The annual report summarizes NAGICO's strong financial performance in 2012.
- NAGICO is a leading insurance provider in the Caribbean with operations in 19 territories and over 30 years in business.
- In 2012, NAGICO achieved record premium revenue of over $108 million, total assets of over $170 million, and net profit of over $10 million, representing significant growth compared to prior year.
- NAGICO's expansion into new markets including Grenada and the Bahamas contributed to its strong financial results in 2012.
Aviva plc Third Quarter 2014 Interim Management StatementAviva plc
Mark Wilson, Group Chief Executive Officer, said:
“Aviva’s turnaround is delivering. Our key metrics have improved again. Year to date, our net asset value is 10% higher; value of new business is up 15%1 and the general insurance combined ratio improved to 95.9%.
“The steps we have taken to focus and strengthen the Group mean we are in a different position to two years ago.
“Notwithstanding this progress, there is still more to do before we can be satisfied we are fully delivering on our investment thesis of cash flow plus growth.”
Aviva plc third quarter 2013 interim management statementAviva plc
Mark Wilson, Group Chief Executive Officer, said:
“Progress is in line with our expectations and we remain focused on delivering cash flow plus growth. In the first nine months of 2013 our key measure of growth, value of new business, increased by 14%. We had strong performances from France and our growth markets of Turkey, Poland and Asia. Conversely, value of new business remains depressed in our turnaround businesses of Italy and Spain, and this is being addressed.
“Capital generation in the period was stable at £1.3 billion and our economic capital surplus now stands at £8 billion. We continue to make satisfactory progress on cost reduction, with operating expenses 10% below the 2011 baseline.
“Aviva remains in the early stages of turnaround. Whilst we have resolved a key issue in the disposal of our US business and have made progress in a number of areas, there remains much work to be done.”
Mark Wilson, Group Chief Executive Officer, said:
“In the first half we have taken a number of steps to deliver our investment thesis of cash flow and growth. These results show satisfactory progress in Aviva’s turnaround.
“We have achieved profit after tax of £776 million, in contrast to the £624 million loss last year. Cash flows to the Group have increased by 30% to £573 million. Our key measure of sales – value of new business – has increased 17%, driven by the UK, France, Poland, Turkey and Asia.
“Although these results continue the positive trends of the first quarter, tackling our legacy issues will take time.
“I am committed to achieving for investors what we set out to do: turning around the company to unlock the considerable value in Aviva.”
Aviva plc Third Quarter 2014 Interim Management StatementAviva plc
Mark Wilson, Group Chief Executive Officer, said:
“Aviva’s turnaround is delivering. Our key metrics have improved again. Year to date, our net asset value is 10% higher; value of new business is up 15%1 and the general insurance combined ratio improved to 95.9%.
“The steps we have taken to focus and strengthen the Group mean we are in a different position to two years ago.
“Notwithstanding this progress, there is still more to do before we can be satisfied we are fully delivering on our investment thesis of cash flow plus growth.”
Aviva plc third quarter 2013 interim management statementAviva plc
Mark Wilson, Group Chief Executive Officer, said:
“Progress is in line with our expectations and we remain focused on delivering cash flow plus growth. In the first nine months of 2013 our key measure of growth, value of new business, increased by 14%. We had strong performances from France and our growth markets of Turkey, Poland and Asia. Conversely, value of new business remains depressed in our turnaround businesses of Italy and Spain, and this is being addressed.
“Capital generation in the period was stable at £1.3 billion and our economic capital surplus now stands at £8 billion. We continue to make satisfactory progress on cost reduction, with operating expenses 10% below the 2011 baseline.
“Aviva remains in the early stages of turnaround. Whilst we have resolved a key issue in the disposal of our US business and have made progress in a number of areas, there remains much work to be done.”
Mark Wilson, Group Chief Executive Officer, said:
“In the first half we have taken a number of steps to deliver our investment thesis of cash flow and growth. These results show satisfactory progress in Aviva’s turnaround.
“We have achieved profit after tax of £776 million, in contrast to the £624 million loss last year. Cash flows to the Group have increased by 30% to £573 million. Our key measure of sales – value of new business – has increased 17%, driven by the UK, France, Poland, Turkey and Asia.
“Although these results continue the positive trends of the first quarter, tackling our legacy issues will take time.
“I am committed to achieving for investors what we set out to do: turning around the company to unlock the considerable value in Aviva.”
Mark Wilson, Group Chief Executive Officer, said:
“The half year results show that momentum in Aviva’s turnaround continues. All of our key metrics have improved, operating earnings per share are up 16%, and book value has increased 7%.
“We have reduced our debt, decreased expenses and increased profit – this is just good business. Aviva remains a work in progress, and these results are a step in the right direction.”
Mark Wilson, Group Chief Executive Officer, said:
“In the first half we have taken a number of steps to deliver our investment thesis of cash flow and growth. These results show satisfactory progress in Aviva’s turnaround.
“We have achieved profit after tax of £776 million, in contrast to the £624 million loss last year. Cash flows to the Group have increased by 30% to £573 million. Our key measure of sales – value of new business – has increased 17%, driven by the UK, France, Poland, Turkey and Asia.
“Although these results continue the positive trends of the first quarter, tackling our legacy issues will take time.
“I am committed to achieving for investors what we set out to do: turning around the company to unlock the considerable value in Aviva.”
Infographic outlining Aviva's five carbon investment commitments responding to climate risk and the need to limit global temperature increases to within 2 degrees C
“After three years of turnaround we are now moving to a different phase of delivery. We have improved the balance sheet, simplified the Group and we are now transforming our business. The progress is evident in these results.
