Total assets | 8,758,671 | 8,880,485 | (1.37) | ||
Shareholders' funds | 2,026,656 | 2,203,861 | (8.04) | ||
Major statement of comprehensive income | |||||
Gross premium | 1,749,428 | 2,764,917 | (36.73) | ||
Net premium earned | 1,250,329 | 1,749,517 | (28.53) | ||
Investment income | 42,588 | 68,651 | (37.96) | ||
Other income | 9,026 | 26,595 | (66.06) | ||
Net underwriting and claims expenses | (695,899) | (1,308,029) | (46.80) | ||
(Loss)/profit before taxation | (92,636) | (410,324) | 77.42 | ||
(Loss)/profit after taxation | (142,634) | (452,144) | 68.45 | ||
Information per 50k ordinary share | |||||
Earnings per share (kobo) | (2) | (5) | 63.62 | ||
Net assets (kobo) | 1 | 1 | (0.01) | ||
Stock exchange quotation (kobo) at 30 | |||||
September | 50 | 50 | - | ||
Price earning ratio | (0.04) | (0.10) | - |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019
ASSETS | Note | 30 June 2019 N'000 | 31 December 2018 N'000 |
Cash and cash equivalents | 8 | 268,969 | 412,084 |
Financial assets | 9 | 303,525 | 342,106 |
Trade receivables | 10 | 410,296 | 212,564 |
Reinsurance assets | 11 | 1,045,758 | 1,053,008 |
Other receivables and prepayments | 12 | 1,544,519 | 1,546,408 |
Deferred acquisition cost | 13 | 174,974 | 157,229 |
Investment in subsidiary | 14 | 327,937 | 327,937 |
Investment properties | 15 | 1,520,000 | 1,520,000 |
Deffered tax assets | 16.1 | - | - |
Leased assets | 17 | 146,676 | 168,733 |
Property ,plant and equipment | 18 | 2,678,774 | 2,797,656 |
Statutory deposit | 19 | 300,000 | 300,000 |
Intangible asset | 20 | 37,243 | 42,760 |
Total assets | 8,758,671 | 8,880,485 | |
LIABILITIES | |||
Insurance contract liabilities | 21 | 3,231,063 | 3,129,557 |
Financial Liabilities | 22 | 2,858,046 | 2,909,454 |
Trade payables | 23 | 171,836 | 204,553 |
Other payables | 24a | 347,513 | 314,504 |
Deferred tax liabilities | 16.1 | 98,050 | 98,050 |
Employee benefit liability | 26 | - | - |
Taxation | 27 | 25,506 | 20,506 |
Total liabilities | 6,732,015 | 6,676,624 | |
EQUITY Issued share capital | 28 28a | 4,670,544 | 4,670,544 |
Share premium | 28c | 434,164 | 434,164 |
Revaluation reserve | 28d | 1,595,299 | 1,595,299 |
Fair value reserve | 28e | 333,904 | 368,475 |
Contingency reserve | 28f | 2,260,313 | 2,207,830 |
Retained earnings | 28g | (7,267,568) | (7,072,451) |
Shareholders' funds | 2,026,656 | 2,203,861 | |
Non controlling interest | 28h | - | - |
2,026,656 2,203,861 | |||
Total Liabilities and Equity 8,758,671 8,880,485
Approved by the Board of Directors on 24th July 2019. SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY :
………………………………….. | …………………………………… | …………………………………. |
Jide Omotere | Bayo Fakorede | Prince Turoti Samuel |
Chief Financial Officer | Managing Director | Chairman |
FRC/2013/ICAN/00000002180 | FRC/2013/CIIN/00000004099 | FRC/2014/ICAN/00000006807 |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2019
01.04 - 30.06 2019 | 30 June 2019 | 01.04 - 30.06 2018 | 30 June 2018 | ||
Note | N'000 | N'000 | N'000 | N'000 | |
Gross Premiums written | 29 | 705,321 | 1,749,428 | 1,167,921 | 2,764,917 |
Gross Premium Income | 29a | 881,436 | 1,663,981 | 1,142,227 | 2,451,973 |
Reinsurance expenses | 29b | - | (413,652) | (378,927) | (702,457) |
Net Premium Income | 29 | 881,436 | 1,250,329 | 763,300 | 1,749,517 |
Fees and Commission Income | 30 | 72,351 | 99,690 | 88,248 | 134,690 |
Net underwriting Income | 953,788 | 1,350,019 | 851,548 | 1,884,207 | |
Claims expense | 31 | (557,291) | (371,445) | (200) | (795,292) |
Underwriting expenses | 32 | (160,376) | (324,454) | (276,027) | (512,736) |
Net underwriting and claims expenses | (717,667) | (695,899) | (276,227) | (1,308,029) | |
Underwriting results | 7 | 236,121 | 654,120 | 575,321 | 576,178 |
Investment income | 33 | 10,125 | 42,588 | 30,025 | 68,651 |
