Veritas Kapital Assurance PlcNSENG: VERITASKAP

Quarter 1 - financial statement for 2025

Apr 29, 2025 at 8:26 AM UTC · Issued by Veritas Kapital Assurance Plc

RC11785

VERITAS KAPITAL ASSURANCE PLC CONSOLIDATED AND SEPARATE UNAUDITED FINANCIAL STATEMENTS (UFS) FOR THE PERIOD ENDED 31 MARCH 2025

Head Office: Plot 497 Abogo Largema Street, Off Constitution Avenue, Central Business District, FCT Abuja.

Phone: +234 (0) 700-100-05003 | Email: info@veritaskapital.com | Website: https://www.veritaskapital.com

Annex Office: Plot 173 Gbagada/Oshodi Expressway, Lagos State. Phone: 0702 500 6273

Board of Directors

Nahim Abé Ibraheem (Chairman), Priya Heal, Yabawa Lawan wabi-mni, Aminu Babangida, Oluwafunsho Obasanjo, Emmanuel Etuh, Paul Oki (Independent Non-Executive Director)

Dr. Adaobi Nwakuche (Managing Director/CEO), Sunkanmi Adekeye (Executive Director)

Authorized and regulated by NAICOM RIC-022

Years

ofi OPERATIONAL

GROWTH

TABLE OF CONTENTS PAGE

Corporate Information 3

Results at a glance 4

Vision, Mission and Values 5

Our Commitments 6

Consolidated and Separate Statement of Financial Position 8

Consolidated and Separate Statements Profit or Loss and Other Comprehensive Income 9

Consolidated and Separate Statements of Changes in Equity 10

Consolidated and Separate Statements of Cash Flows 12

Notes to the Consolidated and Separate Financial Statements 13

Other National Disclosures:

Value Added Statement 114

Five-Year Financial Summary 115

CORPORATE INFORMATION DIRECTORS

Mr. Nahim Abe Ibraheem Non-Executive Director Chairman Dr. Oluwafunsho A. Obasanjo Non-Executive Director

Mr. Aminu Babangida Non-Executive Director

Hajia Yabawa Lawan Wabi (MNI) Non-Executive Director

Mrs Priya Heal (British) Non-Executive Director

Emmanuel Etuh Non-Executive Director

Mr. Paul Oki Independent Non-Executive Director

Mr. Sunkanmi Adekeye Executive Director, Operations

Dr. Adaobi Nwakuche Managing Director/CEO

COMPANY SECRETARY RE-INSURERS

Ms. Saratu Umar Garba African Reinsurance Corporation

FRC/2019/NBA/00000019159 Continental Reinsurance Corporation WAICA Reinsurance Corporation

REGISTERED OFFICE Nigerian Reinsurance Corporation Plot 497, Abogo Largema Street, Alwen Hough Johnson (AHJ) Limited Off Constitution Avenue, CK Reinsurance Limited

Central Business District Meridian Risk Solutions Ltd, London

Abuja. Score Re.

CICA Re.

www.veritaskapital.com ACTUARIES

RC NO: 11785 O & A Hedge Actuarial Consulting (Consulting Actuaries & Chartered Insurers) Suite 28, Motorways Centre

FRC REGISTRATION NO: (Opposite 7UP Bottling Plant)

FRC/2013/0000000000717 1 Motorways Avenue

Alausa Ikeja - Lagos, Nigeria

BANKERS REGISTRARS

Unity Bank Plc Unity Registrars Limited

Guaranty Trust Bank Plc. 25 Ogunlana Drive

First Bank Limited Surulere Lagos. Fidelity Bank Plc

Keystone Bank Limited AUDITORS

Sterling Bank Plc Ernst & Young Nigeria

Access Bank Plc (Chartered Accountants)

Zenith Bank Plc 10th & 13th Floor, UBA House, 57 Marina, Lagos, Nigeria

PROPERTY VALUERS TAX CONSULTANTS

Jide Taiwo & Co Pedabo Professional Services

No 70 Abidjan street wuse zone 3 Lagos Abuja-FCT

REGULATORY AUTHORITY

National Insurance Commission

Tax Identification Number 01129230-0001

FINANCIAL RESULT AT A GLANCE

RESULT AT A GLANCE (GROUP)
Figure in thousands of naira	2025	2024	Changes
Gross premium	6,865,645	6,447,242	418,403	6%
Insurance revenue	4,632,907	6,372,979	(1,740,071)	-27%
Insurance service expense	(644,397)	(2,687,874)	2,043,477	76%
Insurance service result before reinsurance contracts held	3,988,510	3,685,105	303,406	8%
Net expenses from reinsurance contracts held	(2,142,837)	(1,559,635)	(583,202)	-37%
Profit before taxation	1,659,170	6,213,795	(4,554,624)	-73%
Taxation	(41,328)	(543,157)	501,829	92%
Profit after taxation	1,617,842	5,670,639	(4,052,796)	-71%

