STACO INSURANCE PLC
CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
STACO INSURANCE PLC
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
TABLE OF CONTENT | Pages |
Corporate information | 1 |
Consolidated financial highlighlights | 4 |
Directors' report | 5 |
Certification pursuant to section 60(2) of investment Act No 29 of 2007 | 8 |
Responsibilities of directors | 9 |
Management comments and analysis | 10 |
Report of the Audit and Compliance Committee | 12 |
Independent auditors report | 13 |
Summary of significant accounting policies | 18 |
Consolidated and separate statement of financial position | 49 |
Cosolidated and separate statement of profit or loss and other comprehensive income | 50 |
Consolidated and separate statement of changes in equity | 51 |
Consolidated and separate statement of cash flows | 53 |
Notes to the consolidated financial statements | 54 |
Other national disclosures: | |
Statement of value added - Group | 121 |
Statement of value added - Company | 122 |
Financial summary - Group | 123 |
Financial summary - Company | 125 |
STACO INSURANCE PLC
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
CORPORATE INFORMATION
Incorporation Certificate | - RC 167274 of 10 October, 1994 |
Nature of business | The principal activity of the Company is underwriting of Non-life |
insurance business while its subsidiary is engaged in the underwriting | |
of Life and Non-life insurance businesses. | |
Directors: | |
Mr. Muhammad Sidi-Aliyu | - Group Chairman |
Mr. Omotola Talabi | - Chairman, Finance, Investment and General Purpose Committee |
Member, Enterprise Risk Management and Governance Committee | |
Ms Helen Emore | - Chairman, Enterprise Risk Management and Governance Committee |
Member, Finance, Investment and General Purpose Committee | |
Prince Sam Turoti | - Member, Enterprise Risk Management and Governance Committee |
Member, Finance, Investment and General Purpose Committee | |
Mr. Bayo Fakorede | - Ag. Group Managing Director/CEO |
Mr. Tayo Ajibulu | - Executive Director (Management Services) |
Mr. Sakiru Oyefeso | - Director |
Registered Office/Head Office
209, Herbert Macaulay Way, Ebute-Metta, Sabo, Yaba, Lagos State.
Tel: (234) 01 - 7741181, 7740571, 4758852 - 3 Fax: 013425466
E-mail: info@stacoplc.com
Lagos Control Office
292F, Ajose Adeogun Street, Victoria Island, Lagos
Branch Manager: Mr. Shogo Mojeed
Tel No: 017410184
Mobile No: 08023187896
Group Secretary
Jackson, Etti & Edu
3-5, Sinari Daranijo Street, Off Ajose Adeogun Street,
Victoria Island, Lagos State.
Legal Adviser
Idowu Sofola and Co. 4/5 Floor, Ereke House,
Plot 15 CIPM Road, Alausa Road,
Ikeja, Lagos State.
Ikeja Branch
Skymit Compound
32, Mobolaji Bank Anthony Way, Ikeja, Lagos State.
Branch Manager: Mr Adebisi Adewale
Tel No: 012806996 Mobile No: 08033206806
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STACO INSURANCE PLC
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
CORPORATE INFORMATION - Cont'd
Ibadan Branch
49, Ring Road, by Ajeigbe B/Stop, Ibadan, Oyo State. Branch Manager: Mr. Oyekan Adesina
Mobile No: 08033448216
Abeokuta Branch
23, Quarry Road, Ibara, Abeokuta, Ogun State.
Branch Manager. Sola Osiberu
Mobile No: 08036710286
Ilorin Branch
170, Ibrahim Taiwo Road, Ilorin, Kwara State.
Branch Manager: Taiwo Ayanbadejo
Mobile No: 08037222882
Akure Branch
1st Floor, BOI House (left wing), Opp. Olam Nig. Ltd, Ado/Owo Road, Alagbaka, Akure, Ondo State.
Branch Manager: Mr. Ayedogbon Olanipekun
Mobile Nos: 08035746695
Abuja Branch
118, Aminu Kano Crescent, Wuse, Abuja.
Regional Head: Mr. Joseph Adebayo
Mobile Nos: 08033454504
Kano Branch
36, Ibrahim Taiwo Road, Kano,
Kano State.
Branch Manager: Mr. Wahab Adelekan
Mobile No: 09032678677
Kaduna Branch
4, Constitution Road, Kaduna State.
Branch Manager: Mr. Sunday Otusami
Mobile No: 08023005225
Port Harcourt Branch
31, King Perekule Street, G.R.A. Phase II, Port Harcourt, Rivers State. Branch Head: Mr Idowu Osikoya
Mobile No: OB037323770
Uyo Branch
174, Ikot-Ekpene Road,
Uyo, Akwa Ibom State.