Net realised gain/(loss) on financial assets | 34 | - | - | - | - |
Other income | 35 | 3,326 | 9,026 | 8,157 | 26,595 |
Operating and administrative expenses | 36 | (351,717) | (751,307) | (488,099) | (1,005,064) |
Interest on convertible bond | 37 | (23,531) | (47,062) | (38,342) | (76,685) |
Impairment loss on trade receivables | 38 | - | - | - | - |
Profit / (Loss) before taxation | (125,676) | (92,636) | 87,061 | (410,324) | |
Taxation | 27.1 | (30,000) | (49,998) | (21,820) | (41,820) |
Profit / (Loss) for the year | (155,676) | (142,634) | 65,241 | (452,144) | |
Other comprehensive income Net fair value gain (loss) on available for sale financial assets | 28e | - | (30,909) | - | (24,861) |
Foreign exchange translation gain/(loss) | 28f | - | - | - | - |
Appreciation on investment in subsidiary | - | - | - | ||
Total comprehensive income/(loss) for the year | (155,676) | (173,543) | 65,241 | (477,005) | |
Profit/(Loss) attributable to: | |||||
Owner of equity | (155,676) | (142,634) | 65,241 | (452,144) | |
Non controlling interest | - | - | |||
(155,676) | (142,634) | 65,241 | (452,144) | ||
Total comprehensive income/(loss) attributable to : | |||||
Owner of equity | (155,676) | (173,543) | 65,241 | (477,005) | |
Non controlling interest | - | - | |||
(155,676) | (173,543) | 65,241 | (477,005) | ||
Earning per share(kobo) | |||||
- Actual | (2) | (5) | |||
- Adjusted | (2) | (5) | |||
The statement of significant accounting policies on pages 12 to 38 and the accompanying notes on pages 43 to 96 form part of these financial statement.
STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2019 | |||||||
Fair value | |||||||
Share | Share | Revaluation | (Available for | Contigency | Retained | Total | |
Capital | Premium | Reserve | sale) Reserve | Reserve | Earnings | Equity | |
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |
Balance as at 1 January 2018 Total comprehensive income for the year | 4,670,544 | 434,164 | 1,595,299 | 417,141 | 2,077,338 | (8,936,237) | 258,250 |
- | - | - | (24,861) | - | - | (24,861) | |
Issue of share capital | - | - | - | - | - | - | - |
Transfer to contigency reserve | - | - | - | - | 82,947 | (82,947) | - |
Transfer from (to) retained earning | - | - | - | - | - | (452,144) | (452,144) |
Dividend | - | - | - | - | - | - | - |
Revaluation surplus | - - - | - | - | - - | |||
Balance as at 30 June 2018 | 4,670,544 434,164 1,595,299 | 392,280 | 2,160,286 | (9,471,328) (218,755) | |||
Balance as at 1 January 2019 Total comprehensive income for the year | 4,670,544 | 434,164 | 1,595,299 | 368,475 | 2,207,830 | (7,072,451) | 2,203,862 |
- | - | - | (30,909) | - | - | (30,909) | |
Issue of share capital | - | - | - | - | - | - | - |
Transfer to contigency reserve | - | - | - | - | 52,483 | (52,483) | - |
Transfer from (to) retained earning | - | - | - | - | - | (142,634) | (142,634) |
Dividend | - | - | - | - | - | - | - |
Revaluation surplus | - - - | - | - | - - | |||
Balance as at 30 June 2019 | 4,670,544 434,164 1,595,299 | 337,566 | 2,260,313 | (7,267,568) 2,030,319 | |||
STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 JUNE 2019 | |||
30 | 30 | ||
June | June | ||
2019 | 2018 | ||
Cash flow from operating activities | Note | N'000 | N'000 |
Premium received from policy holders | 1,551,696 | 2,677,445 | |
Reinsurance receipts in respect of claims | 308,792 | 239,037 | |
Reinsurance cost | (406,402) | (690,457) | |
Cash paid to and on behalf of employees | (367,958) | (496,950) | |
Other operating cash payments/receipts | (550,873) | (895,725) | |
Commission paid | (11,773) | (57,613) | |
Claims paid | (664,178) | (916,591) | |
Tax paid | (34,998) | (21,820) | |
Net cash provided by operating activities | 44 | (175,694) | (162,675) |
Cash flow from investing activities | |||
Purchase of property,plant and equipment | 18 | (2,346) | (32,227) |