RESULT AT A GLANCE (COMPANY)
Figure in thousands of naira	2025	2024	Changes
Gross premium	6,865,645	6,447,242	418,403	6%
Insurance revenue	4,558,812	6,372,979	(1,814,167)	-28%
Insurance service expense	(603,861)	(2,687,874)	2,084,013	78%
Insurance service result before reinsurance contracts held	3,954,951	3,685,105	269,846	7%
Net expenses from reinsurance contracts held	(2,142,837)	(1,559,635)	(583,202)	-37%
Profit before taxation	1,444,162	5,928,547	(4,484,385)	-76%
Taxation	(37,761)	(406,680)	368,919	-91%
Profit after taxation	1,406,401	5,521,867	(4,115,466)	-75%

VISION MISSION AND VALUES MISSION

To help our Stakeholders have peace of mind

VISION

To be one of the top Insurance Companies of choice in Africa

PRINCIPLES Integrity

We will act with openness, fairness, integrity and diligence. We will always adhere to the applicable laws, regulations and standards of doing business.

Performance

We will promote a positive and challenging high performance culture. We will do this by encouraging personal accountability, development and measuring, reward and recognizing success.

Responsibilty

We will act responsibly as individuals and as a Company. This applies to the management of our business, our approach to corporate interaction with key external stakeholders.

Values

Working in teams Servicing our Customers Respecting each other Being proactive

Growing our people

Delivering to our Shareholders Guarding against arrogance

Upholding the highest levels of integrity

OUR COMMITMENTS Customers

A satisfied and loyal customer base is core to our business.

We are committed to:

Delivering the consistent and reliable levels of customer service.
Acting with integrity, due care and diligence.
Communicating openly, honestly and with sensitivity and understanding.
Listening to our customers.
Handling complaints fairly and promptly.
Respecting our customers' rights to privacy and confidentiality.
Protecting our customers and our business from fraud.
Business Partners
We demand high standards from the companies we work with and believe that they should expect the same from us.
We are committed to:
Carrying out our business with fairness and integrity.
Being reliable and quick to respond.
Awarding contracts and selecting business partners solely on the basis of fair and objective business criteria and having regards to high ethical standards.
Respecting all obligations and confidentiality.
Protecting our customers and our business from fraud.
Employees
Motivated and skilled employees are critical to our success.
We are committed to:
Fostering a positive and challenging high performance culture.
Rewarding superior performance.
Encouraging personal development.
Encouraging a culture of frank and honest communication.
Encouraging teamwork and strong leadership.
Providing a safe and secure working environment.
Encouraging diversity and equal opportunities.
Ensuring that grievances and unethical behaviour can be raised without fear of discrimination.
In return we expect our employees to:
Act with integrity.
Take responsibility and accountability for their own actions.
Show support and commitment for change.
Focus their energy in getting the best from themselves and others.
Have the confidence and courage to act with conviction.
Show understanding for and meet external and internal customers needs.
Show a relentless desire for success.
Create positive and effective working relationships.
OUR COMMITMENTS - CONTINUED Regulators
We have an open, cooperative and transparent relationship with our regulators.
We are committed to:
Dealing with our regulators in an open, cooperative and transparent manner.
Managing our business with appropriate standards of risk management and controls.
Preventing and reporting any instances of significant financial crime.
Preventing breaches of relevant regulatory requirements.
Complying with all set standards.
Community & Environment
We believe in continuous improvement of our environmental performance and in taking action around emerging environmental issues. Whenever we operate, we will seek positive engagement with local communities.
We are committed to:
As a business, we have a responsibilty to manage our impacts on the environment through appropriate use of resources such as energy, paper and water and the investment of our assets.
We also have a responsibility to take proactive action on environmental issues that are likely to affect our business and community at large.
In each of these areas, we will look to make continuous improvement and actively monitor our performance.
Shareholders
We are committed to fufilling the aspirations of our shareholders through a commitment to business performance, and high standards of transparency, communication and corporate governance.
We are committed to:
A culture of business performance, focused on delivering returns to shareholders.
Comprehensive and transparent disclosure.
Aiding Shareholder's understanding through the disclosure of relevant financial and non-financial information.
Listening to the views of our shareholders.
Managing our business with appropriate standards of risk and control.
Ensuring due care in the selection of our third party advisers, including our auditors.
Preventing and reporting any market abuse.
Acting with due sense of responsibilty on confidence entrusted to us.

CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL AS AT 31 MARCH 2025	POSITION
		2025	2024	2025	2024
		Group	Group	Company	Company
	Notes	N'000	N'000	N'000	N'000
Assets
Cash and cash equivalents	3	12,363,742	11,196,743	10,465,633	9,830,861
Investment securities: Fair value through profit or loss	4	152,958	138,264	152,958	138,264
Amortised cost	4	9,650,772	10,197,218	4,979,401	5,084,068
Fair value through OCI	4	492,056	492,056	492,056	492,056
Trade receivables	5	3,445,946	1,545,616	3,445,946	1,545,616
Reinsurance contract assets	17	7,960,252	5,841,670	7,960,252	5,841,670
Other receivables and prepayments	6	1,163,495	884,869	199,806	174,054
Investment in subsidiaries	7	-	-	4,026,300	4,026,300
Property, plant and equipment	9	6,023,653	6,020,334	5,049,489	5,033,899
Goodwill	10	316,884	316,884	-	-
Intangible assets	11	516,993	551,790	506,009	539,166
Statutory deposits	12	355,000	355,000	355,000	355,000
Total assets		42,441,751	37,540,443	37,632,850	33,060,953
Liabilities:
Insurance contract liabilities	17	17,824,316	16,303,627	17,824,316	16,303,627
Other contract liabilities	25	20,639	8,899	-	-
Trade payables	13	4,455,453	2,785,404	4,455,453	2,785,404
Employees retirement benefit obligations	14	12,622	27,712	-	-
Provision and other payables	15	2,393,419	2,351,635	1,627,500	1,690,510
Income tax liabilities	16	446,019	404,691	210,971	173,210
Deferred tax liabilities	16.2	372,737	372,737	190,671	190,671
Total liabilities		25,525,205	22,254,705	24,308,911	21,143,422
Share capital & reserves:
Share capital	18	6,933,333	6,933,333	6,933,333	6,933,333
Share premium	19	663,600	663,600	663,600	663,600
Statutory contingency reserves	20	2,817,253	2,611,284	2,817,253	2,611,284
Retained earnings	21	170,520	(1,189,503)	(1,105,312)	(2,305,750)
Other components of equity: Asset revaluation reserve	22	3,974,282	3,974,282	3,735,496	3,735,496
Fair value reserve	23	275,880	275,880	279,569	279,569
Equity attributable to equity holders of the parent		14,834,868	13,268,875	13,323,939	11,917,532
Non Controlling interest (NCI)	37	2,081,678	2,016,865	-	-
Total Equity		16,916,547	15,285,740	13,323,939	11,917,531
Total Equity & Liabilities		42,441,751	37,540,443	37,632,850	33,060,953

These financial statements were approved by the Board on 28 April 2025 and signed on its behalf by:

……………………………......................... ……………………………...............

Mojeed Somorin Dr. Adaobi Nwakuche

Chief Financial Officer Managing Director

FRC/2017/PRO/ICAN/001/00000016849 FRC/2021/003/00000023865

The statement of material accounting policies and the accompanying notes to the consolidated and separate financial statements form an integral part of these financial statements.

CONSOLIDATED AND SEPARATE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 MARCH 2025

	Notes	2025 Group N'000	2024 Group N'000	2025 Company N'000	2024 Company N'000
Insurance revenue	26	4,632,907	6,372,979	4,558,812	6,372,979
Insurance service expenses	27	(644,397)	(2,687,874)	(603,861)	(2,687,874)
Insurance service result before reinsurance contracts held		3,988,510	3,685,105	3,954,951	3,685,105
Net expenses from reinsurance contracts held	28	(2,142,837)	(1,559,635)	(2,142,837)	(1,559,635)
Insurance service result		1,845,673	2,125,470	1,812,114	2,125,470
Interest income calculated using the effective interest method	31a	226,902	243,974	87,292	103,735
Net fair value gains on financial assets at fair value through profit or loss	31c	14,694	31,038	14,694	31,038
Net foreign exchange gain	32	(22,014)	4,044,240	(22,014)	4,044,240
Credit impairment (charge)/reversal	34	(5,740)	-	-	-
Finance cost	14a(i)	-	-	-	-
Other investment income	31b	695,851	557,538	183,437	145,560
Net investment income		909,693	4,876,790	263,409	4,324,573
Finance expenses from insurance contracts issued	29	-	(117,243)	-	(117,243)
Finance income from reinsurance contracts held	30	-	70,949	-	70,949
Net insurance finance income		-	(46,294)	-	(46,294)
Net insurance and investment result		2,755,366	6,955,966	2,075,523	6,403,748
Other operating income	33	159,987	300,363	118	7,844
Other operating expenses Share of profit of associates and joint ventures accounted for using th	35 e equity	(1,256,183) -	(1,042,534) -	(631,479)	(483,045)
Profit before income tax		1,659,170	6,213,795	1,444,162	5,928,547
Tax expense	36	(41,328)	(543,157)	(37,761)	(406,680)
Profit for the period		1,617,842	5,670,639	1,406,401	5,521,867

