STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
STATEMENT OF FINANCIAL POSITION
...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
STATEMENT OF PROFIT OR LOSS AND ...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
Statement of changes in equity
2...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
STATEMENT OF CASH FLOW
2012 2011...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
The movement in income tax
during the year is as follows:
Payment during the year (39,000) - (39,000) (56,029) (76,439)
Ta...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012
FIRST TI...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
NOTES TO THE FINANCIAL STATEMENT...
STANDARD ALLIANCE INSURANCE PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012
APPENDIX TO THE FINANCIAL STATEM...
STANDARD ALLIANCE INSURANCE PLC
APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012
3 FIVE YEAR FINANCIAL SUMMARY
2012...
Standard Alliance Insurance Plc FY 2012 results
Upcoming SlideShare
Loading in …5
×

Standard Alliance Insurance Plc FY 2012 results

493 views

Published on

Standard Alliance Insurance Plc FY 2012 results

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
493
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Standard Alliance Insurance Plc FY 2012 results

  1. 1. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 STATEMENT OF FINANCIAL POSITION 2012 2011 2010 ASSETS NOTES =N='000 =N='000 =N='000 Cash and Cash Equivalents 3 316,589 662,801 1,005,251 Financial Assets 4 1,963,821 2,802,762 2,698,829 Trade Receivables 5 642,257 2,074,009 1,314,507 Reinsurance Assets 6 641,965 301,491 361,215 Deferred Acqusition Costs 7 140,728 97,332 101,843 Other Receivables and Prepayments 8 563,752 608,913 1,162,330 Non-Current Assets Held for Sale 9 1,435,000 390,000 40,000 Investments in Associates 10 1,123,290 1,047,654 1,238,740 Intangible Assets 11 18,937 17,345 21,617 Property, Plant and Equipment 12 1,750,734 1,117,053 1,064,841 Statutory Deposits 13 335,000 335,000 335,000 TOTAL ASSETS 8,932,074 9,454,359 9,344,174 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Insurance Contract Liabilities 14 1,857,219 1,145,140 816,495 Trade Payables 15 56,535 - 538,648 Other Payables and Accruals 16 518,550 482,669 385,857 Borrowing 17 1,195,770 1,480,651 1,138,147 Finance Lease Obligation 18 17,765 - - Employee Benefit Liabilities 19 36,098 28,719 30,437 Taxation 20 270,414 189,222 162,944 Deferred Tax Liabilities 21 106,873 89,018 79,112 TOTAL LIABILITIES 4,059,225 3,415,418 3,151,640 SHAREHOLDERS' EQUITY ORDINARY SHARE CAPITAL 22 5,996,587 4,246,587 4,246,587 PREFERENCE SHARES - 1,750,000 1,750,000 SHARE PREMIUM 15,852,049 15,852,049 15,852,049 TREASURY SHARES 23 (8,737,585) (8,737,585) (8,737,585) CONTINGENCY RESERVE 25 999,663 834,764 691,808 RETAINED EARNINGS (10,133,874) (7,944,743) (7,633,606) OTHER RESERVES 25 896,011 37,868 23,282 TOTAL SHAREHOLDERS' EQUITY 4,872,851 6,038,940 6,192,535 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,932,074 9,454,359 9,344,175 Kadiri Ijeremhe Imokhai Thomas Olorogun O'tega Emerhor, OON FRC/2013/ICAN/00000002076 FRC/2013/CIIN/00000003521 FRC/2013/ICAN/00000003211 Chief Financial Officer Managing Director Vice Chairman AT 31 DECEMBER 57
  2. 2. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Notes 2012 2011 REVENUE =N='000 =N='000 Gross Premium income 26 5,381,232 4,551,723 Reinsurance premium expenses 27 (480,958) (391,384) Net premium income 4,900,274 4,160,339 Commission earned on reinsurance 28 90,967 92,726 Underwriting income 4,991,241 4,253,065 Claims expenses 29 (1,367,503) (651,023) Claims expenses recoveries from reinsurers 454,609 194,727 Net Claims expenses (912,894) (456,296) Underwriting expenses 30 (1,517,452) (1,095,713) Total underwriting expenses (2,430,346) (1,552,009) Underwriting results 2,560,895 2,701,056 Investment income 31 208,069 176,946 Net operating income 2,768,964 2,878,002 Management expenses 32 (1,386,984) (1,388,761) Impairment provision on premium receivables 34 (2,805,413) (784,359) Results of operating activities (1,423,433) 704,881 Finance charges 33 (190,144) (148,413) Impairment charges on other account balances 34 (358,959) (152,069) Unrealised Fair value gains/(losses) 4.1 10,715 (111,090) Share of profit/(loss) of associates 10.2 75,637 (191,086) (Loss)/Profit before taxation (1,886,185) 102,223 Information technology development levy 35 - (3,191) Income tax 20 (120,192) (82,307) Deferred tax 21 (17,855) (9,906) (Loss)/Profit after taxation (2,024,232) 6,819 Other comprehensive income Can subsequently be reclassified to Profit or loss: - Fair value gains on quoted shares (Available for sale) 90,885 3,786 Fair value gains on defined benefit plan valuation - 10,800 Total other comprehensive income 90,885 14,586 Total comprehensive (loss) income for the year (1,933,347) 21,405 Earnings per share: Basic/ Diluted (Kobo) (16.88) 0.06 58 YEAR ENDED 31 DECEMBER
  3. 3. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 Statement of changes in equity 2011 Ordinary Share capital Preference shares Share premium Revaluation reserve Fair value reserve Treasury shares Contigency Reserve Retained earnings Total =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 At 1 January 2011 4,246,587 1,750,000 15,852,049 14,299 8,983 (8,737,585) 691,808 (7,633,606) 6,192,535 Appropriation for Contingency reserve for the year - - - - 142,956 (142,956) - Fair value gain on quoted shares (Available for sale) 3,786 3,786 Fair value gain on defined benefit scheme 10,800 10,800 Transactions with owners Profit for the year - - - - - 6,819 6,819 Dividends to preference share holders - - - - - (175,000) (175,000) - At 31 December 2011 4,246,587 1,750,000 15,852,049 14,299 23,569 (8,737,585) 834,764 (7,944,743) 6,038,940 2012 Ordinary Share capital Preference shares Share premium Revaluation reserve Fair value reserve Treasury shares Contigency Reserve Retained earnings Total =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 At 1 January 2012 4,246,587 1,750,000 15,852,049 14,299 23,569 (8,737,585) 834,764 (7,944,743) 6,038,940 Loss for the year - - - - - (2,024,232) (2,024,232) Appropriation for Contingency reserve for the year - - - - 164,899 (164,899) - Fair value gain on quoted shares (Available for sale) 90,885 90,885 Revaluation surplus on building 767,258 767,258 Transactions with owners - Transfers for the year 1,750,000 (1,750,000) - - - - - At 31 December 2012 5,996,587 - 15,852,049 781,557 114,454 (8,737,585) 999,663 (10,133,874) 4,872,851 31 December 2012 31 December 2011 59
  4. 4. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 STATEMENT OF CASH FLOW 2012 2011 CASH-FlOWS FROM OPERATING ACTIVITIES NOTES =N='000 =N='000 Premium received from policy holders 38 4,007,569 3,268,192 Interest received on investments 32 183,563 171,116 Dividend received 32 973 - Rent and sundry income 32 23,532 5,830 Claim paid (net of recoveries) 30 (912,894) (456,296) Fees and commission 29 90,967 92,726 Cash payments for reinsurance (480,958) (391,384) Brokers commissions and allowances 28 (1,159,228) (889,008) Agents allowances and commissions (358,224) (119,842) Cash payments to employees, suppliers and others (893,893) (1,510,111) 501,409 171,223 Tax paid: Income tax 21 (39,000) (56,029) Value Added Tax (VAT) (315) - NET CASH OUTFLOWS FROM OPERATING ACTIVITIES 462,093 115,194 CASH FLOWS FROM INVESTING ACTIVITIES Purhase of Property plant and Equipment 12 (73,294) (105,326) Purhase of Intangible assets (7,203) - Proceeds from sale of Property, Plant and Equipment 1,562 - NET CASH INFLOWS FROM INVESTING ACTIVITIES (78,935) (105,326) CASH FLOWS FROM FINANCING ACTIVITIES Finance charges 34 (190,144) (148,413) Repayment of borrowing - Daewoo securities bond 17 (109,593) - Lease financing (net) 18 (17,765) - Payment of preference dividend - (175,000) NET CASH OUTFLOWS TO FINANCING ACTIVITIES (317,502) (323,413) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 65,656 (313,545) Cash and cash equivalent at 1 January 660,080 973,625 NET CASH AND CASH EQUIVALENTS AT 31 DECEMBER 725,736 660,080 NET CASH AND CASH EQUIVALENTS COMPRISE: Current and domiciliary accounts balances 3 221,816 89,615 Short term deposits - Local banks 3 599,184 602,091 Bank overdrafts 16 (95,264) (31,626) 725,736 660,080 YEAR ENDED 31 DECEMBER 60
  5. 5. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 1 THE COMPANY Please see the descrption of the Company as presented on page 10 of these financial statements 2 ACCOUNTING POLICIES The accounting policies adopted by the Company in the preparation of these financial statements and which have been consistently applied over the periods are as fully disclosed on pages 25- 49. 3 CASH AND CASH EQUIVALENTS 2012 2011 2010 =N='000 =N='000 =N='000 Current accounts 82,497 47730 66495 Domicilliary accounts 139,319 41885 10444 221,816 89615 76939 Short term deposits with other Financial Institutions 599,184 602,091 928,312 821,000 691,706 1,005,251 Impairment provision (Note 3.1) (504,411) (28,905) - 316,589 662,801 1,005,251 Short-term deposits are made for varying periods of between one day and three months depending on the immediate cash requirements of the Company. 3.1 Impairment provision At 1 January 145,452 - - Impairment charged for the year (Note 35) 358,959 145,452 - At 31 December 504,411 145,452 - This relates to deposits with Non-Banking Financial Institutions which the directors consider of doubtful collection and has prudently made provision, 4 FINANCIAL ASSETS At fair value through Profit or loss (Note 4.1) 50,331 39,616 65,594 Available for sale (Note 4.2) 1,913,490 2,763,146 2,633,235 1,963,821 2,802,762 2,698,829 4.1 Financial assets at fair value through Profit or loss Quoted securities Cost 334,433 334,433 249,321 Fair value changes (284,102) (294,817) (183,727) Market value 50,331 39,616 65,594 The fair value changes are further analysed thus: At 1 January (294,817) (183,727) (186,783) Fair value gains/(losses) during the year 10,715 (111,090) 3,056 At 31 December (284,102) (294,817) (183,727) AT 31 DECEMBER 61
  6. 6. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 4.2 Available for sale financial assets 2012 2011 2010 =N='000 =N='000 =N='000 Standard Alliance Properties Limited (Note 4.3.1) 1,714,678 2,648,601 2,522,477 Quoted shares in Transcorp Plc (Note 4.3.2) 198,812 107,927 104,140 Oil and Energy Pool (Note 4.3.3) - 6,618 6,618 1,913,490 2,763,146 2,633,235 4.3.1 Standard Alliance Properties Limited At 1 January 2,648,601 2,522,477 2,522,477 Interest income for the year 111,077 126,124 - Acquisition of buildings for resale (1,045,000) - - At 31 December 1,714,678 2,648,601 2,522,477 Amount represents investment by the Company in Standard Alliance Properties Limited under a joint venture arrangement for property business. The terms of the arrangement include annual interest income and share of profit. Standard Alliance Properties Limited transferred 11 units of 4-Bedroom Terrance houses at New Country Estate at at Lekki valued at =N=95 million per unit (=N=1.045billion) to the Company during the year ended 31 December 2012. 4.3.2 Investment in quoted shares (Transcorp Plc) Cost 95,158 95,158 95,158 Fair Value Gain 103,654 12,769 8,982 Market Value 198,812 107,927 104,140 4.3.3 Oil and Energy Pool Gross investment 6,618 6,618 6,618 Impairment allowance (6,618) - - - 6,618 6,618 AT 31 DECEMBER 62
