STACO INSURANCE PLC FINANCIAL HIGHLIGHTS | |||
2020 | 2019 | Growth | |
N'000 | N'000 | % | |
Major statement of financial position | |||
Total assets | 5,689,888 | 5,926,419 | (3.99) |
Shareholders' funds | (4,220,813) | (3,232,696) | 30.57 |
Major statement of comprehensive income | |||
Gross premium | 677,136 | 2,268,028 | (70.14) |
Net premium earned | 735,292 | 2,049,776 | (64.13) |
Investment income | 118,628 | 79,153 | 49.87 |
Other income | 48,641 | 56,702 | (14.22) |
Net underwriting and claims expenses | (421,719) | (1,088,911) | (61.27) |
(Loss)/profit before taxation | (870,764) | (819,115) | (6.31) |
(Loss)/profit after taxation | (939,864) | (884,113) | (6.31) |
Information per 50k ordinary share | |||
Earnings per share (kobo) | (11) | (10) | (8.38) |
Net assets (kobo) | 1 | 1 | (0.04) |
Stock exchange quotation (kobo) at 30 September | 50 | 50 | - |
Price earning ratio | (0.21) | (0.20) | - |
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 | |||
31 | 31 | ||
December | December | ||
2020 | 2019 | ||
ASSETS | Note | N'000 | N'000 |
Cash and cash equivalents | 8 | 403,701 | 185,028 |
Financial assets | 9 | 137,863 | 201,171 |
Trade receivables | 10 | 40,219 | 17,393 |
Reinsurance assets | 11 | 1,290,828 | 1,300,753 |
Other receivables and prepayments | 12 | 89,638 | 83,579 |
Deferred acquisition cost | 13 | 28,399 | 62,171 |
Investment in subsidiary | 14 | - | 327,937 |
Investment properties | 15 | 1,520,000 | 1,520,000 |
Deffered tax assets | 16.1 | - | - |
Leased assets | 17 | 3,149.91 | 3,150 |
Property ,plant and equipment | 18 | 1,870,723 | 1,919,260 |
Statutory deposit | 19 | 300,000 | 300,000 |
Intangible asset | 20 | 5,366 | 5,976 |
Total assets | 5,689,888 | 5,926,419 | |
LIABILITIES | |||
Insurance contract liabilities | 21 | 3,264,589 | 3,307,748 |
Financial Liabilities | 22 | 4,928,160 | 4,900,282 |
Trade payables | 23 | 362,506 | 238,087 |
Other payables | 24a | 1,147,790 | 574,441 |
Deferred tax liabilities | 16.1 | 98,050 | 98,050 |
Employee benefit liability | 26 | - | - |
Taxation | 27 | 109,606 | 40,506 |
Total liabilities | 9,910,701 | 9,159,115 | |
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 | 285,653 | 333,904 |
Contingency reserve | 28f | 2,292,511 | 2,272,197 |
Retained earnings | 28g | (13,311,306) | (12,351,129) |
Shareholders' funds | (4,220,813) (3,232,696) | ||
Total Liabilities and Equity | 5,689,888 5,926,419 | ||
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/0000000409FRC/2020/003/00000021442
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER, 2020
01.10 - | 31 | 01.10 - | 31 | ||
31.12 | December | 31.12 | December | ||
2020 | 2020 | 2019 | 2019 | ||
Note | N'000 | N'000 | N'000 | N'000 | |
Gross Premiums written | 29 | 146,190 | 677,136 | 223,681 | 2,268,028 |
Gross Premium Income | 29a | 183,935 | 938,913 | 628,915 | 2,873,293 |
Reinsurance expenses | 29b | (17,118) | (203,621) | (280,760) | (823,516) |
Net Premium Income | 29 | 166,818 | 735,292 | 348,156 | 2,049,776 |
Fees and Commission Income | 30 | 3,834 | 29,139 | 23,661 | 153,422 |
Net underwriting Income | 170,652 | 764,431 | 371,817 | 2,203,198 | |
Claims expense | 31 | (31,079) | (240,989) | 30,497 | (525,754) |
Underwriting expenses | 32 | (32,679) | (180,730) | (73,455) | (563,157) |
Net underwriting and claims expenses | (63,759) | (421,719) | (42,958) | (1,088,911) | |
Underwriting results | 7 | 106,893 | 342,712 | 328,859 | 1,114,287 |