Purchase of intangible asset | - | (9) | |
Fund placement proceed | 43,453 | 46,324 | |
Dividend received | 15,162 | 24,967 | |
Interest received | 27,426 | 43,684 | |
Net cash provided by investing activities | 83,695 | 82,739 | |
Cash flow from financing activities | |||
Change in borrowings | (51,116) | 132,416 | |
Proceeds from issue of share capital | - | - | |
Repayment of finance lease liabilities | - | - | |
Net cash used in financing activities | (51,116) | 132,416 | |
Net increase/(decrease) in cash and cash | |||
equivalents | (143,114.90) | 52,480 | |
Cash and cash equivalents at the beginning of the
year 412,084 976,660
Cash and cash equivalents at the end of the year
268,969 | 1,029,140 | ||
Represented by: Cash at bank and in hand | 8 | 268,969 | 1,029,140 |
Cashbook overdrawn | - 268,969 | - 1,029,140 | |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019
RISK MANAGEMENT FRAMEWORK (CON'TD) CAPITAL MANAGEMENT
The Group's objectives with respect to capital management are to maintain a capital base that is
structured to exceed regulatory and to best utilize capital allocations
Insurance industry regulator measures the financial strength of Non-life insurers using a solvency margin model, NAICOM generally expects non-life insurer to comply with this capital adequacy requirement.
Section 24 of the Insurance Act 2003 defines Solvency Margin of a Non-life insurer as the difference between the admissible assets and liabilities and this shall not be less than 15% of net premium income (gross premium income less re-insurance premium paid) or the minimum capital base (3 billion) whichever is higher.
The test compares insurers' capital against the risk profile. The regulator indicated that the insurer should produce a minimum solvency margin of 100%. During the period, the Group consistently operated above the minimum. The regulator has the authority to request more extensive reporting and can place restrictions on the Group's operations as deemed necessary if the Group falls below this requirement.
The solvency margin for the Company as at 30 June 2019 is as follows:
ASSETS:
ADMISSIBLE | IN ADMISSIBLE | TOTAL | |||
N'000 | N'000 | N'000 | |||
Cash and cash equivalents | 268,969 | - | 268,969 | ||
Financial assets | 303,525 | - | 303,525 | ||
Insurance receivables | 410,296 | 410,296 | |||
Reinsurance assets | 1,045,758 | - | 1,045,758 | ||
Other receivables | - | 1,544,519 | 1,544,519 | ||
Deferred acquisition cost | 174,974 | - | 174,974 | ||
Investment in subsidiary | - | 327,937 | 327,937 | ||
Investment properties and land | 1,520,000 | - | 1,520,000 | ||
Leased assets | 146,676 | 146,676 | |||
Property and equipment | 2,678,774 | - | 2,678,774 | ||
Statutory deposit | 300,000 | - | 300,000 | ||
Intangible assets | - | 37,243 | 37,243 | ||
Total assets | 6,848,972 | 1,909,699 | 8,758,671 | ||
LIABILITIES Investment contract liabilities | - | - | |||
Insurance ccontract liabilities | 3,231,063 | - | 3,231,063 | ||
Borrowings | 2,858,046 | - | 2,858,046 | ||
Trade payables | 171,836 | - | 171,836 | ||
Other payables | 347,513 | - | 347,513 | ||
Deferred tax liabilities | - | 98,050 | 98,050 | ||
Current income tax liabilities | 25,506 | - | 25,506 | ||
Total liabilities | 6,633,965 | 98,050 | 6,732,015 | ||
SOLVENCY MARGIN | 215,008 | ||||
MINIMUM REQUIRED | 3,000,000 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2019 RISK MANAGEMENT FRAMEWORK (CON'TD) CAPITAL MANAGEMENTThe Company further developed an internal capital adequacy model that assesses the risk of assets, policy liabilities and other exposures by applying various factors. The model calculates the capital required for each class of the broad risks identified by the Company and aggregates through co-variance methodology that considers the relationship between these risk categories.
