FINANCIAL HIGHLIGHTS | |||
2021 | 2020 | Growth | |
N'000 | N'000 | % | |
Major statement of financial position | |||
Total assets | 2,618,291 | 2,935,944 | (10.82) |
Shareholders' funds | (7,386,030) | (7,293,308) | 1.27 |
Major statement of comprehensive income | |||
Gross premium | 90,810 | 253,559 | (64.19) |
Net premium earned | 90,272 | 285,431 | (68.37) |
Investment income | 158 | 22,902 | (99.31) |
Other income | 124,628 | 949 | 13,035.70 |
Net underwriting and claims expenses | (60,363) | (176,886) | (65.87) |
(Loss)/profit before taxation | (87,722) | (228,804) | 61.66 |
(Loss)/profit after taxation | (92,722) | (238,804) | 61.17 |
Information per 50k ordinary share | |||
Earnings per share (kobo) | (1) | (3) | 61.17 |
Net assets (kobo) | 0 | 0 | (0.11) |
Stock exchange quotation (kobo) at 30 September | 50 | 50 | - |
Price earning ratio | (0.02) | (0.05) | - |
STATEMENT OF FINANCIAL POSITION | |||
AS AT 31 March 2021 | |||
31 | 31 | ||
March | December | ||
2021 | 2020 | ||
ASSETS | Note | N'000 | N'000 |
Cash and cash equivalents | 8 | 90,699 | 403,701 |
Financial assets | 9 | 135,994 | 137,863 |
Trade receivables | 10 | 42,991 | 40,192 |
Reinsurance assets | 11 | 443,267 | 443,267 |
Other receivables and prepayments | 12 | 10,806 | 11,256 |
Deferred acquisition cost | 13 | 26,463 | 28,399 |
Investment in subsidiary | 14 | - | - |
Investment properties | 15 | 1,520,000 | 1,520,000 |
Deffered tax assets | 16.1 | - | - |
Leased assets | 17 | 3,150 | 3,150 |
Property ,plant and equipment | 18 | 44,922 | 48,116 |
Statutory deposit | 19 | 300,000 | 300,000 |
Intangible asset Total assets | 20 | - 2,618,291 | - 2,935,944 |
LIABILITIES | |||
Insurance contract liabilities | 21 | 3,609,219 | 3,633,140 |
Financial Liabilities | 22 | 4,888,388 | 4,928,160 |
Trade payables | 23 | 341,180 | 362,506 |
Other payables | 24a | 1,002,877 | 1,147,790 |
Deferred tax liabilities | 16.1 | 98,050 | 98,050 |
Employee benefit liability | 26 | - | - |
Taxation | 27 | 64,606 59,606 | |
Total liabilities | 10,004,321 10,229,252 | ||
EQUITY | 28 | ||
Issued share capital | 28a | 4,670,544 | 4,670,544 |
Share premium | 28c | 434,164 | 434,164 |
Revaluation reserve | 28d | 1,407,622 | 1,407,622 |
Fair value reserve | 28e | - | - |
Contingency reserve | 28f | 2,295,235 | 2,292,511 |
Retained earnings | 28g | (16,193,595) | (16,098,149) |
Shareholders' funds | (7,386,030) (7,293,308) | ||
Total Liabilities and Equity | 2,618,291 2,935,944 | ||
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY : | |||
………………………………….. | …………………………………… | …………………………………… |
Jide Omotere | Bayo Fakorede | Muhammad Sidi Aliyu |
Chief Finance Officer | Ag. Managing Director | Chairman |
FRC/2013/ICAN/00000002180 | FRC/2013/CIIN/00000004099 | FRC/2020/003/00000021442 |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 MARCH, 2021
Gross Premiums written | Note 29 | 31 31 March 2021 N'000 90,810 | March 2020 N'000 253,559 |
Gross Premium Income | 29a | 99,867 | 343,061 |
Reinsurance expenses | 29b | (9,595) | (57,630) |
Net Premium Income | 29 | 90,272 | 285,431 |
Fees and Commission Income | 30 | 2,562 | 12,732 |
Net underwriting Income | 92,834 | 298,163 | |
Claims expense | 31 | (42,046) | (117,676) |
Underwriting expenses | 32 | (18,316) | (59,210) |
Net underwriting and claims expenses | (60,363) | (176,886) | |
Underwriting results | 7 | 32,471 | 121,277 |
Investment income | 33 | 158 | 22,902 |