Investment income | 33 | 1,772 | 118,628 | 1,036 | 79,153 |
Net realised gain/(loss) on financial assets | 34 | - | - | - | - |
Other income | 35 | 4,805 | 48,641 | 44,440 | 56,702 |
Operating and administrative expenses | 36 | (191,692) | (1,230,301) | (501,245) | (1,998,663) |
Interest on convertible bond | 37 | (27,353) | (150,444) | (29,011) | (70,593) |
Impairment loss on trade receivables | 38 | - | - | - | - |
Profit / (Loss) before taxation | (105,575) | (870,764) | (155,921) | (819,115) | |
Taxation | 27.1 | - | (69,100) | (64,998) | |
Profit / (Loss) for the year | (105,575) | (939,864) | (155,921) | (884,113) | |
Other comprehensive income | |||||
Net fair value gain (loss) on available for sale financial assets | 28e | - | - | - | (27,619) |
Foreign exchange translation gain/(loss) | 28f | - | - | - | - |
Appreciation/Loss on investment in subsidiary | (48,252) | - | - | ||
Total comprehensive income/(loss) for the year | (105,575) | (988,115) | (155,921) | (911,731) | |
Profit/(Loss) attributable to: | |||||
Owner of equity | (105,575) | (939,864) | (155,921) | (884,113) | |
Non controlling interest | - | - | |||
(105,575) | (939,864) | (155,921) | (884,113) | ||
Total comprehensive income/(loss) attributable to : | |||||
Owner of equity | (105,575) | (988,115) | (155,921) | (911,731) | |
Non controlling interest | - | - | |||
(105,575) | (988,115) | (155,921) | (911,731) | ||
Earning per share(kobo) | |||||
- Actual | 2 | (11) | 1 | (10) | |
- Adjusted | 2 | (11) | 1 | (10) | |
STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 DECEMBER, 2020 | ||||||
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 2019 4,670,544 | 434,164 | 1,595,299 | 368,475 | 2,204,156 | (11,364,964) | (2,092,325) |
Total comprehensive income for the - | - | - | (34,571) | - | - | (34,571) |
Issue of share capital - | - | - | - | - | - | - |
Transfer to contigency reserve - | - | - | - | 68,041 | (68,041) | - |
Transfer from (to) retained earning - | - | - | - | - | (918,124) | (918,124) |
Dividend - | - | - | - | - | - | - |
Revaluation surplus -
Balance as at 31 December 2019 4,670,544
Balance as at 1 January 2020 4,670,544
- - (187,677)
- | (187,677) | - |
434,164 | 1,407,622 | 333,904 |
434,164 | 1,407,622 | 333,904 |
2,272,197 (12,351,129) (3,232,697)
2,272,197 (12,351,129) (3,232,697)
Total comprehensive income for the | ||||||
year | - | - | - | - - | - | - |
Issue of share capital | - | - | - | - - | - | - |
Transfer to contigency reserve | - | - | - | - 20,314 | (20,314) | - |
Transfer from (to) retained earning | - | - | - | - - | (939,864) | (939,864) |
Dividend | - | - | - | - - | - | - |
Revaluation surplus | - | - | - | - - | - | - |
Balance as at 31 December 2020 4,670,544 434,164 1,407,622 333,904 2,292,511 (13,311,306) (4,172,561)
STACO INSURANCE PLC | |||
STATEMENT OF CASH FLOWS | |||
FOR THE PERIOD ENDED 31 DECEMBER, 2020 | |||
31 | 31 | ||
December | December | ||
2020 | 2019 | ||
Note Cash flow from operating activities | N'000 | N'000 | |
Premium received from policy holders | 654,310 | 2,351,306 | |
Reinsurance receipts in respect of claims | 231,069 | 414,045 | |
Reinsurance cost | (193,696) | (629,732) | |
Cash paid to and on behalf of employees | (821,668) | (756,438) | |
Other operating cash payments/receipts | (141,496) | (388,046) | |
Commission paid | (49,322) | (68,639) | |
Claims paid | (253,440) | (983,790) | |