“The Friends Life integration is ahead of schedule and we have delivered £63 million of run-rate synergies after three months. This is encouraging but nowhere near complete. Amidst the integration, our UK Life business continued to grow, with value of new business up 31% excluding Friends Life.
“In general insurance, premiums and operating profits were higher. The combined ratio was 93.1%, the best in eight years, and underwriting profits increased 45%.
“The 15% increase in the dividend is a further step towards achieving our target payout ratio and underlines our confidence in our cash flow and the business.”
Transparency reporting in oil and gas industryHamdy Rashed
During financial crisis, it was observed that lack of transparency in financial statements impacted the valuation of companies that knocked risk of reducing the confidence in the financial markets. Transparent financial information supposed to be more understandable, very clear frank or honest. The more branches and joint venture entities and types of business company have, the more complicated it is, and the more transparent information and disclosure is required by types of business and geographical locations. Company that is doing well, has nothing to hide and is eager to publish their key performance indicators and publish more about where it is making resources, and how it is spending the resources as widely as possible that lead investors consider them more valuable than the company that keep information to itself
Mark Wilson, Group Chief Executive Officer, said:
“The half year results show that momentum in Aviva’s turnaround continues. All of our key metrics have improved, operating earnings per share are up 16%, and book value has increased 7%.
“We have reduced our debt, decreased expenses and increased profit – this is just good business. Aviva remains a work in progress, and these results are a step in the right direction.”
Mark Wilson, Group Chief Executive Officer, said:
“In the first half we have taken a number of steps to deliver our investment thesis of cash flow and growth. These results show satisfactory progress in Aviva’s turnaround.
“We have achieved profit after tax of £776 million, in contrast to the £624 million loss last year. Cash flows to the Group have increased by 30% to £573 million. Our key measure of sales – value of new business – has increased 17%, driven by the UK, France, Poland, Turkey and Asia.
“Although these results continue the positive trends of the first quarter, tackling our legacy issues will take time.
“I am committed to achieving for investors what we set out to do: turning around the company to unlock the considerable value in Aviva.”
Infographic outlining Aviva's five carbon investment commitments responding to climate risk and the need to limit global temperature increases to within 2 degrees C
“After three years of turnaround we are now moving to a different phase of delivery. We have improved the balance sheet, simplified the Group and we are now transforming our business. The progress is evident in these results.
“The Friends Life integration is ahead of schedule and we have delivered £63 million of run-rate synergies after three months. This is encouraging but nowhere near complete. Amidst the integration, our UK Life business continued to grow, with value of new business up 31% excluding Friends Life.
“In general insurance, premiums and operating profits were higher. The combined ratio was 93.1%, the best in eight years, and underwriting profits increased 45%.
“The 15% increase in the dividend is a further step towards achieving our target payout ratio and underlines our confidence in our cash flow and the business.”
Transparency reporting in oil and gas industryHamdy Rashed
During financial crisis, it was observed that lack of transparency in financial statements impacted the valuation of companies that knocked risk of reducing the confidence in the financial markets. Transparent financial information supposed to be more understandable, very clear frank or honest. The more branches and joint venture entities and types of business company have, the more complicated it is, and the more transparent information and disclosure is required by types of business and geographical locations. Company that is doing well, has nothing to hide and is eager to publish their key performance indicators and publish more about where it is making resources, and how it is spending the resources as widely as possible that lead investors consider them more valuable than the company that keep information to itself
Document Security Systems (DSS) is a multinational company operating businesses focused
on brand protection technology, blockchain security, direct marketing, healthcare, real estate,
and securitized digital assets. Its business model is based on a distribution sharing system in
which shareholders will receive shares in its subsidiaries as DSS strategically spins them out
into IPOs. Its historic business revolves around counterfeit deterrent and authentication
technologies, smart packaging, and consumer product engagement. DSS is led by its seasoned
leaders with decades of industry experience.
Axia designed and developed NAGICO's first formal group brochure. Several similar brochures were designed for specific territories.
Axia is an award-winning visual communications company specializing in wayfinding, branding and advertising for city, corporate and retail markets. Axia provides solutions to move people forward, companies upward and communities onward. Here, great ideas take flight. At Axia, we believe there is no such thing as a bad idea, just another step toward a winning solution. We encourage our Clients to participate in the design process because their input is based on insight and passion. Our motto is simple. “Provide the best creative solutions for the best clients for the best results– and have fun doing it”. Axia Creative, formerly known as Mayfield Creative, is located in West Palm Beach, Florida with a client base that covers the entire US, parts of Canada and over 19 Caribbean territories.
Todd Mayfield is the President and cofounder of Axia Creative. He has over 29 years of wayfinding, brand development, advertising and print graphics experience. He is also an accomplished fine artist and illustrator.
Todd has earned numerous awards for design excellence and profound respect among his peers. His work has been featured in various industry magazines and books such as Print, Signs of the Times and American Corporate Identity. Currently, his company has a loyal client base from California to the Caribbean and parts of Canada.
AXIACREATIVE.COM
30 Years of Turning Goals Into Milestones: Zain's 2013 ِEnglish Annual ReportZain Group
At Zain, we work hard every day to improve the lives of our customers by introducing them to a wonderful world. Since our reality at Zain couldn't have been possible if we didn't envision it, we are committed to inspiring our customers to follow their dreams and live their full potential. In our world, tomorrow is Zain. You can learn more on our performance in 2013 in our annual report here.
Destination Wayfinding & the Illuminated BrandAxia Creative
The information in this book will enlighten those who consider branded wayfinding for their community or region, and will serve as a valuable reference to help insure that the right steps are taken toward a highly successful solution.