Net realised gain/(loss) on financial assets | 34 | - | - |
Other income | 35 | 124,628 | 949 |
Operating and administrative expenses | 36 | (202,350) | (332,901) |
Interest on convertible bond | 37 | (42,629) | (41,030) |
Impairment loss on trade receivables | 38 | - | - |
Profit / (Loss) before taxation | (87,722) | (228,804) | |
Taxation | 27.1 | (5,000) | (10,000) |
Profit / (Loss) for the year | (92,722) | (238,804) | |
Other comprehensive income | |||
Net fair value gain (loss) on available for sale financial assets | 28e | - | - |
Foreign exchange translation gain/(loss) | 28f | - | - |
Gain/(Loss) on investment in subsidiary | - | - | |
Total comprehensive income/(loss) for the year | (92,722) | (238,804) | |
Profit/(Loss) attributable to: | |||
Owner of equity | (92,722) | (238,804) | |
Non controlling interest | - | - | |
(92,722) | (238,804) | ||
Total comprehensive income/(loss) attributable to : | |||
Owner of equity | (92,722) | (238,804) | |
Non controlling interest | - | - | |
(92,722) | (238,804) | ||
Earning per share(kobo) | |||
- Actual | (1) | (3) | |
- Adjusted | (1) | (3) |
STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH, 2021
Share | Share | Revaluation | Fair value (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 2020 | 4,670,544 | 434,164 | 1,595,299 | 333,904 | 2,276,213 | (12,794,408) | (3,484,283) |
Total comprehensive income for the year | - | - | - | - | - | - | - |
Issue of share capital | - | - | - | - | - | - | - |
Transfer to contigency reserve | - | - | - | - | 7,607 | (7,607) | - |
Transfer from (to) retained earning | - | - | - | - | - | (238,804) | (238,804) |
Dividend | - | - | - | - | - | - | - |
Revaluation surplus -
Balance as at 31 March 2020 4,670,544
Balance as at 1 January 2021 4,670,544
- - (187,677)
- | (187,677) | - |
434,164 | 1,407,622 | 333,904 |
434,164 | 1,407,622 | - |
2,283,820 (13,040,819) (3,910,764)
2,292,511 (16,098,149) (7,293,308)
Total comprehensive income for the | ||||||
year | - | - | - | - - | - | - |
Issue of share capital | - | - | - | - - | - | - |
Transfer to contigency reserve | - | - | - | - 2,724 | (2,724) | - |
Transfer from (to) retained earning | - | - | - | - - | (92,722) | (92,722) |
Dividend | - | - | - | - - | - | - |
Revaluation surplus | - | - | - | - - | - | - |
Balance as at 31 March 2021 | 4,670,544 434,164 1,407,622 - 2,295,235 (16,193,595) | (7,386,030) | ||||
STACO INSURANCE PLC | |||
STATEMENT OF CASH FLOWS | |||
FOR THE PERIOD ENDED 31 MARCH, 2021 | |||
31 | 31 | ||
March | March | ||
2021 | 2020 | ||
Cash flow from operating activities | Note | N'000 | N'000 |
Premium received from policy holders | 90,810 | 247,745 | |
Reinsurance receipts in respect of claims | 1,489 | 183,360 | |
Reinsurance cost | (9,595) | (54,394) | |
Cash paid to and on behalf of employees | (102,217) | (130,868) | |
Other operating cash payments/receipts | (193,555) | (172,879) | |
Commission paid | (7,462) | (14,378) | |
Claims paid Tax paid | (58,427) - | (206,742) - | |
Net cash provided by operating activities | 44 | (278,956) | (148,156) |
Cash flow from investing activities Purchase of property,plant and equipment | 18 | (600) | (955) |
Purchase of intangible asset Fund placement proceed | - 5,667 | - 9,775 | |
Dividend received | - | - | |
Interest received | 158 | 22,902 | |
Proceeds from sales of assets | 500 | 60 | |
Net cash provided by investing activities | 5,725 | 31,781 | |