Tax paid | - | (54,998) | |
Net cash provided by operating activities 44 | (574,244) | (116,291) | |
Cash flow from investing activities Purchase of property,plant and equipment 18 | (1,888) | (2,308) | |
Purchase of intangible asset Fund placement proceed | - 79,961 | - (119,955) | |
Dividend received | 77,580 | 37,747 | |
Interest received | 41,048 | 41,406 | |
Proceeds from sales of assets | 18,554 | - | |
Proceeds from sales of Subsidisry | 279,685 | - | |
Net cash provided by investing activities | 494,940 | (43,110) | |
Cash flow from financing activities Change in borrowings | 297,977 | 0 | (64,509) |
Proceeds from issue of share capital Repayment of finance lease liabilities | - - | - - | |
Net cash used in financing activities | 297,977 | (64,509) | |
Net increase/(decrease) in cash and cash | |||
equivalents | 218,673 | (223,910) | |
Cash and cash equivalents at the beginning of the | |||
year | 185,028 | 408,937 | |
Cash and cash equivalents at the end of the year | |||
403,701 | 185,028 | ||
Represented by: | |||
Cash at bank and in hand 8 Cashbook overdrawn | 403,701 - 403,701 | 185,028 - 185,028 | |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020
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 December 2020 is as follows:
ASSETS:
ADMISSIBLE | IN ADMISSIBLE | TOTAL | |||
N'000 | N'000 | N'000 | |||
Cash and cash equivalents | 403,701 | - | 403,701 | ||
Financial assets | 137,863 | - | 137,863 | ||
Insurance receivables | 40,219 | 40,219 | |||
Reinsurance assets | 1,290,828 | - | 1,290,828 | ||
Other receivables | - | 89,638 | 89,638 | ||
Deferred acquisition cost | 28,399 | - | 28,399 | ||
Investment in subsidiary | - | - | - | ||
Investment properties and land | 1,520,000 | - | 1,520,000 | ||
Leased assets | 3,150 | 3,150 | |||
Property and equipment | 1,870,723 | - | 1,870,723 | ||
Statutory deposit | 300,000 | - | 300,000 | ||
Intangible assets | - | 5,366 | 5,366 | ||
Total assets | 5,594,884 | 95,004 | 5,689,888 | ||
LIABILITIES | |||||
Investment contract liabilities | - | - | |||
Insurance ccontract liabilities | 3,264,589 | - | 3,264,589 | ||
Borrowings | 4,928,160 | - | 4,928,160 | ||
Trade payables | 362,506 | - | 362,506 | ||
Other payables | 1,147,790 | - | 1,147,790 | ||
Deferred tax liabilities | - | 98,050 | 98,050 | ||
Current income tax liabilities | 109,606 | - | 109,606 | ||
Total liabilities | 9,812,651 | 98,050 | 9,910,701 | ||
SOLVENCY MARGIN | (4,217,767) | ||||
MINIMUM REQUIRED | 3,000,000 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020 RISK MANAGEMENT FRAMEWORK (CON'TD) CAPITAL MANAGEMENT
The 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 N4,213,042.13 and a solvency ratio of (140.43)%
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020
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 December, 2020 are as follows:
Fire
General accident Motor vehicle
Oil and gas Marine Aviation Bond Engineering
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 | 159,082 | 140,489 | 238,874 | 7,765 | 85,280 | 2,735 | 14,914 | 17,854 | 666,995 |
Gross premium income | 205,993 | 150,309 | 402,771 | 30,847 | 89,326 | 3,080 | 14,659 | 31,787 | 928,772 |
Re-insurance expenses | (117,858) | - | (37,685) | (21,499) | (17,684) | (66) | (1,862) | (6,968) | (203,621) |
Net premium income | 88,135 | 150,309 | 365,086 | 9,347 | 71,642 | 3,014 | 12,798 | 24,819 | 725,151 |
