AIICO INSURANCE PLC

UNAUDITED CONDENSED FINANCIAL STATEMENTS (IFRS 17)

FOR THE INTERIM PERIOD ENDED 30TH SEPTEMBER 2023

AIICO INSURANCE PLC

UNAUDITED CONDENSED FINANCIAL STATEMENTS

30 SEPTEMBER 2023

Table of contents

Page

Corporate Information

2

Consolidated Results at a Glance - The Group

4

Results at a Glance - The Company

5

Shareholding structure and free float status

6

Certification Pursuant to Section 60(2) of Investment & Securities Act No. 29 of 2007 and Statement of Directors'

Responsibilities in Relation to the Financial Statements

7

Material Accounting Policies

8

Condensed Consolidated and Separate Statements of Financial Position

44

Condensed Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income

45

Condensed Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income movement

46

Condensed Consolidated Statement of Changes in Equity - the Group

47

Statement of Changes in Equity - the Company

48

Condensed Consolidated and Separate Statements of Cash Flows

49

Notes to the Condensed Consolidated and Separate Financial Statements

50

1

AIICO INSURANCE PLC UNAUDITED CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

Corporate Information

Directors

Mr. Kundan Sainani (Indian)

Chairman

Mr. Babatunde Fajemirokun

Group MD / CEO

Mr. Adewale Kadri

Executive Director

Mr. Samaila Zubairu

Director/Independent

Mr. Ademola Adebise

Director

Mrs. Oluwafolakemi Edun (nee Fajemirokun)

Director

Mr. Olalekan Akinyanmi

Director

Mr. Raimund Snyders (South African)

Director

Mr. Rotimi Okpaise

Director

Company Secretary

Mr. Donald Kanu

AIICO Insurance Plc AIICO Plaza

Plot PC 12, Churchgate Street

Victoria Island, Lagos

Registered Office

AIICO Plaza

Plot PC 12, Churchgate Street

Lagos

RC No.

7340

TIN

00401332-0001

Corporate Head Office

AIICO Plaza

Plot PC 12, Churchgate Street Victoria Island

Lagos

Tel: +234 01 2792930-59

0700AIIContact (0700 2442 6682 28)

Fax: +234 01 2799800

Website: //www.aiicoplc.com

E-mail: aiicontact@aiicoplc.com

Registrar

Coronation Registrars (formerly, United Securities Limited)

09, Amodu Ojikutu Street Off

Bishop Oluwole Street, Victoria Island

P.M.B. 12753

Lagos

Independent Auditor

Ernst & Young

10th & 13th Floors, UBA House

57, Marina Road

Lagos Island

Lagos

website: www.ey.com/ng

Bankers

Access Bank Plc

Ecobank Plc

First Bank of Nigeria Limited

First City Monument Bank Limited

Guaranty Trust Bank Limited

Stanbic IBTC Bank

Standard Chartered Bank Nigeria Limited

Union Bank of Nigeria Plc

United Bank of Africa Plc

Wema Bank Plc

Actuary

Firm Name:

Zamara Consulting Actuaries Nigeria Limited

Firm FRCN:

FRC/2019/00000012910

Life Valuation

Nikhil Dhodia

FRCN

FRC/2021/004/00000024023

Firm Name:

Zamara Consulting Actuaries Nigeria Limited

Non life Valuation

Jay Kosgei

FRCN

FRC/2021/004/00000023786

2

AIICO INSURANCE PLC UNAUDITED CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

Corporate information (continued)

Reinsurers

Africa Reinsurance Corporation

Continental Reinsurance Plc

Swiss Reinsurance

WAICA Reinsurance

Nigerian Reinsurance

Trust Reinsurance

Zep Reinsurance

Arig Reinsurance

Aveni Reinsurance

NCA Reinsurance

Estate Valuer

Firm Name:

Niyi Fatokun & Co.

Firm FRCN:

FRC/2019/00000012894

Partner

Niyi Fatokun

FRCN

(Chartered Surveyors & Valuer)

FRC/2013/NIESV/70000000/1217

Regulatory Authority

National Insurance Commission (NAICOM)

Branch Networks

1. Port Harcourt

2. Kaduna

11 Ezimgbu Link Road (Mummy B Road)

Yaman Phone House

Off Stadium Road

1, Constitution Road

G.R.A Phase 4, Port Harcourt

Kaduna, Kaduna State

Rivers State

Tel: +234 803 338 6968;

Tel: +234 808 313 4875

+234 805 601 9667

+234 909 448 9393

3. Abuja Area Office

4. Kano

No 44 Durban Street,

8, Post Office Road

Off Adetokunbo Ademola Crescent, Wuse II

Kano

FCT, Abuja.

Kano State

Tel: +234 805 820 0439

Tel: +234 807 810 7938

+234 817 668 4115

+234 806 593 4787

5. Abeokuta

6. Lagos, Ikeja

46, Tinubu Street

AIICO House

Ita Eko, Abeokuta

Plot 2, Oba Akran Avenue

Ogun State

Opp. Dunlop, Ikeja, Lagos

Tel: +234 803 255 7071

Tel: +234 1 460 2097-8; +234 808 313 4376

+234 1 460 2218

7. Aba

8. Lagos, Isolo

7, Factory Road

203/205, Apapa-Oshodi Expressway

Aba, Abia State

Isolo, Lagos

Tel: +234 805 531 4351

Tel: +234 802 305 4803; +234 805 717 6063

9. Enugu

10. Lagos, Ilupeju

55-59, Chime Avenue

AIICO House

Gbuja's Plaza New Haven

36/38, Ilupeju Industrial Avenue

Enugu State

Ilupeju, Lagos

Tel: +234 803 724 6767

Tel: +234 816 046 6239

+234 803 334 3036

11. Benin

12. Onitsha

28, Sakponba Road

Noclink Plaza, 41 New Market Road

Benin City

Opp UBA Bank, Onitsha

Edo State

Anambra State

Tel: +234 805 116 3395

Tel: +234 708 606 4999

+234 813 405 1972

+234 803 375 0361

13. Jos

14. Owerri

4, Beach Road

46, Wetheral Road

Jos, Plateau State.

Owerri, Imo State

Tel: +234 805 735 6726

Tel: +234 805 603 3269

+234 809 033 5125

+234 706 603 2065

15. Ibadan

16. Warri

12, Moshood Abiola Way

60, Effurun/Sapele Road

Challenge Area

Warri.

Ibadan, Oyo State

Delta State.

Tel: +234 803 231 8925

Tel: +234 803 971 0794

+234 802 834 4263

+234 818 749 7490

3

AIICO INSURANCE PLC UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

Results at a Glance - The Group

For the interim period ended 30 September 2023

Profit or Loss and Other Comprehensive Income

Increase/

Increase/

(decrease)

(decrease)

In thousands of naira

30-Sep-23

30-Sep-22

Changes

%

Gross written premium

85,137,765

69,502,732

15,635,033

22

Insurance revenue

Insurance service expense

(43,935,076)

(31,148,764)

(12,786,311)

41

Net Expenses from reinsurance contracts

(7,589,681)

(6,402,126)

(1,187,555)

19

Insurance service result

(215,833)

1,346,007

(1,561,840)

(116)

Net investment income before fair value changes

23,630,246

12,345,465

11,284,781

91

Net fair value (loss)/income

(12,380,292)

(5,904,692)

(6,475,600)

110

Net insurance/reinsurance finance expenses

(2,290,157)

(3,008,440)

718,283

24

Net insurance and investment result

8,743,964

4,778,340

3,965,624

83

Operating expenses

(1,998,919)

(2,386,064)

387,145

16

Profit after tax from discontinued operations

6,745,045

2,392,276

4,352,769

182

Taxes

(659,356)

(321,611)

(337,745)

(105)

Disconitnued operations

-

2,872,686

(2,872,686)

(100)

Profit for the period

6,085,689

4,943,351

1,142,338

23

Total other comprehensive income/(loss)

(387,102)

(706,897)

319,796

(45)

Total comprehensive income for the period

5,698,588

4,236,454

1,462,134

35

Basic and diluted earnings per share (kobo)

16

13

Financial Position

In thousands of naira

30-Sep-23

31-Dec-22

Changes

%

Assets

Cash and cash equivalents

19,897,792

15,915,258

3,982,534

25

Financial assets

246,655,198

225,460,028

21,195,170

9

Trade receivables

1,149,978

866,977

283,001

33

Contracts assets

18,381,456

11,489,975

6,891,481

60

Other receivables and prepayments

4,237,261

4,685,425

(448,164)

(10)

Deferred tax assets

-

21,501

(21,501)

(100)

Investment properties

620,000

760,000

(140,000)

(18)

Property and equipment

8,315,121

8,359,520

(44,399)

(1)

Statutory deposits

500,000

500,000

-

-

Right of use assets

28,285

60,055

(31,769)

(53)

Goodwill and other intangible assets

906,638

928,672

(22,034)

(2)

Total assets

300,691,730

269,047,411

31,644,319

12

Liabilities

Insurance contract liabilities

208,254,710

187,868,485

20,386,225

11

Investment contract liabilities

3,706,469

3,212,895

493,575

15

Trade payables

8,140,668

6,461,628

1,679,040

26

Other payables and accruals

8,712,171

8,404,577

307,594

4

Fixed income liabilities

26,749,624

22,781,598

3,968,026

17

Current income tax payable

1,005,401

669,543

335,858

50

Deferred tax liabilities

498

7,666

(7,168)

(93)

Total liabilities

256,569,542

229,406,391

27,163,150

12

Equity

Share capital

18,302,638

18,302,638

0

0.00

Share premium

64,745

64,745

-

-

Revaluation reserve

2,764,016

2,764,016

-

-

Fair value reserve

(3,168,669)

(2,796,624)

(372,045)

13

Contingency reserve

11,150,254

9,710,046

1,440,208

15

Retained earnings

14,543,134

11,173,797

3,369,337

30

Non-controlling interests

466,070

422,402

43,668

10

Total equity

44,122,188

39,641,020

4,481,168

11

12

4

AIICO INSURANCE PLC UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

Results at a Glance - The Company

For the interim period ended 30 September 2023

Profit or loss and other comprehensive income

Increase/

Increase/

(Decrease)

(Decrease)

In thousands of naira

30-Sep-23

30-Sep-22

Changes

%

Gross written premium

84,510,111

68,901,842

15,608,269

23

Insurance revenue

50,343,914

37,977,922

12,365,992

33

Insurance service expense

(43,421,145)

(30,579,087)

(12,842,058)

42

Net Expenses from reinsurance contracts

(7,589,681)

(6,402,126)

(1,187,555)

19

Insurance service result

(666,912)

996,709

(1,663,620)

(167)

Net investment income before fair value changes

22,849,185

11,446,181

11,403,004

100

Net fair value (loss)/income

(12,380,292)

(5,904,692)

(6,475,600)

110

Net insurance finance expenses

(2,290,157)

(3,008,440)

718,283

24

Net insurance and investment result

7,511,825

3,529,757

3,982,067

113

Operating expenses

(1,446,821)

(2,195,904)

749,083

34

Profit after tax from discontinued operations

6,065,004

1,333,853

4,731,150

355

Taxes

(638,194)

(293,925)

(344,270)

100

Disconitnued operations

-

2,872,686

(2,872,686)

(100)

Profit for the period

5,426,809

3,912,614

1,514,195

39

Total other comprehensive loss

(14,398)

(100,035)

85,637

(86)

Total comprehensive income for the period

5,412,411

3,812,579

1,599,832

42

Basic and diluted earnings per share (kobo)

15

11

Financial Position

In thousands of naira

30-Sep-23

31-Dec-22 Changes

%

Assets

Cash and cash equivalents

7,946,817

6,521,824

1,424,993

22

Financial assets

229,283,100

208,421,569

20,861,531

10

Trade receivables

1,011,819

852,113

159,706

19

Contracts assets

18,381,456

11,489,975

6,891,481

60

Other receivables and prepayments

3,320,574

4,141,826

(821,252)

(20)

Investment in subsidiaries

1,087,317

1,087,317

-

-

Investment properties

620,000

760,000

(140,000)

(18)

Property and equipment

8,100,841

8,064,528

36,313

0

Statutory deposits

500,000

500,000

-

-

Right of use assets

28,285

60,055

(31,769)

(53)

Goodwill and other intangible assets

834,546

846,825

(12,279)

(1)

Total assets

271,114,755

242,746,032

28,368,723

12

Liabilities

Insurance contract liabilities

207,950,901

187,868,485

20,082,416

11

Investment contract liabilities

3,706,469

3,212,895

493,575

15

Trade payables

8,140,668

6,461,628

1,679,040

26

Other payables and accruals

8,465,183

7,054,663

1,410,520

20

Current income tax payable

933,209

422,562

510,647

121

Total liabilities

229,196,431

205,020,233

24,176,198

12

Equity

Share capital

18,302,638

18,302,638

-

-

Share premium

64,745

64,745

0

0

Revaluation reserve

2,764,016

2,764,016

-

-

Fair value reserve

(1,836,095)

(1,821,697)

(14,398)

1

Contingency reserve

11,150,254

9,710,046

1,440,208

15

Retained earnings

11,472,767

8,706,052

2,766,715

32

Shareholders' funds

41,918,324

37,725,799

4,192,525

11

271,114,755

242,746,032

28,368,723

12

5

AIICO INSURANCE PLC UNAUDITED CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

Shareholding Structure And Freefloat Status

Company name

AIICO Insurance Plc

Year end

December

Reporting Period

30-Sep-23

Share Price at end of reporting period

N0.69 (31 December 2022: N0.59)

Shareholding Structure/Free Float Status

Description

Unit

Percentage

Unit

Percentage

Issued Share Capital***

36,605,276,013

100%

36,605,276,013

100%

Substantial Shareholdings (5% and above)

DF Holdings Limited

0

0.00%

10,419,275,441

28.46%

AIICO Bahamas Limited

15,104,442,427

41.26%

4,385,166,986

11.98%

LeapFrog III Nigeria Insurance Holdings LTD

11,173,946,135

30.53%

11,173,946,135

30.53%

Total Substantial Shareholdings

26,278,388,562

71.79%

25,978,388,562

70.97%

Directors' Shareholdings (direct and indirect), excluding directors with substantial interests

Babatunde Fajemirokun

117,119,739

0.32%

117,119,739

0.32%

Ademola Adebise

49,070

0.00%

49,070

0.00%

Total Directors' Shareholdings

117,168,809

0.32%

117,168,809

0.32%

Total Other Influential Shareholdings

-

0.00%

-

0.00%

Free Float in Units and Percentage

10,209,718,642

27.89%

10,509,718,642

28.71%

Free Float in Value

₦ 7,044,705,862.98

₦ 6,200,733,998.78

Declaration:

AIICO Insurance Plc with a free float percentage of 27.89% as at 30 September 2023, is compliant with The Nigeria Stock Exchange's free float requirements for companies listed on the Main Board.

Mr. Donald Kanu

Company Secretary

FRC/2013/NBA/00000002884

Plot PC 12, Churchgate Street

Victoria Island

Lagos, Nigeria

26-October-23

6

AIICO INSURANCE PLC UNAUDITED CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

Certification Pursuant to Section 60(2) of Investment and Securities Act No. 29 of 2007 and Statement of Corporate Responsibility for the Consolidated and Separate Financial Statements per the provisions of section 405 of the Companies and Allied Matters Act 2020

We the undersigned, hereby certify the following with regards to our unaudited financial statements for the interim period ended 30 September 2023 that:

  1. We have reviewed the report and to the best of our knowledge, the report does not contain:
    • Any untrue statement of a material fact, or
    • Omission to state a material fact, which would make the statements, misleading in the light of circumstances under which such statements were made;
    • To the best of our knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operation of the Group as of, and for the periods presented in the report.
  3. We:
    • are responsible for establishing and maintaining internal controls.
    • have designed such internal controls to ensure that material information relating to the Company and its consolidated subsidiaries is made known to such officers by others within those entities particularly during the periods in which these reports are being prepared;
    • have evaluated the effectiveness of the Group's internal controls as of date of the report;
    • have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date;
  5. We have disclosed to the Audit Committee:
    • all significant deficiencies in the design or operation of internal controls which would adversely affect the Group's ability to record, process, summarize and report financial data and have identified for the Group's auditors any material weakness in internal controls, and
    • Any fraud, whether or not material, that involves management or other employees who have significant role in the Group's internal controls;

We have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Mr. Babatunde Fajemirokun

Mr. Oladeji Oluwatola

MD/CEO

Chief Financial Officer

FRC /2015/MULTI/00000019973

FRC/2013/ICAN/0000004910

26-Oct-23

26-Oct-23

7

AIICO INSURANCE PLC UNAUDITED CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