Cash flow from financing activities Change in borrowings | (39,771) 0 | 119,746 | |
Proceeds from issue of share capital Repayment of finance lease liabilities | - - | - - | |
Net cash used in financing activities | (39,771) | 119,746 | |
Net increase/(decrease) in cash and cash | |||
equivalents | (313,002) | 3,371 | |
Cash and cash equivalents at the beginning of the year | |||
403,701 | 205,245 | ||
Cash and cash equivalents at the end of the year | |||
90,699 | 208,616 | ||
Represented by: | |||
Cash at bank and in hand Cashbook overdrawn | 8 | 90,699 - 90,699 | 208,616 - 208,616 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021
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 31 March 2021 is as follows:
ASSETS:
ADMISSIBLE | IN ADMISSIBLE | TOTAL | |||
N'000 | N'000 | N'000 | |||
Cash and cash equivalents | 90,699 | - | 90,699 | ||
Financial assets | 135,994 | - | 135,994 | ||
Insurance receivables | 42,991 | 42,991 | |||
Reinsurance assets | 443,267 | - | 443,267 | ||
Other receivables | - | 10,806 | 10,806 | ||
Deferred acquisition cost | 26,463 | - | 26,463 | ||
Investment in subsidiary | - | - | - | ||
Investment properties and land | 1,520,000 | - | 1,520,000 | ||
Leased assets | 3,150 | 3,150 | |||
Property and equipment | 44,922 | - | 44,922 | ||
Statutory deposit | 300,000 | - | 300,000 | ||
Intangible assets Total assets | - 2,607,485 | - 10,806 | - 2,618,291 | ||
LIABILITIES | |||||
Investment contract liabilities | - | - | |||
Insurance ccontract liabilities | 3,609,219 | - | 3,609,219 | ||
Borrowings | 4,888,388 | - | 4,888,388 | ||
Trade payables | 341,180 | - | 341,180 | ||
Other payables | 1,002,877 | - | 1,002,877 | ||
Deferred tax liabilities | - | 98,050 | 98,050 | ||
Current income tax liabilities | 64,606 | - | 64,606 | ||
Total liabilities | 9,906,271 | 98,050 | 10,004,321 | ||
SOLVENCY MARGIN | (7,298,786) | ||||
MINIMUM REQUIRED | 3,000,000 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH, 2021 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 negative solvency margin of N7,298,785.76 and a solvency ratio of (243.29)%
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH, 2021
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 31 March, 2021 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 | 26,386 | 17,400 | 28,488 | 1 | 14,652 | - | 2,798 | 1,085 | 90,810 | |
Gross premium income | 29,052 | 26,788 | 37,274 | (27) | 4,514 | 5 | 749 | 1,512 | 99,867 | |
Re-insurance expenses | (5,965) | - | - | - | (1,967) | - | (308) | (1,354) | (9,595) | |
Net premium income | 23,087 | 26,788 | 37,274 | (27) | 2,547 | 5 | 440 | 158 | 90,272 | |
Fee Income and commission | 1,491 | - | - | - | 538 | - | 93 | 440 | 2,562 | |
Investment returns | - | |||||||||
Net underwritting income | 24,579 | 26,788 | 37,274 | (27) | 3,085 | 5 | 533 | 598 | 92,834 | |
Claim expenses(Gross) | (3,260) | (4,467) | (5,105) | (44,454) | (587) | - | - | (553) | (58,427) | |
Insurance claims recovered / recoverable from reinsurers | (3,366) | (8,000) | 34,087 | 162 | (9,027) | - | 5,523 | (3,000) | 16,380 | |
Net insurance benefits and claims | (6,625) | (12,467) | 28,982 | (44,292) | (9,614) | - | 5,523 | (3,553) | (42,046) | |
Underwriting expenses | (6,305) | (5,372) | (4,644) | 6 | (1,565) | - | (129) | (306) | (18,316) | |
Total expenses | (12,931) | (17,839) | 24,338 | (44,286) | (11,179) | - | 5,393 | (3,859) | (60,363) | |