  7. 7. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 AT 31 DECEMBER 2012 2011 2010 5 TRADE RECEIVABLES =N='000 =N='000 =N='000 Premium receivable (Note 5.1) Dues from brokers 3,931,063 2,557,401 4,240,839 Impairment allowance (3,288,806) (483,392) (2,926,332) 642,257 2,074,009 1,314,507 Age Analysis of Premium receivables 0 - 90 Days 301,461 557,101 386,036 91 - 180 Days 216,567 1,033,515 677,403 Over 180 Days 3,413,035 966,785 3,177,400 3,931,063 2,557,401 4,240,839 The sum of =N=641.575 relating to premium receivable as at at 31 December 2012 had been received as at 31st May 2013. 5.1 Impairment allowance on premium receivables At 1 January (483,392) (2,926,332) (708,378) Charged during the year (Note 36) (2,805,413) (784,359) (2,217,954) Written off during the year - 3,227,299 - At 31 December (3,288,805) (483,392) (2,926,332) 6 REINSURANCE ASSETS Claims recoverable 577,449 301,491 361,215 Deferred reinsurance cost 64,516 - - 641,965 301,491 361,215 All of the above amounts are of current tenor. 7 DEFERRED ACQUISITION COSTS Motor 39,239 35,723 39,846 Aviation 5,609 - - Engineering 21,603 16,092 13,553 Fire 23,948 7,827 7,368 General Accident 24,673 16,674 23,544 Marine 13,929 21,018 17,532 Bond 7,126 - - Oil & Gas 4,601 - - 140,728 97,332 101,843 The movement in deferred acquisition cost are: At 1 January 97,332 101,843 147,349 Additions during the year 140,728 97,332 101,843 Amortization for the year (97,332) (101,843) (147,349) At 31 December 140,728 97,332 101,843 63
  8. 8. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 AT 31 DECEMBER 2012 2011 2010 8 OTHER RECEIVABLES AND PREPAYMENTS Prepayments 20,282 20,744 518,846 Loans and Receivables (Note 8.1) 506,997 506,997 538,831 Staff debtors 30,170 81,172 104,653 Sundry 6,302 - - 563,752 608,913 1,162,330 All of the above amounts are of current tenor. 8.1 Loans and Receivables Current account with related companies 506,997 506,997 538,831 Others 62,500 62,500 50,000 569,497 569,497 588,831 Impairment allowance (62,500) (62,500) (50,000) 506,997 506,997 538,831 9 NON CURRENT ASSETS HELD FOR SALE At 1 January 390,000 40,000 40,000 Additions during the year 1,045,000 350,000 - At 31 December 1,435,000 390,000 40,000 These comprise the following properties: 1. 250 Hecters of farmland at Mydumbi Village, Kaduna - Zaria Road 40,000 40,000 40,000 2. Twin Duplex, Plot 58B, Block AA in Parkview Estate, Ikoyi - Lagos 350,000 350,000 - 3. 11 units of '4-Bedroom terrace houses at New County Estate at Lekki 1,045,000 - - 1,435,000 390,000 40,000 The valuation of the landed properties in Parkview Estate, Ikoyi - Lagos and the 11 units of '4-Bedroom terrace houses at New County Estate at Lekki as at 31 December 2012 which put their fair values at =N=350million and =N=1.045 billion respectively was done by Osaro Eguasa & Co (FRC/2013/0000000000423), an industry specialist in valuing these type of asset. All the properties are intended for sale by the Company in the short - term. 64
  9. 9. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 10 INVESTMENTS IN ASSOCIATES 2012 2011 2010 =N='000 =N='000 =N='000 The Company has equity investments in the following entities: Standard Alliance Life Assurance Limited (47.47%), Standard Alliance Properties Limited (36.67%), Standard Alliance Capital and Assets Limited (40%) and Standard Alliance Pension Limited (40%), The movement on the equity Investment accounting during the year are as follows: Standard Alliance Life Assurance Ltd Cost 1,905,000 1,905,000 1,905,000 Share of post acquisition reserves (Note 10.1) (853,678) (1,013,212) (896,326) Carrying amount at 31 December 1,051,322 891,788 1,008,674 SA Properties Ltd. Cost 275,000 275,000 275,000 Share of post acquisition reserves (Note 10.1) (249,523) (187,798) (136,392) Carrying amount at 31 December 25,477 87,202 138,608 SA Capital and Assets Ltd. Cost 400,000 400,000 400,000 Share of post acquisition reserves (Note 10.1) (353,509) (331,336) (308,542) Carrying amount at 31 December 46,491 68,664 91,458 SA Pensions Ltd. Cost 260,000 260,000 260,000 Share of post acquisition reserves (Note 10.1) - - - 260,000 260,000 260,000 Impairment provisions (260,000) (260,000) (260,000) Carrying amount at 31 December - - - Total Carrying amount at 31 December 1,123,290 1,047,654 1,238,740 10.1 Share of post acquisition profits or losses Standard Alliance Life Assurance Ltd At 1 January (1,013,212) (896,326) - Share of current year Profit(Loss) (Note 10.2) 159,534 (116,886) (896,326) At 31 December (853,678) (1,013,212) (896,326) SA Properties Ltd. At 1 January (187,798) (136,392) - Share of current year profit/ (Loss) (Note 10.2) (61,724) (51,406) (136,392) At 31 December (249,523) (187,798) (136,392) SA Capital and Assets Ltd. At 1 January (331,336) (308,542) - Share of current year loss (Note 10.2) (22,173) (22,794) (308,542) At 31 December (353,509) (331,336) (308,542) AT 31 DECEMBER 65
  10. 10. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 10.2 Summarised financial statements of associates: 2012 2011 2010 Standard Alliance Life Assurance Ltd 47.47% =N='000 =N='000 =N='000 Property, plant and equipments 94,027 182,179 148,569 Investment properties 567,000 352,000 302,105 Other assets 3,930,798 3,572,973 3,580,001 Liabilities (2,468,627) (2,320,030) (2,047,215) Net Assets 2,123,198 1,787,122 1,983,460 Revenue 2,882,442 2,278,722 1,631,279 Profit/(Loss) before taxation 384,875 (213,545) (1,155,450) Profit/(Loss) after taxation 336,074 (246,232) (1,173,200) 47.47% thereof (Note 10.1) 159,534 (116,886) (896,326) SA Properties Ltd. 40% Property, plant and equipments 18,615 18,295 3,568 Non-current assets held for sale 2,148,322 2,093,875 1,991,485 Other assets 698,828 776,536 2,720,224 Liabilities (811,643) (128,512) (260,023) Long term Intercompany loan - - (2,402,359) Long term deposit (1,714,678) (2,648,601) (1,812,787) Net Assets 339,444 111,593 240,108 Revenue 1,456,695 566,775 193,837 Profit/(Loss) before taxation 201,601 (128,516) (89,310) Profit/(Loss) after taxation 201,601 (128,516) (89,310) Adjustment for unrealised profit (355,912) - - Adjusted profit/(loss) after taxation (154,311) (128,516) (89,310) 40% thereof (61,724) (51,406) (136,392) SA Capital and Assets Ltd. 40% Property, plant and equipments 166,539 11,349 18,653 Other assets 447,058 490,006 198,078 Long term Investments 319,353 31,834 1,677,007 liabilities (243,997) (361,530) (1,665,094) Net Assets 688,953 171,659 228,644 Revenue 21,885 56,228 85,660 Loss before taxation (55,432) (56,985) (55,836) Loss after taxation (55,432) (56,985) (55,836) 40% thereof (Note 10.1) (22,173) (22,794) (22,334) Total share of profit/(loss) for the year 75,637 (191,087) (1,055,052) AT 31 DECEMBER 66
  11. 11. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 2012 2011 2010 =N='000 =N='000 =N='000 11 INTANGIBLE ASSET COMPUTER SOFTWARE COST AT 1 January 28,488 28,488 28,488 Additions 7,203 - - At 31 December 35,691 28,488 28,488 AMORTISATION AT 1 January 11,144 6,871 4,399 Amortisation for the year 5,610 4,273 2,472 At 31 December 16,754 11,144 6,871 CARRYING AMOUNT At 31/12/2012 18,937 17,345 21,617 The intangible asset above relate to the Company's accounting software packages (Turnquest) bought from Turnkey Africa, a Company registered in Nairobi, Kenya. 67 AT 31 DECEMBER
  12. 12. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 12 PROPERTY, PLANT AND EQUIPMENT 2012 2011 2010 Land Building Motor vehicles Furniture and fittings Computer and other equipments Total Total Total COST =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 At 1/1/2012 - 880,305 346,499 110,371 191,391 1,528,567 1,615,666 1,364,215 Additions - 54,017 9,558 9,719 73,294 105,326 309,739 Revaluation surplus (Note 25) - 767,258 - - - 767,258 - - Reclassification 285,000 (285,000) - - - - (17,345) (27,615) Disposals - (14,695) - - (14,695) (135,537) (58,288) At 31/12/2012 285,000 1,362,563 385,822 119,929 201,110 2,354,424 1,568,110 1,588,051 DEPRECIATION At 1/1/2012 - 24,399 281,484 46,962 131,427 484,272 524,167 435,491 Charge for the year - 36,391 56,972 10,444 30,307 134,113 110,268 114,903 Disposals - - (14,695) - (14,695) (135,537) (26,227) At 31/12/2012 - 60,790 323,760 57,406 161,734 603,690 498,898 524,167 CARRYING AMOUNT 31 December 2012 285,000 1,301,773 62,061 62,523 39,376 1,750,734 1,069,213 1,063,885 31 December 2011 - 873,832 65,016 63,409 66,956 1,069,213 1,063,885 31 December 2010 - 861,817 70,718 54,670 76,680 1,063,885 AT 31 DECEMBER 68
  13. 13. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 2012 2011 2010 =N='000 '=N='000 '=N='000 13 STATUTORY DEPOSIT 335,000 335,000 335,000 This represents the mandatory deposit maintained with Central Bank of Nigeria in accordance with the Insurance Actt CAP 117 LFN 2004 as a general business insurance company.The deposit is entirely non-current. 14 INSURANCE CONTRACT LIABILITIES Unearned Premium reserve (Note 14.1) 910,362 799,997 564,216 Outstanding claims (Note 14.2) 946,857 345,143 252,279 1,857,219 1,145,140 816,495 The insurance contract liabilities balances above are covered by the Company's dedicated assets as thus: Cash and cash equivalent (Note 3) 283,769 575,428 558,784 Financial assets (Note 4) 198,812 147,542 169,734 Non-current assets held for sale (Note 9) 1,395,000 350,000 - 1,877,581 1,072,970 728,518 From the report of the Actuarial Valuation carried out by HR Nigeria Limited (Consultants and Actuariest) in 2010 operations for the purpose of IFRS transition adustments, a deficit of =N=58 million was arrived at for the Insurance Contract Liabilities. H R Nigeria Limited (Consultants and Actuaries) also carried out an actuarial valuation of the Insurance Contract Liabilities as at 31 December 2012. The valuation indicated a inadequate provision of =N=2.4 million and recommended further provision to meet the required value. 14.1 Unearned Premium Reserve Aviation 19,119 - - Bond 27,891 - - Engineering 117,610 167,988 46,487 Fire 93,804 98,102 41,524 General Accident 117,871 158,277 122,168 Marine 120,224 81,011 127,490 Motor 370,583 294,619 226,547 Oil & Gas 43,261 - - 910,362 799,997 564,216 14.2 Outstanding Claims Outstanding Claims provision (Note 14.2.1) 939,805 339,625 252,279 Claims incurred but not reported (IBNR) (Note 14.2.2) 7,052 5,518 - 946,857 345,143 252,279 14.2.1 Outstanding Claims provision At 1 January 339,625 252,279 82,280 Reported claims in the current year 1,371,020 623,194 928,347 Claims paid during the year (770,840) (535,848) (758,348) At 31 December 939,805 339,625 252,279 69 AT 31 DECEMBER
  14. 14. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 2012 2011 2010 14.2.2 Claims incurred but not reported (IBNR) =N='000 =N='000 =N='000 At 1 January 5,518 - Movement charged to claims expenses 1,534 5,518 At 31 December 7,052 5,518 The breakdown of the outstanding claims per class of general business is: Aviation 49,607 - - Bond 8,099 - - Engineering 24,151 43,003 27,024 Fire 417,920 29,100 25,028 General Accident 81,007 49,879 42,518 Marine 52,440 52,795 44,422 Motor 93,977 164,848 113,287 Oil & Gas 212,602 - - 939,805 339,625 252,279 15 TRADE PAYABLES Due to Reinsurers 56,535 - 538,648 The trade payables are wholly of current maturities. 16 OTHER PAYABLES AND ACCRUALS Due to Government Agencies 24,038 3,191 - Lease rent received in advance (Note 16.1) 32,011 42,011 - Other credit balances 112,502 87,468 35,857 Preference dividend payable (Note 16.2) 350,000 350,000 350,000 518,550 482,670 385,857 The above amounts are further analysed as: Current 597,633 482,670 385,857 Non-Current 22,011 - 619,644 482,670 385,857 16.1 Lease rent received in advance The Company leased out three floors (ground, 1st and 2nd) of its Head-office building to Standard Alliance Properties Limited at an annual rent of =N=10 million effective July 2011. This is to ensure professional management of the lease agreements with non-related tenants of the floors. Standard Alliance Properties Limited made an advance payment of rent of =N=47million in 2011. 16.2 Preference dividend payable At 1 January 350,000 350,000 288,965 Paid during the year - (175,000) (113,965) Due for the year - 175,000 175,000 At 31 December 350,000 350,000 350,000 AT 31 DECEMBER 70