Fee Income and commission | 15,646 | - | 1,209 | 5,113 | 4,046 | 441 | 531 | 2,154 | 29,139 |
Investment returns | - | ||||||||
Net underwritting income | 103,781 | 150,309 | 366,294 | 14,460 | 75,688 | 3,455 | 13,329 | 26,973 | 754,290 |
Claim expenses(Gross) | (8,639) | (23,682) | (52,593) | (164,288) | (1,850) | (1,483) | - | (905) | (253,440) |
Insurance claims recovered / recoverable from reinsurers | 12,895 | (39,862) | (28,237) | 152,904 | (71,915) | (1,237) | (4,173) | (7,924) | 12,452 |
Net insurance benefits and claims | 4,257 | (63,544) | (80,830) | (11,384) | (73,765) | (2,720) | (4,173) | (8,829) | (240,989) |
Underwriting expenses | (37,644) | (30,935) | (56,612) | (6,384) | (39,218) | (774) | (2,686) | (6,260) | (180,512) |
Total expenses | (33,387) | (94,479) | (137,443) | (17,769) | (112,983) | (3,493) | (6,858) | (15,088) | (421,500) |
Reportable segment profit | 70,394 | 55,830 | 228,852 | (3,308) | (37,295) | (39) | 6,470 | 11,885 | 332,790 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020
SEGMENT INFORMATION CONT'D- COMPANY
The segment information provided by Management for the reporting segments for the year ended 31 December 2019
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 | 572,584 346,586 | 760,383 184,377 297,812 12,555 | 21,837 | 71,894 2,268,028 | |||||||||||
Gross premium income | 763,270 | 434,314 | 966,360 | 272,114 | 305,662 | 12,969 | 21,794 | 96,809 | 2,873,293 | ||||||
Re-insurance expenses | (489,776) | (6,049) | (39,501) | (79,066) | (124,522) | (4,454) | (4,736) | (75,411) | (823,516) | ||||||
Net premium income | 273,493 | 428,265 | 926,859 | 193,048 | 181,140 | 8,515 | 17,058 | 21,398 | 2,049,776 | ||||||
Fee Income and commission | 77,521 | 1,354 | 5,286 | 25,987 | 29,473 | 1,250 | 1,570 | 10,982 | 153,422 | ||||||
Investment returns | - | - | - - | - - | - | - | - | ||||||||
Net underwritting income | 351,015 429,619 | 932,145 219,035 210,612 9,766 | 18,627 | 32,380 2,203,198 | |||||||||||
Claim expenses(Gross) | (270,171) | (130,952) | (234,104) | (161,328) | (79,787) | (50,407) | (6,260) | (50,782) | (983,790) | ||||||
Insurance claims recovered from reinsurers | 545,115 73,308 | 161,644 (381,537) | 51,568 17,963 | 1,212 | (11,238) | 458,036 | |||||||||
Net insurance benefits and claims | 274,945 | (57,644) | (72,460) | (542,864) | (28,218) | (32,445) | (5,048) | (62,020) | (525,754) | ||||||
Underwriting expenses | (167,085) (92,028) | (136,117) | (55,324) | (86,435) | (2,522) | (3,930) | (19,716) | (563,157) | |||||||
Total expenses | 107,860 (149,672) | (208,577) | (598,188) | (114,653) | (34,967) | (8,978) | (81,735) | (1,088,911) | |||||||
Reportable segment profit | 458,874 279,946 | 723,567 (379,154) | 95,959 (25,201) | 9,650 | (49,356) | 1,114,287 | |||||||||
31 December | 31 December | ||
2020 | 2019 | ||
N'000 | N'000 | ||
8 CASH AND CASH EQUIVALENTS | |||
Cash in hand | 48 | 2,844 | |
Due from banks and other financial institutions (note 8.1) | 403,653 | 182,184 | |
403,701 | 185,028 | ||
8.1 Due from banks and other financial | |||
institutions | |||
Balances held with banks | 323,541 | 22,111 | |
Placement with banks | 80,112 | 160,073 | |
403,653 | 182,184 | ||
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) | |||
403,701 | 185,028 |
31 | 31 | |||
December | December | |||
2020 | 2019 | |||
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 | 86,693 | |
Loans and receivables (Note 9.2) | 16,516 | 17,887 | ||