Reportable segment profit | 11,648 8,949 61,613 | (44,314) | (8,094) | 5 | 5,926 | (3,261) | 32,471 | |||
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH, 2021
SEGMENT INFORMATION CONT'D- COMPANY
The segment information provided by Management for the reporting segments for the year ended 31 March, 2020
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 | 60,851 40,879 | 92,708 5,630 33,458 1,492 | 8,075 | 10,466 253,559 | |||||||||||
Gross premium income | 89,214 | 42,358 | 154,303 | 25,731 | 12,542 | 1,499 | 1,850 | 15,564 | 343,061 | ||||||
Re-insurance expenses | (24,282) | - | (6,902) | (17,820) | (6,149) | - | (618) | (1,103) | (56,875) | ||||||
Net premium income | 64,932 | 42,358 | 147,401 | 7,911 | 6,393 | 1,499 | 1,232 | 14,462 | 286,186 | ||||||
Fee Income and commission | 5,234 | - | 1,155 | 4,261 | 1,562 | - | 177 | 343 | 12,732 | ||||||
Investment returns | - | - | - - | - - | - | - | - | ||||||||
Net underwritting income | 70,166 42,358 | 148,556 12,171 7,955 1,499 | 1,409 | 14,804 298,918 | |||||||||||
Claim expenses(Gross) | (5,579) | (11,983) | (23,095) | (162,989) | (1,934) | (1,127) | - | (37) | (206,742) | ||||||
Insurance claims recovered from reinsurers | (6,963) | (9,812) | 2,712 170,667 (67,602) | 310 | - | 853 90,166 | |||||||||
Net insurance benefits and claims | (12,542) | (21,795) | (20,383) | 7,679 | (69,535) | (816) | - | 816 | (116,576) | ||||||
Underwriting expenses | (15,093) | (8,757) | (19,077) | (6,076) (6,081) | (457) | (455) | (3,214) | (59,210) | |||||||
Total expenses | (27,635) | (30,551) | (39,461) | 1,603 (75,616) | (1,273) | (455) | (2,398) | (175,786) | |||||||
Reportable segment profit | 42,531 | 11,806 | 109,095 13,774 (67,662) | 226 | 954 | 12,406 | 123,132 | ||||||||
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021 | ||
31 | 31 | |
March | December | |
2021 | 2020 | |
N'000 | N'000 | |
8 CASH AND CASH EQUIVALENTS | ||
Cash in hand | 504 | 48 |
Due from banks and other financial institutions (note 8.1) | 90,195 | 403,653 |
90,699 | 403,701 | |
8.1 Due from banks and other financial institutions | ||
Balances held with banks | 15,750 | 323,541 |
Placement with banks | 74,445 | 80,112 |
90,195 | 403,653 | |
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) | ||
90,699 | 403,701 | |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021
31 | 31 | |||
March | December | |||
2021 | 2020 | |||
N'000 | N'000 | |||
9 | FINANCIAL ASSETS The group financial assets are summarised below by measurement category : Held to maturity (Note 9.1) | 24,757 | 24,757 | |
Loans and receivables (Note 9.2) | 14,646 | 16,516 | ||
Available for sale financial asset (Note 9.3) | 96,591 | 96,591 | ||
135,994 | 137,863 | |||
9.1 | Held to maturity Government securities | 19,078 | 19,078 | |
Treasury bills | 5,679 | 5,679 | ||
24,757 | 24,757 | |||
Due within 12 months Due after 12 months | -24,757 | -24,757 | ||
24,757 | 24,757 | |||
There are no impaired held to maturity investments at 31 | ||||
March 2021 (2020 nil) | ||||
9.2 | Loan and receivables Staff loan | 14,646 | 16,516 | |
14,646 | 16,516 | |||
14,646 | 16,516 | |||
Due within 12 months | 709 | 2,578 | ||
Due after 12 months | 13,937 | 13,937 | ||
14,646 | 16,516 | |||
9.2a | Staff loan | 111,836 | 113,705 | |
Allowance for impairment (Note 9.2c) | (97,190) | (97,190) | ||
14,646 | 16,516 | |||
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.