The Sedona Assessment Report was the final deliverable submitted at the end of the first phase of the wayfinding program. It is a consolidation of Axia's findings from the site survey and stakeholder interviews. The report includes reaffirmation of the program’s objectives, a summary of stakeholder interviews, field observations and general conditions, a study of traffic flow, arrival points, destinations and decision points, photo documentation and recommendations for the direction of design ant the wayfinding strategy.
We help businesses and destinations become more visible and findable by developing branded wayfinding programs that set them apart from their competitors. Axia employs both art and science to assure function is strengthened by well-designed form. We plan, design and implement strategic plans that bring people to places more efficiently and help create a positive experience of discovery.
Axia empowers businesses and institutions with strong brands that get seen. We amplify marketing with compelling messages that get heard. We plan, design and implement wayfinding programs to help people find their way to your destination. We enhance environments with experiential graphics that help create great experiences. Axia provides solutions that move businesses upward and communities onward.
Axia is an award-winning visual communications company specializing in wayfinding, branding and advertising for city, corporate and retail markets. Axia provides solutions to move people forward, companies upward and communities onward. Here, great ideas take flight. At Axia, we believe there is no such thing as a bad idea, just another step toward a winning solution. We encourage our Clients to participate in the design process because their input is based on insight and passion. Our motto is simple. “Provide the best creative solutions for the best clients for the best results– and have fun doing it”. Axia Creative, formerly known as Mayfield Creative, is located in West Palm Beach, Florida with a client base that covers the entire US, parts of Canada and over 19 Caribbean territories.
Todd Mayfield is the President and cofounder of Axia Creative. He has over 29 years of wayfinding, brand development, advertising and print graphics experience. He is also an accomplished fine artist and illustrator.
Todd has earned numerous awards for design excellence and profound respect among his peers. His work has been featured in various industry magazines and books such as Print, Signs of the Times and American Corporate Identity. Currently, his company has a loyal client base from California to the Caribbean and parts of Canada.
AXIACREATIVE.COM
Axia is an award-winning visual communications company specializing in wayfinding, branding and advertising for city, corporate and retail markets. Axia provides solutions to move people forward, companies upward and communities onward. Here, great ideas take flight. At Axia, we believe there is no such thing as a bad idea, just another step toward a winning solution. We encourage our Clients to participate in the design process because their input is based on insight and passion. Our motto is simple. “Provide the best creative solutions for the best clients for the best results– and have fun doing it”. Axia Creative, formerly known as Mayfield Creative, is located in West Palm Beach, Florida with a client base that covers the entire US, parts of Canada and over 19 Caribbean territories.
Todd Mayfield is the President and cofounder of Axia Creative. He has over 29 years of wayfinding, brand development, advertising and print graphics experience. He is also an accomplished fine artist and illustrator.
Todd has earned numerous awards for design excellence and profound respect among his peers. His work has been featured in various industry magazines and books such as Print, Signs of the Times and American Corporate Identity. Currently, his company has a loyal client base from California to the Caribbean and parts of Canada.
AXIACREATIVE.COM
Axia Partnered with Great Destination Strategies to develop a brand for Alaska's Inside Passage. One of the final deliverables was a comprehensive Brand Style Guide for the South Alaska Tourism Council and all those who will promote the brand through visual communications.
Axia is an award-winning visual communications company specializing in wayfinding, branding and advertising for city, corporate and retail markets. Axia provides solutions to move people forward, companies upward and communities onward. Here, great ideas take flight. At Axia, we believe there is no such thing as a bad idea, just another step toward a winning solution. We encourage our Clients to participate in the design process because their input is based on insight and passion. Our motto is simple. “Provide the best creative solutions for the best clients for the best results– and have fun doing it”. Axia Creative, formerly known as Mayfield Creative, is located in West Palm Beach, Florida with a client base that covers the entire US, parts of Canada and over 19 Caribbean territories.
Todd Mayfield is the President and cofounder of Axia Creative. He has over 29 years of wayfinding, brand development, advertising and print graphics experience. He is also an accomplished fine artist and illustrator.
Todd has earned numerous awards for design excellence and profound respect among his peers. His work has been featured in various industry magazines and books such as Print, Signs of the Times and American Corporate Identity. Currently, his company has a loyal client base from California to the Caribbean and parts of Canada.
AXIACREATIVE.COM
Axia is an award-winning visual communications company specializing in wayfinding, branding and advertising for city, corporate and retail markets. Axia provides solutions to move people forward, companies upward and communities onward. Here, great ideas take flight. At Axia, we believe there is no such thing as a bad idea, just another step toward a winning solution. We encourage our Clients to participate in the design process because their input is based on insight and passion. Our motto is simple. “Provide the best creative solutions for the best clients for the best results– and have fun doing it”. Axia Creative, formerly known as Mayfield Creative, is located in West Palm Beach, Florida with a client base that covers the entire US, parts of Canada and over 19 Caribbean territories.
Todd Mayfield is the President and cofounder of Axia Creative. He has over 29 years of wayfinding, brand development, advertising and print graphics experience. He is also an accomplished fine artist and illustrator.
Todd has earned numerous awards for design excellence and profound respect among his peers. His work has been featured in various industry magazines and books such as Print, Signs of the Times and American Corporate Identity. Currently, his company has a loyal client base from California to the Caribbean and parts of Canada.