Available for sale financial asset (Note 9.3) | 96,591 | 96,591 | ||
137,863 | 201,171 | |||
9.1 | Held to maturity Government securities | 19,078 | 81,015 | |
Treasury bills | 5,679 | 5,679 | ||
24,757 | 86,693 | |||
Due within 12 months | - | 1,350 | ||
Due after 12 months | 24,757 | 85,343 | ||
24,757 | 86,693 | |||
There are no impaired held to maturity investments at | ||||
30 September 2020 (2019 nil) | ||||
9.2 | Loan and receivables Staff loan | 16,516 | 17,887 | |
16,516 | 17,887 | |||
16,516 | 17,887 | |||
Due within 12 months | 2,578 | 3,950 | ||
Due after 12 months | 13,937 | 13,937 | ||
16,516 | 17,887 | |||
9.2a | Staff loan | 113,705 | 115,077 | |
Allowance for impairment (Note 9.2c) | (97,190) | (97,190) | ||
16,516 | 17,887 | |||
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.
N'000 | N'000 | |
At beginning of year | 97,190 | 97,190 |
Provision for impairment | - | - |
Provision no longer required | - |
9.2b Movement on the provision for impaired loans and receivables are as follows : Company Staff loan Total
Amount written off during the year as uncollectible -Unused amount reversed 97,190 - 97,190
31 December | 31 December | |
2020 | 2019 | |
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.
31 December | 31 December | |
2020 | 2019 | |
N'000 | N'000 | |
10 TRADE RECEIVABLES | ||
Due from agents | - | - |
Due from brokers | 1,640,410 | 1,617,584 |
Due from Reinsurance companies | - | - |
1,640,410 | 1,617,584 | |
Allowance for impairment (Note 10.1) | ||
(1,600,191) | (1,600,191) | |
40,219 | 17,393 | |
Due within 12months | 40,219 | 17,393 |
Due after 12 months | - | - |
40,219 | 17,393 |
10.1
Movement on the allowance for impairment of receivables arising out of direct insurance arrangements are as follows:
N'000
At beginning of year 1,600,191
Provision for impairment -
Provision no longer required -
Amount written off during the year as uncollectible -
At end of period 1,600,191
31 December | 31 December | |
2020 | 2019 | |
N'000 | N'000 | |
11 REINSURANCE ASSETS | ||
Prepaid reinsurance (note 11.1) | 79,070 | 79,070 |
Reinsurance recoverable | 1,211,759 | 1,211,759 |
Prepaid M&D Deposit - Re-Insurance | 0.00 | 9,925 |
1,290,828 | 1,300,753 | |
Due within 12months | 1,003,427 | 765,607 |
Due after 12 months | 287,401 | 287,401 |
1,290,828 | 1,053,008 | |
11.1 Movement in prepaid reinsurance At beginning of year | 79,070 | 258,355 |
Additions during the year | 203,621 | 644,232 |
Amortisation during the year | (203,621) | (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 | |||
December | December | |||
2020 | 2019 | |||
12 OTHER RECEIVABLES AND | ||||
PREPAYMENTS | ||||
Accrued income (Note 12.2) | - | - | ||
Prepayment (Note 12.2) | 6,607 | 1,096 | ||
Other receivables (Note 12.1) | 83,032 | 82,483 | ||
89,638 | 83,579 | |||
Due within 12months Due after 12 months | 89,638 - | 83,579 - | ||
89,638 | 83,579 | |||
12.1 Other receivables Stock- consumables | - | - | ||
Deposit for assets Other sundry debtors | - 2,303,198 | - 2,302,437 | ||
2,303,198 | 2,302,437 | |||
Allowance for impairment (Note 9.2c) | (2,220,166) | (2,220,166) | ||
83,032 | 82,271 | |||
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER, 2020 | |||
31 | 31 | ||
December | December | ||
2020 | 2019 | ||
13 DEFERRED ACQUISITION COST | |||
At begining of year | 62,171 | 158,291 | |
Additions during the year | 104,027 | 381,135 | |