Branch Manager: Mr. Friday Meme Nike
Mobile No: 08060741263
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STACO INSURANCE PLC
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
CORPORATE INFORMATION - Cont'd
Warri Branch
255, Effurun/Sapele Road, Efurun, Delta State.
Branch Manager: Mr Mene Otubu
Mobile No: 08033247681, 07029954959
Aba Branch
143, Azikwe Road, Aba, Abia State.
Branch Manager: Mr Charles Iheagwara
Mobile No: 07029322563
Enugu Branch
111, Chime Avenue, 2nd Floor, New Haven Zanda's Plaza, Enugu State. Branch Manager: Mr. Henry Ugweje
Mobile No: 08113890096
Bankers
First Bank of Nigeria Ltd
Wema Bank Plc
Ecobank Plc
Access Bank Plc
United Bank for Africa Plc
Zenith Bank Plc
Auditors
PKF Professional Services
PKF House, 205A, Ikorodu Road, Obanikoro, Lagos State.
Office Tel: +234 9030001351
www.pkf-ng.com
Registrar
First Registrars Limited
Plot 2, Abebe Village Road, Iganmu, Lagos State
Lagos Tel: 0127991334
Mobile No: 08023795612
Email:firstregistrarsnigeria@yahoo.com
Contact person: Mr Yaya Lawal
Reinsurers
African Reinsurance Corporation
Continental Reinsurance Plc
WAICA Reinsurance Pool
Nigeria Reinsurance Corporation
Actuary
Logic Professional Services
Rear Wing, 4th Floor, Oshopey Plaza, 17/19, Allen Avenue, Ikeja, Lagos State.
Investors/Shareholders Relations:
Amos Olalere (Mobile 08027574933)
Tayo Ajibulu (Mobile 08023154582)
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STACO INSURANCE PLC
CONSOLIDATED FINANCIAL HIGHLIGHTS
Group | Company | ||||||||
2018 | 2017 | Growth | 2018 | 2017 | Growth | ||||
₦'000 | ₦'000 | % | ₦'000 | ₦'000 | % | ||||
Major statement of financial | |||||||||
position | 4,965,621 | 3,788,533 | |||||||
Total assets | 9,572,604 | (48.13) | 8,620,631 | (56.05) | |||||
Shareholders' funds | (6,642,726) | 443,648 | (1,597.30) | (6,445,498) | 258,250 | (2,595.84) | |||
Major statement of profit or | |||||||||
loss and other | |||||||||
comprehensive income | 5,186,631 | 4,252,855 | |||||||
Gross premium | 5,753,037 | (9.85) | 5,224,762 | (18.60) | |||||
Net premium earned | 4,046,074 | 4,499,633 | (10.08) | 3,214,257 | 3,874,917 | (17.05) | |||
Net underwriting income | 4,311,830 | 4,753,416 | 3,461,430 | 4,112,573 | |||||
Net underwriting and claims | |||||||||
expenses | (3,862,613) | (2,961,885) | 30.41 | (3,442,786) | (2,991,917) | 15.07 | |||
Investment income | 225,141 | 229,184 | (1.76) | 117,012 | 182,463 | (35.87) | |||
Other income | 116,402 | 482,340 | (75.87) | 43,173 | 419,323 | (89.70) | |||
Loss before tax | (6,275,308) | (2,496,836) | (151) | (6,396,375) | (2,923,249) | (118.81) | |||
Loss after tax | (6,528,334) | (2,602,382) | (151) | (6,552,293) | (2,958,249) | (121.49) | |||
Information per 50k | |||||||||
ordinary share | (76) | (72) | |||||||
Loss per share (kobo) | (28) | (171) | (30) | (138.31) | |||||
Net assets (kobo) | 0.53 | 1.02 | (48.13) | 0.41 | 0.92 | (0.56) | |||
Stock exchange quotation | |||||||||
(kobo) at 31 December | 48 | 50 | (4.00) | 48 | 50 | (0.04) | |||
Price earning ratio | (1.58) | (0.56) | - | (1.50) | (0.60) | - | |||
Number of 50k shares issued | 9,341,088 | 9,341,088 | - | 9,341,088 | 9,341,088 | - | |||
Number of employees | 283 | 356 | - | 244 | 312 | - | |||
Number of branches | 14 | 17 | - | 14 | 17 | - | |||
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STACO INSURANCE PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
The Directors are pleased to submit their report together with the audited financial statements of Staco Insurance Plc ("the Company") and its subsidiary ("the Group") for the year ended 31 December 2018.