AXIACREATIVE.COM
You could be a professional graphic designer and still make mistakes. There is always the possibility of human error. On the other hand if you’re not a designer, the chances of making some common graphic design mistakes are even higher. Because you don’t know what you don’t know. That’s where this blog comes in. To make your job easier and help you create better designs, we have put together a list of common graphic design mistakes that you need to avoid.
Can AI do good? at 'offtheCanvas' India HCI preludeAlan Dix
Invited talk at 'offtheCanvas' IndiaHCI prelude, 29th June 2024.
https://www.alandix.com/academic/talks/offtheCanvas-IndiaHCI2024/
The world is being changed fundamentally by AI and we are constantly faced with newspaper headlines about its harmful effects. However, there is also the potential to both ameliorate theses harms and use the new abilities of AI to transform society for the good. Can you make the difference?
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Ideal for homeowners, tech enthusiasts, and industry professionals, this presentation provides valuable insights into the trends, benefits, and future developments in smart garage technology. Stay ahead of the curve with our expert analysis and practical tips on implementing smart garage solutions.
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Book Formatting: Quality Control Checks for DesignersConfidence Ago
This presentation was made to help designers who work in publishing houses or format books for printing ensure quality.
Quality control is vital to every industry. This is why every department in a company need create a method they use in ensuring quality. This, perhaps, will not only improve the quality of products and bring errors to the barest minimum, but take it to a near perfect finish.
It is beyond a moot point that a good book will somewhat be judged by its cover, but the content of the book remains king. No matter how beautiful the cover, if the quality of writing or presentation is off, that will be a reason for readers not to come back to the book or recommend it.
So, this presentation points designers to some important things that may be missed by an editor that they could eventually discover and call the attention of the editor.
Hello everyone! I am thrilled to present my latest portfolio on LinkedIn, marking the culmination of my architectural journey thus far. Over the span of five years, I've been fortunate to acquire a wealth of knowledge under the guidance of esteemed professors and industry mentors. From rigorous academic pursuits to practical engagements, each experience has contributed to my growth and refinement as an architecture student. This portfolio not only showcases my projects but also underscores my attention to detail and to innovative architecture as a profession.
3. Chairman’s Statement
We are a financially strong and
innovative insurance provider leading
the insurance industry in the Caribbean.
At NAGICO, we provide our customers
with exceptional value through our
competitive and flexible products,
expertise and responsive service
offered throughout our regional network
of branch offices, agents and brokers
in the Caribbean and future markets.
The NAGICO experience is shaped by
the many cultures of the Caribbean,
which enhances the quality of life for
our customers and the communities in
which they live.
This is the NAGICO Way
CEO’s Statement
11
Statement of Corporate Governance
13
Group Board Of Directors
15
Independent Auditors’ Report
16
Consolidated Statement of Financial Position
18
Consolidated Statement of Comprehensive Income
19
Notes to the Consolidated Financial Highlights
20
NAGICO Distribution Network
30 Years
19 Territories
1 Group
9
CFO’s Statement
Contents
7
26
4. CHAIRMAN’S STATEMENT
I am pleased to report that 2012 was a year of consolidation for the NAGICO Group.
There was considerable expansion territorially in 2011 which led to a planned
increased premium income for 2012.
I have observed that in both Europe and America the number of Insurance
Companies has declined dramatically in the last two decades due to the fact that
only the fittest could survive. Indeed, here in the Caribbean quite rightly, regulators
have become more demanding which in itself is increasing the costs to all insurance
companies and the consumers. At NAGICO we believe we have the best IT systems,
a full range of products and a strong balance sheet. These are the factors I believe
that will continue to drive NAGICO forward in even the toughest market conditions.
We are smarte
r today becau
se of lessons
the past. Our
from
financial integ
rity is solid be
we respond to
cause
current marke
t trends. Our
future is secu
re because of
the futures we
secure for oth
ers.
I would like at this point to thank NAGICO’s dedicated Management Team who have
taken the Company through the expansion program which it has deliberately embarked
on in the last few years.
I and my fellow board members believe in NAGICO’s corporate plan and we believe
we have the correct management and capital base to take us forward as one of the
strongest Insurance Companies in the region. We therefore look forward to serving our
customers all over the Caribbean with even better service and the right products at the
right price whilst maintaining the highest financial standards of any insurance institution
in the region.
FUTURE
Michael Bishop
Chairman of the NAGICO
Group Board of Directors
May 31, 2013
7
5. CEO’S STATEMENT
The Macro Economic conditions in 2012 in most of the islands where we operate were
not conducive to growth or profits. In addition the political situation has been unstable,
resulting in changes in Governments on several islands. However, I am pleased to
state that the NAGICO Group continues to grow and generate acceptable returns.
We celebrated our 30th Anniversary in 2012 and having been the CEO from inception,
I am proud to say that we marked the occasion with historic achievements.
LEADERSHIP
ose who know
True leadership comes from th
over their own
how to motivate others to disc
an merely leading
pathways to success rather th
them there by the hand.
NAGICO commenced operations on St. Maarten in 1982 with a mere US$75,000 in
paid in capital. By the end of 2012, the enclosed financial statement shows premium
income of over US$108 million, assets of over US$170 million and net assets of over
US$77 million. 2012 was a particularly good year with earnings surpassing US$10
million, mainly from operating income, but also from asset revaluation in accordance
with IFRS rules.
The above results justify NAGICO’s strategy of growth, profitability and spreading
risks by expanding in new markets.
In 2012, we acquired majority shares in VINSURE, a leading insurer in St.
Vincent, established offices in Grenada and the Bahamas and strengthened our
management structure. We continue to place emphasis on education and now
have over 20 qualified Chartered Insurers and Accountants and established the
NAGICO Information Technology Centre (NITC) in the Dominican Republic to
enhance our state of the art Insurance Software programs.
