REGENCY ALLIANCE INSURANCE PLC - nse.com.ng · regency alliance insurance plc un-audited...

REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED ACCOUNT FOR THE PERIOD ENDED 30, JUNE 2019

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REGENCY ALLIANCE INSURANCE PLC UN-AUDITED CONSOLIDATED ACCOUNT FOR THE PERIOD ENDED 30, JUNE 2019

1

STATEMENT OF FINANCIAL POSITION

Note

30-Jun-19 31-Dec-18 30-Jun-18 30-Jun-19 31-Dec-18 30-Jun-18

=N='000 =N='000 =N='000 =N='000 =N='000 =N='000

ASSETS

Cash and Cash Equivalents 4 2,369,551 1,986,364 1,820,767 2,138,315 1,861,142 1,611,755

Financial Assets 5 3,453,610 3,528,068 3,539,508 2,093,991 2,093,538 2,096,842

Trade Receivables 6 126,658 128,706 104,573 16,839 7,851 2,837

Reinsurance Assets 7 1,616,634 1,707,436 1,394,901 1,140,631 1,044,565 910,250

Deferred Acquisition Cost 8 297,783 223,221 347,093 168,972 115,385 211,186 Prepaid Income Tax 21 - 9,188 36,223 - - - Deferred Tax Asset 9 4,295 5,107 - - - -

Other Receivables and Prepayments 10 218,670 207,891 233,668 23,117 30,136 15,994 Inventory 11 5,962 8,839 6,717 - - -

Investment in Subsidiaries 12 - - - 943,438 943,438 943,438

Intangible Assets 13 17,854 25,608 38,746 16,612 22,122 32,538 Investment Properties 14 646,919 646,919 557,306 530,000 530,000 440,387

Property, Plant and Equipment 15 927,974 964,846 934,362 844,138 872,663 827,248

Statutory Deposits 16 402,408 410,888 403,382 300,000 300,000 300,000

Total Assets 10,088,316 9,853,083 9,417,244 8,216,054 7,820,840 7,392,477

LIABILITIES

Insurance Contract Liabilities 17 3,421,206 3,194,160 3,017,746 2,571,181 2,386,155 2,073,577

Trade Payables 18 201,130 389,660 236,013 - - -

Provision and Other Payables 19 241,613 176,676 181,264 108,623 147,570 93,884

Retirement Benefit Obligation 20 3,159 5,862 3,280 3,159 3,282 3,280

Provision for Current Income Tax Liabilities 21 174,013 189,305 117,342 160,686 185,534 133,166

Deferred Income Tax Liabilities 22 47,496 47,496 101,827 47,496 47,496 101,827

Bank Overdraft 23 - 8,246 - - - -

Total Liabilities 4,088,617 4,011,406 3,657,472 2,891,145 2,770,038 2,405,734

EQUITY

Total equity attributable to owners of the parent:

Issued and Paid up Share Capital 24 3,334,375 3,334,375 3,334,375 3,334,375 3,334,375 3,334,375

Contingency Reserve 25 1,592,892 1,512,258 1,463,818 1,284,453 1,211,242 1,172,450

Retained Earnings 26 465,326 283,257 304,076 703,016 502,119 477,305

Fair Value Reserves on Available for sale 27 8,780 6,760 2,612 3,066 3,066 2,612

Other Reserves -Translation Difference 28 27,515 158,522 155,663 - - -

Total 5,428,888 5,295,172 5,260,544 5,324,909 5,050,801 4,986,742

Non-controlling Interest in Equity:

Non-controlling Interest in Equity 570,811 546,504 499,228 - - -

Equity and Liabilities 10,088,316 9,853,083 9,417,244 8,216,054 7,820,840 7,392,477

These financial statement were approved by the board of directors on July 25,2019 and signed on behalf

i ectors listed below:

................................................................. .................................................................

AMB. BABA GANA KINGIBE, GCON MR BIYI OTEGBEYE MR KEHINDE OYADIRAN

FRC/2017/IODN/00000016361 FRC/2013/NBA/00000003749 FRC/2013/ICAN/00000003559

(Chairman) (Managing Director/Chief Executive Officer) (Chief Finance Officer)

....................................................

GROUP COMPANY

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board of rectors by the dir

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2

STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

GROUP GROUP COMPANY COMPANY

Jan-Jun Jan-Jun April-June April-June Jan-Jun Jan-Jun April-June April-June

Note 2019 2018 2019 2018 2019 2018 2019 2018

=N='000 =N='000 =N='000

Gross Premium Written 29 3,696,998 3,413,529 1,667,383 1,523,517 2,440,347 2,114,904 1,147,664 942,361

- -

Gross Premium Income 30 3,113,809 2,969,573 1,484,632 1,435,204 1,991,495 1,869,748 941,227 973,698

Reinsurance Expenses 31 (968,560) (840,137) (501,153) (507,493) (742,819) (608,820) (378,415) (380,395)

Net Premium Income 2,145,249 2,129,436 983,479 927,711 1,248,676 1,260,928 562,812 593,304

Fees and Commission Income 32 106,120 97,780 60,148 55,974 22,982 19,010 19,200 15,501

Net Underwriting Income 2,251,368 2,227,216 1,043,625 983,685 1,271,658 1,279,938 582,012 608,805

Claims Expenses (Gross) 33 (746,614) (774,669) (306,938) (342,333) (296,913) (319,861) (85,495) (223,441)

Claim Expenses Recovered from Reinsurance 34 138,137 206,648 50,372 69,872 8,368 18,932 6,016 16,921

Underwriting Expenses 35 (462,007) (497,852) (235,117) (230,095) (288,129) (326,417) (151,487) (158,887)

Underwriting Profit 1,180,884 1,161,343 551,943 481,128 694,984 652,592 351,047 243,398

Interest Income 36(a) 11,903 26,930 1,816 17,028 - - - -

Interest Expense 36(b) (2,594) (4,022) (798) (2,463) - - - -

Net Trading Income 37 4,173 4,028 1,727 2,044 - - - -

Finance Income 38 13,277 13,959 4,500 7,082 - - - -

Finance Cost 39 (4,298) (15,617) (2,136) (13,375) - - - -

Investment Income 40 324,690 253,098 180,071 117,432 217,740 184,246 104,473 81,645

Other Operating Income 41 9,282 13,669 (9,905) 1,032 1,993 808 (11,300) 306

Net Realised Gain/(loss) on Finacial Assets 42 (92,209) (1,663) (82,042) 540 (96,269) (1,618) (80,283) 989

Employee Benefit Expenses 43 (452,936) (463,042) (211,827) (207,848) (207,498) (211,657) (92,690) (87,310)

Other Operating Expenses 44 (595,989) (657,199) (302,085) (354,142) (307,078) (360,222) (154,753) (210,256)