Legal form and Principal activities
The Company, Staco Insurance Plc (formerly known as Standard Trust Assurance Plc) was incorporated on October 10, 1991 as a public limited liability company with incorporation No. RC 167274. The compamy acquired Alpha Insurance Plc and commenced non-life insurance business on 1st October, 1994 having been duly licensed by National Insurance Commission (NAICOM) with certificate of registration No. RIC-038.
The Company changed its name to Staco Insurance Plc by special resolution on the 30th of October, 2006 following the merger of Standard Trust Assurance Plc and Summit Insurance Company Limited as a result of the directive by NAICOM on the increase in share Capital of insurance companies in Nigeria. The company became listed on The Nigerian Stock Exchange on 25th June, 2007.
Operating results
The following is a summary of the Group
operating results for the year ended 31 December 2018:
Group | Company | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
₦'000 | ₦'000 | ₦'000 | ₦'000 | ||||||
Loss before tax | (6,275,308) | (2,496,836) | (6,396,375) | (2,923,249) | |||||
Income tax expense | (253,026) | (105,546) | (155,918) | (35,000) | |||||
Loss after tax | (6,528,334) | (2,602,382) | (6,552,293) | (2,958,249) | |||||
Transfer to statutory | |||||||||
contingency reserve | (145,184) | (166,046) | (137,134) | (156,743) | |||||
Non-controlling interest | 8,217 | 56,940 | - | - | |||||
Transfer to retained | |||||||||
earnings for the year | (6,665,301) | (2,711,488) | (6,689,427) | (3,114,992) | |||||
Directors and their interests
The Directors' interests in the issued share capital of the Company as recorded in the register of members and as advised by the Company's registrars for the purposes of Sections 275 and 276 of the Companies and Allied Matters Act, Cap C20, LFN 2004 and the listing requirements of the Nigerian Stock Exchange in units are as follows:
31 December 2018
Name of Director | Direct | Indirect | Total | |||
Prince Samuel Turoti | - | 310,000,002 | 310,000,002 | |||
Dr. Sakiru Oyefeso | 496,144,841 | - | 496,144,841 | |||
Mr. Bayo Fakorede | 1,570,000 | - | 1,570,000 | |||
Mr. Tayo Ajibulu | 716,666 | - | 716666 | |||
Mr. Omotola Talabi | - | 1,000,000,000 | 1,000,000,000 | |||
Mr. Abdul-Ganiyu Alimson | - | 718380000 | 718,380,000 | |||
Mr. Muhammad Sidi-Aliyu | - | 764,444,445 | 764,444,445 | |||
Ms Helen Emore | - | - | - |
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STACO INSURANCE PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
31 December 2017
Name of Director | Direct | Indirect | Total | |||
Prince Samuel Turoti | - | 260,000,000 | 260,000,000 | |||
Dr. Sakiru Oyefeso | 470,464,329 | - | 470,464,329 | |||
Mr Bayo Fakorede | 1,570,000 | - | 1,570,000 | |||
Mr. Omotola Talabi | - | 1,000,000,000 | 1,000,000,000 | |||
Mr. Abdul-Ganiyu Alimson | - | 718,380,000 | 718,380,000 | |||
Mr. Muhammad Sidi-Aliyu | - | 764,444,445 | 764,444,445 | |||
Ms Helen Emore | - | - | - |
Directors' interest in contracts
In accordance with Section 277 of the Companies and Allied Matters Act, Cap C20 LFN, 2004 none of the Directors has notified the Company of any declarable interests in contracts or proposed contracts with the Company.
Retiring Directors
In accordance with Section 259 of Companies and Allied Matters Act, Cap C20 LFN, 2004, Ms Helen Emore and Mr Tola Talabi will retire by rotation and being eligible, they offer themselves for re-election.
Major Shareholding
The called-up and fully paid-up shares of the Company were beneficially held as follows at 31 December 2018:
2018 | 2017 | ||||||
Number of | Number of | ||||||
shares | % Holding | shares | % Holding | ||||
Hat Koobs Industry Limited | 718,380,000 | 7.69 | 718,380,000 | 7.69 | |||
Electron Energy | 1,000,000,000 | 10.71 | 1,000,000,000 | 10.71 | |||
Ventry Development Ltd | 800,000,000 | 8.56 | 800,000,000 | 8.56 | |||
Seaforce Investment Ltd | 764,444,445 | 8.18 | 764,444,445 | 8.18 | |||
Dr. Sakiru Oyefeso | 496,144,841 | 5.3 | 470,464,329 | 5.04 | |||
Nigerian Citizens and | |||||||
Associations | 5,562,118,323 | 59.5 | 5,587,798,835 | 59.82 | |||
Total | 9,341,087,609 | 100 | 9,341,087,609 | 100 | |||
Analysis of shareholding
According to the register of members, no shareholder other than the ones mentioned above held more than 5% of the issued share capital of the Company as at 31 December 2018.