I take this opportunity to recognize and thank our Shareholders, Management, Staff, Directors, Agents, Brokers,
Reinsurers and many Associates who have been instrumental in our phenomenal success.
Imran McSood Amjad, ACII
NAGICO Group Chief Executive Officer
May 31, 2013
Whilst there will be many challenges, we look to the future with great optimism, certain in our quest for growth,
profits and excellence.
9
6. CFO’S STATEMENT
Financial Results
NAGICO’s audited consolidated financial statements for the year ended 31
December 2012 have shown significant improvements in the Group’s performance
with an increase in net profit before taxation of $11 million compared to $5 million
in the previous year; this represents an increase of $6 million or 120% which was
mainly attributed to the growth in insurance premium revenue which increased to
$109 million or 28% over the previous year and a relatively stable loss ratio of 34%.
Additionally, during 2012, we have experienced growth in our investment income of
$2 million and other operational income of $5 million.
Our reputation
is carried on th
e voices of
those we serv
e well. It lights
our path into
new markets
and lays the fo
undation for o
continued suc
ur
cess and secu
re position in
Caribbean.
the
REPUTATION
We have continued to be conservative in our investment approach as proven by our
investment securities amounting to $61 million which primarily comprised government
securities and term deposits.
NAGICO continues to be a very liquid group with liquid assets accounting for
approximately 69% of the investment portfolio and 55% of total net assets which is
mainly due to the retention of capital since the shareholders of the Group have a “no
dividend” policy. Consequently, the Group continues to be solvent and maintain adequate
risk-adjusted capitalization for its current business profiles. Overall, total assets and
equity have grown to $170 million and $77 million respectively.
Outlook
Given the changes we have seen within the various governments throughout the region,
regulators, consumer spending and the global economy, we are introducing new financial
measures to become more efficient and effective, thereby avoiding any significant adverse
effect on the Group and staff as we strongly believe that our human resources are our most valuable asset.
Therefore, for 2013, the Group has budgeted further growth in our operating results which we plan to achieve
through a number of cost cutting measures and through growing our new operations within the developing and
new markets which we operate.
11
Justin Woods
Chief Financial Officer
May 31, 2013
7. STATEMENT OF CORPORATE GOVERNANCE
The NAGICO Group and its subsidiaries now undertake operations in 19 jurisdictions
throughout the Caribbean region, of which 18 involve licensed insurance activities.
Most jurisdictions have their own separate insurance regulatory body, as a result of
which NAGICO is required to report to 15 different regulatory bodies. The two main
home regulatory bodies are the Central Bank of Curaçao & St Maarten and the Anguilla
Financial Services Commission. Other regulatory bodies include the Prudential Control
Authority, part of the Banque de France based in Paris, covering NAGICO’s activities
in French St Martin and the other French overseas territories and the Dutch Central
Bank covering activities in the BES islands. It should be noted that the Dutch based
regulatory bodies require NAGICO to have a Supervisory Board, made up entirely of
independent board members.
STRENGTH
mmitment to
Our strength is born from our co
our resilience
our community. It is evidence of
ering events and
to catastrophic weather, life-alt
threaten our
insurmountable challenges that
customers’ way of life.
John D.K. Lawrence
Head of Group Compliance
May 31, 2013
Given such diverse regulatory reporting, Corporate Governance and the related
activity of internal and external Compliance have now taken on an even more
important role within the Group. Basically Corporate Governance refers to the
processes, structures and information, including accountability, used for directing
and overseeing the management of an institution. A number of Caribbean regulators
issue Corporate Governance Guidelines and the Group follows these very closely.
Proactive corporate governance and compliance ongoing Group projects through
2012/2013 include review of the current senior management structure; establishment
of a risk management program; putting in place a business continuity plan, given
the ongoing possibility of a catastrophe occurrence in the region; strengthening
existing internal audit and Audit Committee functions; reviewing how senior
management reports to the various boards; maintaining more regular contact with
regulatory bodies, including formal presentations; ensuring regulatory compliance
by all NAGICO offices with local legislation and regulations; reviewing existing internal
Anti Money Laundering manuals and procedures, particularly where long-term insurance is involved and which
is more susceptible to AML risks.
Finally NAGICO is reviewing the impact of a new insurance regulatory regime within the European Union,
entitled Solvency II, which is scheduled to come into effect during 2014. This new regime will bring in more
stringent reporting and compliance requirements.
13
8. BOARD OF DIRECTORS
Michael Bishop
NAGICO Group Chairman
Francis Bowman
Board Member – NAGICO NV, Life,
Trinidad & Tobago, Audit Committee
Mark Teelucksingh
Board Member
NAGICO Trinidad & Tobago
Lisa Fulchan
Board Member
NAGICO Trinidad & Tobago
15
Ronald Knowles
Board Member – NAGICO NV, Life,
Ltd, Bahamas, Grenada, St. Lucia,
Trinidad & Tobago, Audit Committee
Ron Verhaar
Board Member – NAGICO NV & Life
Dawn Davies
Board Member
NAGICO Bahamas
Edward Lord
Board Member
NICL Grenada
9. INDEPENDENT AUDITORS’ REPORT
The accompanying Consolidated Financial Highlights, which comprise the consolidated
Opinion
balance sheet as at December 31, 2012 and the consolidated statement of
In our opinion, the Consolidated Financial Highlights derived from the audited
comprehensive income for the year then ended and related notes, are derived from the
consolidated financial statements of Nagico Holdings Limited for the year ended
audited consolidated financial statements of Nagico Holdings Limited for the year ended
December 31, 2012 are consistent, in all material respects, with those financial
December 31, 2012. We expressed an unmodified audit opinion on those financial
statements, in accordance with International Financial Reporting Standards.
statements in our report dated April 23, 2013.