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021
9.2b Movement on the provision for impaired loans and receivables are as follows :
Company Staff loan Total
N'000 | N'000 | |
At beginning of year | 97,190 | 97,190 |
Provision for impairment | - | - |
Provision no longer required | - |
Amount written off during the year as uncollectible -Unused amount reversed 97,190 - 97,190
31 | 31 | |
March | December | |
2021 | 2020 | |
N'000 | N'000 | |
9.3 Available for sale investment | ||
Listed | - | - |
Unlisted | 96,591 | 96,591 |
96,591 | 96,591 | |
Due within 12 months | - | - |
Due after 12 months | 96,591 | 96,591 |
96,591 | 96,591 |
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.
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021 | |||
31 | 31 | ||
March | December | ||
2021 | 2020 | ||
N'000 | N'000 | ||
10 TRADE RECEIVABLES | |||
Due from agents | - | - | |
Due from brokers | 2,343,778 | 2,340,979 | |
Due from Reinsurance companies | - | - | |
2,343,778 | 2,340,979 | ||
Allowance for impairment (Note 10.1) | |||
(2,300,787) | (2,300,787) | ||
42,991 | 40,192 | ||
Due within 12months | 42,991 | 40,192 | |
Due after 12 months | - | - | |
42,991 | 40,192 | ||
N'000
At beginning of year 2,300,787
Provision for impairment -
Provision no longer required -
Amount written off during the year as uncollectible -
At end of period 2,300,787
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021
31 | 31 | |
March | December | |
2021 | 2020 | |
11 REINSURANCE ASSETS | N'000 | N'000 |
Prepaid reinsurance (note 11.1) | 79,070 | 79,070 |
Reinsurance recoverable | 133,479 | 133,479 |
Reinsurance Projection on IBNR | 230,718 | 230,718 |
Prepaid M&D Deposit - Re-Insurance | - | 0 |
443,267 | 443,267 | |
Due within 12months | 155,866 | 155,866 |
Due after 12 months | 287,401 | 287,401 |
443,267 | 443,267 | |
11.1 Movement in prepaid reinsurance At beginning of year | 79,070 | 258,355 |
Additions during the year | 9,595 | 644,232 |
Amortisation during the year | (9,595) | (823,516) |
At end of period | 79,070 | 79,070 |
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.
31 | 31 | |||
March | December | |||
2021 | 2020 | |||
12 OTHER RECEIVABLES AND | ||||
PREPAYMENTS | ||||
Accrued income (Note 12.2) | - | - | ||
Prepayment (Note 12.2) | 6,156 | 6,607 | ||
Other receivables (Note 12.1) | 4,650 | 4,650 | ||
10,806 | 11,256 | |||
Due within 12months | 10,806 | 11,256 | ||
Due after 12 months | - | - | ||
10,806 | 11,256 | |||
12.1 Other receivables | ||||
Stock- consumables | - | - | ||
Deposit for assets | - | - | ||
Other sundry debtors | 2,303,198 | 2,303,198 | ||
2,303,198 | 2,303,198 | |||
Allowance for impairment (Note 9.2c) | (2,298,548) | (2,298,548) | ||
4,650 | 4,650 | |||
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021 | |||
31 | 31 | ||
March | December | ||
2021 | 2020 | ||
13 DEFERRED ACQUISITION COST At begining of year | 28,399 | 62,171 | |
Additions during the year | 13,754 | 104,246 | |
Amortisation during the year | (15,690) | (138,018) | |
At end of period | 26,463 | 28,399 | |
Due within 12months | 26,463 | 28,399 | |
Due after 12 months - -
- 26,463 - 28,399
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 - -
Liabilities - -
Equity - -
Share of Subsidiary's reserves and -
profit or loss:
Contingency reserve - -
Retained earnings - -
- -
Carrying amount of the investment - -
Appreciation/(Diminition) in investment
Carrying amount of the investment - -
Cost of investment - -
Appreciation in investment - -
This represents 60% holding in the ordinary share capital of Staco Sierra Leone Limited, a subsidiary incorporated and operating in Sierra Leone
Disposal of Investment in Subsidiary
Carrying amount of the investment - 284,451
Fair value reserve 209,718
74,733
Disposal/Proceed of Investment - 279,685
Gain/(Loss) on Disposal of Investment - 204,952
INVESTMENT PROPERTIES
At 1 January 1,520,000 1,520,000
Addition during the year - -
Revaluation surplus - -
At end of period 1,520,000 1,520,000
Cost/Valuation at 31 March, 2021 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.