Other comprehensive income:

Items that will not be reclassified subsequently to profit or loss(net of tax):

Net acturial gains/(loss) on retirement benefit obligation	50a	-	-	-	-
Gain on revaluation of property, plant and equipment (net of tax)	50b	-	-	-		-
Fair value gain on financial asset at FVOCI(net of tax)	50c	-	-	-		-
Other comprehensive income, Net of tax		-	-	-	-
Total comprehensive (loss)/income		1,617,842	5,670,638	1,406,401	5,521,867
Profit for the period, attributable to:
* Non-controlling interests		58,721	174,232	1,406,401	5,521,867
* Owners' of the Parent		1,559,122	5,496,407	-	-
		1,617,842	5,670,639	1,406,401	5,521,867
Total Comprehensive Income, attributable to:
* Non-controlling interests		58,721	174,232	1,406,401	-
* Owners' of the Parent		1,559,122	5,496,407	-	-
		1,617,842	5,670,639	1,406,401	-
Basic Earnings per Share	24	0.23	0.82	0.20	0.80

Consolidated and Separate Unaudited Financial Statements

For the period ended 31 March 2025

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE QUARTER ENDED 31 MARCH 2025
Group
	Share Capital	Share Premium	Asset revaluation reserve	Fair value reserve	Contingency Reserve	Retained Earnings	Total	Non-Controlling Interest	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2025	6,933,333	663,600	3,974,282	275,880	2,611,284	(1,189,504)	13,268,875	2,016,863	15,285,738
Profit for the year Other Comprehensive Income: Gain on revaluation of properties, plant and equipment	- -	- -	- -	- -	- -	1,565,993 -	1,565,993 - -	58,721 -	1,624,714 -
Fair value gain on financial asset at FVOCI Transfer to statutory reserve Transfer of revaluation gain on disposal of PPE	- -	- -	- -	- -	- -	- - -	- - -	-6,094 -	-6,094 -
Acturial gain on retirement benefit obligation	-	-	-	-	-	-	-	-	-
Total Comprehensive Income	-	-	-	-	-	1,565,993	1,565,993	64,815	1,630,808
Transfer to Contingency Reserve Transactions with owners of equity	-	-	-	-	205,969	(205,969)	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-	-	-
At 31 March 2025	6,933,333	663,600	3,974,282	275,880	2,817,253	170,520	14,834,868	2,081,678	16,916,546
	Share Capital	Share Premium	Asset revaluation reserve	Fair value reserve	Contingency Reserve	Retained Earnings	Total	Non-Controlling Interest	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2024	6,933,333	663,600	3,634,971	235,984	1,900,456	1,008,862	14,377,206	1,991,597	16,368,802
Profit for the year Other Comprehensive Income: Gain on revaluation of properties, plant and equipment	- -	- -	- -	- -	- -	5,496,407 -	5,496,407 - -	174,232 -	5,670,639 - -
Fair value gain on financial asset at FVOCI	-	-	-	-	-	-	-	-	-
Transfer of revaluation gain on disposal of PPE	-	-	-	-	-	-	-	-	-
Acturial gain on retirement benefit obligation			-			-	-	-	-
Total Comprehensive Income	-	-	-	-	-	5,496,407	5,496,407	174,232	5,670,639
Transfer to Contingency Reserve Transactions with owners of equity:	-	-	-	-	1,104,374	(1,104,374)	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-	-	-
At 31 March 2024	6,933,333	663,600	3,634,971	235,984	3,004,830	5,400,895	19,873,613	2,165,829	22,039,441

Consolidated and Separate Unaudited Financial Statements

For the period ended 31 March 2025

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE QUARTER ENDED 31 MARCH 2025