Amortisation during the year | (137,799) | (477,255) | |
At end of period | 28,399 | 62,171 | |
Due within 12months | 28,399 | 62,171 | |
Due after 12 months | - - | ||
28,399 62,171 | |||
14 INVESTMENT IN SUBSIDIARY | |||
14.1 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 | - 920,133 | ||
Liabilities | - - 733,504 | ||
Equity | - 186,629 | ||
Share of Subsidiary's reserves and | 156,741 | ||
profit or loss: | |||
Contingency reserve | - 41,747 | ||
Retained earnings | - 99,561 | ||
- 141,308 | |||
Carrying amount of the investment | - 327,937 | ||
14.2 Appreciation/(Diminition) in investment | |||
Carrying amount of the investment | - 327,937 | ||
Cost of investment | - 74,733 | ||
Appreciation in investment | - 253,204 | ||
This represents 60% holding in the ordinary share capital of Staco Sierra | Leone Limited, a | subsidiary incorporated | |
and operating in Sierra Leone | |||
14.3 Disposal of Investment in Subsidiary | |||
Carrying amount of the investment | 327,937 | - | |
Disposal/Proceed of Investment | 279,685 | - | |
Loss on Disposal of Investment | (48,252) | - | |
15 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 December, | |||
2020 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.
STACO INSURANCE PLCNOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020
31 December | 31 December | ||
2020 | 2019 | ||
16 DEFERRED TAX ASSETS | N'000 | N'000 | |
At 1 January | - | - | |
Charge for the period At 31 December 2020 | - - | - - | |
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 December 2020 | 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 DECEMBER, 2020
17 LEASED ASSETS | Furniture | ||||
Fittings and | Motor | ||||
Cost | equipment N'000 | Vehicle N'000 | TOTAL N'000 | ||
At 1 January 2020 Additions Disposal At 31 December 2020 | - - - - | 71,150 - - 71,150 | 71,150 - - 71,150 | ||
Accumulated depreciation At 1 January 2020 | - | 68,000 | 68,000 | ||
Charge for the period Disposal At 31 December 2020 | - - - | - - 68,000 | - - 68,000 | ||
Carrying value | |||||
At 31 December 2020 | - | 3,150 | 3,150 | ||
At 31 December 2019 | - | 3,150 | 3,150 | ||
STACO INSURANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020
18 PROPERTY, PLANT AND EQUIPMENT
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 2020 | 1,950,101 | 32,254 | 363,186 | 1,236,869 | 4,226 | 3,586,635 |
Additions | - | - | 1,888 | - | - | 1,888 |
Reclassification | 4,226 | (4,226) | - | |||
Disposal | (2,984) | (2,984) | ||||
Revaluation surplus (Note 27d) - | ||||||
At 31 December 2020 | 1,954,327 | 32,254 | 362,090 | 1,236,869 | - | 3,585,539 |
Accumulated depreciation | ||||||
At 1 January 2020 | 94,064 | 19,806 | 337,643 | 1,215,861 | - | 1,667,375 |
Charge for the period | 33,429 | 1,657 | 7,538 | 6,987 | - | 49,611 |
Disposal | (2,170) | (2,170) | ||||
At 31 December 2020 | 127,493 | 21,463 | 343,011 | 1,222,849 | - | 1,714,816 |
Carrying value | ||||||
At 31 December 2020 | 1,826,834 10,791 19,079 | 14,020 | - 1,870,723 | |||
At 31 December 2019 | 1,856,037 | 12,448 | 25,543 | 21,007 | 4,226 | 1,919,260 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER, 2020 | ||
31 | 31 | |
December | December | |
2020 | 2019 | |
N'000 | N'000 | |
19 STATUTORY DEPOSIT This represents amount deposited with | ||
Central Bank of Nigeria (CBN) | in | |
accordance with section 10(3) of Insurance Act, 2003 | the | 300,000 300,000 |