  15. 15. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 2012 2011 2010 17 FINANCIAL LIABILITIES/BORROWINGS =N='000 =N='000 =N='000 Daewoo Securities Bond (Note 17.1) 1,072,192 1,211,834 1,106,521 Access bank Plc - Term Loan(Note 17.2) 28,314 178,571 - Bank Overdrafts 95,264 90,246 31,626 1,195,770 1,480,651 1,138,147 17.1 Daewoo Securities Bond The company received a capital inflow of JPY 650,000,000 ($7,397,516) zero coupon bond raised from Daewoo Securities in December 2009 The bond was tenored originally for 20 years with the lenders' option to convert the bond to Standard Alliance Insurance Plc's ordinary shares. If the option is not exercised, the Company must pay interest at 4.25% per annum on the gross bond value for the entire term it has been outstanding. Daewoo Securities requested for the full redemption of the bond in 2011 following which the company went into a negotiation with it for a repayment plan. During the year 2012, the Company concluded the negotiation of the payment plan with the bondowners for the outstanding balance of JPY 515,712,031 under the following terms: i. Non-payment of dividend to shareholders until 2014. ii. Outstanding balance and interest to be paid over five years starting from 2013 and as detailed hereunder: Payment due date Principal Interest Total JPY'000 JPY'000 JPY'000 December 14, 2013 131,173 44,767 175,940 December 14, 2014 103,234 18,641 121,875 December 14, 2015 107,622 14,253 121,875 December 14, 2016 112,196 9,699 121,895 December 14, 2017 115,552 4,911 120,463 569,777 92,271 662,048 The maturity profiles of the outstanding sums are: Principal Interest Total 2012 2011 2010 JPY'000 JPY'000 JPY'000 =N='000 =N='000 =N='000 At 1 January 650,000 55,250 705,250 1,211,834 1,106,521 1,106,521 Interest accrued during the year 27,658 27,658 49,736 94,054 - Foreign exchange differences - (2,689) 11,259 - Payments during the year (80,223) (56,439) (136,662) (186,689) - - At 31 December 569,777 26,469 596,246 1,072,192 1,211,834 1,106,521 2012 Current maturities JPY'000 Interest 26,469 47,598 94,054 - Principal 131,173 235,880 1,117,779 - Total current maturities 157,642 283,478 1,211,833 - Balance, non current principal maturity 438,604 788,714 - 1,106,521 596,246 1,072,192 1,211,833 1,106,521 Daewoo Securities still has the option upto year 2029 to subscrbe to the equity shares of the Company at a strike price of 50 kobo per share. 71 AT 31 DECEMBER AT 31 DECEMBER
  16. 16. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 2012 2011 2010 =N='000 =N='000 =N='000 17.2 Access Bank Plc -Term Loan 28,314 178,571 - This is the balance on the loan facility of =N=250 million the Company took from Access Bank Plc in 2011 for the acquisition of landed properties at Park View Estate, Lagos. The loan is repayable in twenty one equal monthly installments of =N=11,904,761.90. The loan attracts interest at the rate of 18% per annum. The Company commenced the repayment in July 2011. The outstanding balance are classified further thurs: Current maturities 28,314 142,857 - Non-current maturities - 35,714 - 28,314 178,571 - 18 FINANCE LEASE OBLIGATIONS 17,765 - 3,037 The Company obtained lease facilities totalling =N=35,644,000 at 21% rate of interest from Diamond Bank Plc to finance the acquisition of motor vehicles during 2012 These motor vehicles are included in the property, plant and equipment of the Company as at 31 December 2012. The rentals due as at 31 December 2012 are further analysed as follows: Less than 3 months 7,511 - 3,037 Between 3 and 6 months 7,903 - - Between 6 and 12 months 2,350 - - 17,765 - 3,037 19 EMPLOYEE BENEFIT LIABILITIES At 1 January 28,719 30,437 - Charge for the year #REF! 9,082 30,437 Gain Valuation - (10,800) - At 31 December #REF! 28,719 30,437 The above liability represents the Company's provisions for gratuity of its employees based on length of service. 72 STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 Company Tax Educa-tion 2012 2011 2010 20 TAXATION PAYABLE =N='000 =N='000 =N='000 =N='000 =N='000 Per Statement of Comprehensive Income Provision for the year #REF! #REF! #REF! 82,307 109,803 Charged for the year #REF! #REF! #REF! 82,307 109,803 Per Statement of Financial Position At 1 January 186,459 2,763 189,222 162,944 129,581 AT 31 DECEMBER
  17. 17. The movement in income tax during the year is as follows: Payment during the year (39,000) - (39,000) (56,029) (76,439) Tax expense for the year #REF! #REF! #REF! 82,307 109,803 At 31 December #REF! #REF! #REF! 189,222 162,944 21 DEFERRED TAX LIABILITIES At 1 January 89,018 79,112 51,566 Charge for the year (Note 21.1) #REF! 9,906 27,546 At 31 December #REF! 89,018 79,112 21.1 Charge for the year The net amount on the deferred tax account account is as follows: At 1 January 89,018 79,112 51,566 Profitt or loss charge on timing difference of carrying amounts of taxable assets #REF! 9,906 27,546 At 31 December #REF! 89,018 79,112 22 SHARE CAPITAL Authorised (Note 22.1) 14,000,000,000 units of ordinary shares of 50k each 7,000,000 4,250,000 4,250,000 17,500,000 units of floating rate irredeemable convertible preference shares of N100 for 2011 and 2010. - 1,750,000 1,750,000 7,000,000 6,000,000 6,000,000 22.1 Authorised Share Capital The Company at its 15th Annual General Meeting held on Friday, 16th December 2011 approved the increase in its authorised share capital from N6.0 billion to N7.0 billon by the creation of additional 2,000,000,000 units of ordinary shares of 50k each, such shares ranking pari passu in all respects with existing ordinary shares of the Company. The newly created shares have been duly registered with the Corporate Affairs Commission and the requisite stamp duties paid subsequently in 2012. 73
  18. 18. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 2012 2011 2010 22.2 Issued and Fully Paid Share Capital: =N='000 =N='000 =N='000 Ordinary shares - 11,993,173,000 units of ordinary shares for 2012. 5,996,587 4,246,587 4,246,587 - 8,493,173,450 units of ordinary shares for 2011 and 2010. Preference shares - Nil for 2012 (Note 16.1) - 1,750,000 1,750,000 - 17,500,000 units of N100 each 2011 and 2010 5,996,587 5,996,587 5,996,587 Preference Shares - 1,750,000 1,750,000 During the year 2012, the Company implemented the resolution passed at the 15th Annaul General Meeting of the Company held 16th day of December 2011 that the 17,500,000 (Seventeen Million, Five Hundred Thousand units of preference shares of N100.00 (One Hundred Naira ) each, all of which have been issued and are fully paid-up, be converted on 31 December 2011 into ordinary shares of 50k (Fifty Kobo) each in the Company and 'issued to the holders of the preference shares The Company's register has incorporated these conversions as at 31 December 2012, while the Securities and Exchange Commission (SEC) gave consent via a letter of approval dated 11th January 2013. 23 TREASURY SHARES 8,737,585 8,737,585 8,737,585 These represent the offer price of 2,212,046,824 units of ordinary share of 50 kobo each (=N=1,106,024,412 and associated total share premium of =N=7,631,561,991) for which no net cash inflow accrued to the company during its public offer of 2008. The Company at its 15th Annual General Meeting held 16th December 2011 approved the cancellation of these shares and to this effect a court order was also obtained on 26th of April 2012. The cancellation of these shares is awaiting the final approval of the Securities and Exchange Commission (SEC) 24 CONTINGENCY RESERVE Contingency reserve is provided for at the rate of 3% of the total premium or 20% of net profit (whichever is greater for the year) in accordance with section 22 (1)(b) of the Insurance Act 2003. At 1 January 834,764 691,808 575,313 Charge for the year 164,899 142,956 116,495 At 31 December 999,663 834,764 691,808 25 OTHER RESERVES Revaluation Reserve (Note 25.1) 781,557 14,299 14,299 Fair Value Reserve (Note 25.2) 103,654 12,769 8,983 885,211 27,068 23,282 25.1 Revaluation Reserve At 1 January 14,299 14,299 14,299 Addition during the year(Note 12) 767,258 - - At 31 December 781,557 14,299 14,299 The Company's office building at Ibadan and Head Office in Lagos were revalued at =N=20 million in 2006 and =N= in 2012 respectively by the firm of Messrs Osaro Eguasa & Co (FRC/2012/0000000000423). The revaluations resulted to surpluses of =N=14,299,000 and =N=767,258,000 respectively. 25.2 Fair Value Reserves Fair value reserves include the net accumulated changes in the fair value of available for sale assets Further details are: At 1 January 12,769 8,983 - Addition during the year 90,885 3,786 8,983 At 31 December 103,654 12,769 8,983 AT 31 DECEMBER 74
  19. 19. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 26 GROSS PREMIUM INCOME Aviation Bonds Engineering Fire General Motor Oil & Gas 2012 2011 Accident Marine Accident =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 Premium written 184,280 66,168 273,383 394,423 1,355,770 969,542 1,347,281 876,350 5,467,197 4,720,216 Inward reinsurance premium - - 5,720 4,255 15,343 1,571 2,564 29,452 44,976 184,280 66,168 279,103 398,678 1,371,113 971,113 1,349,845 876,350 5,496,649 4,765,192 Movements in unexpired risks (Note 26.1) (19,119) (27,891) 24,306 4,442 34,270 (12,785) (75,379) (43,261) (115,417) (213,469) Gross premium 2012 165,161 38,277 303,408 403,120 1,405,383 958,327 1,274,465 833,089 5,381,232 4,551,723 2011- - 672,667 326,448 779,748 1,092,080 1,680,780 - 4,551,723 26.1 Movements in unexpired risks 2011 Unexpired risk At 1 January - - 46,487 41,524 122,168 127,490 226,547 - 564,216 Unexpired risk At 1 December - - 143,445 98,245 158,722 82,583 294,691 - 777,686 Movement during the year - - 96,958 56,721 36,554 (44,908) 68,144 - 213,469 2012 Unexpired risk At 1 January - - 143,445 98,245 158,722 82,583 294,691 - 777,686 Unexpired risk At 1 December 19,119 27,891 117,605 93,803 125,898 95,369 373,311 43,261 896,257 Movement during the year 19,119 27,891 (25,840) (4,442) (32,824) 12,785 78,620 43,261 118,570 27 REINSURANCE PREMIUM EXPENSES Expense 2012 50,658 29,785 36,706 67,889 42,931 104,680 33,500 114,809 480,958 2011 - - 84,018 30,438 81,080 97,164 98,684 - 391,384 75