As at period end, the Company showed a positive solvency margin of N215,008 and a solvency ratio of 17.17%
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2019
7 SEGMENT INFORMATION- COMPANY
Segment Information
Following the management approach of IFRS 8, the company is organised into eight operating segments. These segments distribute their products through various forms of brokers, agencies, and direct marketing programs. Management identifies its reportable segments by product line. These segments and their respective operations for the period ended 30 June, 2019 are as follows:
Fire
General accident Motor vehicle
Oil and gas Marine Aviation Bond
Engineering | |||||||||
General | Motor | Oil and | |||||||
Fire | Accident | Vehicle | Gas | Marine | Aviation | Bond | Engineering | Total | |
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |
Gross premium written | 468,781 | 257,023 | 519,961 | 140,685 | 202,570 | 90,552 | 15,988 | 53,868 | 1,749,428 |
Gross premium income | 447,022 | 239,031 | 546,918 | 186,004 | 90,528 | 90,414 | 5,062 | 59,002 | 1,663,981 |
Re-insurance expenses | (245,807) | (4,708) | (15,226) | (42,297) | (79,822) | (1,797) | (3,232) | (20,762) | (413,652) |
Net premium income | 201,216 | 234,323 | 531,692 | 143,707 | 10,706 | 88,616 | 1,830 | 38,239 | 1,250,329 |
Fee Income and commission | 56,857 | 1,354 | 2,618 | 10,389 | 20,466 | 436 | 953 | 6,618 | 99,690 |
Investment returns - | |||||||||
Net underwritting income | 258,073 | 235,676 | 534,310 | 154,096 | 31,172 | 89,052 | 2,783 | 44,857 | 1,350,019 |
Claim expenses(Gross) | (178,582) | (76,311) | (140,715) | (136,199) | (62,315) | (44,658) | - | (25,398) | (664,178) |
Insurance claims recovered / | |||||||||
recoverable from reinsurers | 174,727 | 231,048 | 193,286 | (361,447) | 93,459 | 1,124 | 330 | (39,794) | 292,732 |
Net insurance benefits and claims | (3,855) | 154,737 | 52,571 | (497,646) | 31,144 | (43,534) | 330 | (65,192) | (371,445) |
Underwriting expenses | (98,526) | (48,228) | (74,870) | (38,760) | (33,159) | (18,629) | (953) | (11,328) | (324,454) |
Total expenses | (102,381) | 106,509 | (22,299) | (536,406) | (2,015) | (62,163) | (623) | (76,520) | (695,899) |
Reportable segment profit | 155,692 342,185 512,011 | (382,310) | 29,157 | 26,889 | 2,159 | (31,663) | 654,120 | ||
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2019
SEGMENT INFORMATION CONT'D- COMPANY
The segment information provided by Management for the reporting segments for the year ended 30 June 2018
Fire | General Accident | Motor Vehicle | Oil and Gas | Marine | Aviation | Bond | Engineering | Total | |||||||
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |||||||
Gross premium written | 630,642 435,075 | 796,913 463,243 329,703 3,906 | 21,929 | 83,505 2,764,917 | |||||||||||
Gross premium income | 579,277 | 339,164 | 701,484 | 378,699 | 339,456 | 7,441 | 27,658 | 78,794 | 2,451,973 | ||||||
Re-insurance expenses | (306,548) | (22,143) | (10,625) | (214,599) | (112,556) | (1,254) | (4,848) | (29,885) | (702,457) | ||||||
Net premium income | 272,729 | 317,021 | 690,859 | 164,100 | 226,900 | 6,187 | 22,811 | 48,909 | 1,749,517 | ||||||
Fee Income and commission | 70,693 | 5,959 | 1,830 | 18,673 | 26,298 | 308 | 1,383 | 9,547 | 134,690 | ||||||
Investment returns | - | - | - - | - - | - | - | - | ||||||||
Net underwritting income | 343,422 322,980 | 692,689 182,773 253,199 6,495 | 24,194 | 58,456 1,884,207 | |||||||||||
Claim expenses(Gross) | (348,777) | (96,630) | (263,211) | (131,990) | (40,643) | (73) | (11,250) | (24,017) | (916,591) | ||||||
Insurance claims recovered from reinsurers | 78,680 1,191 | 43,056 (134,420) | 119,485 9,679 | (185) | 3,813 121,299 | ||||||||||