Material Accounting Policies

For the interim period ended 30 September 2023

  • Reporting entity
    AIICO Insurance Plc ("the Company") was established in 1963 by American Life Insurance Company and was incorporated in 1970. It was converted to a Public Liability Company in 1989 and quoted on the Nigerian Stock Exchange (NSE) in December 1990. The Company was registered by the Federal Government of Nigeria to provide insurance services in Life Insurance Business, Non-Life Insurance Business, Deposit Administration and Financial Services to organizations and private individuals. Arising from the merger in the insurance industry, AIICO Insurance Plc acquired Nigerian French Insurance Plc and Lamda Insurance Company Limited in February 2007.
  • Basis of accounting
    1. Statement of compliance
      These interim condensed consolidated and separate financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB), the financial statements comply with the Companies and Allied Matters Act 2020, the Financial Reporting Council of Nigeria Act No 6, 2011, the Insurance Act of Nigeria 2003 and relevant National Insurance Commission (NAICOM) policy guidelines and circulars.
      These consolidated and separate financial statements were authorised for issue by the Company's Board of Directors on 26 October 2023.
      The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 30 September 2023.
    2. Going concern
      These consolidated and separate financial statements have been prepared using appropriate accounting policies, supported by reasonable judgments and estimates. The Directors have a reasonable expectation, based on an appropriate assessment of a comprehensive range of factors, that the Group and the Company have adequate resources to continue as going concern for the foreseeable future.
      Functional and presentation currency
      These consolidated and separate financial statements are presented in Nigerian Naira, which is the Group and Company's functional and presentation currency. Except as indicated, financial information presented in Naira has been rounded to the nearest thousand.

2.4 Basis of measurement

These consolidated and separate financial statements have been prepared under the historical cost convention, except for the following items; which are measured on an alternative basis on each reporting date.

Item of building (Property plant and equipment) Non-derivative Financial asset at fair value through other comprehensive income

Non-derivative Financial asset at fair value through profit or Investment properties

Insurance contract liabilities

Revalued amount Fair value

Fair value Fair value Present value

2.5 Use of estimates and judgement

  • In preparing these consolidated and separate financial statements, management has made judgements and estimates that affect

  • the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
    The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are described in Note 4.

8

AIICO INSURANCE PLC UNAUDITED CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

Material Accounting Policies

For the interim period ended 30 September 2023

2.6 Regulatory authority and financial reporting

The Group is regulated by the National Insurance Commission of Nigeria (NAICOM) under the National Insurance Act of Nigeria.

  1. Section 20 (1a) provides that provisions for unexpired risks shall be calculated on a time apportionment basis of the risks accepted in the year;
  2. Section 20 (1b) requires provision for outstanding claims to be credited with an amount equal to the total estimated amount of all outstanding claims with a further amount representing 10 percent of the estimated figure for outstanding claims in respect of claims incurred but not reported at the end of the year under review;
  1. Sections 21 (1a) and 22 (1b) require maintenance of contingency reserves for general and life businesses respectively at specified rates as set out under Note 3.27 to cover fluctuations in securities and variation in statistical estimates;

2.6 Changes in accounting policies

New and amended standards and interpretations

The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2023 (unless otherwise stated). The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

  • Issued and Amended standards effective from periods beginning on or after 1 January 2023
    (i) Onerous Contracts - Costs of Fulfilling a Contract - Amendments to IAS 37
    The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labour and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfil the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unlessthey are explicitly chargeable to the counterparty under the contract.

The amendments do not have a significant impact on the Group's consolidated financial statement.

(ii) Reference to the Conceptual Framework - Amendments to IFRS 3

The amendments replace a reference to a previous version of the IASB's Conceptual Framework with a reference to the current version issued in March 2018 without significantly changing its requirements. The amendments add an exception to the recognition principle of IFRS 3 Business Combinations to avoid the issue of potential 'day 2' gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. The amendments also add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date.

In accordance with the transitional provisions, the Group applies the amendments prospectively, i.e., to business combinations occurring after the beginning of the annual reporting period in which it first appliesthe amendments (the date of initial application).

These amendments had no impact on the consolidated financial statements of the Group as there were no contingent assets, liabilities or contingent liabilities within the scope of these amendments that arose during the period.

  1. Property, Plant and Equipment: Proceeds before Intended Use - Amendments to IAS 16 Leases
    The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the costs of producing those items, in profit or loss.
    In accordance with the transitional provisions, the Group applies the amendments retrospectively only to items of PP&E made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment (the date of initial application).
    These amendments had no impact on the consolidated financial statements of the Group as there were no sales of such items

9

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AIICO Insurance plc published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 16:43:09 UTC.