We report that the management report, to the extent we can assess, is consistent with
The Consolidated Financial Highlights do not contain all the disclosures required by
the consolidated financial statements.
International Financial Reporting Standards. Reading the summary financial statements,
therefore, is not a substitute for reading the audited consolidated financial statements of
Nagico Holdings Limited.
Management’s Responsibility for the Consolidated Financial Highlights
Management is responsible for the preparation of Consolidated Financial Highlights of
the audited financial statements in accordance with International Financial Reporting
Standards.
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Auditor’s Responsibility
Our responsibility is to express an opinion on the Consolidated Financial Highlights
based on our procedures, which were conducted in accordance with International
Standard on Auditing (ISA) 810, “Engagements to Report on Summary Financial
Statements.”
17
10. CONSOLIDATED FINANCIAL HIGHLIGHTS
CONSOLIDATED FINANCIAL HIGHLIGHTS
Consolidated Statement Of Financial Position As At December 31, 2012
Consolidated Statement Of Comprehensive Income For The Year Ended December 31, 2012
Assets
2012
2011
(in U.S. dollars)
Property, plant and equipment
Retirement benefit asset
Investment properties
Investment securities
Investment in associate
Intangible assets
Deferred tax asset
Receivables
Unearned reinsurance premiums-net
Claims receivable reinsurance
Insurance receivables-net
Prepayments and other current assets
Equity and liabilities
16,016,684
7,921,719
26,829,521
61,310,518
1,119,387
3,201,441
14,027,727
7,517,031
20,476,120
53,857,449
124,675
582,718
1,930,598
3,360,572
2,026,597
16,900,224
4,599,184
26,886,577
3,522,939
1,232,808
12,198,174
3,162,102
20,116,023
26,746,293
23,801,004
170,032,140
Cash and cash equivalents
142,433,345
2012
2011
10,000
43,514,753
552,621
15,663
31,630,130
75,723,167
1,664,212
77,387,379
10,000
43,514,753
687,301
21,167,103
65,379,157
65,379,157
80,729,861
4,604,338
910,972
6,399,590
92,644,761
68,353,574
1,585,341
2,842,147
698,228
3,574,898
77,054,188
170,032,140
142,433,345
(in U.S. dollars)
Equity
Share capital
Additional paid in capital
Revaluation reserves
Other reserves
Retained earnings
Shareholders' equity
Minority interests
Total equity
Liabilities
Gross insurance liabilities
Pension liabilities
Deferred tax payable
Current tax payable
Accounts payable and accrued liabilities
2012
2011
108,808,246
(28,566,004)
(16,769,235)
63,473,007
84,774,595
(25,566,639)
(12,412,756)
46,795,200
Investment income
Other income
2,856,764
8,748,891
11,605,655
1,083,387
3,925,889
5,009,276
Total revenues
75,078,662
51,804,476
Expenses
Insurance claims and loss adjustment expenses net of
recoveries from reinsurers
Personnel expenses
Administration expenses
Other operating expenses
Amortization other intangible assets
Amortization deferred acquisition cost
Depreciation
Total expenses
Result before taxation
36,568,073
12,757,341
4,089,208
9,369,149
49,851
174,753
1,057,737
64,066,112
11,012,550
28,221,556
9,829,795
2,623,429
4,986,067
391,935
826,620
46,879,402
4,925,074
Taxation
Net result after taxation
(1,023,008)
9,989,542
842,188
5,767,262
Other comprehensive income
Change in fair value of equity securities
Change in other comprehensive income
Comprehensive income for the year
15,663
15,663
10,005,205
5,767,262
Attribution:
Comprehensive income for the year attributable to shareholders
Comprehensive income for the year attributable to minority interests
Comprehensive income for the year
9,934,964
70,241
10,005,205
5,767,262
5,767,262
(in U.S. dollars)
Revenues
Insurance premium revenue
Insurance premium ceded to reinsurers
Commissions
Net insurance premium revenue
19
11. NOTES TO THE CONSOLIDATED FINANCIAL Highlights
as per December 31, 2012
General
NAGICO Holdings Limited (the “Company”) was
incorporated in Anguilla on July 15, 1999. The
Company’s principal activity is to manage its subsidiaries.
The address of the Company’s registered office is
Caribbean Commercial Centre, The Valley, Anguilla. The
consolidated financial statements of the Company as
at and for the year ended December 31, 2012 include
the Company and its subsidiaries (together referred
to as the “Group” and individually as “Group entities”)
and the Group’s interest in associates. The Group is
primarily involved in the offering of property and casualty
insurance including fire, motor, public liability, health and
marine insurance and on a lesser scale, life insurance.
The Group conducts business through subsidiaries and
their branches and agents in St. Maarten, St. Martin,
French Overseas Territories (mainly Guadeloupe and
Martinique), Anguilla, British Virgin Islands, Antigua,
Aruba, Curaçao, Bonaire, Dominica, St. Kitts and
Nevis, Montserrat, Saba, St. Eustatius, St. Vincent and
the Grenadines, Trinidad & Tobago and St. Lucia. A
significant portion of the Company’s casualty and life
insurance business is reinsured.