Company	Share Capital	Share Premium	Asset revaluation reserve	Fair value reserve	Contingency Reserve	Retained Earnings	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2025	6,933,333	663,600	3,735,496	279,569	2,611,284	(2,305,750)	11,917,532
Loss for the year	-	-	-	-	-	1,406,407	1,406,407
Other Comprehensive Income: Gain on revaluation of properties, plant and equipment	-	-	-	-	-	-	-
Fair value gain on financial asset at FVOCI	-	-	-	-	-	-	-
Transfer of revaluation gain on disposal of PPE	-	-	-	-	-	-	-
Total Comprehensive Income	-	-	-	-	-	1,406,407	1,406,407
Transfer to Contingency Reserve	-	-	-	-	205,969	(205,969)	-
At 31 March 2025	6,933,333	663,600	3,735,496	279,569	2,817,253	(1,105,312)	13,323,939
	Share Capital	Share Premium	Asset revaluation reserve	Fair value reserve	Contingency Reserve	Retained Earnings	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2024	6,933,333	663,600	3,396,185	239,673	1,900,456	39,674	13,172,921
Profit for the year	-	-	-	-	-	5,521,868	5,521,868
Other Comprehensive Income: Gain on revaluation of properties, plant and equipment	-	-	-	-	-	-	-
Fair value gain on financial asset at FVOCI	-	-	-	-	-	-	-
Transfer of revaluation gain on disposal of PPE	-	-	-	-	-	-	-
Total Comprehensive income	-	-	-	-	-	5,521,868	5,521,868
Transfer to Contingency Reserve					1,104,374	(1,104,374)	-
At 31 March 2024	6,933,333	663,600	3,396,185	239,673	3,004,830	4,457,168	18,694,789

The statement of material accounting policies and the accompanying notes to the Consolidated and separate financial statements form an integral part of these financial statements.

VERITAS KAPITAL ASSURANCE PLC

Consolidated and Separate Unaudited Financial Statements

For the period ended 31 March 2025

CONSOLIDATED AND SEPARATE STATEMENT OF FOR THE PERIOD ENDED 31 MARCH 2025	CASHFLOWS
		2025	2024		2025	2024
		Group	Group		Company	Company
Cash flows from operating activities:	Notes	N'000	N'000		N'000	N'000
Premium received	17a	6,951,221	5,929,168		6,865,645	5,866,990
Amount received in respect of claims	17b	27,012	397,028		27,012	397,028
Amount recovered for claims and other expenses		-	452,794		-	452,794
Other operating income	33	159,987	300,363		118	7,844
Cash paid to and on behalf of employees	35	(628,405)	(498,485)		(281,482)	(223,390)
Reinsurance premium paid	17b	(4,288,430)	(506,831)		(4,288,430)	(506,831)
Insurance benefits and claims paid	17a	(448,043)	(1,124,813)		(407,507)	(1,024,871)
Acquisition costs paid	17a	(974,847)	(695,631)		(974,847)	(695,631)
Other acqusition (Maintenance expense) paid	17a	(7,651)	(31,985)		(7,651)	(31,985)
Exchange gain	32	(22,014)	-		(22,014)	-
Cash paid to intermediaries and other suppliers		(1,337,930)	(838,745)		(314,321)	(751,496)
Company income tax paid	16	-	(161,914)		-	(39,046)
Net cashflow from operating activites		(569,100)	3,220,949		596,523	3,451,406
Cash flow from investing activities:
Purchase of property, Plant and equipment	9	(69,317)	(76,911)		(48,959)	(60,279)
Purchase of intangible assets	11	(828)	-		-	-
Proceed from sale of property and equipment	49a	8,010	-		-	-
Proceed from disposal of investment property	9	-	-		-	-
Dividend income	31	-	3,609		-	3,609
Interest received	1,236,027		397,563		270,729	232,449
Purchase of amortised cost investment	4v	(68,390)	(969,213)		(3,097)	-
Investment in subsidiary Redemption/repayment on amortised cost investments	4v	- 607,453	- -		- (202,438)	- -
Net cashflows used in investing activites		1,712,955	(644,952)		16,235	175,779
Cash flow from financing activities:
Investment in subsidiary	7	-	-		-	-
Deposit for shares	38	-		-	-	-
Dividend paid	21&37	-	-		-	-
Net cashflows used in financing activites		-	-		-	-
Net increase in cash and cash equivalents	1,143,855		2,575,997		612,758	3,627,185
Cash and cash equivalents at the 1 January	11,258,477		6,576,972		9,890,315	4,721,860
Effects of exchange rate changes on cash and cash equivalents			22,014	-	22,014	-
Cash and cash equivalents at the 31 March		3	12,424,346	9,152,969	10,525,087	8,349,045