Due 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 DECEMBER, 2020
31 December | 31 December | |
2020 | 2019 | |
N'000 | N'000 | |
20 INTANGIBLE ASSET | ||
Goodwill (Note 20.1) | - | - |
Software (Note 20.2) | 5,366 | 5,976 |
5,366 | 5,976 | |
20.1 Intangible Asset - Goodwill | ||
Cost | ||
At 1 January | ||
Addition | - | - |
At 31 December 2020 | - | - |
Amortisation | ||
At 1 January | - | - |
Amortisation | - | - |
At 31 December 2020 | - | - |
Carrying value | ||
At 31 December 2020 | - | - |
20.2 Intangible Asset - Software | ||
Cost | ||
At 1 January | 9,876 | 9,876 |
Cost capitalised | - | - |
At 31 December 2020 | 9,876 | 9,876 |
Amortisation | ||
At 1 January | 3,901 | 2,689 |
Amortisation | 610 | 1,212 |
At 31 December 2020 | 4,510 | 3,901 |
Carrying value | ||
At 31 December 2020 | 5,366 | 5,976 |
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 DECEMBER, 2020
31 December | 31 December | ||
2020 | 2019 | ||
N'000 | N'000 | ||
21 INSURANCE CONTRACT LIABILITIES | |||
General business (note 21.1) | 3,264,589 | 3,307,748 | |
Life business (note 21.2) | - | - | |
Total insurance liabilities | 3,264,589 | 3,307,748 | |
Due within 12 months | 3,264,589 | 3,307,748 | |
Due after 12 months | - | - | |
3,264,589 | 3,307,748 | ||
21.1 General business liabilities | |||
Outstanding claims provision (note 21.1a) | 2,804,178 | 2,605,435 | |
Claims incurred but not reported (note 20.1b) | 280,418 | 260,544 | |
Provision for unearned premium (note 21.1c) | 179,993 | 441,770 | |
Total general business insurance contract liability | 3,264,589 | 3,307,748 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER, 2020 | |||
31 | 31 | ||
December | December | ||
2020 | 2019 | ||
N'000 | N'000 | ||
Outstanding claims provision - General 21.1a business | |||
Movement in outstanding claims provision | |||
At 1 January | 2,605,435 | 2,253,059 | |
Claims incurred in the current year | 452,183 | 1,293,892 | |
Claims paid during the year | (253,440) | (941,516) | |
At 31 December 2020 | 2,804,178 | 2,605,435 | |
Claims incurred but not reported (IBNR) 21.1b provision | |||
Movement in IBNR provision | |||
At 1 January | 260,544 | 225,306 | |
Movement during the year | 19,874 | 35,238 | |
At 31 December 2020 | 280,418 | 260,544 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020
21.1c | Unearned Premium | |||||
Unearned | Unearned | |||||
premium | Movement | premium | ||||
2020 | 2019 | |||||
Fire | 43,632 | (46,910) | 90,543 | |||
Engineering | 3,610 | (13,932) | 17,542 | |||
Motor | 74,737 | (163,897) | 238,633 | |||
General Accident | 56,854 | (9,820) | 66,674 | |||
Marine | 886 | (4,046) | 4,933 | |||
Bond | 298 | 255 | 43 | |||
Oil and gas | (28) | (23,082) | 23,053 | |||
Aviation | 5 | (344) | 349 | |||
179,993 | (261,777) | 441,770 | ||||
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 DECEMBER, 2020 | |||
31 | 31 | ||
December | December | ||
2020 | 2019 | ||
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 December 2020 | - | - | |
22 FINANCIAL LIABILITIES | |||
Convertible bond (Note 21.1) | 4,012,112 | 3,861,668 | |
Short term loan | 916,047 | 1,038,614 | |
4,928,160 | 4,900,282 | ||
22.1 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 | 3,861,668 | 3,762,063 | ||
Movement during the year(Note 22.2) | 150,444 | 99,605 | ||
At 31 December 2020 | 4,012,112 | 3,861,668 | ||
22.2 | Movement during the year Interest and default charges on the bond | 150,444 | 99,605 |