On May 18, 2012, a subsidiary company (NAGICO
Ltd.) purchased 54,54% of the shares of St. Vincent
Insurances Limited (Vinsure), a company incorporated
in St. Vincent and the Grenadines, from Cooper Gay
(Holdings) Limited. Vinsure is primarily involved in the
offering of property and casualty insurance including
fire, motor and public liability insurance and conducts
business through agents located in St. Vincent and the
Grenadines.
In June 2012, the Company sold it’s remaining 25%
shares of Grensure Fire and General Insurances Limited
(“Grensure”). Grensure is registered under the Insurance
Act of 1973 of Grenada, to conduct general business
and acts as correspondents for Lloyds Insurance
Brokers.
The financial statements were approved by the Board of
Directors on April 23, 2013.
Basis of Preparation
The principal accounting policies adopted in the
preparation of the consolidated financial statements
of NAGICO Holdings Limited and its subsidiaries (the
“Group”) are set out below. These explanatory notes
are an extract of the detailed notes included in the
consolidated financial statements and are consistent in
all material respects with those from which they have
been derived.
Statement of Compliance
The consolidated financial statements, from which the
consolidated financial highlights have been derived,
are prepared in accordance with International Financial
Reporting Standards (“IFRS”).
Basis of Estimates
The preparation of the financial statements requires
the Group to make estimates and assumptions that
affect items reported in the statement of financial
position and statement of comprehensive income.
Notably the insurance liabilities are prone to estimates
and assumptions. Although these estimates and
assumptions are based on management’s best
knowledge of current facts, circumstances and, to
some extent, future events and actions, actual results
ultimately may differ, possibly significantly from those
estimates.
For financial statement presentation purposes certain
2011 balances have been reclassified in order to be in
conformity with the 2012 presentation.
Basis of Consolidation
Subsidiaries are all entities over which the Group has
the power to govern the financial and operating policies.
Subsidiaries are fully consolidated from the date on
which control is transferred to the Group until the date
that control ceases. The following subsidiaries have
been consolidated as of December 31, 2012.
Details of the Company’s subsidiaries and associate as at December 31, 2012 are as follows:
Name of subsidiary
or associate
Place of incorporation
and operation
Proportion of
ownership interest
Principal
activity
National General Insurance Corporation (NAGICO) N.V
NAGICO Insurance Company Ltd. (NICL)
NAGICO Aruba N.V.
NAGICO Investments Ltd.
NAGICO Life N.V.
NAGICO Finance B.V.
Pasha N.V.
Zonoever N.V.
NAGICO Reinsurance Company
Blue Chip Ltd.
NAGICO Road and Claims Services
GTM Insurance Company Limited
British American Insurance Company N.V.
British American Insurance Company (Aruba) N.V.
St. Vincent Insurance Ltd.
NAGICO Insurance Company Limited, Bahamas
NICL General Insurance Company Ltd., Grenada
NAGICO (St. Lucia) Limited
The Grenadines Insurance Limited
St. Maarten
Anguilla
Aruba
Anguilla
St. Maarten
St. Maarten
St. Maarten
St. Maarten
Anguilla
St. Kitts
Aruba
Trinidad & Tobago
Curacao
Aruba
St Vincent & the Grenadines
Bahamas
Grenada
St. Lucia
St Vincent & the Grenadines
100%
100%
100% thru NAGICO N.V.
100%
100%
100% thru NAGICO N.V.
100% thru NAGICO N.V.
100% thru NAGICO N.V.
100%
100%
100% thru NAGICO N.V.
100% thru NAGICO N.V.
100%
100% thru BAICO N.V.
54.54% thru NICL
100% thru NICL
100% thru NICL
100% thru NICL
54.54% thru St. Vincent
Insurance Ltd.
Non-life insurance
Non-life insurance
Non-life insurance
Investments
Life insurance
Investments
Real estate
Real estate
Inactive
Inactive
Road assistance service
Non-life insurance
Life insurance
Life insurance
Non-life insurance
Non-life insurance
Non-life insurance
Non-life insurance
None-trading
21
12. Financial instruments
Classification
The Group’s non-derivative financial instruments
comprise financial assets at fair value through profit or
loss, loans and receivables (including fixed deposits),
held to maturity instruments, and trade and other
payables.
Held-to-maturity assets
If the Company has the intent and ability to hold debt
securities to maturity, then such financial assets are
classified as held to maturity. Held-to-maturity financial
assets are recognized initially at fair value plus any
directly attributable transaction costs. Subsequent
to initial recognition, held-to-maturity financial assets
are measured at amortized cost using the effective
interest method, less any impairment losses.
Held-to-maturity financial assets comprise debt
securities.
Interest on loans and receivables are included in the
statement of comprehensive income and is reported
as ‘Investment income’.
Financial assets at fair value through profit
or loss
This category has two sub-categories: financial
assets held for trading and those designated at fair
value through profit or loss at inception. A financial
asset is classified into the ‘financial assets at fair
value through profit or loss’ category at inception if
acquired principally for the purpose of selling in the
short term, if it forms part of a portfolio of financial
assets in which there is evidence of short-term profittaking, or if so designated by management. This
includes investments in equities.
period whether there is objective evidence that a
financial asset or group of financial assets is impaired.
Recognition and Measurement
Financial assets are initially recognized at fair value
plus, in the case of all financial assets not carried at
fair value through profit or loss, transaction costs that
are directly attributable to their acquisition. Financial
assets carried at fair value through profit or loss are
initially recognized at fair value, and transaction costs
are expensed in the statement of profit or loss.
Financial assets designated as at fair value through
profit or loss at inception are those that are:
Loans and receivables are carried at amortized cost
using the effective interest method.