The statement of material accounting policies and the accompanying notes to the Consolidated and separate financial statements form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS

Reporting Entity
Veritas Kapital Assurance Plc ("the Company") was initially incorporated under the name of Kapital Insurance Company Limited as a private limited liability Company On the 8 August, 1973. on 14 March 2007, it acquired and merged withs two other insurance companies became a public limited liability group. Its shares are quoted on the Nigerian Exchange Group.
Its Head Office is located at 497 Abogo Largema Street, Off constitution Avenue, Central Business District, Abuja Nigeria.
The Company has 93.5% equity interest in Veritas Health Care Limited and 70% interest in Veritas Glanvills Pensions Limited and 51.53% in Goldlink Insurance Plc. The group comprises of two subsidiaries, an associate and the parent Company.
Principal Activities
The principal business of the group is underwriting of non-life insurance risks. The subsidiaries activities are:
- Veritas Glanvills Pensions Limited, the administration and management of pension fund assets.
- Veritas Health Care Limited provision of health insurance.
Components of Financial Statements
The Consolidated and Separate Financial Statements comprise the Statements of Profit or Loss and Other Comprehensive Income, Consolidated and separate statements of Financial Position, Consolidated and separate Statement of Changes in Equity, Consolidated and separate Statements of Cash Flows, and the accompanying Notes.
Income and expenses (excluding the components of other comprehensive income) are recognized in the profit or loss segment of profit or loss to arrive at the profit for the year.
Other comprehensive income is recognized in the other comprehensive segment of the statement of other comprehensive income and comprises items of income and expenses that are not recognized in the statement of profit or loss as required or permitted by IFRS Accounting Standards.
The addition of the profit for the year and the other comprehensive income gives the total comprehensive income for the year.
Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognized in other comprehensive income in the current or previous periods. Transactions with the owners of the group in their capacity as owners are recognized in the statement of changes in equity.
Basis of preparation and measurement
Historical cost basis was used in preparation of the consolidated and separate financial statements as modified by the certain items of:
- Property, plant and equipment at valuation
- Investment property at fair value
- Investments at fair value
- Impaired assets at their recoverable amounts
Compliance with IFRS and NAICOM
These Consolidated and separate financial statements have been prepared in accordance with the (IFRS) Accounting Standards, IFRS Interpretations Committee (IFRIC) Interpretations applicable to companies reporting under IFRS as issued by the International Accounting Standards Board (IASB), Financial Reporting Council of Nigeria (Amendment) Act, 2023, Insurance Act, 2023 and regulatory guidelines as pronounced from time to time by National Insurance Commission (NAICOM). Additional information required by national regulations have been included where appropriate.
Going Concern status
The consolidated and separate financial statements have been prepared on the going concern basis. The group has no intention or need to reduce substantially its business operations. The management believes that the going concern assumption is appropriate for the company and group due to sufficient liquidity and based on historical experience that short-term obligations will be refinanced in the normal course of business. Liquidity ratio and continuous evaluation of current ratio of the group is carried out to ensure that there are no going concern threats to the operation of the group.
P r e s e n t a t i o n of financial statements
The group presents its consolidated and separate statements of financial position broadly in order of liquidity. An analysis regarding recovery or settlement within twelve months after the reporting date (current) and more than 12 months after the reporting date (non-current) is presented in the Notes.
Significant judgements and key sources of estimation uncertainty

In the process of applying the accounting policies adopted by the group and company, the Directors make certain judgements and estimates that may affect the carrying values of assets and liabilities in the next financial period. Such judgements and estimates are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the current circumstances. the directors evaluate these at each financial reporting date to ensure that they are still reasonable under the prevailing circumstances based on the information available.

1.8 Significant judgements and key sources of estimation uncertainty - continued

The preparation of the group's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. These factors should include:

The judgements made by the Directors in the process of applying the group's accounting policies that have the most significant effect on the amounts recognized in the financial statements include:

Claims arising from insurance contracts
Liabilities for unpaid claims are estimated on a case by case basis. The liabilities recognized for claims fluctuate based on the nature and severity of the claim reported. Claims incurred but not reported are determined using statistical analyses and the group deems liabilities reported as adequate.
Fair value of unquoted equity financial instruments
The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases, the fair values are estimated from observable data using valuation models.
Property, Plant and equipment
Property, Plant and equipment represent one of the most significant proportion of the asset base of the group, accounting for about 26% of the group's total assets. Therefore, the estimates and assumptions made to determine their carrying value and related depreciation are critical to the group's financial position and performance.
The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. Increasing an asset's expected life or its residual value would result in the reduced depreciation charge in the statement of comprehensive income.
The useful lives and residual values of the property, plant and equipment are determined by management based on historical experience as well as anticipation of future events and circumstances which may impact their useful lives.
Goodwill