Impairment on trade receivables 6(bi) (172) (79) 0 48 - - - -

Result of Operating Activites 396,012 331,406 131,264 48,505 303,871 264,149 116,493 28,771

Profit Before Tax 396,012 331,406 131,264 48,505 303,871 264,149 116,493 28,771

Income Tax Expense 21 (78,726) (46,629) (27,700) (3,689) (29,764) (21,576) (4,857) 1,085

Profit For the year 317,286 284,777 103,565 44,815 274,107 242,573 111,636 29,856

Other Comprehensive Income/(Loss) - - -

Items that may be subsequently reclassified -

to the profit or loss account: -

Net Unrealised fair value gain/(loss) on AFS financial asset 5.3(a&b) 2,020 1,252 - - - -

Foreign exchange translation difference 28 (161,283) (45,818) (69,077) (79,422) - - - -

Total other comprehensive income net of tax (159,263) (45,818) (67,825) (79,422) - - - -

- - -

Total comprehensive income for the Period 158,023 238,959 35,740 (34,607) 274,107 242,573 111,636 29,855

Profit After Taxation

Atributable:

to Owner's of parent 292,979 263,682 104,946 37,763 274,107 242,573 111,636 29,855

to Non Controlling Interest 24,307 21,095 (1,381) 7,052 - -

317,286 284,777 103,565 44,815 274,107 242,573 111,636 29,855

Total comprehensive income for the Period

Atributable:

to Owner's of parent 132,544 217,864 36,394 (41,659) 274,107 242,573 111,636 242,573

to Non Controlling Interest 25,479 21,095 (654) 7,052 -

158,023 238,959 35,740 (34,607) 274,107 242,573 111,636 242,573

Earnings per share

Basic (in kobo) 4.76 4.27 - 4.11 3.64 0.00 0.00

GROUP COMPANY


3

GROUP

STATEMENT OF CHANGES IN EQUITY

Share Capital

Contingency

Reserve

Retained

Earnings

Fair Value

Reserves

Foreign

Exchange

Translation

Reserve Parent Total Total

=N= =N= =N= =N= =N= =N= =N=

At 1 January 2019 3,334,375 1,481,982 283,257 6,760 188,798 5,295,172 5,841,676

Changes in equity for 2019 - -

Profit after tax for the period - - 292,979 - - 292,979 317,286

Transfer to Contingency Reserves 110,910 (110,910) - -

- 110,910 182,069 - - 292,979 317,286

Other comprehensive income -

Change in the value of Unquoted investment - - - 2,020 - 2,020 2,020

Exchange Difference - - - (161,283) (161,283) (161,283)

Income tax relating to component of other comprehensive income - - -

Total comprehensive income for the Year net of tax - 110,910 182,069 2,020 (161,283) 133,716 158,023

Transaction with owner's of equity, recorded directly in equity -

distribution to owners -

- - - - - - -

At 30 June 2019 3,334,375 1,592,892 465,326 8,780 27,515 5,428,888 5,999,699

Foreign Exchange

Share Capital

Contingency

Reserve

Retained

Earnings

Fair Value

Reserves

Translation

Reserve Parent Total Total

=N= =N= =N= =N= =N= =N= =N=

At 1 January 2018 3,334,375 1,361,412 342,862 2,612 201,481 5,242,742 5,720,875

Prior year adjustment - -

Changes in equity for 2018 - -

Profit after tax for the period 263,682 263,682 284,777

Transfer to Contingency Reserves 102,406 (102,406) - -

- 102,406 161,276 - - 263,682 284,777

Other comprehensive income

Change in the value of Unquoted investment - -

Exchange Difference (45,818) (45,818) (45,818)

- 102,406 161,276 - (45,818) 217,864 238,959

-

Dividend Approved and Paid during the year (200,063) (200,063) (200,063)

Total comprehensive income for the quarter - - (200,063) - - (200,063) (200,063)

At 30 June 2018 3,334,375 1,463,818 304,076 2,612 155,663 5,260,544 5,759,773


4

REGENCY ALLIANCE INSURANCE PLC

THE COMPANY STATEMENT OF CHANGES IN EQUITY

Share Capital

Contingency

Reserve

Retained

Earnings

Fair Value

Reserves Total

=N= =N= =N= =N= =N=

At 1 January 2019 3,334,375 1,211,242 502,119 3,066 5,050,801

Total comprehensive income for the year

Profit/Loss after tax for the year 274,107 274,107

Transfer to Contingency Reserves 73,210 (73,210) -

73,210 200,897 - 274,107

Change in the value of Unquoted investment - -

Income tax relating to component of other comprehensive income - -

Total comprehensive income for the year net of tax - 73,210 200,897 - 274,107

Transaction with owner's of equity, recorded directly in equity

distribution to owners

Prior Year Adjustment(Accumulated Depreciation on Leashold Land)

Dividend to equity owners - -

Total Transaction with owners - - - - -

At 30 June 2019 3,334,375 1,284,453 703,016 3,066 5,324,909

company 2018

STATEMENT OF CHANGES IN EQUITY

Share Capital

Contingency

Reserve

Retained

Earnings

Fair Value

Reserves Total

=N= =N= =N= =N= =N=

At 1 January 2018 3,334,375 1,109,003 498,241 2,612 4,944,231

Prior year adjustment - - -

Changes in equity for 2018 -

Total comprehensive income for the period -

Profit after tax for the period 242,573 242,573

Transfer to Contingency Reserves 63,447 (63,447) -

- 63,447 179,126 - 242,573

Other comprehensive income

Change in the value of Unquoted investment -

Total comprehensive income for the quarter - 63,447 179,126 - 242,573

Transaction with owner's of equity, recorded directly in equity

distribution to owners

Dividend Approved and Paid during the year (200,063) (200,063)

Total Transaction with owners (200,063) - (200,063)

At 30 June 2018 3,334,375 1,172,450 477,305 2,612 4,986,742


5

STATEMENT OF CASH FLOWS

Notes 2019 2018 2019 2018

Cash Flow From Operating Activities

=N='000 =N='000 =N='000 =N='000

Premium Received 6a(ii) 3,688,010 3,414,077 2,431,360 2,123,638

Reinsurance Premium Paid (1,420,153) (737,254) (845,872) (601,339)

Commission Received 106,120 97,780 22,982 19,010

Gross Claim Paid 33(a) (997,308) (881,414) (560,740) (347,969)

Claim Expenses Recovered from Reinsurance 34(a) 139,305 198,552 9,537 10,836

Acquisition Cost Paid (442,056) (374,930) (247,202) (203,495)

Maintenance Cost Paid 35(b) (94,514) (122,921) (94,514) (122,921)

Other Intrest Received (net of expenses) 9,309 22,909 - -

Cash Received From Customers 66,642 36,191 - -

Cash Paid to Suppliers/Creditors 119,651 (259,303) - -

Cash Paid to and On behalf of Employees (402,936) (489,962) (252,798) (275,916)

Cash Payments for Other Operating Expenses (473,176) (657,199) (317,805) (449,610)

Tax Paid (90,050) (75,928) (54,611) (58,033)

Net Cash Generated From Operating Activities 208,843 170,597 90,336 94,201

Cash Flow From Investing Activities

Purchase of Financial Asset-HTM 5.1(b) (113,511) (331,269) - (60,000)

Purchase of Financial Asset-FVTPOL 5.2(a) (880) (269) (880) (269)

Receipt From Repayment Of Loan & Advances 37,258 14,948 330 350

Additional to Loan & Receivables (30,412) (10,824) (6,100) (676)

Investment Income Received 40 324,690 253,098 217,740 184,246

Other Operating Income Received 41 2,744 8,454 1,353 (308)

Acquisition of Property, Plant & Equipment 15 (45,676) (46,771) (26,245) (8,046)

Proceeds From Disposal of Property, Plant & Equipment (5,954) 377 (6,035) -

Rental Income Received 42 6,675 500 6,675 500

Acquisition of Intangible Asset 13 (590) (5,352) - (1,474)

Net Cash Generated From Investing Activities 174,344 (117,106) 186,837 114,323

Cash Flow From Financing Activities

Unclaim Dividend Received From Registrar - 11,464 - 11,464

Dividend Paid - (200,063) - (200,063)

Share Issue/Deposit for Shares in Subsidiaries - - - -

Net Cash Generated From Financing Activities - (188,599) - (188,599)

Net Increase/(Decrease) In Cash and Cash Equivalents 383,187 (135,108) 277,173 19,925

Effect of Movement in Exchange Rate on Cash and Cash Equivalents - 11,644 - 11,644

Net Increase/(Decrease) In Cash and Cash Equivalents during the year 383,187 (123,464) 277,173 31,569

Cash and Cash Equivalents as at 1 January 1,986,364 1,944,231 1,861,142 1,580,186

Cash and Cash Equivalent as at 30 June 2019 2,369,550 1,820,767 2,138,315 1,611,755

THE GROUP THE COMPANY


6

GROUP COMPANY

2019 2018 2019 2018

4 Cash and Cash Equivalents N'000 N'000 N'000 N'000

Cash in Hand 5,283 6,596 1,813 1,301

Bank Balances-Current Account 193,657 384,533 127,134 303,283

Shortterm placements: - - -

Fixed Deposit 1,086,623 1,103,423 937,379 980,955

Treasury bills with maturity period <90 days 1,083,988 326,215 1,071,988 326,215

Total 2,369,551 1,820,767 2,138,315 1,611,755

The carrying amounts disclosed above reasonably approximate fair value at the reporting date.

For the purpose of the cashflow statement cash and cash equivalent comprise of the following balances with less than 3 months maturity from the date of acqisition.

The Group does not have significant restriction on its ability to access or use its assets and settle its liabilities other than those resulting from the supervisory frame work

within which the group operate. The supervisory framework require the insurance subsidiaries to keep certain levels of regulatory capital and liquid asset.

Cash in Hand 5,283 6,596 1,813 1,301

Bank Balances-Current Account 193,657 384,533 127,134 303,283

Shortterm placements: - -

Fixed Deposit 1,086,623 1,103,423 937,379 980,955

Treasury bills with maturity period <90 days 1,083,988 326,215 1,071,988 326,215

Exchange difference - -

Total cash & cash equivalents 2,369,551 1,820,767 2,138,315 1,611,755

Current 2,369,551 1,820,767 2,138,315 1,611,755

Non- Current

5 Financial Assets

The financial assets are summarised below by measurement category:

Held to maturity (note 5.1) 2,644,476 2,468,536 1,487,943 1,269,311

Fair Value through Profit or Loss - quoted Investment - (note 5.2) 593,842 824,697 590,068 820,529

Available-for-sale - Unquoted Investment ( note 5.3) 51,684 44,325 7,136 6,547

Loans and Receivables ( note 5.4) 163,607 201,951 8,843 456

3,453,610 3,539,508 2,093,991 2,096,842

Current 3,401,926 3,495,184 2,086,856 2,090,295

Non- Current 51,684 44,325 7,136 6,547

5 Held-to-maturity financial assets, at amortised cost

Treasury Bill with Maturity period >90 days 1,399,798 1,173,719 1,358,098 1,126,664

Deposit with Corporate Institution with Maturity period >90 day 1,244,678 1,294,818 129,846 142,646

2,644,476 2,468,536 1,487,943 1,269,311

Held to maturity relates to Federal government treasury bill and other deposit with corporate institution with maturity period above 90 days

None of these investment securities have been pledged to third party as collateral.

The Group does not have significant restriction on its ability to access or use its assets and settle its liabilities other than those resulting from the supervisory frame work

within which the group operate. The supervisory framework require the insurance subsidiaries to keep certain levels of regulatory capital and liquid asset.

N'000 N'000 N'000 N'000

5.2 Analysis of quoted financial assets FVTPOL are shown:

a. Quoted Investments

At the beginning of the year 697,893 837,734 685,457 833,521

Exchange difference (8,298) - - -

Addition during the period* 880 269 880 269

Fair Valua Gain/(Loss) (96,633) (13,307) (96,269) (13,262)

Impairment Loss - - - -

Market value as at 30 June 593,842 824,697 590,068 820,529

The Group classiffied its quoted investment at market value which is a reasonable measurement of fair value since price of the shares are quoted in an active market.

The sensitivity analysis for quoted equity financial instruments illustrates how changes in the fair value or future cash flows of a

financial instrument will fluctuate because of changes in market rates at the reporting date.


7

5.3 Available-for-sale - Financial assets

(a).Dominion Trust Limited 7,136 6,547 7,136 6,547

(b).Others,Own by Subsidiary (Regency Nem Insurance Ltd Ghana) 44,548 37,778 - -

(c) Profund Securities Limited - - - -

51,684 44,325 7,136 6,547

5.3(c) Profund Securities Limited 2,072 2,072 2,072 2,072

5.3 c(i) Impairment on Profund Securities Financial asset

At the beginning of the year (2,072) (2,072) (2,072) (2,072)

Addition during the period - - - -

Reversal during the period - - - -

Balance as at 30 June (2,072) (2,072) (2,072) (2,072)

Carrying Value - - - -

The unquoted equity instruments are measured at fair value and classified as available-for-sale. The fair value of the unquoted equity have been determined using adjusted net asset

method and was based on the latest audited financial statement of the investee companies. The fair value of the assets cannot be readily and reliably measured as there is no active

market for both types of companies.The fair value of the investment has been categorised as Level 3 fair value based on non observable market inputs into the valuation technique. The

group intends to dispose of the shares at a price above the initial investment purchase price.

Dominion Trust Limited offers Investment, Financial and related products and services in the Nigerian Capital Market to private individuals,Corporate entities and Institutional clients.

The Group did not use any of its financial asset as quolateral for security.

N'000 N'000 N'000 N'000

5.4 Loans and receivables comprise as shown below:

Staff Loan (note 5.4a) 29,817 12,149 8,843 456

Loans and Advances_Ric Microfinance Bank (note 5.4b) 133,790 189,802 - -

163,607 201,951 8,843 456

(a)Staff Loan and Advances

Balance as at the beginning of the year 10,896 15,003 3,031 130

Addition during the Period 26,203 676 6,100 676

Repayment During the Period (8,275) (3,530) (330) (350)

Accrued Interest 993 - 42 -

29,817 12,149 8,843 456

Staff Advances are less than 12 months, the estimated fair values of the advances are the undiscounted amount

of estimated future cash flow estimated to be received. All staff loan are subject to average interest rate of 12%.

(b) Loan and Advances-Maturity Profile

Under 1 month 54,221 78,328 - -

1-3 months 40,666 58,746 - -

3-6 months 37,955 54,829 - -

6-12 months 271 547 - -

Over 12 months 2,440 3,369 - -

135,553 195,819 -

Allowance for impairment on loan and Advances (1,762) (6,017) - -

133,790 189,802 -

(a+b) 163,607 201,951 8,843 456

Current 163,607 201,951 8,843 456

Non-Current

(c ) Movement in Impairment Allowance

Balance as at 1 January 6,187 (6,017)

Less: Balance as at 30 June, 1,762 (6,017)

Transfer to Statement of Profit or loss & Other Comprehensive Income 4,424 -

The allowance for impairment of loans and advances to Customers is calculated in line with Prudential guidelines

issued by Central Bank of Nigeria for each Non-performing Account rated as Pass and Watch, Sub-standard

Doubtful and Loss Facility as follows:

Interest and /or principal Outstanding for: Categorization percentage

Below 30 days Paas & watch 5%

31 - 60 days Sub-standard 20%

61 - 90 days Doutful 50%

91 days & above & restructured facilities Loss 100%

While a general provision of 1% is made on all performing account balances.


8

2019 2018 2019 2018

N'000 N'000 N'000 N'000

6 Trade Receivables

a Due from Brokers and Other Intermidaries 16,839 2,837 16,839 2,837

b Due from Finance Lease rental 100,507 93,160 - -

c Due From Sales of Tracker 9,312 8,576 - -

126,658 104,573 16,839 2,837

Current 126,658 104,573 16,839 2,837

Non-Current - -

6a (i) Due from brokers and Other Intermidiaries

Premium receivable 16,839 2,837 16,839 2,837

Impairment -premium receivables - - - -

16,839 2,837 16,839 2,837

6a(ii) Analysis of premium received during the Year

Balance as at 1 January 7,851 3,385 7,851 11,571

Gross written Premium Receivable 3,696,998 3,413,529 2,440,347 2,114,904

Premium Received during the Period (3,688,010) (3,414,077) (2,431,360) (2,123,638)

Balance as at 30 June 16,839 2,837 16,839 2,837

6a(iii) Age Analysis - Premium Debtor

Due Within 30 Days 16,839 2,837 16,839 2,837

Due After more than 30 days - - - -

16,839 2,837 16,839 2,837

The premium receivables were not impaired, this is in line with Group policy on 'No Premium No Cover'. The Group only recognised receivables from broker and

intermidiaries,however such premium receivable should not excced a period of 30 days.

(6b) Analysis of due from Finance Lease Rental

Under One Year 101,522 94,101

1 - 5 Year 6,653 5,621

5 Years and Above - -

108,175 99,722 - -

Provision for Impairment on finance lease rental(6b.i) (7,668) (6,562)

100,507 93,160 - -

6b(i) Movement on impairement of lease Rental - - - -

At the beginning of year 7,497 6,483

Allowance made during the period (172) (79) -

Balance as at 30 June 7,668 6,562 -

Receivables from Lease Rental represent the Subsidiary's (RIC Properties and Investment Ltd) gross investment

in minimum lease payments receivables as at reporting date.

All lease agreement is for period of one year.

The allowance for impairment on finance lease represents accumulated allowance for uncollectable lease payment

receivable.

RIC Properties and investment provides finance lease for corporate body as well as individual, in the area of household equipment, motor cars,

office and household furnitures and real estate.

(6c) Due from Sale of Traker

Under One Year 9,312 8,576 - -

Above one year - - - -

9,312 8,576 - -

N'000 N'000 N'000 N'000

7 Reinsurance Assets

Prepaid Reinsurance-UPR 986,830 865,516 779,095 683,321

Reinsurance Share of Outstanding Claims 349,721 289,048 126,165 37,001

Reinsurance Share of Outstanding IBNR 280,082 235,366 235,371 184,957

Receivable From Reinsurance - 4,970 - 4,970

1,616,634 1,394,901 1,140,631 910,250

-

Current 1,616,634 1,394,901 1,140,631 910,250

Non-Current - - - -

There were no indicators of impairments on re-insurance assets. Therefore, no impairment is required in respect of these assets.

The carrying amounts disclosed above is in respect of the reinsurance of insurance contracts which approximates is the fair value at the reporting date.

GROUP COMPANY


9

8 Deferred Acquisition Cost

Deferred acquisition costs represent commissions on unearned premium relating to the unexpired period of risks and comprise:

General Accident 42,171 69,345 29,585 50,090

Oil & Gas 1,246 (752) 1,246 (752)

Fire 52,408 62,348 23,919 36,546

Motor 100,241 83,024 44,616 23,679

Aviation 3,463 574 3,463 574

Bond 18,331 11,760 357 197

Engineering 38,935 48,758 27,912 38,075

Marine 37,509 67,011 37,509 62,292

Emp/Liability 3,479 5,025 367 486

297,783 347,093 168,972 211,186

Current 297,783 347,093 168,972 211,186

Non-Current - - - -

9 Deferred Tax Assets-(note 22)

At beginning of the year 5,107 - -

Exchange difference (812)

Movement During The Period - - -

Balance as at 30 June 4,295 - - -

10 Other Receivables and Prepayments

a Gas and oil pool 13,274 14,978 - -

b Prepaid Insurance on Group assets and Group Life Policy 1,798 11,648 1,346 9,297

c Prepaid rent 152,650 139,912 4,540 5,597

d Sundry Receivable & Prepayment 33,716 67,129 - 1,100

e Due from Subsidiaries (Ric Technologies & RegenceNem) 17,232 - 17,232 -

218,670 233,668 23,117 15,994

Current 218,670 233,668 23,117 15,994

Non-Current

Sundry receivable & Prepayment represent subsidiary 'Ric Microfinance Bank' receivables on ATM account, stock of cheque book,SMS alart and

prepayment on 3years antivirus licence for the company

11 Inventory

Opening balance as at 1 January 8,839 9,634 - -

Purchases during the period - - - -

Issued out (2,877) (2,917) - -

Balance as at 30 June 5,962 6,717 - -

Inventory represents stock of trackers held by RIC Technologies Limited as at the reporting date

Current 5,962 6,717

Non-Current


10

2019 2018 2019 2018

N'000 N'000 N'000 N'000

12 Investment in Subsidiaries

a Regency Nem Insurance Limited, Ghana - 553,054 553,054

b RIC Properties & Investment Ltd - - 217,269 217,269

c RIC Microfinance Bank Limited - - 161,396 161,396

d RIC Technologies Limited - - 11,720 11,720

Total (a+b+c+d) - 943,438 943,438

Current

Non-Current - 943,438 943,438

a Regency Nem Insurance Limited, Ghana

Opening balance as at 1 January 553,054 395,077

Addition during the period - 157,976

Balance as at 30 June - - 553,054 553,054

a(ii) Analysis of Shareholding of the Regency Nem Insurance Ghana Limited as at 30 June, 2019

Name of the Shareholder No. of Shares Percentage of Share Issued

Regency Alliance Insurance Plc 16,800 16,800 42

Nem insurance Plc 16,000 16,000 40

Roland Agambire 7,200 7,200 18

40,000 40,000 100

b RIC Properties & Investment Ltd

Opening balance as at 1 January - - 217,269 217,269


Balance as at 30 June 217,269 217,269

c RIC Microfinance Bank Limited




d RIC Technologies Limited




Regency Alliance is the Parent Company with significant interest in the subsidiary Companies as at 30 June 2019 were as follows:

Effective Non Conrolling Place of Date of incorporation

Subsidiary Activity Entity holding Interest Incorporation /Acquisition

% %

Regency Nem Insurance (Ghana) LimitedInsurance 42 58 Ghana 2015

RIC Microfinance Bank Limited Banking operation 95 5 Nigeria 17th December, 2008

RIC Technologies Limited Sale of vehicle trackers 90 10 Nigeria 18th April, 2009

RIC Properties and Investment LimitedProperty leasing and investment 96 4 Nigeria 4th January, 2005

The Company, along with its subsidiaries, make up the Regency group

Significant restrictions

The Group does not have significant restriction on its ability to access or use its assets and settle its liabilities other than those resulting from the

supervisory frame work within which the group operate. The supervisory framework require the insurance subsidiaries to keep certain levels of

regulatory capital and liquid asset.

GROUP COMPANY


11

2019 2018 2019 2018

N'000 N'000 N'000 N'000

13 Intangible Assets

Intangible Assets- Computer Software

COST

Opening balance as at the beginning of the Year 123,819 135,934 75,166 87,281

Exchange difference (4,379) (1,402) - -

ADDITIONS 590 5,352 - 1,474

-


Accumulated Amortisation

Opening balance as at the beginning of the Year 99,771 95,111 53,044 53,044

Exchange difference (5,700) (1,163) - -

Charge for the period 8,103 7,190 5,510 3,173

-


Carrying Amount as at the end of the period 17,854 38,746 16,612 32,538

Current

Non-Current 17,854 38,746 16,612 32,538

The intangible assets of the group comprise the computer software with life span of five years. The computer softwares

are accounted for using the cost model i.e cost less accumulated armortisation and less accumulated impairment. The amortization is charged to the

statement of profit or loss and other comprehensive income on straight line method in line with the Company's policy.

The computer software has been assesed for Impairment, there were no indication of impairment on the intangible asset, hence no impairment was recognised.

14 Investment Properties

Opening balance as at 1 January 646,919 116,919 530,000 -

Addition - 440,387 - 440,387

Fair value Gain - - - -


Current

Non-Current 646,919 557,306 530,000 440,387

GROUP COMPANY


12

15

THE GROUP 2019

PROPERTY, PLANT AND EQUIPMENT

LEASEHOLD

LAND BUILDING MOTOR VEHICLE

OFFICE

EQUIPMENT

FURNITURE

AND

FITTINGS

PLANTS AND

MACHINERY LIBRARY TOTAL

COST/VALUATION =N= =N= =N= =N= =N= =N= =N=

Opening Balance as at January 1 2019 485,000 347,562 527,777 355,138 113,607 119,869 241 1,949,195

Exchange Difference 10,726 18,378 32,134 3,685 13,227 78,150

Addition during the Year 11,866 5,374 11,333 6,108 2,281 8,714 - 45,676

Disposal (18,342) - (100) (18,442)

Closing Balance as at June 30 2019 496,866 363,662 539,147 393,381 119,474 141,810 241 2,054,579

ACCUMULATED DEPRECIATION -

Opening Balance as at January 1 2019 - 133,624 471,761 219,145 67,480 50,995 240 943,245

Exchange Difference 23,102 34,071 24,550 21,921 39,582 143,226

Charged for the Year - 2,833 47,234 4,086 3,109 1,312 - 58,575

Disposal (18,342) - (100) (18,442)

Closing Balance as at June 30, 2019 - 159,560 534,724 247,782 92,410 91,889 240 1,126,604

Carrying Amount as at June 30, 2019 496,866 204,102 4,423 145,599 27,063 49,921 1 927,974


-

GROUP 2018


LEASEHOLD


OFFICE

EQUIPMENT

FURNITURE

AND

FITTINGS

PLANTS AND


COST/VALUATION =N= =N= =N= =N= =N= =N= =N= =N=


Exchange difference 3,564 2,563 2,315 4,056 5,964 - 18,462

Additions 5,962 762 39,731 (791) 1,017 90 - 46,771

Transfer to Investmeent Property (440,962) (41,104) - (482,066)

Disposal - - (210) - - (210)

Closing Balance as at June 30, 2018 485,000 282,445 780,567 269,535 94,090 68,567 241 1,980,445

ACCUMULATED DEPRECIATION

Opening Balance as at January 1 2018 108,480 127,706 377,650 234,869 67,593 47,228 240 963,766

Exchange difference - 4,136 10,343 5,930 593 529 - 21,531

Charge for the period 7,667 5,345 71,655 12,187 4,204 1,576 102,634

Disposal - - (168) - - (168)

Transfer to Investment Property (34,545) (7,133) - - - - - (41,678)



Carrying Amount as at June 30, 2017 822,959 191,118 151,508 48,690 28,547 15,490 1 1,258,313

i. There are no other lease asset included in the Group's property,plants and equipments apart from leasehold land as at 30 June 2019ii. The Group had no capital commitment as at reporting date, there were no restriction on the title of Group asset and no Group asset was pledge as a security for liabilities

iii. The Group asset has been assessed for impairment and there were no indication of impairment on the asset, hence no impairment was recorgnised


13

15 PROPERTY, PLANT AND EQUIPMENT

COMPANY 2019

LEASEHOLD


OFFICE

EQUIPMENT

FURNITURE

AND

FITTINGS

PLANTS AND


COST/VALUATION


Addition during the Year 11,866 4,262 378 788 377 8,576 - 26,245

Disposal - - (18,342) - (100) - - (18,442)



Opening Balance as at January 1 2019 59,115 302,604 155,122 41,580 19,868 240 578,528

Charged for the Year - 2,484 34,634 2,567 781 1,312 - 41,778

Less:Disposal - - (5,350) - (100) - - (5,450)

Closing Balance as at June 30, 2019 - 61,599 331,888 157,689 42,261 21,180 240 614,857




LEASEHOLD


OFFICE

EQUIPMENT

FURNITURE

AND

FITTINGS

PLANTS AND


COST/VALUATION =N= =N= =N= =N= =N= =N= =N= =N=


Addition during the Year 5,962 762 477 655 100 90 - 8,046

Transfer to Investment Property (440,962) (41,104) (482,066)

Disposal - - - -



At 1 January 2018 96,580 53,360 250,216 147,827 39,553 17,999 240 605,773

Charge for the period 7,667 4,313 52,173 6,028 1,899 1,559 73,640

Transfer to Investment Property (34,545) (7,133) (41,678)

Disposal - - - -

Closing Balance as at June 30, 2018 69,702 50,540 302,389 153,854 41,452 19,558 240 637,735


Carrying Amount as at June 30, 2017 834,859 235,519 34,525 20,865 4,943 5,145 1 1,135,858

i. There are no other lease asset included in the Company's property,plants and equipments apart from leasehold land as at 30 June, 2019ii. The Company had no capital commitment as at reporting date, there were no restriction on the title of Company asset and no Company asset was pledge as a security for liabilitiesiiii. The Company asset has been assessed for impairment and there were no indication of impairment on the asset, hence no impairment was recorgnised


14

2019 2018 2019 2018

N'000 N'000 N'000 N'00016 Statutory Deposits

Openning balance 410,888 402,499 300,000 300,000

Exchange difference (8,481) 883 - -

Carrying Amount as at the end of the period 402,408 403,382 300,000 300,000

Current

Non-Current 402,408 403,382 300,000 300,000 The Statutory Deposit represents amounts deposited with the Central Bank of Nigeria(CBN) pursuant to Section 10(3) of the Insurance Act,2003. The deposits are

not available for use by the Group on a normal course of day to day business.The Parent has statutory deposit of =N=300,000,000.00 with (CBN) in line with

Insurance Act,2003 .The balance in the Group represent the (Regency Nem Insurance Limited Ghana).

in line with Insurance Act (724),(73) of National Insurance Act 2006, Ghana.

17 Insurance Contract Liabilities

Provision for unearned premium 2,313,773 2,357,179 1,583,246 1,451,660

Provision for outstanding claims 370,773 162,864 303,887 130,655

Incurred But Not Reported (IBNR) 736,661 497,704 684,047 491,262

3,421,206 3,017,746 2,571,181 2,073,577

Current 3,421,206 3,017,746 2,571,181 2,073,577

Non-Current

Allocation of Asset To Policy holders fund

Cash and Cash Equivalients 2,369,551 1,820,767 2,138,315 1,611,755

Other Assets 1,051,655 1,196,979 432,866 461,823

3,421,206 3,017,746 2,571,181 2,073,577

17a. Movement in unearned premuim provision(UPR):

Openning balance 1,820,727 1,959,345 1,134,394 983,122

Movement during the period 493,046 422,574 448,852 468,538

Exchange difference - - -

Carrying Amount as at the end of the period 2,313,773 2,357,179 1,583,246 1,451,660

The company does not make provision for premium deficiency. This is because all classes of business in which the company is

involved report a profit i.e the premium written is in excess of claims incurred.

18 Trade Payables

Commision payable-(RegencyNem Insurance Ghana) 102,868 84,847

Deposit and Other Accounts-(Ric Microfinance Bank) 32,457 43,045 - -

Other trade payable- (Ric Properties & Ric Technologies) 65,806 108,121 - -

201,130 236,013 - -

Current 201,130 236,013 -

Non-Current - -

19 Provision and Other Payables

CBN MSME Dev't Fund 21,000 21,000 - -

(b). Others Provision and Payable 220,613 160,264 108,623 93,884

241,613 181,264 108,623 93,884

Current 220,613 160,264 108,623 93,884

Non-Current 21,000 21,000 - - CBN MSME Dev't Fund belong to the Subsidiary (Ric Microfinance Bank Limited)

Micro Small and Medium Enterprises Development Fund is an intervention fund Given By Central Bank of Nigeria to Nigerian Microfinance Bank to boost small

and medium scale enterprises The carrying amounts disclosed above approximate the fair value at the reporting date.

19(b).Analysis of Other Provision and Paybles

Accrued Rental Income 2,083 1,533 2,083 1,533

Accrued Expenses 157,767 129,332 77,140 62,952

Other trade payable (RegencyNem-Ghana) 31,364 - - -

Unclaimed Dividend 29,399 29,399 29,399 29,399

220,613 160,264 108,623 93,884

Current 220,613 160,264 108,623 93,884

Non-Current - -

GROUP COMPANY


15

20 Retirement Benefits Obligations

Balance as at the beginning of the year 5,862 3,363 3,282 3,363

Charge to Income Statement 9,863 10,301 9,863 14,260

15,725 13,664 13,146 17,623

Benefit Paid During the period (12,567) (10,384) (9,987) (14,343)


- -

Current 3,159 3,280 3,159 3,280

Non-Current The Company runs a defined contributory plan in accordance with the Pensions Reform Act where contributions are made to approved pension fund administrator.

N'000 N'000 N'000 N'000

21 Income Tax Liabilities

a Per Statement of Profit or Loss and Comprehensive Income

Income Tax Expense for the period

Income Tax, based on current results 62,934 46,881 26,009 24,873

Education Tax 1,293 1,279 1,256 1,259

64,227 48,160 27,265 26,132

National Fiscal Stabilisation Levy 7,704 3,024 - 3,024

Information Technology Levy 2,499 2,641 2,499 2,641

Charged for the period 74,431 53,825 29,764 31,797

Movement in deferred tax asset 4,295 (7,197) - (7,197)

Deferred Income Tax movement - -

78,726 46,629 29,764 21,576

b Per Statement of Financial Position

The movement on tax payable account during the period is as follows:


Charge for the period 74,431 53,826 29,764 28,774

Tax Paid (90,050) (75,928) (54,611) (58,033)

Translation difference 327 1,248 -

174,013 153,565 160,686 133,166

Transfer to Prepaid Income Tax - (36,223) -


Current 174,013 117,342 160,686 133,166

Non-Current - -

Current income tax is the amount of income tax payable on the taxable profit for the year determined in line with the relevant tax legislation.

22 Deferred Tax Liabilities


Movement during the period 4,295 (7,197) - (7,197)

51,792 101,828 47,496 101,827

Transfer to Deferred Tax Asset (4,295) - -


Transfer to Deferred tax asset represents the Subsidiary 'Regency Nem Ghana Limited' defferred tax asset which will be used to offset future tax liability where applicable.

Deferred tax asset and liabilities are offset when there is legally enforceable right to offset current tax asset against current tax liabilities and

when the deferred income taxes asset and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity

or diferent taxable entities where there is an intention to settle the balances on net basis.

23 Bank Overdraft

Balance as at 1 January 8,246 - -

Movement during the period (8,246) - -

Balance as at 30 June - - - -

This represent the subsidiary's Regency Nem Ghana Limited obligation to Ghana Financial institutions


16

2019 2018 2019 2018

N'000 N'000 N'000 N'000

24 Share Capital

Share capital comprises:

Authorised Share Capital

12,000,000,000 Ordinary shares of 50k each 6,000,000 6,000,000 6,000,000 6,000,000

Issued and fully Paid Share Capital

6,668,750,000 Ordinary shares of 50k each 3,334,375 3,334,375 3,334,375 3,334,375

25 Contigency Reserves

At 1 January 2019

Prior year adjustment

Balance as at 1 January 1,481,982 1,361,412 1,211,242 1,109,003

Transfer from retained earnings 110,910 102,406 73,210 63,447

Balance as at 30 June 1,592,892 1,463,818 1,284,453 1,172,450

25(b). Analysis of Contigency Reserve

Group

Gross Premium Written 3,696,998 3% 110,910

Net Profit (Profit After Tax) 317,286 20% 63,457

In compliance with Section 21 (1) of Insurance Act 2003, the contingency reserve for non-life insurance business is credited with the greater of 3% of total

premiums, or 20% of the profit. This shall accumulate until it reaches the amount of greater of mininum paid up capital or 50% of net premium.

26 Retained Earnings


The movement in this account was as follows:

Transfer from Statement of profit or loss 292,979 263,682 274,107 242,573

Transfer to contigency reserve (110,910) (102,406) (73,210) (63,447)

Dividend Approved and Paid during the year - (200,063) - (200,063)


27 Fair Value Reserves

(a).Fair Value Reserves


Fair value changes in Value of Quoted Shares 2,020 -


28 Other Reserves-Foreign Exchange Translation Reserves

Balance as at 1 January 188,798 201,481 -

Movement (161,283) (45,818) -

Balance as at 30 June 27,515 155,663 - -

GROUP COMPANY

Company

Gross Premium Written 2,440,347 3% 73,210 Net Profit (Profit After Tax) 274,107 20% 54,821


17

2019 2018 2019 2018

N'000 N'000 N'000 N'000

29 Gross Premium Written


Oil/Gas 852,032 767,294 852,032 767,294

Fire 388,703 512,263 182,669 301,911

Motor 1,047,203 818,759 498,264 192,732

Aviation 96,957 41,540 96,957 41,540

Bond 140,773 87,458 7,437 2,832

Engineering 311,200 314,506 185,073 244,731

Marine 453,371 321,214 374,188 234,237

Emp/Liability 53,007 65,507 3,549 4,102

Total 3,696,998 3,413,529 2,440,347 2,114,904

30 Gross Premium Income


Oil/Gas 600,317 560,194 600,317 560,194

Fire 394,415 419,694 148,418 226,327

Motor 840,820 719,005 350,271 183,321

Aviation 69,502 18,344 69,502 18,344

Bond 85,340 65,411 6,804 3,475

Engineering 357,212 278,123 262,477 217,403

Marine 360,810 414,719 260,955 317,530

Emp/Liability 32,728 36,109 2,236 2,561

Total 3,113,809 2,969,573 1,991,495 1,869,748

2019 2018 2019 2018

N'000 N'000 N'000 N'000

31 Reinsurance Expenses


Oil/Gas 230,821 237,451 230,821 237,451

Fire 165,638 131,200 79,683 40,243

Motor 73,923 28,542 61,509 7,123

Aviation 15,222 10,713 15,222 10,713

Bond 16,804 11,772 1,243 994

Engineering 123,146 137,806 95,359 114,883

Marine 168,695 234,136 115,630 176,009

Emp/Liability 0 11 0 -

Total 968,560 840,137 742,819 608,820

32 Fees and Commission Income

General Accident 14,876.04 15,084 3,678.75 4,331

Oil & Gas - 1,221 - 1,221

Fire 49,402.58 45,771 10,436.45 6,851

Motor 2,075.16 973 1,474.18 195

Aviation 902.60 - 902.60 -

Bond 5,494.24 3,026 197.31

Engineering 12,545.57 9,434 2,754.40 3,141

Marine 20,823.40 22,120 3,537.81 3,271

Emp/Liability - 151 - -

Total 106,120 97,780 22,982 19,010

33 Claim Expenses (Gross)

Current Year Claim Paid 997,308 881,414 560,740 347,969

(Increase)/decrease in Outstanding Claim (293,646) (92,909) (263,827) (28,108)

Outstanding Claim -IBNR 42,952 (13,836) -

Gross Claim Incurred 746,614 774,669 296,913 319,861

34 Claim Recovered from Reinsurance

Reinsurance Receipt on Claim Paid 139,305 198,552 9,537 10,836

Changes In Reinsurance Share of Outstanding Claim (1,168) 8,095 1,168- 8,095

Changes In Reinsurance Share of IBNR - - - -

138,137 206,648 8,368 18,932

GROUP COMPANY


18

2019 2018 2019 2018

N'000 N'000 N'000 N'000

35 Underwriting Expenses

a Acquisition Cost 367,493 374,930 193,615 203,495

b Maintenance Cost 94,514 122,921 94,514 122,921

462,007 497,852 288,129 326,417

Acquisition cost are commission expenses on policies issued by the company ,while maitenance cost include engineering ,surveyor and superintending fees.

a Acquisition cost


Oil & Gas 2,400 1,618 2,400 1,618

Fire 56,011 27,714 9,929 (8,755)

Motor 76,747 92,882 18,562 21,165

Aviation 4,886 594 4,886 594

Bond 15,471 11,292 598 695

Engineering 61,681 53,535 38,722 39,108

Marine 44,645 71,022 29,213 58,328

Emp/Liability 3,756 4,888 458 607

Total 367,493 374,930 193,615 203,495

b Maintenance cost


Oil & Gas 33,066 68,122 33,066 68,122

Fire 5,869 7,580 5,869 7,580

Motor 12,494 4,326 12,494 4,326

Aviation 3,183 1,039 3,183 1,039

Bond 258 66 258 66

Engineering 4,778 5,742 4,778 5,742

Marine 11,775 7,584 11,775 7,584

Emp/Liability 86 86

Total 94,514 122,921 94,514 122,921

GROUP COMPANY


19

2019 2018 2019 2018

N'000 N'000 N'000 N'000

36(a) Interest Income

Interest on loan & advances 8,328 21,006 - -

Interest on Fixed Deposit 3,575 5,924 - -

Management Fees - - -

Default Charges - - -

11,903 26,930 - -

36(b) Interest Expense

Fixed Deposit 2,540 3,880 - -

Savings Account 55 142 - -

2,594 4,022 - -

37 Net Trading Income

Turnover 7,051 6,945 - -

Cost of sales (2,877) (2,917) - -

4,173 4,028 - -

This represent net trading income on sale of vehicle tracker by subsidiary 'Ric Technologies Limited.