•
Other non-derivative financial instruments not
measured at fair value are measured at amortized
cost using the effective interest method, less any
impairment losses.
Loans and Receivables
Loans and receivables are non-derivative financial
assets with fixed or determinable payments that are
not quoted in an active market, and other than those
that the Group intends to sell in the short term or
that it has designated as at fair value through profit
or loss. Receivables arising from insurance contracts
are also classified in this category and are reviewed
for impairment as part of the impairment review of
loans and receivables.
value basis to the Group’s key management
personnel. The Group’s investment strategy is
to invest in equity and debt securities and to
evaluate them with reference to their fair values.
Assets that are part of these portfolios are
designated upon initial recognition at fair value
through profit or loss.
•
Held in internal funds to match insurance and
investment contracts liabilities that are linked to
the changes in fair value of these assets. The
designation of these assets to be at fair value
through profit or loss eliminates or significantly
reduces a measurement or recognition
inconsistency (sometimes referred to as ‘an
accounting mismatch’) that would otherwise
arise from measuring assets or liabilities or
recognizing the gains and losses on them on
different bases.
Managed and whose performance is evaluated
on a fair value basis. Information about these
financial assets is provided internally on a fair
Financial assets are derecognized when the rights to
receive cash flows from them have expired or where
they have been transferred and the Group has also
transferred substantially all risks and rewards of
ownership.
Impairment of Assets
Financial assets carried at amortized cost
The Group assesses at each end of the reporting
23
13. Investment securities
2012
2011
27,845,034
33,465,484
61,310,518
18,830,884
35,026,565
53,857,449
27,845,034
31,438,016
59,283,050
18,830,884
33,013,655
51,844,539
1,873,246
154,222
2,027,468
61,310,518
1,874,351
138,559
2,012,910
53,857,449
27,845,034
33,264,807
200,677
61,310,518
18,830,884
34,888,006
138,559
53,857,449
(in U.S. dollars)
Long term investments
Short term investments
Investments can be broken down into the following categories
Investments held to maturity
Long term investments - held to maturity
Short term investments - held to maturity
Other categories of investments
Short term investments - loans
Short term investments - available for sale
Investments can be broken down into the following categories
Long term investments - Level 2
Short term investments - Level 2
Short term investments - listed
Contingencies and commitments
Certain pending litigations exist for which the outcome is uncertain at this time and for which no
provision has been made. A provision is made where a potential liability is assessed as being
probable.
Solvency requirement margin for insurance company
CBCS requires a life insurance business to have a minimum solvency margin equal to 4% of
the technical provision of previous year. The general insurance business is required to maintain
a solvency margin as per the requirement of the regulators where the Group entities operate.
The Group entities are in compliance with the solvency margin requirements where these entities
operate as of and for the year ended December 31, 2012.
Contingent Asset
NICL General Insurance Company Ltd., Grenada
As at December 31, 2012 there is a loss of ED 297,712 that will attract utilizable tax losses. Given the
business started operations in January 11 2012 management has assumed that the recoverability of the tax
losses is still in doubt because a trend in profitable growth is not yet fully established.
Nagico (St. Lucia) Limited
As at December 31, 2012 there is a loss of ED 1,983,133 that will attract utilizable tax losses. Given the
business started operations in January 11, 2012 management has assumed that the recoverability of the
tax losses is still in doubt because a trend in profitable growth is not yet fully established.
25
Nagico Life
As at December 31, 2012 there is a cumulative loss of USD 941,268 that will attract utilizable tax losses.
Management has assumed that these losses may not be realized given the fluctuation in profits and losses
over the years and as such the losses have not been recognized on the statement of financial position.
14. NAGICO DISTRIBUTION NETWORK
Anguilla
NAGICO Branch Office
Carlyn Carty- Acting Manager
Fairplay Management Services
Quincy Gumbs
Antigua
Brysons Insurance Agency
Marjorie Parchment
Ruthlyn Herbert
Aruba
Aruba Branch Office
Detlef Hooyboer
Bahamas
Bahamas Branch Office
Vibert Williams
Bonaire
Dominica
Dominica Branch Office
Merle Lawrence
I.F. Rivers Enterprises N.V.
Ivan Rivers
French Antilles
St. Kitts
(Martinique/Guadeloupe)
Cooper Gay
Grenada
Grenada Branch Office
Fabian Walthrus
Montserrat
Judith Greer & Associates Inc.
Judith Greer
Nevis
Nevis Branch Office
Laurenn Barry
Saba
Bonaire Branch Office
Christopher Hill
Johannes William
Saba Branch Office
Rudy Zagers
Curacao
Saint Martin
Curacao Branch Office
Johannes William
British American/
NAGICO Life
Koos Oosterwaal
Carmen Suares-Mars
(French Side)
Saint Martin Branch Office
Tracy Harris
St. Eustatius
A.R.C. Agency N.V.
Arlene Cuvalay
St. Kitts Branch Office
Adrian Smith
Advantage Capital Management
Ltd.
Austin Julius
St. Lucia
St. Lucia Branch Office
Royron Adams
St. Maarten
NAGICO Executive Office
St. Vincent
Vinsure
Samuel Goodluck
BVI
(Tortola / Virgin Gorda)
Century Insurance Agency
Shan Mohamed
Trinidad & Tobago
Trinidad Branch Office
Christopher Henriques
For a complete overview of NAGICO Agents
and Brokers, please visit www.nagico.com
15. eter St. # 28
C.A. Cannegi
St. Maarten
Philipsburg,
2.2739
Tel: 1-721.54
2.4476
Fax: 1-721.54
om
info@nagico.c
nagico.com