  20. 20. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 2012 2011 =N='000 =N='000 28 COMMISSION EARNED ON REINSURANCE Aviation 9,170 - Bond 5,659 - Engineeering 7,150 21,004 Fire 12,899 7,610 General Accident 8,157 20,270 Marine 19,889 24,291 Motor 6,500 19,551 Oil & Gas 21,544 - 90,967 92,726 29 CLAIMS EXPENSES Claim paid 770,840 535,848 Increase in outstanding Claims (Note 14.2.1) 595,128 109,657 Increase in Claims Incurred but not reported (Note 14.2.2) 1,534 5,518 Gross claims incurred 1,367,503 651,023 30 UNDERWRITING EXPENSES Commision paid: Aviation 100,875 - Bond 74,353 - Engineering 85,979 111,658 Fire 98,700 102,795 General Accident 185,479 216,644 Marine 165,248 201,736 Motor 335,338 256,175 Oil & Gas 96,813 - Commission paid - others 16,444 - 1,159,228 889,008 Business developmennt/Marketing expenses 393,621 217,174 Deferred commission (35,396) (97,332) 1,517,452 1,008,850 31 INVESTMENT INCOME Interest on deposits 183,563 171,116 Lease rental income 10,000 5,830 Dividend received 973 - 194,537 176,946 Others 13,532 - 208,069 176,946 Above further analised as below: Investment Income attributable to Policyholders' fund 1,397 - Investment Income attributable to Shareholders' fund 203,437 - 204,834 - 32 MANAGEMENT EXPENSES Salaries and allowances 397,134 329,163 Other staff costs 74,927 56,448 Director fees and allowances 30,616 32,963 Insurance expenses 24,826 36,917 Rent and rates 22,602 55,313 Repairs and maintenance 211,092 116,227 Depreciation and amortisation 139,723 111,749 Professional fees 73,220 124,332 Bank charges 53,528 48,977 Printing and stationery 20,134 12,130 Advertisement 10,221 16,508 Books and periodicals 952 1,529 Telephone and postages 26,365 17,441 Other administrative expenses 69,417 334,761 Supervisory levies 38,440 23,327 Staff training and development 19,225 36,851 Audit fee 9,000 7,500 Corporate expenses 59,857 17,795 Travelling, outstation and hotel expenses 95,234 9,782 Annual General Meeting expenses 10,470 6,310 1,386,984 1,396,024 76
  21. 21. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 33 FINANCIAL CHARGES 2012 2011 =N='000 =N='000 Bank interests 38,354 54,359 Lease charges 10,087 - Interest on Daewoo bond 141,703 94,054 190,144 148,413 34 IMPAIRMENT CHARGES Impairment charges are: Cash and cash equivalent (Note 3.1) 358,959 152,069 Premium receivables 2,805,413 784,359 3,164,372 936,428 35 INFORMATION TECHNOLOGY DEVELOPMENT LEVY At 1 January 3,191 - Appropriation for the year - 3,191 At 31 December 3,191 3,191 The Nigerian Information Technology Development Agency (NITDA) Act was signed into law on 24 Apri, 2007. Section 12(a) of the Act stipulates that specified companies contribute 1% of their profit before tax to the Nigerian Informaion Technology Development Agency. 36 PROFIT BEFORE TAXATION Profit before taxation is stated after charging/(crediting): Depreciation 134,113 110,268 Amortization 5,610 4,273 Auditors' remuneration 9,000 7,500 Director's remuneration 30,616 32,963 37 PREMIUM RECEIPTS FROM POLICY HOLDERS Premium due from policyholders at 1 January 2,557,401 4,240,839 Gross Premium written in the year 5,381,232 4,765,192 7,938,633 9,006,031 Less: Premium debts written off - 3,180,438 Premium due from policyholders at 31 December 3,931,063 2,557,401 Premium receipts in the year 4,007,569 3,268,192 77
  22. 22. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) 1.2 (a) Reconciliation of Equity under Nigerian GAAP to IFRS for 31 December 2010 Notes NGAAP Error IFRS Reclassi- Remeasure Recognition/ 2010 fication ment Derecognision 2010 Assets =N=000 =N=000 =N=000 =N=000 Cash and Bank balances 1 76,939 (76,939) - - Cash and Cash Equivalents 2(1,3) - 1,005,251 - 1,005,251 Short term Investment 3 2,167,902 (2,167,902) - - Financial Assets- 4(10,13) - 2,698,829 - 2,698,829 Premium debtors 5 1,569,623 (1,569,623) - - Trade Receivables 6(5) - 1,314,507 - 1,314,507 Reinsurance Asset 7(5,8) - 361,215 - 361,215 Deferred Commission and reinsurance cost 8 158,975 (158,975) - Deferred Acquisition cost 9(8) 101,843 - 101,843 Other debtors and prepayment 10 1,162,331 (1,162,331) - Prepayment and other receivables 11(10) 1,295,897 (133,566) 1,162,330 Investment in Associates 12(13,29) - 1,392,859 (154,119) - 1,238,740 Long-term investments 13 4,091,687 (4,091,687) - - Non current asset held for sale 14(15) - 40,000 40,000 Fixed assets 15 1,131,499 (1,126,458) (5,041) - Intangible assets 16(15) - 21,618 - 21,618 Property Plant And Equipment 17(15) 1,064,841 - 1,064,841 Statutory deposits 335,000 - - 335,000 - Total assets 10,693,956 (1,057,055) (287,685) - (5,041) 9,344,174 Liabilities and Shareholders' Equity Liablities Insurance Fund 18 726,143 (726,143) - - Insurance Contract liabilities 19(18) - 816,495 - 816,495 Trade Payables 20(21) - 538,648 - 538,648 Creditors and accruals 21 924,504 (924,504) - - Other Payables and accruals 22(21,26) - 385,857 - 385,857 Financial Liabilities - Long term borrowing-Daewoo Securities Bond 23 1,106,520 (1,106,520) - - Finance Lease Obligations 24(15) 5,041 - (5,041) - Borrowing -Daewoo Securities Bonds 25(23) - 1,106,521 - 1,106,521 Borrowing -Bank overdrafts 26 31,626 - 31,626 Employee benefit liabilities 27(29) - - 30,437 - 30,437 Taxation Payable 162,944 - - 162,944 Deferred tax liabilities 79,112 - - 79,112 Total liabilities 3,035,890 90,354 30,437 - (5,041) 3,151,640 Net Assets 7,658,066 (1,147,409) (318,122) - - 6,192,534 Shareholders' Equity Share capital 4,246,587 - 4,246,587 Preference shares 1,750,000 1,750,000 Share premium 15,852,049 - - 15,852,049 Treasury Shares 28(3) - (8,737,585) (8,737,585) Contingency reserves 691,808 - - 691,808 Retained earnings 29(3,10,12,27,29b) (14,896,678) 7,581,195 (318,123) (7,633,606) Other reserves 29a(29) 14,299 8,983 23,282 Total Shareholders' Equity 7,658,064 (1,147,407) (318,123) - - 6,192,534 110 ADJUSTMENTS
  23. 23. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) 1.2 (b) Reconciliation of Equity under Nigerian GAAP to IFRS for 31 December 2011 Notes NGAAP Error IFRS 2011 2011 Reclassi- Remeasure Recognition/ Assets =N=000 fication ment Derecognision =N=000 Current Assets Cash and Bank balances 30 60,710 (60,710) - - Cash and Cash Equivalents 31(30,32) - 662,801 - 662,801 Short term Investment 32 2,191,681 (2,191,681) - - Financial Assets 33(39,42) - 2,802,762 - 2,802,762 Premium debtors 34 2,262,702 (2,262,702) - Trade Receivables 35(34) - 2,074,009 2,074,009 Reinsurance asset 36(34,37) 252,523 48,968 301,491 Deferred Commission and reinsurance cost 37 161,162 (161,162) - Deferred Acquisition cost 38(37) 97,332 - 97,332 Other debtors and prepayment 39 608,913 (608,913) - Prepayment and other receivables 40(39) 608,913 - 608,913 Investment in Associates 41(42,56) - 1,392,859 (345,205) - 1,047,654 Long-term investments 42 4,195,620 (4,195,620) - - Non current asset held for sale 43(32,44) - 390,000 - 390,000 Fixed assets 44 1,126,557 (1,126,557) - Intangible assets 45(44) - 17,345 - 17,345 Property Plant And Equipment 46(44,50) 1,117,052 - 1,117,052 Statutory deposits 335,000 - 335,000 Total assets 10,942,345 (1,191,749) (296,237) - - 9,454,359 Liabilities and Shareholders' Equity Liablities Insurance Fund 47 1,026,959 (1,026,959) - Insurance Contract liabilities 48(47) 1,026,959 118,181 - 1,145,140 Creditors and accruals 49 464,607 (464,607) - - Other Payables and accruals 50(46,49,53,54) - 482,669 482,669 Financial Liabilities - Long term borrowing-Daewoo Securities Bond 51 1,211,834 (1,211,834) - Borrowing - Daewoo Securities Bonds 52(51) - 1,211,834 1,211,834 Borrowing - Term loan 178,571 - - 178,571 Borrowing - Bank overdrafts 53(50) 90,246 - 90,246 Employee benefit liabilities 54(50) - 23,948 4,771 - 28,719 Taxation Payable 189,222 - - 189,222 Deferred tax liabilities 89,018 - - 89,018 Total liabilities 3,250,457 42,010 122,952 - - 3,415,418 Net Assets 7,691,888 (1,233,759) (419,189) - - 6,038,941 Shareholders' Equity Share capital 4,246,587 4,246,587 Preference shares 1,750,000 1,750,000 Share premium 15,852,049 15,852,049 Treasury Shares 55(32) - (8,737,585) (8,737,585) Contingency reserves 834,764 834,764 Retained earnings 56(32,41,56a) (15,005,809) 7,491,056 (429,989) (7,944,742) Other reserves 56a(56) 14,299 12,769 10,800 37,868 Total Shareholders' Equity 7,691,890 (1,233,760) (419,189) - - 6,038,941 111 ADJUSTMENTS
  24. 24. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) 1.2 ( c) Reconciliation of Comprehensive income under Nigerian GAAP to IFRS for the year ended 31 December 2011. Notes NGAAP Error IFRS 2011 Reclassi- Re-measure Recognition/ 2011 fication ment Derecognision =N=000 =N=000 =N=000 =N=000 REVENUE Gross premium income 4,765,192 - - 4,765,192 (Increase)/Decrease in unearned Premium (213,469) (213,469) 4,551,723 4,551,723 Reinsurance premium expenses (391,384) - - (391,384) Net premium income 4,160,339 - - - - 4,160,339 Commission earned on reinsurance 57 92,726 (92,726) - - Fees and Commission 58(57) - 92,726 92,726 Net Underwriting income 4,253,065 - - - - 4,253,065 Claim Paid (535,848) (535,848) Increase in outstanding claims 59 (87,346) 87,346 - Changes in outstanding claims reserves 60(48,59) - (87,346) (27,829) (115,175) Gross claims incured (623,194) - (27,829) - - (651,023) Reinsurance recoveries 194,727 194,727 Claim Expenses (428,467) - (27,829) - - (456,296) Underwriting Expenses Commission incured (475,754) - (475,754) Other business acquisition and maintenance costs (619,958) - (619,958) Total underwriting expenses (1,524,179) - (27,829) - - (1,095,712) Underwriting profit 2,728,886 - (27,829) - - 2,701,057 Investment and Other income 61 171,116 (171,116) - - Investment Income 62(61) - 171,116 171,116 Other operating income 63 - 5,830 5,830 Net operating income 2,900,002 - (21,999) - - 2,878,003 Management expenses (1,388,761) (1,388,761) Impairment charges - Premium (784,359) (784,359) Results of operating activities 1,511,241 (784,359) (21,999) - - 704,883 Finance Charges (148,413) - - (148,413) Share of profit/(loss) of associates 65 (191,086) (191,086) - Impairment charges 66(64,67) (263,159) (263,159) Fair value gain on defined benefit plan valuation 10,800 10,800 Profit/(loss) before taxation 1,362,828 (1,047,518) (202,285) - - 113,025 Exceptional charges - provision for diminition of investments67 (259,373) 259,373 - - - Information technology development levy 68 (3,191) 3,191 - - Income tax expense 69 (82,307) 82,307 - - Deferred Tax 70 (9,906) 9,906 - - Income tax 71(68,69,70) - (95,404) (95,404) Profit/(loss) after taxation 1,008,051 (788,145) (202,285) - - 17,621 Other comprehensive income Fair value gains on quoted shares (Available for sale) - 3,786 3,786 Total other comprehensive income - - 3,786 - - 3,786 Total comprehensive income(loss) for the year 1,008,051 (788,145) (198,499) - - 21,407 ADJUSTMENTS 112
  25. 25. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) 1.2 (d) Explanatory notes to transition adjustments 2010 =N=000 1 Cash and Bank Balances Per NGAAP 76,939 RJE 3: Reclassification to Cash and Cash Equivalent (76,939) - 2 Cash and Cash Equivalent Per NGAAP - RJE 1: Reclassification from Short term Investment of deposit with banks & non financial institutions 928,312 RJE 3: Reclassification from Cash and Bank current accounts 76,939 1,005,251 3 Short term Investment Per NGAAP 2,167,902 RJE 1: Reclassification to cash and cash equivalent of deposit with banks & non financial institutions (928,312) RJE 49 : Being carrying amount of managed fund now reclassified to treasury shares (1,239,590) - 4 Financial Assets Per NGAAP - RJE 8: Reclassification from long term investments in respect of loan to SA Properties Ltd under joint venture arrangement 2,698,828 2,698,828 5 Premium Debtors Per NGAAP 1,569,623 RJE 5: Reclassification to Reinsurance Assets - claims recoverable from reinsurers (255,116) RJE 13: Reclassification of dues from policy holders (Premium)to Trade recievables (1,314,507) - 6 Trade receivables Per NGAAP - RJE 13: Reclassification of dues from policy holders (Premium)to from premium debtors 1,314,507 1,314,507 113
  26. 26. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 7 Reinsurance Assets Per NGAAP - RJE 5: Reclassification from Premium debtors (Due from reinsurers) 255,115 RJE 6: Reclassification from deferred acquisition cost 57,131 AJE 7: Reinstatement of reinsurance assets per valuation initially net off outstanding claims 48,968 361,214 8 Deferred Commission and reinsurance cost Per NGAAP 158,975 RJE 6: Reclassification to reinsurance assets (57,131) RJE 14 : Reclassification to Deferred Acquisition Cost per IFRS requirement (101,844) - 9 Deferred Acquisition Cost Per NGAAP - RJE 14: Reclassification from Deferred Commission and reinsurance cost per IFRS requirement 101,844 101,844 10 Other Debtors and Prepayment Per NGAAP 1,162,331 RJE 10: reclassification of dimunition in value of inv. 133,567 RJE 17: Reclassification of staff debt, rent and other prepayments to prepayments and other receivables per IFRS requirement (757,067) RJE 21: Being reclassification of inter company current accounts/loan - SA Capital relating to 67million units of Transcorp shares (538,831) - 11 Prepayments and other receivables Per NGAAP - RJE 17: Reclassification of staff debt, rent and other prepayments to prepayments and other receivables per IFRS requirement 757,067 AJE 3 : To recognise the provision for diminution on value (133,567) RJE 21: Being reclassification of inter company current accounts/loan - SA Capital relating to 67million units of Transcorp shares 538,831 1,162,331 12 Investments in Associate companies Per NGAAP - RJE 7: Reclassification from Long term Investments 1,392,859 AJE 4: Write back of Accumulated previous impairment Provision - SA Life Assurance 878,599 AJE 4: Write back of Accumulated previous impairment Provision - SA Capital Ltd 308,542 AJE 5: Share of associates' post acquisition results- SA Life (896,326) AJE 5: Share of associates' post acquisition results- SA Property Ltd (136,392) AJE 5: Share of associates' post acquisition results- SA Capital Ltd (308,542) 1,238,740 114
  27. 27. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 13 Long Term Investments Per NGAAP 4,091,687 RJE 7: Reclassification to Investments in associate companies (1,392,859) RJE 8: Reclassification of loan to SA Properties Ltd under joint venture arrangement to financial assets (2,698,828) - 14 Non Current Assets Held for sale Per NGAAP - RJE 16: Reclassification cost of land intended for sale from Fixed asset under NGAAP 40,000 40,000 15 Fixed Assets Per NGAAP 1,131,499 AJE 2: Adjustment of over-capitalised interest in respect of motor vehicle on lease (5,041) RJE 4: Reclassification of accounting system software cost to Intangible Asset (21,618) RJE 15: Reclassification to Property, plant and equipment per IFRS (1,064,840) RJE 16: Reclassification cost of land intended for sale from Fixed asset under NGAAP (40,000) - 16 Intangible Asset Per NGAAP - RJE 4: Reclassification of accounting system software cost from fixed assets 21,618 21,618 17 PPE Per NGAAP - RJE 15: Reclassification from Fixed asset under NGAAP 1,064,840 1,064,840 18 Insurance fund Per NGAAP 726,143 RJE 18: Reclassification of previously classified insurance fund to Insurance Contract liabilities (726,143) - 19 Insurance Contract liabilities RJE 18: Reclassification of previously classified insurance fund to Insurance Contract liabilities 726,143 AJE 7: Reinstatement of reinsurance assets per valuation initially net off outstanding claims 48,968 AJE 8: Being additional claims incurred as per Insurance Contract Liabilities valuation as at 2010 41,384 816,495 20 Trade payables RJE 19: Reclassification of dues to reinsurers and brokers from Creditors and accruals to Trade payable per IFRS 538,648 538,648 115
  28. 28. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 21 Creditors and accruals Per NGAAP 924,504 RJE 9: Reclassification of preference dividend and other sundry creditors to from Creditors and accruals (385,856) RJE 19: Reclassification of dues to reinsurers and brokers from Creditors and accruals to Trade payable per IFRS (538,648) - 22 Other payables and accruals Per NGAAP - RJE 9: Reclassification of preference dividend and other sundry creditors from Creditors and accruals 385,856 385,856 23 Long term borrowing - Daewoo securities bonds Per NGAAP 1,106,520 RJE 20: Loan previously classified as long term facility (1,106,520) - 24 Finance Lease Obligation Per NGAAP 5,041 AJE 2: Adjustment of capitalised interest in respect of motor vehicle on lease (5,041) - 25 Financial Liabilities: Daewoo Bond (Borrowing) Per NGAAP - RJE 20: Loan previously classified as long term facility 1,106,520 1,106,520 26 Bank Overdraft Per NGAAP 31,626 31,626 27 Post Employment Benefits Per NGAAP - AJE 1: Accrued employee benefit Gratuity Provision 14,866 AJE 6: Being additional provision for gratuity to staff as per valuation as at 31 Dec. 2010 15,571 30,437 28 Treasury Shares Per NGAAP - RJE 11: Being back of the provision for dimunition in value of Managed fund under NGAAP 11,996,637 RJE 10:Being heitherto capitalised interest receivable on the managed fund now (4,498,642) recassified to interest receivable RJE 49 : Being carrying amount of managed fund now reclassified to treasury shares 1,239,590 8,737,585 28.1 In order to appropriately account for the proposed cancelled shares (2,212,046,824 units) which relates to the managed fund, a write back of =N= 11,996,636,585, being provision made for dimunition in the value of managed fund is effected in the above note. The value of the proposed cancelled shares at 50kobo each (=N=1,106,024,412) and associated share premium (=N=7,631,561,991) are then reclassified as Treasury shares. 116
  29. 29. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 29 Retained Earnings Per NGAAP (14,896,678) AJE 1: Accrued employee benefit Gratuity Provision (14,866) AJE 3 : To recognise the provision for diminution on value (133,567) AJE 4: Transistion adjustments - Write back of previous impairment Provision on associate companies 1,187,141 AJE 5: Retrospective adjustment - share of post acquisition results of associate companies (1,341,260) AJE 6: Being additional provision for gratuity to staff as per valuation as at 31 Dec. 2010 (15,571) AJE 8: Being additional claims incurred as per Insurance Contract Liabilities valuation as at 2010 (41,384) RJE 11 : Provision for diminution on value managed fund now written back 7,631,562 RJE 43: Adjustment to recognise fair value gains on quoted shares reclassified as available for sale (8,983) (7,633,606) 29a Other Reserves Per NGAAP - Valuation reserves 14,299 RJE 43: Adjustment to recognise fair value gains on quoted shares reclassified as available for sale 8,983 23,282 30 Cash and Bank Per NGAAP 60,710 RJE 34: Reclassification to Cash and Bank current accounts (60,710) - 31 Cash and Cash Equivalent Per NGAAP - RJE 23: Reclassification from Short term Investment of deposit with banks & non financial institutions 602,091 RJE 34: Reclassification from Cash and Bank current accounts 60,710 662,801 32 Short term Investments Per NGAAP 2,191,681 RJE 23: Reclassification of deposit with banks & non financial institutions (602,091) RJE 29: Reclassification of landed property - Twin Duplex at Parkview, Ikoyi-Lagos to Non current assets held for sale (350,000) RJE 49: Being carrying amount of managed fund now reclassified to treasury shares (1,239,590) - 33 Financial Assets Per NGAAP - RJE 28: Reclassification of market value of quoted shares from Long term Investment 147,543 RJE 28: Reclassification of loan to SA Properties Ltd under joint venture arrangement to financial assets 2,648,600 RJE 28: Reclassification of investment in energy pool from longterm investments 6,617 2,802,760 117
  30. 30. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 34 Premium debtors Per NGAAP 2,262,702 RJE 26: Claims recoverable from reinsurers (188,693) RJE 33: Reclassification of previously classified premium debtors to Trade Receivables per IFRS (2,074,009) - 35 Trade receivables Per NGAAP - RJE 33: Reclassification of previously classified premium debtors to Trade Receivables per IFRS 2,074,009 2,074,009 36 Reinsurance Assets Per NGAAP - RJE 26: Claims recoverable 188,693 RJE 27: Deferred Reinsurance cost now reclassified to reinsurance assets 63,830 AJE 7: Reinstatement of reinsurance assets per valuation initially net off outstanding claims 48,968 301,491 37 Deferred Commission and reinsurance Per NGAAP 161,162 RJE 27: Deferred Reinsurance cost now reclassified to reinsurance assets (63,830) RJE 35: Reclassification of previously classified deferred comission to Deferred Cost per IFRS (97,332) - 38 Deferred Acquisition costs Per NGAAP - RJE 35: Reclassification of previously classified deferred comission to Deferred Cost per IFRS 97,332 97,332 39 Other debtors and prepayments Per NGAAP 608,913 RJE 32: Being reclassification of inter company current accounts/loan - SA Capital relating to 67million units of Transcorp shares(506,997) RJE 38: Reclassification of staff debtors and prepaid rent previously classified as other debtors and prepayments (101,916) - 40 Prepayments other receivables RJE 32: Being reclassification of inter company current accounts/loan - SA Capital relating to 67million units of Transcorp shares506,997 RJE 38: Reclassification of staff debtors and prepaid rent previously classified as other debtors and prepayments 101,916 608,913 118
  31. 31. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 41 Investments in Associates Per NGAAP - RJE 28: Reclassification from Long term Investment 1,392,859 AJE 4: Write back of Accumulated previous impairment Provision - SA Life Assurance 878,599 AJE 4: Write back of Accumulated previous impairment Provision - SA Capital Ltd 308,542 AJE 5: Share of associates' post acquisition results- SA Life (896,326) AJE 5: Share of associates' post acquisition results- SA Property Ltd (136,392) AJE 5: Share of associates' post acquisition results- SA Capital Ltd (308,542) AJE 6: Share of loss for the year from associates (191,086) 1,047,654 42 Long term Investment Per NGAAP 4,195,620 RJE 28: Reclassification to Investments in Associates (1,392,859) RJE 28: Reclassification of loan to SA Properties Ltd under joint venture arrangement to financial assets - available for sale(2,648,601) RJE 28: Reclassification of market value of quoted shares to financial assets - through profit and loss (147,543) RJE 28: Reclassification of investment in energy pool (6,617) - 43 Non Current Assets Held for sale Per NGAAP - RJE 16: Reclassification cost of land intended for sale from Fixed asset under NGAAP 40,000 RJE 29: Reclassification of landed property - Twin Duplex at Parkview, Ikoyi-Lagos from short term investment 350,000 390,000 44 Fixed Assets Per NGAAP 1,126,557 RJE 25: Reclassification to Intangible Asset (17,345) RJE 36:Reclassification cost of land intended for sale from Fixed asset under NGAAP (40,000) RJE 37: Reclassification of previously describe fixed assets to PPE in IFRS (1,069,212) - 45 Intangible Asset Per NGAAP - RJE 25: Reclassification from Fixed Asset 17,345 17,345 46 PPE Per NGAAP - RJE 37: Reclassification of previously describe fixed assets to PPE 1,069,212 AJE 13: Being further expenses on Head Office building by SA Properties Ltd 47,840 1,117,052 119
  32. 32. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 47 Insurance Fund Per NGAAP 1,026,959 RJE 39: Being reclassification of previously decribed insurance fund to Insurance Contract liabilities (1,026,959) - 48 Insurance Contract liabilities Per NGAAP - RJE 39 :Being reclassification of previously decribed insurance fund to Insurance Contract liabilities 1,026,959 AJE 7: Reinstatement of reinsurance assets per valuation initially net off outstanding claims 48,968 AJE 8: Being additional claims incurred as per Insurance Contract Liabilities valuation as at 2010 41,384 AJE 14: Being additional prvision per year end valuation now being treated as claims IBNR 5,518 AJE 15: Being additional prvision per year end valuation now being treated as claims IBNR 22,311 1,145,140 49 Creditors and accruals Per NGAAP 464,607 RJE 31: Being reclassification of preference dividend, information techn. Development levy and sundry previously classified as Creditors and accruals (464,607) - 50 Other payables and accruals Per NGAAP - RJE 30: Reclassification to employees benefits (23,948) RJE 31: Being reclassification of preference dividend, information techn. Development levy and sundry previously classified as Creditors and accruals 464,607 AJE 13: Being further expenses on Head Office building by SA Properties Ltd 47,840 AJE 17: Being recognision of July - Dec. 2011 rent income now amortised from advance from SA Properties Ltd (5,830) 482,669 51 Long term borrowing - Daewoo Securities Per NGAAP 1,211,834 RJE 40: Reclassification of previously describe long term borrowing to financial liabilties (1,211,834) - 52 Financial liabilities- Daewoo Bond Per NGAAP - RJE 40: Reclassification from previously describe long term borrowing to financial liabilties 1,211,834 1,211,834 53 Bank Overdraft Per NGAAP 90,246 90,246 120
  33. 33. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 54 Post Employment Benefits Per NGAAP - RJE 30: Reclassification from Creditors and accruals 23,948 AJE 6: Being additional provision for gratuity to staff as per valuation as at 31 Dec. 2010 15,571 AJE 14: Being adjustments on provision for gratuity to staff as per valuation as at 31 Dec. 2011 (10,800) 28,719 55 Treasury Shares Per NGAAP - RJE 11: Being back of the provision for dimunition in value of Managed fund under NGAAP 11,996,637 RJE 10:Being heitherto capitalised interest receivable on the managed fund now (4,498,642) recassified to interest receivable RJE 49 : Being carrying amount of managed fund now reclassified to treasury shares 1,239,590 8,737,585 55.1 In order to appropriately account for the proposed cancelled shares (2,212,046,824 units) which relates to the managed fund, a write back of =N= 11,996,636,585, being provision made for dimunition in the value of managed fund is effected in the above note. The value of the proposed cancelled shares at 50kobo each (=N=1,106,024,412) and associated share premium (=N=7,631,561,991) are then reclassified as Treasury shares. 56 Retained Earnings Per NGAAP (15,005,809) RJE 11 : Provision for diminution on value managed fund now written back 7,631,562 AJE 3 : To recognise the provision for diminution on value (133,567) AJE 4: Transistion adjustments - Write back of previous impairment Provision on associate companies 1,187,141 AJE 5: Retrospective adjustment - share of post acquisition results of associate companies (1,341,260) AJE 6: Being additional provision for gratuity to staff as per valuation as at 31 Dec. 2010 (15,571) AJE 6: Share of loss for the year from associate companies (191,086) AJE 8: Being shortfall in outstanding claims per valuation of Insurance Contract liabilities (41,384) AJE 14: Being shortfall in Unexpired premium (UPR) per valuation of Insurance Contract liabilities (5,518) AJE 15: Being additional prvision per year end valuation now being treated as claims IBNR (22,311) AJE 17: Being recognision of July - Dec. 2011 portion of rent received in advance from SA Properties Ltd 5,830 RJE 44: Adjustment to recognise fair value gains on quoted shares reclassified as available for sale (12,769) (7,944,743) 56a Other Reserves Per NGAAP - Revaluation reserve 14,299 RJE 44: Adjustment to recognise fair value gains on quoted shares reclassified as available for sale 12,769 27,068 Explanatory note to transistion adjustments on Statement Comprehensive for the year 2011. 57 Commission earned on reinsurance Per NGAAP 92,726 RJE 45: Being reclassification of NGAAP commission earned on reinsurance (92,726) - 58 Fees and commission income Per NGAAP - RJE 45: Being reclassification of NGAAP commission earned on reinsurance 92,726 92,726 121
  34. 34. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 59 Increase in Outstanding Claims Per NGAAP 87,346 RJE 46: Being reclassification of NGAAP increase in outstanding claims (87,346) - 60 Changes in outstanding claims reserve Per NGAAP - RJE 46: Being reclassification of NGAAP increase in outstanding claims 87,346 AJE 12: Being additional prvision per year end valuation now being treated as claims IBNR 5,518 AJE 13: Being additional prvision per year end valuation now being treated as claims IBNR 22,311 115,175 61 Investments and other income Per NGAAP 171,116 RJE 47: Being reclassification in conformity with IFRS requirement (171,116) - 62 Investments income Per NGAAP - RJE 47: Being reclassification in conformity with IFRS requirement 171,116 171,116 63 Other Income Per NGAAP - AJE 17: Being recognision of July - Dec. 2011 portion of rent received in advance from SA Properties Ltd 5,830 5,830 64 Provision for bad and doubtful debts - Premium Per NGAAP 784,359 RJE 41: Reclassification of previously described as provision for bad debts to Impairment charges (784,359) - 65 Share of Loss of Associate companies Per NGAAP - AJE 9: Share of loss for the year from associates - SA Life Assurance Ltd (116,886) AJE 9: Share of profit for the year from associates - SA Property Ltd (51,406) AJE 9: Share of loss for the year from associates - SA Capital Ltd (22,794) (191,086) 122
  35. 35. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) Explanatory notes to transition adjustments continued =N=000 66 Impairment charges Per NGAAP - RJE 41: Reclassification of previously described as provision for bad debts to Impairment charges 784,359 RJE 42: Reclassification of previously described as provision for diminition in investments to Impairment charges 259,373 1,043,732 67 Provision for diminution in investments Per NGAAP 259,373 RJE 42: Reclassification of previously described as provision for diminition in investments to Impairment charges (259,373) - 68 Information Technology development levy Per NGAAP 3,191 RJE:48: Being reclassification in conformity with IFRS requirement (3,191) - 69 Taxation on ordinary activities Per NGAAP 82,307 RJE:48: Being reclassification in conformity with IFRS requirement (82,307) - 70 Deferred Tax Per NGAAP 9,909 RJE:48: Being reclassification in conformity with IFRS requirement (9,909) - 71 Tax Expenses - RJE:48: Being reclassification Information development levy in conformity with IFRS requirement 3,191 RJE:48: Being reclassification tax for the year in conformity with IFRS requirement 82,307 RJE:48: Being reclassification deferred tax for the year in conformity with IFRS requirement 9,909 95,407 123
  36. 36. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) 1.2 eReclassification Journal Entries (RJEs) S/N DETAILS =N=000 =N=000 DR CR 1 Cash and Cash Equivalent 928,312 Short Term investment 928,312 928,312 928,312 Being Reclassification of bank deposit placements previously classified as short ter investments to Cash and Cash equivalent 2 Bank Overdraft 31,626 Other payables and accruals 31,626 Being Reclassification of Bank Overdraft to other payables and accruals 31,626 31,626 3 Cash and Cash Equivalent 76,939 Cash balances 76,939 Being Reclassification of cash and bank balances to Cash 76,939 76,939 and Cash Equivalent 4 Intangible Asset 21,618 Fixed assets 21,618 Being the value of software reclassified from Fixed Asset 21,618 21,618 to Intangible Asset 5 Re-insurance Asset - Claims recoverable 255,115 Premium Debtors - Trade and other receivables 255,115 Being claims recoverable in respect of re-insured liabilities now reclassified from premium debtors 255,115 255,115 6 Re-insurance Asset 57,131 Deferred Commission and Reinsurance Costs 57,131 57,131 57,131 Being the reclassification of prepaid reinsurance cost from Deferred Commission and Reinsurance Costs to Reinsurance Asset 7 Investments in Associates 1,392,859 Long term Investments 1,392,859 1,392,859 1,392,859 Being reclassification of investments in associate companies (Unquoted) 8 Financial Assets - Available for sale 2,698,828 Long term Investment 2,698,828 2,698,828 2,698,828 Being investment in joint venture with SA property now reclassified AMOUNT 124
  37. 37. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) S/N DETAILS =N=000 =N=000 DR CR 9 Creditors and accruals 385,856 Other payables and accruals 385,856 385,856 385,856 Being reclassification of NGAAP statement to IFRS description 10 Other debtors and prepayments 4,498,642 Treasury Shares 4,498,642 4,498,642 4,498,642 To recognize interest receivable capitalised to managed fund 11 Short term Investments - Managed funds 11,996,637 Retained Earnings 7,631,562 Other debtors and prepayments 4,365,075 11,996,637 11,996,637 To write back of the provision for dimunition in value of Managed fund impaired under NGAAP. 13 Trade receivables 1,314,507 Premium debtors 1,314,507 1,314,507 1,314,507 Reclassification to Trade and other payables 14 Deferred acquisition cost 101,844 Deferred Commission and reinsurance cost 101,844 101,844 101,844 Reclassification to reinsurance assets per IFRS requirement 15 Property, Plant and Equipment (PPE) 1,064,840 Fixed assets 1,064,840 1,064,840 1,064,840 Reclassification from Fixed asset under NGAAP 16 Non current asset held for sale 40,000 Fixed assets 40,000 40,000 40,000 Reclassification cost of land intended for sale from Fixed asset under NGAAP 17 Prepayments and other receivables 757,067 Other debtors and prepayments 757,067 Reclassification to prepayments and other receivables per IFRS requirement 757,067 757,067 125 AMOUNT
  38. 38. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) S/N DETAILS =N=000 =N=000 DR CR 18 Insurance Fund 726,143 Insurance Contract liabilities 726,143 Reclassification of previously classified insurance fund to Insurance Contract liabilities 726,143 726,143 19 Creditors and accruals 538,648 Trade Payable 538,648 Reclassification from Creditors and accruals to Trade payable per IFRS 538,648 538,648 20 Long term borrowing - Daewoo Securities facility 1,106,520 Financial liabilities 1,106,520 Loan previously classified as long term borrowin facility 1,106,520 1,106,520 21 Financial assets - Loans and receivables 538,831 Prepayments and other debtors 538,831 RJE: Being reclassification of inter company current accounts - SA Capital 538,831 538,831 Reclassification Journal Entries (RJEs) - 31st December 2011 22 Financial assets - Through Profit or Loss 1,239,590 Short term Investments 1,239,590 1,239,590 1,239,590 Being managed fund placed with third parties 23 Cash and Cash Equivalent 602,091 Short Term investment 602,091 Being Reclassification of Short Term investment to Cash 602,091 602,091 and Cash Equivalent 24 Bank Overdraft 90,246 Other payables and accruals 90,246 Being Reclassification of Bank Overdraft to other payables and accruals 90,246 90,246 25 Intangible Asset 17,345 Fixed assets 17,345 Being software reclassified from Fixed Asset 17,345 17,345 to Intangible Asset 26 Re-insurance Asset 188,693 Premium Debtors 188,693 Being claims recoverable in respect of re-insured liabilities. 188,693 188,693 27 Re-insurance Asset 63,830 Deferred Commission and Reinsurance Costs 63,830 Being the reclassification of the reinsurance cost from Deferred Commission and Reinsurance 63,830 63,830 Costs to Reinsurance Asset 28 Investment in Associates 1,392,859 Financial Assets - Available for sale 2,648,601 Financial Assets - through profit and loss 147,543 Financial Assets - Available for sale 6,617 Long term Investment 4,195,620 4,195,620 4,195,620 Being reclassification from Long term investments into various classes in line with IFRS. 126 AMOUNT
  39. 39. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) S/N DETAILS =N=000 =N=000 DR CR 29 Non current asset held for sale 350,000 Shortterm Investment 350,000 350,000 350,000 Being reclassification from short term investments in respect of landed property - Parkview Estate 30 Other Payables 23,948 Employee benefits liabilities 23,948 23,948 23,948 Being reclassification of NGAAP statement to IFRS description 31 Creditors and accruals 464,607 Other payables and accruals 464,607 464,607 464,607 Being reclassification of NGAAP statement to IFRS description 32 Financial assets - Loans and receivables 506,997 Other debtors and Prepayments 506,997 506,997 506,997 RJE: Being reclassification of inter company current accounts - SA Capital 33 Trade and other receivables 2,074,009 Premium debtors 2,074,009 2,074,009 2,074,009 Reclassification to Trade and other payables 34 Cash and Cash Equivalent 60,710 Cash and Bank balances 60,710 60,710 60,710 Reclassification to Cash and cash equivalent of Cash balance under NGAAP 35 Deferred acquisition cost 97,332 Deferred Commission and reinsurance cost 97,332 97,332 97,332 Reclassification to reinsurance assets per IFRS requirement 36 Non current asset held for sale 40,000 Fixed assets 40,000 Reclassification cost of land intended for sale from Fixed asset under NGAAP 40,000 40,000 37 Property, Plant and Equipment (PPE) 1,069,212 Fixed assets 1,069,212 Reclassification from Fixed asset under NGAAP 1,069,212 1,069,212 38 Prepayments and other receivables 101,916 Other debtors and prepayments 101,916 Reclassification to prepayments and other receivables per IFRS requirement 101,916 101,916 127 AMOUNT
  40. 40. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) S/N DETAILS =N=000 =N=000 39 Insurance Fund 1,026,959 Insurance Contract liabilities 1,026,959 Reclassification of previously classified insurance fund to Insurance Contract liabilities 1,026,959 1,026,959 40 Long term borrowing - Daewoo Securities facility 1,211,834 Financial liabilities 1,211,834 1,211,834 1,211,834 Loan previously classified as long term borrowin facility 41 Impairment charges 784,359 Provision for doubtful debts - Premium 784,359 Reclassification of previously described as provision for bad debts to Impairment charges 784,359 784,359 42 Impairment charges 259,373 Provision for diminition in investments 259,373 259,373 259,373 Reclassification of previously described as provision for diminition in investments to Impairment charges 43 Retained Earnings 8,983 Fair Value Gain Reserves 8,983 Being adjustment to recognise fair value gains on quoted shares reclassified as available for sales 8,983 8,983 44 Retained Earnings 12,769 Fair Value Gain Reserves 12,769 Being adjustment to recognise fair value gains on quoted shares reclassified as available for sales 12,769 12,769 45 Commission on reinsurance 92,726 Fees and Commission income 92,726 Being reclassification of NGAAP commission earned on reinsurance 92,726 92,726 46 Increase in outstanding claims 87,346 Changes in outstanding claims reserve 87,346 Being reclassification of NGAAP increase in outstanding claims 87,346 87,346 47 Investment and other income 171,116 Investment income 171,116 Being reclassification in conformity with IFRS requirement 171,116 171,116 48 Tax Expenses 95,404 Information technology development levy 3,191 Taxation on ordinary activities 82,307 Deferred Tax 9,906 Being reclassification in conformity with IFRS requirement 95,404 95,404 49 Treasury shares 1,239,590 Shortterm investment 1,239,590 Being reclassification of carrying amount of managed fund under NGAAP 1,239,590 1,239,590 128 AMOUNT
  41. 41. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) S/N DETAILS =N=000 =N=000 DR CR (f) Audit Journal Entries (AJEs) - 1st January 2011 1 Retained Earnings 14,866 Provision for Post Employment Benefit 14,866 Being the recognition of the gratuity payable to staff 14,866 14,866 2 Unpaid Capital Expenditure 5,041 Motor Vehicle (PPE) 5,041 5,041 5,041 Being interest value on motor vehicle wrongly capitalised 3 Retained Earnings 133,567 Other debtors and Prepayments - interest 133,567 Additional impairment provisions now required 133,567 133,567 4 Investment in Associates Accumulated previous impairment Provision - SA Life Assurance 878,599 Accumulated previous impairment Provision - SA Capital Ltd 308,542 Retained Earnings B/f 1,187,141 1,187,141 1,187,141 Being reversal or derecognision of previous accumulated impairment charges now recognise in share of losses. 5 Retained Earnings 1,341,260 Share of associates' post acquisition results- SA Life 896,326 Share of associates' post acquisition results- SA Property Ltd 136,392 Share of associates' post acquisition results- SA Capital Ltd 308,542 1,341,260 1,341,260 Being adjustment of share of associates' post acquisition results 6 Retained Earnings 15,571 Gratuity Scheme 15,571 Being additional provision for gratuity to staff as per valuation as at 31 Dec. 2010 15,571 15,571 7 Reinsurance assets 48,968 Outstanding Claims 48,968 Being reinstatement of reinsurance assets per valuation initially net off outstanding claims 8 Retain Earings 41384 Outstanding Claims Provision 41384 Being additional claims incurred as per Insurance Contract Liabilities valuation as at 2010 Audit Journal Entries (AJEs) - 31st December 2011 Retained Earnings B/f 191,086 9 Investment in Associates - SA Life 116,886 - SA Property Ltd 51,406 - SA Capital Ltd 22,794 191,086 191,086 Being share of associates' results for the year - 2011 129 AMOUNT
  42. 42. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 FIRST TIME ADOPTION NOTE (IFRS 1) (continued) S/N DETAILS =N=000 =N=000 DR CR Audit Journal Entries (AJEs) - 31st December 2011 10 Investment in Associates Accumulated previous impairment Provision - SA Life Assurance 878,599 Accumulated previous impairment Provision - SA Capital Ltd 308,542 Retained Earnings B/f 1,187,141 Being reversal or derecognision of previous accumulated 1,187,141 1,187,141 impairment charges now recognise in share of losses. 11 Retained Earnings B/f 1,341,260 Share of associates' post acquisition results- SA Life 896,326 Share of associates' post acquisition results- SA Property Ltd 136,392 Share of associates' post acquisition results- SA Capital Ltd 308,542 Being adjustment adjustment of share of associates' post 1,341,260 1,341,260 acquisition results 12 Retained Earnings 133,567 Prepayments and other receivables - interest 133,567 133,567 133,567 Additional impairment provisions now required 13 Property, Plant and Equipment 47,840 Other payables and accruals 47,840 Being further expenses on Head Office building by SA Property 47,840 47,840 14 Retained Earnings 5,518 Insurance Contract Liabilities 5,518 Being claims incurred but not reported 5,518 5,518 15 Retained Earnings 22,311 Insurance Contract Liabilities 22,311 Being additional provision on Unxpired premium (UPR) per valuation of Insurance Contract liabilities 22,311 22,311 16 Gratuity Scheme - Post employee benefits 10,800 Retained Earnings 10,800 Being adjustments on provision for gratuity to staff as per valuation as at 31 Dec. 2011 10,800 10,800 17 Other Payables: Rent received in advance 5,830 Retained Earnings 5,830 Being recognision of July - Dec. 2011 portion of rent received in advancen from SA Properties Ltd 5,830 5,830 130 AMOUNT
  43. 43. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 38 Fair value Hierarchy The Company’s fair value measurement model is highlighted in accounting policy 8. Level 1 Fair value measurements classified as level 1 include fair values of quoted investments based on current market prices. Level 2 Fair value measurements classified as level 2 include fair values of unquoted investments which the Company established using valuation techniques such as: - recent arm’s length transactions - reference to other instruments that are substantially the same - Net assets value and - discounted cash flows Level 3 Fair value measurements classified as level 3 include fair values of financial assets of which there are no active markets and no observable inputs. They comprise loans and other receivables. The table below highlights financial instruments in their various fair value hierarchies at year end: 2012 Asset type Total Level 1 Level 2 Level 3 =N='000 =N='000 =N='000 =N='000 Quoted securities - At fair value through profit or loss 50,331 50,331 - - Quoted securities - Available for sale 198,812 198,812 - - Loans and receivables 506,997 - - 506,997 Unquoted investments - Available for sale 1,714,678 - - 1,714,678 2,470,818 249,143 - 2,221,675 2011 Asset type Total Level 1 Level 2 Level 3 =N='000 =N='000 =N='000 =N='000 Quoted securities - At fair value through profit or loss 39,616 39,616 - - Quoted securities - Available for sale 107,927 107,927 Loans and receivables 506,997 506,997 Unquoted investments - Available for sale 2,655,219 - 2,655,219 3,309,759 147,543 - 3,162,216 78
  44. 44. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 39 BUSINESS SEGMENT INFORMATION The Company currently identifies product lines as its operating segments. These operating segments are monitored by the company's Managing Director who makes strategic decisions on the basis of segment operational needs and results. The Company operates principally in non life general insurance business. Its major products are aviation, engineering, fire, general accident, marine, motor, bond and oil and gass policies. The results of the segments' operations for the year which includes items directly attributable to each segment as well as those items that can be allocated on a reasonable basis are highlighted below: General Oil Aviation Engineering Fire Accident Marine Motor Bond & Gas 2012 2011 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 Premium Income Premium written 184,280 279,102 398,678 1,371,112 971,112 1,349,844 66,168 877,246 5,497,544 4,720,217 (Increase)/Decrease in Unearned premium (19,119) 23,411 4,442 32,824 (12,785) (78,620) (27,891) (43,261) (120,999) (213,469) Gross Premium written in the year 165,161 302,513 403,120 1,403,936 958,327 1,271,224 38,277 833,985 5,376,545 4,551,723 Reinsurance premium expenses (50,658) (36,706) (67,889) (42,931) (104,680) (33,500) (29,785) (114,809) (480,958) (391,384) Net premium written 114,502 265,808 335,232 1,361,005 853,648 1,237,724 8,492 719,176 4,895,587 4,160,339 Commission received on reinsurance 9,170 7,150 12,899 8,157 19,889 6,500 5,659 21,544 90,967 92,726 Underwriting income 123,672 272,958 348,131 1,369,162 873,537 1,244,224 14,152 740,720 4,986,554 4,253,065 Less Expenses Claims Claim paid 16,451 10,314 165,822 91,070 75,021 321,203 - 90,959 770,840 623,194 (Decrease)/Increase in provision for outstanding claims 49,607 (18,852) 304,670 31,128 (355) 13,280 8,099 212,602 600,179 (2,539) 66,058 (8,538) 470,492 122,198 74,666 334,483 8,099 303,561 1,371,019 651,023 Claims expenses recoveries from reinsurers 6,841 339,053 21,817 34,396 52,502 454,609 194,727 Net Claims expenses 66,058 (15,379) 131,439 100,381 40,270 281,981 8,099 303,561 916,410 456,296 Underwriting expenses Commission paid less deferred cost 56,080 47,068 44,237 113,428 108,145 201,557 38,344 54,604 663,463 475,754 Other bisiness acquisition cost 28,626 43,356 61,931 212,989 150,853 209,685 10,279 136,272 853,991 619,958 Total underwriting expenses 84,706 90,424 106,168 326,417 258,998 411,242 48,623 190,876 1,517,453 1,095,712 Total Expenses 150,764 75,045 237,606 426,799 295,751 693,223 56,722 494,437 2,430,347 1,552,008 Underwriting profit 2012 (27,092) 197,913 110,524 942,363 577,786 551,001 (42,570) 246,283 2,556,207 2,701,057 - 2011 - 305,784 129,887 332,061 527,465 591,134 - - 2,701,057 79
  45. 45. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 40 PENALTY BY NAICOM The Company contravened certain sections of the Insurance policy guidelines 2011 and other circulars issued by the National Insurance Commission (NAICOM). SECTION NATURE 2012 2011 =N= =N= Section 49(5) of Filing of Reinsurance treaty arrangement NAICOM ACT,1997 500,000 - Section 1.166 of Failure to render operational returns on businesses 225,000 - 2011 operational placed by Insurance brokers in the third quarter of 2011 guidelines Section 1.9 of Violation of policy guideline on revaluation surplus - 500,000 2011 operational guidelines Violation of operational guidelines on hypothetication - 500,000 Section 1.16 of Late submission of 2011 Audited Accounts - 125,000 2011 operational guidelines Section 81(1) of Non submission of first quarter operational returns 500,000 - Insurance Act 2003. 1,225,000 1,125,000 41 DIRECTORS AND EMPLOYEES Employees The average number of persons employed by the company during the year by category Number Number Executive Directors 1 1 Management Staff 37 52 Non-management Staff 123 136 161 189 Staff cost for the above persons (excluding Executive Direators) was: Wages and Salaries 431,807 431,521 Employees' Retirement Benefit 40,254 25,267 472,061 456,788 The number of employees of the company other than Directors who received emoluments in the following ranges was: Number Number =N=100,001 - =N=200,000 1 0 =N=200,001 - =N=300,000 6 6 =N=300,001 - =N=400,000 1 0 =N=400,001 - =N=500,000 6 0 =N=500,001 - =N=600,000 3 0 =N=600,001 - =N=700,000 0 0 =N=700,001 - =N=800,000 1 0 =N=800,001 - =N=900,000 0 0 =N=900,001 - =N=1,000,000 16 17 =N=1,000,001 - =N=1,100,000 5 9 =N=1,100,001 - =N=1,200,000 10 29 =N=1,200,001 - =N=3,000,000 2 13 =N=1,300,001 - =N=1,400,000 2 7 =N=1,400,001 - =N=1,500,000 0 5 Above =N=1,500,000 93 103 146 189 80 PENALTY
  46. 46. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 2012 2011 The remuneration paid to the Directors of the company was: =N= =N= ' 000 ' 000 Fees and other allowances 16,383 14,233 Executive compensation 14,233 18,731 30,616 32,963 Fees and other emoluments disclosed above include amounts paid to: The Chairman 1,500 1,500 The Highest paid Director 14,233 18,731 The number of directors who received fees and other emoluments (excluding pension contributions) in the following ranges was: Number Number =N=1,000,001 - =N=2,000,000 5 5 =N=2,000,001 and above 2 2 7 7 42 CONTINGENT LIABILITIES Pending Law Suits and Guarantees The Company is presently involved as defendant in 13 cases. The total amount of claims in these cases against the company is estimated at =N=446.79 million. According to the Directors and the Legal Adviser to the company, the liabilties, if any, are not likely to be significant and no provision has been made in these financial statements. 43 RELATED PARTY TRANSACTIONS Insurance Contracts - Standard Alliance Life Ltd. The Company buys insurance contract in respect of Group Life Policy from Standard Alliance Life Limited, an associate company. A total sum of =N=8,900,265 was paid as premium fot the year ended 31 December 2012. Group Expenses - Standard Alliance Investment Group The Company is a member of Standard Alliance Investments Group. The Company's share of the common expenses to members of the group for the year ended 31 December 2012 amounted to =N=26,125,000. Lease of Head-office building - Standard Alliance Properties Limited The Company also has a lease agreement on three(3) foors (ground, first and second) of its Corporate Headquarters building with Standard Alliance Properties Ltd. The lease is for a period of 4 years with an annual rent of =N=10million. 81
  47. 47. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 Purchase of Furniture - Heroes Furnitures Ltd. During the year, the Company purchased office furniture from Heroes Furniture Limited to the total sum of =N=8,670,000 (=N=16,200,000 (2011). One of the Directors of the Company , Olorogun O'tega Emerhor, OON has beneficial interests in Heroes Furnitures Limited. Investments in a property business - Standard Alliance Properties Limited The Company invested in a property business with Standard Alliance Properties Limited The term of this include an annual interest income rate of 4.5% and share of profit. During the year, SA Properties Limited assigned a total of 3 blocks of 11 flats located at New County Estate, Lekki to the Company at a value of =N=95million each. The total value is =N=1.045 billion as certified by Osaro Eguasa & Co as at 8th August 2012. The balance on this investment account was =N=1.715 billion as at 31 st December 2012 (=N=2.649billion as at 31 December 2011) Banking Relationship - Lagoon Homes Savings and Loans Ltd. The Company has banking relationships with Lagoon Homes Savings and Loans Limited, an associate company. Its account balances with Lagoon Homes as at 31 December were: 2012 2011 =N='000 =N='000 Lagoon Home Savings & Loans Ltd Current accounts 1,864 (87,607) Deposits 292,760 300,971 44 COMPARATIVE FIGURES Certain comparative figures have been restated/adjusted in these financial statements to enhance upon understanding and comparison. All the above notes form an integral part of these accounts. 82
  48. 48. STANDARD ALLIANCE INSURANCE PLC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2012 APPENDIX TO THE FINANCIAL STATEMENTS (Continued) 2. STATEMENT OF VALUE ADDED 2012 % 2011 % =N='000 =N='000 PREMIUM,INVESTMENT AND OTHER INCOME 5,199,310 2,597,498 PREMIUMS,COMMISIONS, CLAIMS PAID AND OTHER OPERATIONAL COSTS (6,252,951) (1,893,002) VALUE (LOST)/ADDED (1,053,640) 100.00 704,496 100.00 DISTRIBUTED AS FOLLOWS: EMPLOYEES Staff costs 502,677 (47.71) 418,574 59.41 PROVIDERS OF FUNDS Finance charges 190,144 (18.05) 71,951 10.21 GOVERNMENT Taxation including information technology development levy 138,047 (13) 95,404 13.54 ASSET REPLACEMENT Depreciation & amortisation 139,723 (13.26) 111,749 15.86 CONTRACTION/EXPANSION - Shareholder's interest Profit/ (Loss) for the year after taxation (2,024,232) 192.12 6,819 0.97 VALUE (LOSS)/ADDED (1,053,640) 100.00 704,496 100.00 The value added statement represents the distribution of the wealth created by the Company through the use of its assets and the efforts of the employees. 131
  49. 49. STANDARD ALLIANCE INSURANCE PLC APPENDIX TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2012 3 FIVE YEAR FINANCIAL SUMMARY 2012 2011 2010 2009 2008 ASSETS =N=000 =N=000 =N=000 =N=000 =N=000 Cash and Cash Equivalents 316,589 662,801 1,005,251 - - Cash and Bank balances - - - 80,519 111,120 Short term investments - - - 10,889,008 14,377,245 Financial Assets 1,963,821 2,802,762 2,698,829 - - Debtors and prepayments - - - 3,724,961 3,086,025 Trade Receivables 642,257 2,074,009 1,314,507 - - Reinsurance asset 641,965 301,491 361,215 - - Deferred Commission - - - 204,481 141,850 Deferred Acqusition Costs 140,728 97,332 101,843 - - Other receivables and Prepayments 563,752 608,913 1,162,330 - - Non-Current Assets Held for Sale 1,435,000 390,000 40,000 - - Long term Investment - - - 2,539,773 5,212,407 Investments in Associates 1,123,290 1,047,654 1,238,740 Fixed Assets - - - 968,724 938,274 Intangible Assets 18,937 17,345 21,617 Property, Plants and Equipments 1,750,734 1,117,053 1,064,841 Statutory Deposits 335,000 335,000 335,000 335,000 335,000 8,932,073 9,454,359 9,344,174 18,742,465 24,201,921 LIABILITIES 4,059,225 3,415,418 3,151,640 2,309,897 1,136,152 NET ASSETS 4,872,849 6,038,941 6,192,534 16,432,568 23,065,769 SHAREHOLDERS' EQUITY Share Capital 5,996,587 4,246,587 4,246,587 5,996,587 5,996,587 Preference shares - 1,750,000 1,750,000 Share Premium 15,852,049 15,852,049 15,852,049 15,852,049 16,027,049 Treasury Shares (8,737,585) (8,737,585) (8,737,585) - Contingency Reserve 999,663 834,764 691,808 575,313 477,568 Other Reserves 896,011 37,868 23,282 14,299 14,299 Retained Earnings (10,133,874) (7,944,743) (7,633,606) (6,005,680) 550,266 TOTAL SHAREHOLDERS' EQUITY 4,872,851 6,038,940 6,192,535 16,432,568 23,065,769 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,932,075 9,454,358 9,344,175 18,742,465 24,201,921 PROFIT OR LOSS ACCOUNT AND OTHER COMPREHENSIVE INCOME 2012 2011 2010 2009 2008 =N=000 =N=000 =N=000 =N=000 =N=000 Gross Premium income 5,381,232 4,551,723 3,883,161 3,258,173 3,007,466 Reinsurance premium expenses (480,958) (391,384) Net premium income 4,900,274 4,160,339 Commission earned on reinsurance 90,967 92,726 Underwriting income 4,991,241 4,253,065 Total underwriting expenses (2,430,346) (1,552,009) Underwriting results 2,560,895 2,701,056 1754156 1795900 1481102 Investment income 208,069 176,946 Investment and sundry income 49,250 1,113,004 1,378,596 Management expenses (1,386,984) (1,388,761) Management expenses and provision for bad debts (3,789,950) (1,892,504) (1,300,648) Exceptiona;l charges - Provision for diminition of investment (6,475,611) (6,719,201) (423,711) Impairment charges on premium receivable (2,805,413) (784,359) Finance charges (190,144) (148,413) Impairment charges (358,959) (152,069) Share of profit/(loss) of associates 75,637 (191,086) Unrealised Fair value gains/(losses) 10,715 (111,090) Information technology development levy - (3,191) (11,353) Extra ordinary loss (138,525) (Loss)/Profit before taxation (1,886,185) 99,032 (8,462,155) (5,702,801) 985,461 Income tax (120,192) (82,307) (137,349) (155,741) (121,264) Deferred tax (17,855) (9,906) Transfer to contingency reserve (116,495) (97,745) (173,703) Profit/(loss) after taxation (2,024,232) 6,819 (8,715,999) (5,956,287) 690,494 Other comprehensive income/(loss) Fair value gains on defined benefit plan valuation - 10,800 Fair value gain in quoted shares (Available for sale) 90,885 3,786 - - - Total other comprehensive income 90,885 14,586 - - - (Loss)/Profit for the year - - (8,715,999) (5,956,287) 690,494 Total comprehensive income(loss) for the year (1,933,347) 21,405 Earnings per share: Basic/ Diluted (Kobo) (16.88) 0.06 (99) (67) 11.8 Dividend per share - - - 5k 7.5k 132 I F R S NIGERIAN GAAP I F R S N I G E R I A N G A A P

×