Exchage gain / loss - -
Payments during the year - -Provision no longer required - -
150,444 99,605
22.3 Short term loan 916,047 1,038,614
31 December 2020 | 31 December 2019 | ||||
N'000 | N'000 | ||||
23 | TRADE PAYABLES | ||||
Insurance companies | 41,485 | 11,868 | |||
Reinsurance payables (Note 23.1) | 321,021 | 226,219 | |||
362,506 | 238,087 | ||||
23.1 | Reinsurance payables | ||||
Reinsurance premium payable | 321,021 | 226,219 | |||
Minimum deposit payable | - | - | |||
321,021 | 226,219 | ||||
24a | OTHER PAYABLES | ||||
Lease obligation | 22,098 | 22,098 | |||
Accruals | 268,099 | 110,805 | |||
Other creditors (note 24.1) | 857,593 | 441,538 | |||
1,147,790 | 574,441 | ||||
24.1 | The breakdown of other creditors is as below: | ||||
Tax payables | - | - | |||
Unclaimed Dividend | 46,111 | 43,078 | |||
Other payables | 811,481 | 398,461 | |||
857,593 | 441,538 | ||||
The carrying amounts disclosed above approximate the fair value at the reporting date.All amount are payable within one year. | |||||
Due within 12 months | # | 857,593 | - | 441,538 | |
Due after 12 months | - | - | |||
857,593 | 441,538 | ||||
31
December
2020
31
December
2019
N'000 N'000
26 EMPLOYEE BENEFIT LIABILITY
Gratuity scheme
The 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 December 2020 - -
Due within 12 months - -
Due after 12 months - -
- -
31 December | 31 December | ||
2020 | 2019 | ||
N'000 | N'000 | ||
27 TAXATION | |||
27.1 Charge | |||
Income | 10,000 | 15,000 | |
Education tax | |||
Tax audit/Prior year under provision | 59,100 | 54,998 | |
Technology tax | |||
69,100 | 69,998 | ||
Deferred tax (note 15) | - | - | |
Charge for the period | 69,100 | 69,998 | |
27.2 Tax liability | |||
The movement on tax payable account during the year is as follows: | |||
At 1 January | 40,506 | 25,506 | |
Payments during the year | - | (54,998) | |
Charge for the period | 69,100 | 69,998 | |
At 31 December 2020 | 109,606 | 40,506 |
STACO INSURANCE PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020
31
December
2020
31
December
2019
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 December 2020 | 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 | 1,595,299 | ||
Addition during the year (Note 18) | - | - | ||
Disposal during the year | (187,677) | |||
At 31 December 2020 | 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 | 333,904 | 368,475 | ||
Additions during the year Appreciation on investment in Subsidiary(Note 14.2) | (48,252) - | (34,571) - | ||
At end of the period | 285,653 | 333,904 | ||
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER, 2020
31
December
2020
31
December
2019
N'000 N'000
28f Contingency reserve
In 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 | 2,272,197 | 2,204,156 | ||
Transfer from profit and loss | 20,314 | 68,041 | ||
At end of the Period | 2,292,511 | 2,272,197 | ||
28g | Retained Earnings | |||
General reserve consist of undistributed profits from previous years. | ||||
At the beginning of the year | (12,351,129) | (11,364,964) | ||
Transfer from profit and loss | (939,864) | (918,124) | ||
Transfer to contingency reserve Revaluation of investment assets | (20,314) - | (68,041) - | ||
At end of the year | (13,311,306) | (12,351,129) | ||
Translation reserve (Note 28f(i)) | - | - | ||
(13,311,306) | (12,351,129) |
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |