Technology and Innovation
10. Trade receivables
(a). Trade receivables
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Gross receivables 693,839 1,366,389 205,597 657,655
Less: impairment allowance (see note (b) below) (658,877) (658,900) (170,635) (170,658)
Balance, end of year 34,962 707,489 34,962 486,997
(b). The movements in impairment allowance on trade receivables is analyzed below;
Balance, beginning of year 658,900 858,606 170,658 370,364
Impairment charge/(reversal) during the year (23) - (23) -
Bad debt written off - -
(199,706) (199,706)
Balance, end of year
(658,877) 658,900 170,635 170,658
Subsequent to year end, the Group and Company received N35 million with respect to receivables that were less than
30 days as at 31 December 2018 (Group December 2017: N708 million; Company December 2017: N487
million). There was no impairment allowance against the amount because it has been received.
11. Reinsurance assets
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
(a) Claim recoverables (see note (b)) 813,825 1,087,216 490,209 403,620
Prepaid reinsurance (see note (d)) 2,878,317 499,085 1,697,775 434,519
Balance, end of year 3,692,142 2,187,984 838,139
1,586,301
Annual Report & Accounts 2018 201
Technology and Innovation Group Group Company Company
(b) Claims recoverables are analysed as follows: 2018 2017 2018 2017
Recoverable on claims - Incurred but not reported 31-Dec 31-Dec 31-Dec 31-Dec
claims N’000 N’000 N’000 N’000
Recoverable on outstanding claims
Recoverable on claims paid 335,499 469,828 171,676 202,601
Balance, end of year
438,773 570,352 299,869 191,803
39,553 47,036 18,664 9,216
813,825 1,087,216 490,209 403,620
(c). The movement in claims recoverable is analysed as follows:
Balance, beginning of year 1,087,216 959,544 403,620 530,010
Recoveries during the year (2,150,947) (631,176) (763,680) (208,135)
Increase in recoverable during the year 758,848
1,877,556 850,268 81,745
Balance, end of year
813,825 1,087,216 490,208 403,620
(d). The movement in prepaid reinsurance cost is analysed as follows:
Balance, beginning of year 499,085 648,517 434,519 599,636
Cost incurred during the year 7,825,296 3,787,657 5,394,271 2,577,156
Amortised during the year (5,446,063) (3,937,089) (4,131,014) (2,742,273)
Balance, end of year 2,878,317 499,085 1,697,775 434,519
- -- -
202 Annual Report & Accounts 2018
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12. Deferred acquisition cost
This represents commission on unearned premium relating to the unexpired tenure of risk.
Group Group Company Company
2017
2018 2017 2018
31-Dec
31-Dec 31-Dec 31-Dec N’000
N’000 N’000 N’000
Balance, beginning of year 530,793 447,934 317,832 281,344
Exchange difference (5,641) (2,930) - -
Addition during the year 2,588,134 1,843,356
Amortised during the year (2,364,112) (1,757,567) 2,065,682 1,379,196
(1,784,686) (1,342,708)
Balance, end of year 749,174 530,793 598,828 317,832
13. Other Recievable and Prepayments
(a) (i) Group Group Company Company
2017
2018 2017 2018
31-Dec
31-Dec 31-Dec 31-Dec N’000
N’000 N’000 N’000
Staff loans 101,410 32,225 101,410 32,225
Prepayment 130,049 137,430 44,208 36,719
Intercompany and related party receivables (see 40,963 40,879 113,453 128,560
note (iii) below)
Deposit for shares 510,651 235,328 130,567 117,664
Sundry receivables (see note (ii) below) 2,287,151 2,261,777 1,806,189 1,722,773
3,070,224 2,707,639 2,195,827 2,037,941
– Less: Impairment allowance (see note (b) below): (1,634,900) (1,646,108) (1,178,515) (1,166,703)
Balance, end of year 1,435,324 1,061,531 1,017,312 871,238
The Group’s deposit for shares relate to deposit for investment in:
-FBS Reinsurance Limited subject to allotment. The company is seeking to obtain a reinsurance license to operate
within the Nigerian insurance industry and has by way of private placement offer equity stake to willing investors.
The company has an Authorised capital of 10,000,000,000 ordinary shares at N1 each, issued and fully paid share
capital of 1,000,000,000 ordinary shares at N1 each and has placed on offer 9,000,000,000 ordinary shares of N1
each at a placement price of N1.12 per share.
-One Terminal Limited subject to allotment. The company is an indigenous company incorporated to provide strategic
storage, marketing and logistics solutions for the downstream oil & gas sector in Nigeria and has by way of private
placement offer equity stake to willing investors. The company has an Authorised capital of 3,000,000,000 (Three
Billion) ordinary shares at N1.00 each, issued and fully paid share capital of 905,000,000 (Nine Hundred and Five
Million) ordinary shares at N1.00 each and has placed on offer 1,132,000,000 (One Billion, One Hundred and Thirty
Two Million) ordinary shares of ₦1.00 at ₦1.25 each (25% premium).
The Company’s deposit for shares relate to deposit for investment in FBS Reinsurance Limited subject to allotment. “
The sum of N12.9 milion was earned as interest income on Deposit for shares on FBS Reinsurance Limited.
203
Annual Report & Accounts 2018
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(ii). Sundry receivables: Group Group Company Company
2018 2017 2018 2017
Due from Summit Finance Limited
Due from Tropics Finance Limited 31-Dec 31-Dec 31-Dec 31-Dec
Due from Petralon Energy Limited N’000 N’000 N’000 N’000
Due from Etuna and other closed Property 1,011,631 1,011,631 728,106 728,106
development 228,115 228,115 228,115 228,115
I-Val Investment Receivable 578,567 504,691 578,567 504,691
Due from Oilview Estate 86,882 86,882 86,882 86,882
Due from Profund Securities Limited
Withholding Tax Receivable 145,472 168,254 - -
Due from ex-staff loan 27,000 27,000 27,000 27,000
Due from Stanbic IBTC on Disposal of 21,785 21,785 21,785 21,785
Property 97,302 51,713 91,140 42,698
Interest Receivable on Statutory Deposit
Expense Recoverable 8,520 6,892 2,679 3,586
Others - 30,000 - 30,000
Balance, end of year
28,860 27,786 17,776 11,287
35,861 11,690 11,813 11,690
17,156 85,338 12,326 26,933
2,287,151 2,261,777 1,806,189 1,722,773
“Due from Stanbic IBTC on Disposal of Property” relates to receivable amount with respect to escrow amount on
disposed property upon expiration of
agreement on the title perfection.
(iii). This relates to expenses recoverable by the Company from related entities for cost incurred on their behalf and
shared premium for Life and General received on behalf of the Company by Wapic Life Assurance. Breakdown of due
from related parties is analysed below:
Due from Wapic Ghana - expense Company Company
recoverable 2018 2017
Due from Wapic Ghana - management 31-Dec 31-Dec
services fees N’000 N’000
72,574 51,496
Due from Coronation Merchant Bank -
Dividend recievable - 36,185
Balance, end of year 40,879 40,879
113,453 128,560
204 Annual Report & Accounts 2018
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(b). The movements in impairment allowance for other receivables and prepayments is analyzed below;
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Balance, beginning of year 1,646,108 1,607,775 1,166,703 1,112,675
4,471 - - -
Impairment on transition to IFRS 9 at 1
January 2018 (15,679) 38,333 11,812 54,028
Allowance/(recoveries) made during the year
Balance, end of year 1,634,894 1,646,108 1,178,515 1,166,703
(c). The breakdown of impairment allowance on other receivables is analyzed below:
Group Group Company Company
2018 2017
2018 2017
31-Dec 31-Dec
31-Dec 31-Dec N’000 N’000
21,785 21,785
N’000 N’000 728,106 728,106
228,115 228,115
Profund securities 21,785 21,785
- -
Sunmmit finance limited 1,011,631 1,011,631 40,879 40,879
27,000 27,000
Tropics finance limited 228,115 228,115 86,882 86,882
I-Val Property Receivable 145,472 168,254 18,027 18,027
11,813 -
Coronation Merchant Bank 40,879 40,879 3,586
12,323 3,586
Due from Oil view estate 27,000 27,000 1,178,515 12,323
1,166,703
Receivable from Etuna and other closed 86,882 86,882
property development
Withholding tax receivable 18,027 23,885
Expense Recoverable 35,861 17,392
Ex-Staff loans 6,925 6,892
Others 12,317 13,393
Balance, end of year 1,634,894 1,646,108
Annual Report & Accounts 2018 205
Technology and Innovation
14. Investment properties Group Company Company
2017 2018 2017
Group
31-Dec 31-Dec 31-Dec
2018 N’000 N’000 N’000
31-Dec 312,750
N’000 312,750
Investment properties (see (a) below) 253,480 312,750 253,480
Balance, end of year 253,480 312,750 253,480
(a). Investment properties are analysed by location as follows:
Hexagon Court, Ikeja Lagos (see (c) below) 115,000 110,000 115,000 110,000
Ocean Garden, Lekki, Lagos (see (c) below) 80,000 72,000 80,000 72,000
Ocean View Estate, Lekki, Lagos (see c) and 58,000 58,000
b) below - -
Happy People Estate, Magboro, Ogun State 22,750 22,750
Victoria Garden Estate Abuja 4,480 50,000 4,480 50,000
54,000 54,000
Balance, end of year 253,480 312,750 253,480 312,750
- - - -
(b). During the year, the Company disposed its investment property located at Ocean view estate, Lekki Lagos and
Happy People Estate, Magboro, Ogun State. A total proceeds of N66.6 million was realised from the disposal with a loss
of N1.29million and N8.33million respectively.
(c). The Company’s investment properties were valued by independent professional Estate Surveyors and Valuers as at
31 December 2018. The determination of fair value of the investment properties were supported by market evidence.
The modalities and process of valuation utilised extensive analysis of market data and other sector specific peculiarities
corroborated with available database derived from previous experiences. The Company used the following Estate
Surveyors and Valuers who have recent experience in the location and category of the investment properties being
valued:
Estate Surveyors and Valuers FRC Registration Number
Azuka Iheabunike and Partners FRC/2012/NIESV/00000002206
Bode Adedeji Partneship Estate Surveryor and Valuers FRC/2013/NIESV/00000001479
(d). The Group applied fair value model in determining the carrying value of its investment properties.
The fair value measurement for the investment properties has been categorised as a Level 2 fair value basis. Level 2 fair
values of investment properties have been derived using the comparative method valuation approach. Sales prices of
recent comparable properties within the same or similar neighbourhood are adjusted for considerations of the peculiar
attributes of the property which includes specific location, internal layout plans as well as other relevant qualities.
206 Annual Report & Accounts 2018
Technology and Innovation
(e) The movement in investment properties
during the year was as follows:
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Balance, beginning of year 312,750 539,930 312,750 539,930
- 108 - 108
Acquisition during the year
(76,270) (224,950) (76,270) (224,950)
Disposal during the year 17,000 (2,338) 17,000 (2,338)
Fair value gain/(loss) recognised in profit or
loss
At end of year 253,480 312,750 253,480 312,750
- - - -
Acquisition Disposal Fair value Total
Chnages
Hexagon Court, Ikeja Lagos (see (c) below) -- 5,000 115,000
Ocean Garden, Lekki, Lagos (see (c) below) -- 8,000 80,000
Ocean View Estate, Lekki, Lagos (see c) and - 58,000
b) below - -
Happy People Estate, Magboro, Ogun State - 18,270
Victoria Garden Estate Abuja -- - 4,480
At end of year - 76,270 4,000 54,000
17,000 253,480
(f). The Group and the Company earned total rental income N2.1 million (2017: N2 million) from its investment
properties during the year (see note 35). Rental income is analysed below:
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Ocean Garden, Lekki, Lagos 2,133 2,000 2,133 2,000
At end of year 2,133 2,000 2,133 2,000
(g). Investment properties disposed during the year was as follows:
Sales proceeds 66,650 214,670 66,650 214,670
Transfer from investment property account (76,270) (224,950) (76,270) (224,950)
Loss on disposal of investment property (9,620) (10,280) (9,620) (10,280)
Annual Report & Accounts 2018 207
Technology and Innovation
(h). The title status of the Group and Company investment properties is detailed below;
Description of Investment Propety Title Status
Process Commenced
Hexagon Court, Ikeja Lagos Process Commenced
Not Applicable
Ocean Garden, Lekki, Lagos Not Perfected
Process Commenced
Ocean View Estate, Lekki, Lagos
Happy People Estate, Magboro, Ogun State
Victoria Garden Estate Abuja
15. Investment in associates
Group Group Company Company
2018 2017
2018 2017
31-Dec 31-Dec
31-Dec 31-Dec N’000 N’000
5,059,810 5,059,810
N’000 N’000
Coronation Merchant Bank Limited 8,763,246 8,264,440
Balance, end of year 8,763,246 8,264,440 5,059,810 5,059,810
(a). Nature of investment in associates
Name of entity Place of % of Nature Measurement
business/
country of ownership of the method
incorporation
interest” relationship
Investment in Coronation Merchant Bank Nigeria 25.50% Investee Equity method
Limited
This represents holding in the ordinary share capital of Coronation Merchant Bank Limited, a Company incorporated
and operating in Nigeria (2017: 25.50%). The holding became an associate as a result of additional shareholding in the
Company in January 2015. Coronation Merchant Bank Limited (Formerly; Associated Discount House Limited (ADH))
is involved in trading in, holding and provision of discount and rediscount facilities for Federal Government Securities,
Commercial Bills and other eligible financial instruments, as prescribed by the CBN to corporate and individual
customers.
There are no contingent liabilities relating to the group’s interest in the associates.
(b). Summarised financial information for associates
Below are the summarised financial information for investment in associate accounted for using the equity method
(i). Summarised balance sheet
2018 2017
31-Dec 31-Dec
N’000 N’000
Assets 3,211,035 8,264,667
Cash and cash equivalents 36,914,556 29,509,041
Due from financial institution
Non pledge trading assets 8,101,708 1,137,667
Derivatives financial assets 1,388,676 116,520
Investment securities 87,626,086
Pledged assets 10,168,280 28,617,585
Loans and advances to customers 54,312,459 18,840,555
Other assets 7,845,696 32,254,859
Investment properties 6,449,200
Intangible assets -
622,503 1,657,108
208 1,237,513
Annual Report & Accounts 2018
Technology and Innovation
Property, plant and equipment 2,974,252 3,430,110
Deferred tax 4,998,887 5,203,887
Total assets 222,778,849 136,718,711
Liabilities
Financial liabiliites (excluding trade payables) 167,173,215 87,600,612
Other liabiliites 24,457,369 18,963,541
Total liabilities 191,630,584 106,564,153
Total equity 31,148,265 30,154,558
(ii). Summarised statement of profit or loss and other comprehensive income 2018 2017
31-Dec 31-Dec
Interest income N’000 N’000
Interest expense 24,286,820 22,373,522
Net Impairment / (writeback) on financial assets (17,291,460) (14,369,179)
Fees and commission income (85,559)
Net gains on investment securities 1,700,352 3,662
Net foreign exchange income 1,658,062
Other income 1,661,263
operating expenses 129,349 898,266
Profit before tax 179,616 216,243
Income tax 10,438
Profit for the year (5,384,634) (4,968,930)
Other comprehenive income 5,195,747 5,822,084
Total comprehensive income (378,166)
(711,375) 5,443,918
4,484,372 (409,485)
(1,013,107) 5,034,433
3,471,265
Company
(c). Movement in investment in associate 2017
Balance, beginning of year Group Group Company 31-Dec
Dividend received during the year 2018 2017 2018 N’000
Share of current year profit 5,059,810
Share of current year other comprehensive 31-Dec 31-Dec 31-Dec
income N’000 N’000 N’000 -
Balance, end of year 8,264,440 7,173,843 5,059,810 -
(386,367) (193,183)
1,143,515 1,388,198 - 5,059,810
(258,342) (104,418) - -
-
8,763,246 8,264,440
-- 5,059,810
-
Annual Report & Accounts 2018 209
Technology and Innovation
(i). There are no significant restrictions on the Group’s ability to access or use the assets and settle the liabilities of the
associate to the extent that regulatory framework within which the associate operate does not inhibit the Group.
(ii). Reconciliation of summarised financial information Group Group
2018 2017
Opening net assets/net assets on date on acquisition
Profit/(loss) for the year 31-Dec 31-Dec
Other comprehensive income for the year N’000 N’000
Net (loss)/gains on AFS instruments recycled to profit or loss 30,154,558 25,877,707
Dividend paid to shareholders 4,484,372 5,443,918
Closing net assets (1,013,107) (377,258)
Interest in associate (25.5%) (32,227)
Impact of changes in net assets - (757,582)
Notional goodwill (1,515,164) 30,154,558
Carrying value 32,110,659 7,689,413
8,188,219 147,085
427,942
147,085 8,264,440
427,942
8,763,246
16. Investment in subsidiaries
Wapic Life Assurance Limited (see note (a) below)
Wapic Insurance Ghana Limited (see note (b) below)
Balance, end of year
(a). This represents 100% holding in the ordinary share capital of Wapic Life Assurance Limited, a wholly owned
subsidiary incorporated and operating in Nigeria. During the year, additional capital of N1.2 billion (2017: Nil) was
injected into the subsidiary.
(b). This represents 100% holding in the ordinary share capital of Wapic Insurance Ghana Limited; a wholly owned
subsidiary incorporated and conducting general insurance business in Ghana. During the year, additional capital of
N284 million (2017: Nil) was injected into the subsidiary.
( c). The Group does not have significant restrictions on its ability to access or use its assets and settle its liabilities
other than those resulting from the supervisory framework within which subsidiaries operate. The supervisory
framework require the insurance subsidiaries to keep certain levels of regulatory capital and liquid assets.
(d). The movement in investment in subsidiaries during the year was as follows:
Company Company
2018 2017
31-Dec 31-Dec
N’000 N’000
Balance, beginning of the year 3,876,571 3,876,571
Additions during the year 1,484,344 -
Balance, end of the year 5,360,915 3,876,571
210 Annual Report & Accounts 2018
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17. Intangible assets - Computer software
Group Company
N’000
N’000
623,102
Cost: 102,582
31 December 2018 -
Balance at 1 January 2018 662,327 725,684
718,859
Additions 115,778
312,477
Exchange difference (637) 310,625
Balance at 31 December 2018 777,468 -
770,577
31 December 2017 623,102
Balance at 1 January 2017 351,532
Additions 311,098 146,957
Exchange difference 112,766
(303)
-
Balance at 31 December 2017 662,327
259,723
Amortization: 182,642 (262,965)
31 December 2018 114,168
Balance at 1 January 2018 113,306
Charge for the year (351) 33,651
Exchange difference -
Balance at 31 December 2018 296,459 146,957
(299,639)
31 December 2017 465,961
Balance at 1 January 2017 147,636 455,894
Charge for the year 35,218 476,145
Exchange difference (212)
Balance at 31 December 2017 182,642
Net book value:
Balance at 31 December 2018 481,009
Balance at 31 December 2017 470,938
479,685
The Group and Company’s intangible assets relate to purchased computer software.
Annual Report & Accounts 2018 211
Technology and Innovation
18. (a) Property and equipment - Group
As at 31 December 2018 Leasehold Building Motor Computer Office Work in Total
land N’ 000 vehicles equipment progress N’ 000
equipment
Cost N’ 000 N’ 000 N’ 000 N’ 000 N’ 000
Balance, beginning of year 424,597 2,333,577 869,245 339,798 972,231 41,798 4,981,247
Additions - 7,350 63,264 35,328 14,756 50,401 171,099
Reclassifications - - - 1,650 17,353 (19,003) -
Disposals/Writeoff/Reversals - - - (105) (20,377)
Exchange difference - - (141,944) (4,044) (5,890) (162,426)
(11,657) (93) (21,684)
Balance, end of year 424,597 2,340,927 778,908 372,732 998,345 52,726 4,968,236
Accumulated depreciation 20,274 71,898 594,920 208,834 297,940 - 1,193,866
Balance, beginning of year 7,277 -
Transfer to retained earnings (See 47,315 115,391 78,928 186,678
note 29) (136,414) (1,119) (1,856) - 435,589
Charge for the year - (136,414)
Disposals (3,158) - (6,133)
Exchange difference
Balance, end of year 27,551 119,213 570,739 286,643 482,762 - 1,486,908
Net book value 86,089 515,583 52,726 3,481,328
Balance at 31 December 2018 397,046 2,221,714 208,169
Balance at 31 December 2017 404,323 2,261,679 274,325 130,964 674,291 41,798 3,787,382
i. The latest independent valuation of the Interest in leasehold land and building to ascertain the open market value of
the leasehold land and building was carried by Bode Adedeji Partnership, professional estate surveyors and valuers,
as at 31 December 2016. No valuation was carried out in the current financial year; it is the Group’s policy to carry-out
valuations of its leasehold land and building at least once within three financial years. The Group’s assessment is that
there has not been significant risk of impairment in the open market value of the land and building, and they are currently
carried at the revalued amount plus the additions less amortisation of the lease charge/depreciation during the period
for leasehold land: N397 Million (31 December 2017: N404 Million) and building: N2.2 Billion (31 December 2017: N2.3
Billion).
ii. The carrying amount of the Group’s leasehold land would have been N16.53 million (31 December 2017: N16.86 Million)
based on the cost model if it had not been restated at the revalued amount.
iii. There are no other leased assets included in the Group’s property and equipment apart from leasehold land (31
December 2017: Nil)
iv. The Group had no capital commitments as at the Statement of Financial Position date (31 December 2017: Nil)
v. The company had no legal obligation relating to dismantling/restoration cost in the locations it is situated. (31 December
2017: Nil)
212 Annual Report & Accounts 2018
Technology and Innovation
18. (b) Property and equipment - Company
As at 31 December 2018
Leasehold Building Motor Computer Office Work in Total
land progress
equipment N’ 000
equipment
Cost N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000
Balance, beginning of year 424,597 2,333,577 516,227 282,545 897,410 40,326 4,494,682
- 7,350 63,000 31,812 4,958 3,700 110,820
Additions - - 6,438 12,566 -
- - - - - (19,004)
Reclassifications (20,377) (148,837)
(128,460)
Disposals/Writeoff/
Reversals
Balance, end of year 424,597 2,340,928 450,767 320,795 914,935 4,645 4,456,665
Accumulated
depreciation
Balance, beginning of year 20,274 71,898 449,198 171,704 260,101 - 973,175
Charge for the year 7,276 47,315 52,518 71,132 176,818 - 355,059
Disposals - - - (128,460)
- (128,460) -
Balance, end of year 27,550 119,213 373,256 242,836 436,919 - 1,199,774
397,047 2,221,715 77,511 77,959 478,016 1,329,663
Net book value
Balance at 31 December 4,645 3,256,891
2018
Balance at 31 December 404,323 2,261,679 67,029 110,841 637,309 40,326 3,521,507
2017
i. The latest independent valuation of the Interest in leasehold land and building to ascertain the open market value of
the leasehold land and building was carried by Bode Adedeji Partnership, professional estate surveyors and valuers,
as at 31 December 2016. No valuation was carried out in the current financial year; it is the Group’s policy to carry-
out valuations of its leasehold land and building at least once within three financial year. The Group’s assessment is
that there has not been significant risk of impairment in the open market value of the land and building, and they are
currently carried at the revalued amount plus the additions less amortisation of the lease charge/depreciation during
the period for leasehold land: N397 Million (31 December 2017: N404 Million) and building: N2.2 Billion (31 December
2017: N2.3 Billion).
ii. The carrying amount of the Company’s leasehold land would have been N16.53 million (31 December 2017:
N16.86 Million) based on the cost model if it had not been restated at the revalued amount.
iii. There are no other leased assets included in the Company’s property and equipment apart from leasehold land
(31 December 2017: Nil)
iv. The Company has no capital commitments as at the Statement of Financial Position date (31 December 2017:
Nil)
v. The company has no legal obligation relating to dismantling/restoration cost in the locations it is situated. (31
December 2017: Nil)
Annual Report & Accounts 2018 213
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18. (a) Property and equipment - Group
As at 31 December 2017
Leasehold Building Motor Computer Office Work in Total
land equipment progress
vehicles equipment
Cost N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000
Balance, beginning of year 424,597 2,330,711 804,358 298,332 895,417 220,890 4,974,306
Transfer from PPE (see note (v) - (64,573) (64,573)
below
Additions - 2,865 139,625 59,985 43,437 41,798 287,710
Reclassifications 153,635 (153,635) -
Disposals - -- - (119,177)
Exchange difference (1,082) - (203,622)
- - (68,306) (16,140) (2,682) (12,574)
- - (6,432) (2,378)
Balance, end of year 424,597 2,333,577 869,245 339,798 972,231 41,798 4,981,247
Accumulated depreciation 12,997 24,711 530,917 144,930 235,241 - 948,796
Balance, beginning of year 7,277 47,187 138,548 84,051 173,973 - 451,036
Charge for the year - (67,710) (112,762) - (196,051)
Disposals - - (6,835) (15,579) - (9,914)
Exchange difference - (4,568) 1,489
Balance, end of year 20,274 71,898 594,920 208,834 297,940 - 1,193,866
Net book value 404,323 2,261,679 274,325 130,964 674,291 41,798 3,787,381
Balance at 31 December 2017
Balance at 31 December 2016 411,600 2,306,000 273,441 153,402 660,177 220,890 4,025,511
i. The latest independent valuation of the Interest in leasehold land and building to ascertain the open market value of
the leasehold land and building was carried by Bode Adedeji Partnership, professional estate surveyors and valuers,
as at 31 December 2016. No valuation was carried out in the current financial year; it is the Group’s policy to carry-
out valuations of its leasehold land and building at least once within three financial year. The Group’s assessment is
that there has not been significant risk of impairment in the open market value of the land and building, and they are
currently carried at the revalued amount plus the additions less amortisation of the lease charge/depreciation during the
period for leasehold land: N404,323,000.00 (31 December 2016: N411,600,000.00) and building: N2,261,679,000.00
(31 December 2016: N2,306,000,000.00).
ii. The carrying amount of the Group’s leasehold land would have been N16,860,000.00 (31 December 2016:
N17,186,000.00) based on the cost model if it had not been restated at the revalued amount.
iii. There are no other leased assets included in the Group’s property and equipment apart from leasehold land
(31 December 2016: Nil)
iv. The Group had no capital commitments as at the Statement of Financial Position date
(31 December 2016: Nil)
v. The transfer from PPE work-in-progress related to cost incurred for leasehold improvement which have been
subsequently converted to lease payment based in-line the final contract with the landlord in respect of the
upgrade of the Wapic Insurance Ghana Limited Head office
214 Annual Report & Accounts 2018
Technology and Innovation
vi. The Company has no legal obligation relating to dismantling/restoration cost in the locations it is situtated.
(31 December 2016: Nil)
18. (b) Property and equipment - Company
As at 31 December 2017
Leasehold Building Motor Computer Office Work in Total
Land Vehicles Equipment Equipment progress
Cost N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000
Balance, beginning of year 424,597 2,330,711 577,555 243,313 817,154 158,641 4,551,971
Reclassification from PPE - - - (5,009) (5,009)
Additions - - 55,372 6,647 40,328 105,213
Reclassifications - 2,866 - - 153,635 (153,635) -
Disposals - - (80,026)
- (61,328) (16,140) - (157,494)
Balance, end of year 424,597 2,333,577 516,227 282,545 897,410 40,326 4,494,682
Accumulated depreciation
Balance, beginning of year 12,997 24,711 415,950 113,424 173,250 - 740,332
Charge for the year 7,277 47,187 93,981 73,859 163,753 - 386,057
Disposals - (15,579) (76,902) - (153,214)
- (60,733)
Balance, end of year 20,274 71,898 449,198 171,704 260,101 - 973,175
Net book value 404,323 2,261,679 67,029 110,841 637,309 40,326 3,521,507
Balance at 31 December 2017
Balance at 31 December 2016 411,600 2,306,000 161,605 129,889 643,904 158,641 3,811,639
i. The latest independent valuation of the Interest in leasehold land and building to ascertain the open market value of
the leasehold land and building was carried by Bode Adedeji Partnership, professional estate surveyors and valuers, as
at 31 December 2016. No valuation was carried out in the current financial year; it is the Company’s policy to carry-out
valuations of its leasehold land and building at least once within three financial year. The Company’s assessment is that
there has not been significant risk of impairment in the open market value of the land and building and they are currently
carried at the latest revalued amount plus the additions less amortisation of the lease charge/depreciation during the
period for leasehold land: N404,323,000.00 (31 December 2016: N411,600,000.00) and building: N2,261,680,000.00
(31 December 2016: N2,306,000,000.00).
ii. The carrying amount of the Company’s leasehold land would have been N16,860,000.00 (31 December 2016:
N17,186,000.00) based on the cost model if it had not been restated at the revalued amount.
iii. There are no other leased assets included in the Company’s property and equipment apart from leasehold land (31
December 2016: Nil)
iv. The Company had no capital commitments as at the Statement of Financial Position date (31 December 2016: Nil)
v. The Company has no legal obligation relating to dismantling/restoration cost in the locations it is situtated. (31
December 2016: Nil)
Annual Report & Accounts 2018 215
Technology and Innovation
19. Statutory deposit
This 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 for day to day business.
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Balance, beginning of year 622,110 617,632 300,000 300,000
Exchange difference - (5,069) - -
Additions 20,401 - -
15,934
Balance, end of year 638,044 632,964 300,000 300,000
20. Insurance contract liabilities
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Outstanding claims (See note (a) below): 2,437,182 1,619,805 1,142,006 724,657
– Claims reported and loss adjustment expenses 2,056,710 2,206,617 859,788 977,440
– Claims incurred but not reported 4,493,892 3,826,422 1,702,097
Total outstanding claims 2,001,794
– Claims payable 137,011 224,709 45,717 224,709
Unearned premiums (See note (b) below) 4,788,068 2,954,613 3,581,766 1,890,526
Additional Unexpired Risk Reserve 57,517 - - -
Life insurance contract liabilities (See note (d) below) - -
144,985 135,721
Total insurance contract liabilities 9,621,473 7,141,465 5,629,277 3,817,332
Age Analysis of Outstanding Claims (claims reported and loss adjustment expense) 202,890 209,313
0-90 days 126,059 195,514
91-180 days 180,809 80,473
181-270 days 118,714 97,434
271-365 days 513,534 141,923
Above 365 days 1,142,006 724,657
216 Annual Report & Accounts 2018
Technology and Innovation
Outstanding claims Group Group Company Company
2018 2017 2018 2017
Group life 31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
1,483,273 1,343,845 - -
Fire 975,544 447,151 505,845 168,744
General accident 419,658 571,603 369,828 514,776
Motor 624,995 645,429 154,963 237,069
Marine 45,985 74,278
Oil and Energy 723,902 556,345 43,466 57,581
Engineering 161,551 117,967 723,902 556,345
Aviation 64,964 144,806
Bond 57,784 97,778
1,200 4,840 57,784 64,964
1,200 4,840
Total outstanding claims 4,493,892 3,826,422 2,001,794 1,702,097
-- -
Outstanding Claims relates to reserves held against claims reported to have occurred but necessary support
documentation are yet to be provided.
Also included in Outstanding Claim is Incurred but not reported (IBNR) reserve which is actuarilly determined.
The movement in outstanding claims reserve during the year was as follows:
Balance, beginning of year 3,826,422 3,278,155 1,702,097 1,576,238
Exchange difference 321,452 (42,233) - -
Increase/(decrease) in outstanding claims reserve 346,018 590,500
299,697 125,859
Balance, end of year
4,493,892 3,826,422 2,001,794 1,702,097
----
Annual Report & Accounts 2018 217
Technology and Innovation Group Group Company Company
2018 2017 2018 2017
(b ). Unearned premiums
31-Dec 31-Dec 31-Dec 31-Dec
Group life N’000 N’000 N’000 N’000
Fire
General accident 691,199 771,308 - -
Motor 171,021 144,571 115,367 136,321
Marine 474,679 457,204 447,063 450,209
Engineering 711,123 603,470 288,899 329,031
Oil and Energy 132,874 156,563 125,228 155,759
Aviation 1,955,037 659,113 1,955,037 659,113
Bond 615,073 125,630 613,110 123,339
37,062 36,324 37,062 36,324
Total unearned premium
- 430 - 430
4,788,068 2,954,613 3,581,766 1,890,526
(c). The movement in unearned premium account during the year was as follows:
Balance, beginning of year 2,954,613 2,748,461 1,890,526 1,996,868
Exchange difference 158,573 (12,336) - -
Increase/(decrease) in unearned premium 218,488
Balance, end of year 1,674,882 1,691,240 (106,342)
(d). Life insurance contract liabilities
4,788,068 2,954,613 3,581,766 1,890,526
Balance, beginning of year
Addition/(Release) during the year Group Group Company Company
Balance, end of year 2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
135,721 156,208 - -
9,264 (20,487) - -
144,985 135,721 - -
- -
218 Annual Report & Accounts 2018
Technology and Innovation
21. Investment contract liabilities:
(a) At amortised cost
Company Company Group Group
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Group deposit administration -Interest linked 1,116,313 54,472 --
Individual deposit administration -Interest linked 54,472 1,009,388 --
Balance, end of year 1,170,785 1,063,860 --
(b). The movement in deposit administration funds during the year was as follows:
Balance, beginning of year 1,063,860 920,154 --
Additions 698,558 326,029 --
Withdrawals (167,672) --
Guaranteed interest on deposit administration (530,066) --
Reversal of surplus reserves 60,511 57,988 --
(72,639)
Balance, end of year (122,078) --
1,170,785 1,063,860
22. Trade payables Group Group Company Company
2018 2017 2018 2017
Due to reinsurance
Commissions payable 31-Dec 31-Dec 31-Dec 31-Dec
Balance, end of year N’000 N’000 N’000 N’000
119,811 290,618 27,516 195,230
135,573 225,753 135,454 220,184
255,384 516,371 162,970 415,414
Annual Report & Accounts 2018 219
Technology and Innovation Group Group Company Company
2018 2017 2018 2017
23. Other Liabilities
31-Dec 31-Dec 31-Dec 31-Dec
Accrued expenses (see (a) below) N’000 N’000 N’000 N’000
Accounts payable (see (b) below)
Due to related parties (see note (c) below) 241,155 273,396 151,132 185,032