Donations and charitable gifts
The Company identifies with the aspirations of the community as well as the environment within which it operates and has therefore made charitable donations to the underlisted organisations amounting to ₦400,000 (2017: ₦3,824,700) during the year as follows:
₦ | |
Professor Bart Nnaji Foundation | 100,000 |
National Association of Nigerian Students, Southwest Zone | 50,000 |
Support for Ramadan Lecture (Ayepe Muslim Community) | 200,000 |
Support for Brokers' Week (Warri) | 50,000 |
400,000 | |
Employment of disabled persons
The Company's recruitment and staff development policies and practices are non-discriminatory.
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STACO INSURANCE PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
Employee involvement and training
The Company ensures that employees are informed of matters concerning them through formal and informal fora with an appropriate two-way feedback mechanism. In accordance with the Company's policy of continuous development, in-house training is provided on various aspects of the organisation. In addition, employees are nominated to attend both local and international courses and workshops which are complemented by on-the-job trainings.
Health, safety at work and welfare of employees
Health and safety regulations are in force within the Company's premises and employees are aware of existing regulations. The Company gives priority to the health and safety of its employees by ensuring that health and safety procedures are substantally complied with and maintained in its daily operations.
Acquisition of own shares
The Company did not purchase any of its own shares during the year.
Research and development
The Company is on a continous basis carrying out research into Insurance Products and Services.
Investment in subsidiary
Consistent with its expansion program, the Company set up a subsidiary in the preceding years. Below
is the name and the percentage of holdings in the subsidairy: | ||
Name | Staco's % Holding | Status |
Staco Sierra Leone | 0.6 | Set up |
Consolidated financial statements
The consolidated results for the year ended 31 December 2019 were prepared in accordance with International Financial Reporting Standards (IFRS).
The financial statements of Staco Sierra Leone was consolidated with that of the Company.
Related party Transactions
There were no material related party transactions amongst the members of the Group except for the following transactions that have been carried out at arm's length:
i-CFSFinancial Services Limited:The company Granted loans to the related company iii-StacoCooperative: The company staff contributions
iii-StacoInsurance Company (Sierra Leone) Limited: The company Granted loans to the subsidiary.
Post balance sheet events
There were no post balance sheet events which could have a material effect on the financial position of the Group as at 31 December 2018 and the profit attributable to equity holders on that date other than as disclosed in the consolidated financial statements.See note 45 for disclosure of Covid-19 and going concern assessment.
Auditors
PKF Professional Services have indicated their willingness to continue in office in accordance with section 357(2) of the Companies and Allied Matters Act, Cap C20, LFN 2004. A resolution will be proposed authorising the Directors to determine their remuneration.
Date: 23 February 2023
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STACO INSURANCE PLC
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 consolidated and separate audited financial statements for the year ended 31 December 2018 that:
- We have reviewed the report;
- To the best of our knowledge, the report does not contain:
- Any untrue statement of a material fact, or
- Omit to state a material fact, which would make the consolidated and separate financial statements misleading in the light of circumstances under which such statements were made;
- To the best of our knowledge, the consolidated and separate 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 Company as of, and for the periods presented in the report.
- We;
- Are responsible for establishing and maintaining internal controls
- Have designed such internal controls to ensure that material information relating to the Company and its consolidated subsidiaries is made known to such officers by others within those entries particularly during the period in which the periodic reports are being prepared;
- Have evaluated the effectiveness of the company'sinternal controls as of date within 90 days prior to the report;
- Have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date;
- We have disclosed to the auditors of the Company and Finance, Investment and General- Purpose Committee:
- All significant deficiencies in the design or operation of internal controls which would adversely affect the Company'sability to record, process, summarize and report financial data and have identified for the company's auditors any material weakness in internal controls, and
- Any fraud, whether or not material, that involves management or other employees who have significant role in the Company's internal controls;
- We have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Mr. Jide Omotere | Mr. Bayo Fakorede |
Chief Financial Officer | Ag. Managing Director |
FRC/2013/ICAN/00000002180 | FRC/2013/CIIN/00000004099 |
Date: 23 February 2023 | Date: 23 February 2023 |
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