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 202116 DEFERRED TAX ASSETS | 31 March 2021 N'000 | 31 December 2020 N'000 | |
At 1 January | - | - | |
Charge for the period At 31 March 2021 | - - | - - | |
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 | 98,050 | 98,050 | |
Charge for the period | - | - | |
At 31 March 2021 | 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 31 MARCH, 2021
17 | LEASED ASSETS | Furniture | |||||
Fittings and | Motor | ||||||
Cost | equipment N'000 | Vehicle N'000 | TOTAL N'000 | ||||
At 1 January 2021 Additions Disposal | - - - | 71,150 - - | 71,150 - - | ||||
At 31 March 2021 | - | 71,150 | 71,150 | ||||
Accumulated depreciation At 1 January 2021 | - | 68,000 | 68,000 | ||||
Charge for the period Disposal | - - | - - | - - | ||||
At 31 March 2021 | - | 68,000 | 68,000 | ||||
Carrying value | |||||||
At 31 March 2021 | - | 3,150 | 3,150 | ||||
At 31 December 2020 | - | 3,150 | 3,150 | ||||
STACO INSURANCE PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021
18 PROPERTY, PLANT AND EQUIPMENT | ||||||
Furniture | ||||||
Land and | Plant and | Fittings and | Motor | Work in | ||
Building | Machinery | equipment | Vehicle | Progress | TOTAL | |
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |
Cost | ||||||
At 1 January 2021 | - | 32,254 | 362,090 | 1,236,869 | - | 1,631,212 |
Additions | - | - | 600 | - | - | 600 |
Reclassification | - | - | - | |||
Disposal | (285) | (285) | ||||
Revaluation surplus (Note 27d) -At 31 March 2021 - 32,254 362,405 1,236,869 - 1,631,527
Accumulated depreciation | ||||||
At 1 January 2021 | - | 21,463 | 338,785 | 1,222,849 | - | 1,583,097 |
Charge for the period | - | 394 | 1,347 | 1,767 | - | 3,508 |
Disposal -At 31 March 2021 - 21,857 340,132 1,224,616 - 1,586,605
Carrying value
At 31 March 2021 - 10,397 22,273 12,253 - 44,922
At 31 December 2020 - 0 10,791 23,305 14,020 - 48,116
18
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 202131
March 2021
31
December
2020
N'000 N'000
19 STATUTORY DEPOSITThis represents amount deposited with Central Bank of Nigeria (CBN) in accordance with section 10(3) of the Insurance Act, 2003
300,000 300,000Due within 12 months - -
Due after 12 months 300,000 300,000
300,000 300,000
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021
31
March 2021
31
December
2020
N'000 N'000
20 INTANGIBLE ASSET | ||
Goodwill (Note 20.1) | - | - |
Software (Note 20.2) | - | - |
- | - | |
20.1 Intangible Asset - Goodwill | ||
Cost | ||
At 1 January | ||
Addition | - | - |
At 31 March 2021 | - | - |
Amortisation | ||
At 1 January | - | - |
Amortisation | - | - |
At 31 March 2021 | - | - |
Carrying value At 31 March 2021 | - | - |
20.2 Intangible Asset - Software | ||
Cost | ||
At 1 January | - | - |
Cost capitalised | - | - |
At 31 March 2021 | - | - |
Amortisation | ||
At 1 January | - | - |
Amortisation | - | - |
At 31 March 2021 | - | - |
Carrying value At 31 March 2021 | - | - |
The intangible assets of the company comprised of goodwill and computer software.The computer softwares are accounted for using the cost model of IAS 38 i.e cost less accumulated amortization and less accumulated impairment.The amortization is charged to income statement in line with the Company's policy.