38 Finance Income-(Finance Lease Rental Income) 13,277 13,959 - -

This represents income from finance lease of subsidiary (Ric Properties and Investment Limited), the Company provides finance lease for corporate

body as well as individual, all lease agreement are for period of one year.

39 Finance Cost 4,298 15,617 - -

This represent cost incured on finance lease by the subsidiary's Ric Properties and Investment Limited and RegencyNem Ghana Ltd

40 Investment Income

Income from statutory Deposit 15,338 23,391 15,338 23,391

Income from placement with Financial Institution With Maturity < 90 days 103,672 85,651 103,672 85,651

Income from placement with Financial Institution With Maturity > 90 days 204,162 136,053 97,212 67,201

Dividend Received 1,518 8,003 1,518 8,003

324,690 253,098 217,740 184,246

40.(a)Analysis of Investment Income

(i) Investment Income Attributable to Policyholders' Fund 103,672 136,053 103,672 117,201

(ii) Investment Income Attributable to Shareholders'Fund 221,018 117,045 114,067 67,045

324,690 253,098 217,740 184,246

In line with NAICOM Prudential Guldline: Portion of Investment Income artributable to policyholder's fund and those artributable to Shareholders'

Fund shall be presented as a sub-note under the Note on Investment Income

41 Other operating Income

Rental Income 6,675 500 6,675 500

Exchange Gains 4,298 - - -

Interest Income (Staff Loan) 495 - 42 308

Sundry Income 2,248 2,739 1,311

Written off business now received - 4,338 - - Income from COT/Loan fee (Microfinance Bank) 1,520 5,715 - -

Realised gain/(Loss) on PPE (5,954) 377 (6,035) -

9,282 13,669 1,993 808

Included in sundry income is the subsidiary's Ric Microfinance Bank Limited income on search fees,SMS,ATM,returned cheque e.t.c.

Income from subsidiary 'Regency Nem Insurance Limited Ghana Oil & Aviation Pool'.

42 Net gain 0r (Loss) in Financial Assets

Exchange gain or (Loss) - 11,644 - 11,644

Realised (loss) in Financial assets (Note 5.4e) 4,424 - - -

Unrealised fair value gain/(loss) on quoted equity (Note 5.2) (96,633) (13,307) (96,269) (13,262)

Balance at the end of the period (92,209) (1,663) (96,269) (1,618)

GROUP COMPANY


20

2019 2018 2019 2018

N'000 N'000 N'000 N'000

43 Employee Benefit Expenses

Salaries and Wages 388,571 371,847 156,792 164,399

Medical Expenses 7,057 8,315 6,831 8,310

Staff Training 36,451 30,695 23,018 15,260

Pension contribution cost 9,863 31,041 9,863 14,260

Staff Welfare 10,994 21,144 10,994 9,428

452,936 463,042 207,498 211,657

19,195

Depreciation & Amortization 68,932 109,827 47,288 76,812

Advert/Marketing Expenses 104,738 93,963 54,900 46,867

Office Repairs & Maintenance Expenses 38,885 38,149 7,565 13,382

Professional fees 65,866 35,435 11,075 18,343

Subscription & Fees 49,718 17,585 20,184 16,917

Director's Emolument 21,522 18,989 1,350 9,990

Auditor's Remuneration 140 158 - -

Electricity/Generator Maintenance 12,043 23,075 11,516 16,048

Transport & Travelling 48,980 46,787 20,148 19,944

Printing & stationery 27,443 24,998 20,190 17,698

Statutory Annual Dues and Levies 37,426 62,809 37,426

2,604 329 2,604

Contract Service Expenses 17,874 64,748 16,991

3,994

Newspaper & Periodicals 192 822 166 719

Board & AGM Expenses 7,767 11,495 7,767 11,495

Entertainment Expenses 1,334 1,683 1,265 1,343

Donations 128 3,007 108 2,530

595,989 657,199 307,078 360,222

44.(i) Depreciation (note 15) 60,829 102,637 41,778 73,639

44.(ii) Amortisation (note 13) 8,103 7,190 5,510 3,173

68,932 109,827 47,288 76,812

GROUP COMPANY

44 Other Operating Expenses

Motor Running Expenses 18,029 21,233 16,793

2,997

Postages 354

15,994

Bank charges 3,722 4,451 3,531

30,861

Rent 46,765 49,218 5,005 10,255

Insurance Expenses 21,341 22,941 20,821 22,232

Telephone Expenses 2,791 3,224 2,660


21

45 PROFIT BEFORE TAX

This is stated after charging:

Depreciation & Amortization 68,932 109,827 47,288 76,812

Director's Emolument 21,522 18,989 1,350 9,990

Auditor's Remuneration 140 158 - - The Group Auditor's did not engaged in any other Professional services apart from audit work,hence no auditor's fees was included in professional fees.

46 BASIC & DILUTED EARNINGS PER SHARE

Basic Earnings per share (calculated by dividing profit after tax attributable to ordinary equity holders of parent for the year), are based

on the weighted average number of shares held during the year.

Adjusted earnings per share is determined by dividing the profit or loss attributable to ordinary shareholders by the weighted average

number of ordinary shares adjusted for the bonus shares issued.

THE COMPANY

2019 2018 2018 2017

N'000 N'000 N'000 N'000

Profit for the Period 317,286 284,777 274,107 242,573

Weighted average number of ordinary shares in issue 6,668,750 6,668,750 6,668,750 6,668,750

Basic earnings per share (in kobo) 4.76 4.27 4.11 3.64

47 DIRECTORS AND EMPLOYEES

i The average number of full time persons employed during the year were as follows:

13

Junior Staff 113 114 59

ii Directors' remuneration paid during the year is analysed as follows:

Directors fees 141 1,350 1,250

Directors other entitlements 21,381 18,989 - 8,740

Directors emolument 21,522 18,989 1,350 9,990

iii The directors remuneration shown above includes:

The Chairman and 7 directors.

The numbers of Directors who received fees and other emolument (excluding pension contribution) during the year were in the following ranges:

8 8 8 8

iv Employee cost during the year amounted to:

Staff Cost 452,936 463,042 207,498 211,657

48 Comparative

Where necessary, comparative figures have been adjusted to comform with changes in presentation in the current year.

THEGROUP

Number Number Number Number

Management 57 57 45 44

Senior Staff 23 23 12 59

193 194 116 116


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