Net insurance benefits and claims | (270,098) | (95,439) | (220,155) | (266,410) | 78,842 | 9,606 | (11,435) | (20,204) | (795,292) | ||||||
Underwriting expenses | (176,445) | (81,644) | (124,745) | (47,381) | (57,266) (838) | (5,408) | (19,010) | (512,736) | |||||||
Total expenses | (446,542) | (177,083) | (344,900) | (313,791) | 21,576 8,768 | (16,843) | (39,213) | (1,308,029) | |||||||
Reportable segment profit | (103,121) | 145,898 | 347,789 (131,019) | 274,775 15,263 | 7,351 | 19,243 | 576,178 | ||||||||
30 June 2019 N'000 | 31 December 2018 N'000 | |
8 CASH AND CASH EQUIVALENTS | ||
Cash in hand | 3,252 | 1,969 |
Due from banks and other financial institutions (note 8.1) | 265,717 | 410,115 |
268,969 | 412,084 | |
8.1 Due from banks and other financial institutions | ||
Balances held with banks | 34,086 | 135,031 |
Placement with banks | 231,631 | 275,084 |
265,717 | 410,115 | |
Short-term deposits are made for varying period of one day and three months depending on the immediate cash requirement of the group. | ||
For the purpose of cash flows, cash and cash equivalents comprises include cash and bank balances (as above) | ||
268,969 | 412,084 |
30 | 31 | |||
June | December | |||
2019 | 2018 | |||
N'000 | N'000 | |||
9 | FINANCIAL ASSETS | |||
The group financial assets are summarised | ||||
below by measurement category : | ||||
Held to maturity (Note 9.1) | 93,136 | 10,468 | ||
Loans and receivables (Note 9.2) | 113,798 | 115,415 | ||
Available for sale financial asset (Note 9.3) | 96,591 | 216,223 | ||
303,525 | 342,106 | |||
9.1 | Held to maturity | |||
Government securities | 93,136 | 4,790 | ||
Treasury bills | - | 5,679 | ||
93,136 | 10,468 | |||
Due within 12 months | - | 1,350 | ||
Due after 12 months | 93,136 | 9,118 | ||
93,136 | 10,468 | |||
There are no impaired held to maturity investments at 30 June 2018 (2017 nil) | ||||
9.2 | Loan and receivables | |||
Staff loan | 113,798 | 115,415 | ||
113,798 | 115,415 | |||
113,798 | 115,415 | |||
Due within 12 months | 47,361 | 93,561 | ||
Due after 12 months | 66,437 | 21,854 | ||
113,798 | 115,415 | |||
9.2a | Staff loan | 116,446 | 118,063 | |
Allowance for impairment (Note 9.2c) | (2,648) | (2,648) | ||
113,798 | 115,415 | |||
For loans and receivables exceeding 12 months, the estimated fair values of the loans and receivables are the discounted amount of the estimated future cash flows expected to be received. Expected cash flows are discounted factor at current market rates to determine fair value. For loans and receivables with maturity period of below 12 months, no discounting was applied.
9.2c | Movement on the provision for impaired loans and receivables | are as follows : | ||
Group | Staff loan | Total | ||
N'000 | N'000 | |||
At beginning of year Provision for impairment Provision no longer required Amount written off during the year as uncollectible | 2,648 - - | 2,648 - - - | ||
Unused amount reversed | 2,648 | - | 2,648 | |
Company | Staff loan | Total | ||
N'000 | N'000 | |||
At beginning of year Provision for impairment Provision no longer required Amount written off during the year as uncollectible | 2,648 - | 2,648 - - - | ||
Unused amount reversed | 2,648 | - | 2,648 | |
Company | Company | |||
30 June 2019 | 31 December 2018 | |||
9.3 | Available for sale investment | N'000 | N'000 | |
Listed | - | 119,632 | ||
Unlisted | 96,591 | 96,591 | ||
96,591 | 216,223 | |||
Due within 12 months | - | - | ||
Due after 12 months 96,591 216,223
96,591 216,223
The Group investment in unquoted equity financial instrument could not be fair valued as there were no observable data for which the entity could be fair valued,the carrying amount was based on cost less impairment.
The quoted equity financial instrument are measured at market value,the cummulative gain or loss are recognised in other comprehensive income.
Company | Company | ||
30 June 2019 | 31 December 2018 | ||
10 TRADE RECEIVABLES | N'000 | N'000 | |
Due from agents | - | - | |
Due from brokers Due from Reinsurance companies | 2,010,487 - | 1,812,755 - | |
2,010,487 | 1,812,755 | ||
Allowance for impairment (Note 10.1) | |||
(1,600,191) | (1,600,191) | ||
410,296 | 212,564 | ||
Due within 12months Due after 12 months | 410,296 - | 212,564 - | |
410,296 | 212,564 |
10.1 Movement on the allowance for impairment of receivables arising out of direct insurance arrangements are as follows:
Group | Company | ||
N'000 | N'000 | ||
At beginning of year Provision for impairment Provision no longer required Amount written off during the year as uncollectible | 1,761,753 - - - | 1,600,191 - - - | |
At end of period | 1,761,753 | 1,600,191 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019 | ||
30 June 2019 | 31 December 2018 | |
11 REINSURANCE ASSETS | N'000 | N'000 |
Prepaid reinsurance (note 11.1) | 258,355 | 258,355 |
Reinsurance recoverable | 780,154 | 780,154 |
Prepaid M&D Deposit - Re-Insurance 7,250 14,500
1,045,758 1,053,008
Due within 12months 758,357 772,893
Due after 12 months 287,401 287,401
1,045,758 1,060,294
11.1 | Movement in prepaid reinsurance | ||
At beginning of year | 263,355 | 414,250 | |
Additions during the year | 1,008,732 | 1,306,613 | |
Amortisation during the year (413,652) (1,457,508)
At end of period 858,435 263,355
There were no indicators of impairment for re-insurance assets.Therefore ,no impairment allowance is required in respect of these assets.The carrying amounts disclosed above is in respect of the reinsurance contracts which approximate the fair value at the reporting date.
Company Company
OTHER RECEIVABLES AND PREPAYMENTS
30
June 2019
31
December 2018
Accrued income (Note 12.2) 19,477 19,477
Prepayment (Note 12.2) 107,059 108,711
Other receivables (Note 12.1) 1,417,983 1,418,220
1,544,519 1,546,408
Due within 12months 1,544,519 1,546,408
Due after 12 months - -
1,544,519 1,546,408
Other receivables
Stock- consumables - -
Deposit for assets - -
Other sundry debtors 1,502,816 1,506,053 1,502,816 1,506,053
Allowance for impairment (Note 9.2c) (84,833) (87,833)
1,417,983 1,418,220
The movement in other receivables and prepayments may be summarised as follows:
Group Other
receivables Total
N'000 N'000
At beginning of year 1,506,053 1,646,573
Additions 588 588
Realisation (3,824) (3,824)
Expensed during the year - -
At end of period 1,502,816 1,643,336
Company Other
receivables Total
N'000 N'000
At beginning of year 1,506,053 1,634,241 Additions 588 588
Realisation (3,824) (3,824)
Expensed during the year - -
Allowance for impairment -
At end of period 1,502,816 1,631,004
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019
30
June 2019
31
December 2018
13 DEFERRED ACQUISITION COST
At begining of year
157,229
161,135
Additions during the year
290,828
690,078
Amortisation during the year
(273,083)
(693,984)
At end of period
174,974
157,229
Due within 12months
174,974
157,229
Due after 12 months - -
174,974 157,229
INVESTMENT IN SUBSIDIARY
The following table illustrates the summarized financial information of the company's investment in Staco Sierra Leone Limited
Share of the Subsidiary's statement of financial position:
Assets | - | 920,134 | |||
Liabilities | - | - | 733,504 | ||
Equity | - | 186,630 | |||
Share of Subsidiary's reserves and | 156,741 | ||||
profit or loss: | |||||
Contingency reserve | - | 41,746 | |||
Retained earnings | - | 99,561 | |||
- | 141,307 | ||||
Carrying amount of the investment | 327,937 | 327,937 | |||
14.2 | Appreciation/(Diminition) in investment | ||||
Carrying amount of the investment | 327,937 | 327,937 | |||
Cost of investment | 74,733 | 74,733 | |||
Appreciation in investment | 253,204 | 253,204 |
This represents 60% holding in the ordinary share capital of Staco Sierra Leone Limited, a subsidiary incorporated and operating in Sierra Leone
15 | INVESTMENT PROPERTIES At 1 January | 1,520,000 | 1,520,000 | |
Addition during the year Revaluation surplus (Note 28c) | - - | - - | ||
At end of period | 1,520,000 | 1,520,000 | ||
Cost/Valuation at 30 September, 2018 is represented by: | ||||
Valuation | 495,000 | 495,000 | ||
Cost | 1,025,000 | 1,025,000 | ||
1,520,000 | 1,520,000 |
Investment properties are carried at fair value which are determined by independent professional valuers
.The determination of fair value of the investment properties was supported by market evidence. The modalities and process utilized extensive analysis of market data and other sector specific peculiarities corroborated with available database derived from previous experience.
The investment property is a landed property held for the purpose of capital appreciation.It is a bare land located at No 13 Glover Road ,Ikoyi in Eti Osa Local Government Area of Lagos State.
The property was independently valued by Dennis Osamudiame (FRC/2013/NIESV/00000003727) for Dennis Osamudiame & Co on 13th December 2017 at N1,520,000,000(2015 : N1,520,000,000) on the basis of open market value .
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019
30 June 2019 | 31 December 2018 |
16 DEFERRED TAX ASSETS | N'000 N'000 |
At 1 January 2019 | - - |
Charge for the period | - - |
At 30 June 2019 | - - |
The movement in defered income tax liabilities during the year is as follows: | |
16.1 DEFERRED TAX LIABILITY | N'000 N'000 |
At 1 January 2019 | 98,050 98,050 |
Charge for the period | - - |
At 30 June 2019 | 98,050 98,050 |
The movement in defered income tax liabilities during the year is as follows: |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019
17 | LEASED ASSETS -Company | Furniture | |||||
Fittings and | Motor | ||||||
Cost | equipment N'000 | Vehicle N'000 | TOTAL N'000 | ||||
At 1 January 2019 Additions | - - | 592,767 - | 592,767 - | ||||
At 30 June 2019 | - | 592,767 | 592,767 | ||||
Accumulated depreciation At 1 January 2019 | - | 424,034 | 424,034 | ||||
Charge for the period | - | 22,057 | 22,057 | ||||
At 30 June 2019 | - | 446,091 | 446,091 | ||||
Carrying value | |||||||
At 30 June 2019 | - | 146,676 | 146,676 | ||||
At 31 December 2018 | - | 168,733 | 168,733 | ||||
STACO INSURANCE PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019
18 PROPERTY, PLANT AND EQUIPMENT -Company
Land and Building | Plant and Machinery | Furniture Fittings and equipment | Motor Vehicle | Work in Progress | TOTAL | |
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |
Cost | ||||||
At 1 January 2019 2,220,609 297,903 | 1,082,351 | 1,524,161 | 4,226 | 5,129,250 | ||
Additions - 188 | 1,458 | 700 | - | 2,346 | ||
Disposal -
Revaluation surplus (Note 27d) -At 30 June 2019 2,220,609 298,091 1,083,809 1,524,861 4,226 5,131,596
Accumulated depreciation | ||||||
At 1 January 2019 | 68,801 | 159,012 | 702,979 | 1,400,801 | - | 2,331,594 |
Charge for the period | 17,200 | 30,951 | 42,127 | 30,951 | - | 121,228 |
Disposal -At 30 June 2019 86,001 189,962 745,106 1,431,752 - 2,452,821
Carrying value
At 30 June 2019 2,134,608 108,128 338,703 93,109 4,226 2,678,774
At 31 December 2018 2,151,808 0 138,891 379,371 123,360 4,226 2,797,656
Cost/Valuation at 31 January, 2019 is represented by:
At Cost | 996,820 | 298,091 | 1,083,809 | 1,524,861 | 4,226 | 3,907,807 |
At Valuation | 1,223,789 | - - - - 1,223,789 | ||||
2,220,609 | 298,091 1,083,809 1,524,861 4,226 5,131,596 | |||||
STACO INSURANCE PLC | ||
NOTES TO THE FINANCIAL STATEMENTS | ||
FOR THE PERIOD ENDED 30 JUNE 2019 | ||
30 | 31 | |
June | December | |
2019 | 2018 | |
N'000 | N'000 | |
19 STATUTORY DEPOSIT | ||
This represents amount deposited with Central Bank of | ||
Nigeria (CBN) in accordance with section 10(3) of the Insurance Act, 2003 | 300,000 | 300,000 |
Due within 12 months | - | - |
Due after 12 months | 300,000 | 300,000 |
300,000 300,000
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