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021 | ||
31 | 31 | |
March | December | |
2021 | 2020 | |
N'000 | N'000 | |
21 INSURANCE CONTRACT LIABILITIES | ||
General business (note 21.1) | 3,609,219 | 3,633,140 |
Life business (note 21.2) | - | - |
Total insurance liabilities | 3,609,219 | 3,633,140 |
Due within 12 months | 3,609,219 | 3,633,140 |
Due after 12 months | - | - |
3,609,219 | 3,633,140 | |
21.1 General business liabilities | ||
Outstanding claims provision (note 21.1a) | 2,790,641 | 2,804,178 |
Claims incurred but not reported (note 20.1b) | 647,642 | 648,969 |
Provision for unearned premium (note 21.1c) | 170,936 | 179,993 |
Total general business insurance contract liability | 3,609,219 | 3,633,140 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021 | ||
31 | 31 | |
March | December | |
2021 | 2020 | |
N'000 | N'000 | |
Outstanding claims provision - General business 21.1a | ||
Movement in outstanding claims provision | ||
At 1 January | 2,804,178 | 2,605,435 |
Claims incurred in the current year | 44,889 | 452,183 |
Claims paid during the year | (58,427) | (253,440) |
At 31 March 2021 | 2,790,641 | 2,804,178 |
Claims incurred but not reported (IBNR) provision 21.1b | ||
Movement in IBNR provision | ||
At 1 January | 648,969 | 450,563 |
Movement during the year | (1,327) | 198,406 |
At 31 March 2021 | 647,642 | 648,969 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021
21.1c | Unearned Premium | |||||
Unearned | Unearned | |||||
premium | Movement | premium | ||||
2021 | 2020 | |||||
Fire | 40,966 | (2,666) | 43,632 | |||
Engineering | 3,183 | (427) | 3,610 | |||
Motor | 65,951 | (8,786) | 74,737 | |||
General Accident | 47,466 | (9,388) | 56,854 | |||
Marine | 11,024 | 10,138 | 886 | |||
Bond | 2,347 | 2,049 | 298 | |||
Oil and gas | - | 28 | (28) | |||
Aviation | - | (5) | 5 | |||
170,936 | (9,057) | 179,993 | ||||
These provision represent the liability for short term insurance contracts for which the Group's obligations are not expired at period end,The unearned premuim provision relates to the casuality insurance contracts for which the group expect tp pay claims in excess of the related unearned premium provision.
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021 | ||
31 | 31 | |
March | December | |
2021 | 2020 | |
N'000 | N'000 | |
21.2 Life insurance liabilities | ||
Provision for outstanding claims | - | - |
Life liability (note 20.2a) | - | - |
- | - | |
21.2a The movement on the life funds account during the year was as follows : | ||
At 1 January | - | - |
Increase/(decrease) during the year | - | - |
At 31 March 2021 | - | - |
22 FINANCIAL LIABILITIES | ||
Convertible bond (Note 21.1) | 4,054,741 | 4,012,112 |
Short term loan | 833,647 | 916,047 |
4,888,388 | 4,928,160 | |
-
Convertible Bond
This represents zero coupon JPY 1,200,000,000 direct, unconditional, unsubordinated and unsecured European bond with option issued on 9 November, 2007 to Daewoo Securities Europe Limited. The Bonds were issued with the option to subscribe for the ordinary Shares of the company with a yield of 4.25% per annum while the tenor of the convertible option is valid up to year 2029.
As 1 January 4,012,112 3,861,668
Movement during the year(Note 22.2) 42,629 150,444 At 31 March 2021 4,054,741 4,012,112
-
Movement during the year
Interest and default charges on the bond 42,629 150,444 Exchage gain / loss - -
Payments during the year - -Provision no longer required - -
42,629 150,444
Short term loan 833,647 916,047
23 | TRADE PAYABLES | |||
Insurance companies | 41,485 | 41,485 | ||
Reinsurance payables (Note 23.1) | 299,695 | 321,021 | ||
341,180 | 362,506 | |||
23.1 | Reinsurance payables | |||
Reinsurance premium payable | 299,695 | 321,021 | ||
Minimum deposit payable | - | - | ||
299,695 | 321,021 | |||
24a | OTHER PAYABLES | |||
Lease obligation | 22,098 | 22,098 | ||
Accruals | 139,144 | 268,099 | ||
Other creditors (note 24.1) | 841,635 | 857,593 | ||
1,002,877 | 1,147,790 | |||
24.1 | The breakdown of other creditors is as below: | |||
Tax payables | - | - | ||
Unclaimed Dividend | 46,111 | 46,111 | ||
Other payables | 795,524 | 811,481 | ||
841,635 | 857,593 | |||
The carrying amounts disclosed above approximate the fair value at the reporting date.All amount are payable within one year. | ||||
Due within 12 months | 841,635 | 857,593 | ||
Due after 12 months | - | - | ||
841,635 | 857,593 | |||
31
March 2021
31
December
2020
N'000 N'000
26 EMPLOYEE BENEFIT LIABILITY Gratuity schemeThe Group has a post emploment benefit scheme which is not funded
The movement in the defined benefit obligation over the year is as follows:
At beginning of year - -
Current service cost
Benefits paid - -
At 31 March 2021 - -
Due within 12 months - -
Due after 12 months - -
- -
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 202131 | 31 | ||
March | December | ||
2021 | 2020 | ||
N'000 | N'000 | ||
27 TAXATION | |||
27.1 Charge Income | 5,000 | 10,000 | |
Education tax Tax audit/Prior year under provision Technology tax | - | - | |
5,000 | 10,000 | ||
Deferred tax (note 15) - -
Charge for the period 5,000 10,000
27.2 Tax liabilityThe movement on tax payable account during the year is as follows:
At 1 January 59,606 49,606
Payments during the year - -Charge for the period 5,000 10,000
At 31 March 2021 64,60659,606
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 2021
31
March 2021
31
December
2020
N'000 | N'000 | |||
28 | EQUITY | |||
28a | Share capital | |||
Authorised | ||||
9 billion(2012 -7 billion) ordinary shares of 5ok each 6,500,000 6,500,000 | ||||
Issued and fully paid | ||||
9,341,087,609 units of ordinary shares of 50k each 4,670,544 4,670,544 | ||||
At 1 January | 4,670,544 | 4,670,544 | ||
Issued during the year | - | - | ||
At 31 March 2021 | 4,670,544 | 4,670,544 | ||
28c | Share premium | 434,164 | 434,164 | |
Premium arising from the issue of shares are reported in the | ||||
share premium account. | ||||
28d | Revaluation reserve | |||
At 1 January | 1,407,622 | 1,407,622 | ||
Addition during the year (Note 18) | - | - | ||
Disposal during the year | - | - | ||
At 31 March 2021 | 1,407,622 | 1,407,622 | ||
Under current regulations, assets revaluation reserve is not available for distribution to shareholders either as dividends or bonus shares.
No provision was made for deferred capital gains tax as the property is not meant for sale in the foreseeable future.
28e Fair value reserves
At the beginning of the year - 206,827
Additions during the year - -
Appreciation on investment in Subsidiary(Note 14.2) - (206,827)
At end of the period - -
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH, 202131
March 2021
31
December
2020
N'000 N'000
28f Contingency reserveIn accordance with the Insurance act, a contigency reserve is credited with the greater of 3% of total premiums or 20% of profits for general business and 1% of total premiums or 10% of profits for life business. This shall accumulate until it reaches the amount of greater of minimum paid- up capital or 50 percent of net premium.
At the beginning of the year | 2,292,511 | 2,272,197 | ||
Transfer from profit and loss | 2,724 | 20,314 | ||
At end of the Period | 2,295,235 | 2,292,511 | ||
28g | Retained Earnings | |||
General reserve consist of undistributed profits from previous years. | ||||
At the beginning of the year | (16,098,149) | (15,436,062) | ||
Transfer from profit and loss | (92,722) | (641,773) | ||
Transfer to contingency reserve Revaluation of investment assets | (2,724) - | (20,314) - | ||
At end of the year | (16,193,595) | (16,098,149) | ||
Translation reserve (Note 28f(i)) | - | - | ||
(16,193,595) | (16,098,149) |
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