprise the change in the carrying amount of the group of insurance contracts arising from:
    - The effect of the time value of money and changes in the time value of money
    - The effect of financial risk and changes in financial risk
    The Company systematically allocates expected total insurance finance income or expenses over the duration of the group of contracts to profit or loss or other comprehensive income as applicable using discount rates determined on initial recognition of the group of contracts.
    In the event of transfer of a group of insurance contracts or derecognition of an insurance contract, the Company reclassifies the insurance finance income or expense to profit or loss as a reclassification adjustment to any remaining amounts for the group (or contract) that were previously recognised in other comprehensive income.
  3. Income or expenses from reinsurance contracts held

The Group presents separately on the face of the statement of profit or loss and other comprehensive income the income or expenses from a group of reinsurance contracts held and reinsurance finance income or expenses. Income or expenses from reinsurance contracts held are split into the following two amounts:

Amount recovered from reinsurers.
An allocation of the reinsurance premiums paid.
The Group presents cash flows that are contingent on claims on the underlying contracts as part of the amount recovered from reinsurers. Ceding commissions that are not contingent on claims of the underlying contracts are presented as a deduction in the premiums to be paid to the reinsurer which is then allocated to profit or loss.
The Group establishes a loss recovery component of the asset for the remaining coverage for a group of reinsurance contracts held. This depicts the recovery of losses recognized on the initial recognition of an onerous group of underlying insurance contracts or on addition of onerous underlying insurance contracts to a group. The loss recovery component adjusts the CSM of the group of reinsurance contracts held. The loss recovery component is then adjusted to reflect:
- Changes in the fulfilment cash flows of the underlying insurance contracts that relate to future service and do
  not adjust the CSM of the respective groups to which the underlying insurance contracts belong to.
- Reversals of loss recovery component to the extent those reversals are not changes in the fulfilment cash flows
  of the group of reinsurance contracts held.
- Allocations of the loss recovery component against the amounts recovered from reinsurers reported in line with

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