Goodwill is tested for impairment annually or whenever we identify certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among

Significant judgements and key sources of estimation uncertainty - continued
other things, unexpected adverse business conditions, macro and reporting unit specific economic factors (for example, interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated competitive activities, and acts by governments and courts.
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of the cash generating unit to which the goodwill relates. Where the recoverable amount of the cash generating unit is less than their carrying amount, an impairment is recognized.
- Deferred Tax Assets
  Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which temporary differences can be utilised. Management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and other factors.
Functional and presentation currency

The consolidated and separate financial statements are presented in Nigerian Naira (Naira), rounded to the nearest thousand, this is also the functional currency of the group.

Summary of material accounting policies
1. Introduction to summary of accounting policies
  The material accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2. Insurance contracts
  1. Key types of insurance contracts issued, reinsurance contracts held and measurement approach.
    The Group issues non-life insurance to individuals and businesses. Non-life insurance products offered include motor, general accident, marine, fire bond, oil & gas, engineering and agriculture. These products offer protection of policyholder's assets and indemnification of other parties that have suffered damage as a result of a policyholder's accident.
    The company accounts for these contracts applying the Premium Allocation Approach (PAA).
    The company also holds reinsurance contracts to mitigate risk exposures. The types of reinsurance contracts held include -facultative reinsurance, treaty Reinsurance. proportional reinsurance, non-proportional reinsurance. These are also accounted for using the Premium Allocation Approach (PAA).
    2 Summary of material accounting policies - continued 2.2 Insurance contracts - continued
  2. Definition and Classification
    Insurance products sold by the company are classified as insurance contracts when the company accepts significant insurance risk from a policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder. This assessment is made on a contract-by-contract basis at the contract issue date. In making this assessment, the company considers all its substantive rights and obligations, whether they arise from contract, law or regulation. The company determines whether a contract contains significant insurance risk by assessing if an insured event could cause the company to pay to the policyholder additional amounts that are significant in any single scenario with commercial substance even if the insured event is extremely unlikely or the expected present value of the contingent cash flows is a small proportion of the expected present value of the remaining cash flows from the insurance contract. The company does not issue any contracts with direct participating features.
    The company has assessed whether its portfolio of insurance contracts needs to be treated as a single contract and if there exist any embedded derivatives investment components and goods and services components, which would have to be separated and accounted for under another standard. There is currently no product with such components.
  3. Combining a set or series of contracts
    Sometimes, the company enters into two or more contracts at the same time with the same or related counterparties to achieve an overall commercial effect. The company accounts for such a set of contracts as a single insurance contract when this reflects the substance of the contracts. When making this assessment, the company considers whether:
    i· The rights and obligations are different when looked at together compared to when looked at individually. ii· The company is unable to measure one contract without considering the other.
  4. Separating components from insurance and reinsurance contracts
    In line with the requirement of IFRS 17, the company assesses its insurance and reinsurance products to determine whether they contain components which must be accounted for under another IFRS rather than IFRS 17 (distinct non-insurance components). After separating any distinct components, an entity must apply IFRS 17 to all remaining components of the (host) insurance contract.
    Currently, the company's products do not include distinct components that require separation.
    2 Summary of material accounting policies - continued 2.2 Insurance contracts - continued
  5. Level of aggregation (Unit of account)
    IFRS 17 requires an entity to determine the level of aggregation for applying its requirements. The company identifies portfolios by aggregating insurance contracts that are subject to similar risks and managed together. In grouping insurance contracts into portfolios, the company considers the similarity of risks rather than the specific labelling of product lines. The company has determined that all contracts within each product line, as defined for management purposes, have similar risks. Therefore, when contracts are managed together, they represent a portfolio of contracts. Each portfolio is subdivided into groups of contracts to which the recognition and measurement requirements of IFRS 17 are applied. At initial recognition, the company segregates contracts based on when they were issued. A cohort contains all contracts that were issued within a 12-month period. Each cohort is then further disaggregated into three groups of contracts:
    - Contracts that are onerous on initial recognition
    - Contracts that, on initial recognition, have no significant possibility of becoming onerous subsequently
    - Any remaining contracts
      For short term contracts accounted for applying the PAA, the company determines that contracts are not onerous on initial recognition, unless there are facts and circumstances indicating otherwise. As IFRS 17 does not define what "facts/circumstances" entail; the following are considered on their impact on expected cashflows and resulting profitability:
      -Significant changes in external conditions including economic or regulatory changes.
      -Changes to the organization or processes
      -Changes in underwriting and pricing strategies
      -Trends in experience and expected variability in cashflows
      This consideration is only required for Liabilities for Remaining Claims (LRC) and not Liabilities for Incurred Claims (LIC) which is already measured at the current fulfillment value. Fulfillment cashflows can be estimated at whichever aggregate level is deemed appropriate and then subsequently allocated into IFRS 17 portfolios and groups. The fact that incurred claims of a particular cohort are loss-making does not mean the LRC will also be onerous. Judgment is applied to determine whether each cohort's LRC will be similar to this incurred experience and hence onerous. For example, actions taken to improve profitability a historically loss-making cohort may indicate that the cohort will be non-onerous going forward.
      All short-term contracts have currently been assessed as having no possibility of becoming onerous. In
      subsequent periods, non-onerous contracts are re-assessed based on the likelihood of prevailing facts and circumstances leading to significant possibility of becoming onerous.
      Reinsurance contracts held are assessed for aggregation on an individual contract basis and are assessed separately from insurance contracts. The smallest unit of account is a reinsurance contract, even where this contract covers more than one type of insurance product. However, there are cases where a reinsurance contract covers separate and identifiable product lines which are only included in the same legal document for administrative convenience. These contracts have been separated into its different component.
      If two or more reinsurance contracts are written on a particular product line, these may be grouped together in the same portfolio as they will be covering risks of the same nature and will be managed together. For example, the Surplus contracts (1&2) on Fire have been grouped together as they cover risks of the same nature and can be measured under the same measurement approach (PAA because they have a contract boundary of 1 year). While, facultative and excess of loss contracts are in separate groups; though they cover the same risks and are even managed together, differing measurement approaches as well as recognition requirements may apply.
  6. Recognition
    The company recognizes groups of insurance contracts issued from the date when the first payment from a policyholder in the group becomes due. As the company adheres to the statutory "no premium no cover", the date premium is received from the policyholder will always be earlier or on the same date as the coverage period. This premium receipt date would then be used to separate the groups of insurance contracts into yearly cohorts. The contract groupings shall not be reassessed until they are derecognized.
  7. Contract Boundaries
    The company includes in the measurement of a group of insurance contracts all the future cash flows within the boundary of each contract in the group. Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the Group can compel the policyholder to pay the premiums, or in which the Group has a substantive obligation to provide the policyholder with insurance contract services. A substantive obligation to provide insurance contract services ends when:
    - The Company has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that fully reflects those risks Or
    - Both of the following criteria are satisfied:
    - The Company has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the contract and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio.
      2.2 Insurance contracts - continued
      - The pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate to periods after the reassessment date.
      A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract are not recognized. Such amounts relate to future insurance contracts.
  8. Measurement of insurance contracts issued.

Discount Rate

The time value of money and financial risk is measured separately from expected future cash flows with

changes in financial risks recognized in profit or loss at the end of each reporting period unless the Company has elected the accounting policy to present the time value of money separately in profit or loss and other comprehensive income. The Company measures the time value of money using discount rates that reflect the liquidity characteristics of the insurance contracts and the characteristics of the cash flows, consistent with observable current market prices. They exclude the effect of factors that influence such observable market prices but do not affect the future cash flows of the insurance contracts (e.g., credit risk).

In determining discount rates for cash flows, the Company uses the 'bottom-up approach' to estimate discount rates starting from a risk-free rate with similar characteristics, plus an illiquidity premium where applicable. Risk free rates are determined by reference to the yields of highly liquid FGN Bonds. The illiquidity premium is determined by reference to observable market rates, including sovereign debt, corporate debt and market swap rates. However, for the current year the company has adopted a Bottom-up approach which was adopted in setting the average discount rate for the liability valuation, having regard to the published yield curve by the Nigeria Actuarial Society (NAS) on its website or on the NAICOM website and adjusts it to reflect the illiquidity in the insurance contracts. An average spot/zero curve locked in rate of 28.20% per year was adopted to estimate the value of the future expected cashflows from the liability for incurred claims (LIC) obligations as at the valuation date. No deduction for illiquidity premium and No (additional) spread has been applied. The NAS interest curve used to discount future cash flows is derived from the published yield curve by the Nigeria Actuarial Society (NAS) on its website or on the NAICOM website and adjusts it to reflect the illiquidity in the insurance contracts with similar characteristics (in terms of timing, currency and liquidity requirements) as the future fulfillment cashflows.

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