Due to contractors 837,585 839,195 433,641 617,360
Other taxes 1,280,863 328,446
Deferred commission income 84 - 89,493
Premium deposits - 89,493 - 90,260
106,439 123,665 93,440
Balance, end of year 143,532 104,017 172,143
188,734 46,208 535,651 13,759
535,651
1,946,741 1,458,748 2,697,095 1,417,790
(a). Breakdown of accrued expenses is analysed below: 76,220 60,384 51,220 40,384
27,191 20,682 18,799 15,729
NAICOM annual levy 29,931 47,172 25,427
Audit fee and related expenses 18,385 22,484 7,791 8,555
Staff expense payable 8,127 38,046 1,095 37,146
Directors’ and board expenses 14,702
Accrued training cost 55,543 - 0 -
Accrued advert and publicity expense 11,056 83,759 14,702 56,922
Consultancy and professional fees 241,155 46,471
Office rent 869 11,054 869
Balance, end of year 273,396 151,132 185,032
(b). Breakdown of accounts payable is analysed below: - 76 - -
Pension payable 119,755 257,177 119,755 241,624
Expense payable 117,239 160,010 117,239 160,010
Fixed asset payable 36,590 36,590
Investment payable - 48,449 -
Unallocated premium & refunds (i) 90,709 94,390 45,222 -
Unclaimed dividend 107,730 84,746 107,730 94,390
Bank Cheques Payable 24,080 157,757 24,080 84,746
Others 378,072 839,195 19,615
Balance, end of year 837,585 433,641 -
617,360
(i). This relates tp payments yet to be matched on policies and other credit balances such as unpaid refunds due to
various policyholders
220 Annual Report & Accounts 2018
Technology and Innovation
(c). This relates to recoverable from the Company by related entities - for premium on Life businesses received
on-behalf of Wapic Life Assurance by the Company and reimbursement of cost incurred on-behalf of the Company.
Breakdown of due to related parties is analysed below:
Company Company
2018 2017
31-Dec 31-Dec
N’000 N’000
Due to Wapic Life - Net shared premium reciepts for 1,280,863 328,446
Life business
Balance, end of year 1,280,863 328,446
--
24. Deferred taxation
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied
by the same taxation authority on either the taxable entity or different taxable entities where there is an intention
to settle the balances on a net basis.
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Deferred tax assets 68,260 - 68,260 -
Deferred tax liabilities - 202,547 - 202,548
Net deferred tax 68,260 202,547 68,260 202,548
(a). Net deferred tax is attributable to the following: (61,494) 20,477 (61,494) 20,477
- (54,611) - (54,611)
Property and equipment
Trade receivable (6,766) 252 (6,766) 252
Tax losses - 236,429 236,430
Fair value gains on revaluation of property and
equipment (68,260) 202,547 (68,260) 202,548
Total
Annual Report & Accounts 2018 221
Technology and Innovation
(b). The movement in deferred tax account during the year was as follows: Group Company Company
Group 2017 2018 2017
2018
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Balance, beginning of year (202,547) (277,657) (202,548) (393,175)
Movement during the year 270,807 75,110 270,808 190,627
Balance, end of year 68,260 (202,547) 68,260 (202,548)
Deferred tax assets of N999 million as at 31 December 2018 has not been recognised because it is not probable that
future taxable profits will be available against which they can be utilised.
25. Current income tax liabilities
(a). The movement in this account during the year was as follows: Group Company Company
Group 2017 2018 2017
2018
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Balance, beginning of year 263,793 208,382 115,315 88,114
Exchange difference - - -
Charge for the year (see note (b) below): 166,991
Payments during the year 106,848 (111,580) 85,898 105,608
(111,740) (62,110) (78,407)
Balance, end of year 258,901 263,793 139,103 115,315
(b). The tax charge for the year comprises: 106,505 145,885 85,804 88,281
94 14,905 94 14,904
Corporate income tax charge/Minimum tax - 6,202 -
Education levy - - 2,423
Information technology development levy 249 -
Prior year under provision
106,848 166,992 85,898 105,608
Deferred tax (credit)/charge (270,807) (75,110) (270,808) (190,627)
Total tax (credit)/charge for the year (163,959) 91,881 (184,910) (85,019)
Deferred tax assets of N658.5million as at 31 December 2017 has not been recognised because it is not probable
that future taxable profits will be available against which they can be utilised.
222 Annual Report & Accounts 2018
Technology and Innovation
(c). Reconciliation of Group Group Company Company
effective tax rate
Tax 2018 Tax 2017 Tax 2018 Tax 2017
Profit/(Loss) before Tax rate 31-Dec rate 31-Dec rate 31-Dec rate 31-Dec
N’000 N’000 N’000 N’000
187,234 1,622,691 (602,183) 230,625
Income tax using the 30% 56,170 30% 486,807 30% (180,655) 30% 69,187
domestic corporation tax
rate
Effect of tax rate in 46% 86,475 (2)% (28,309) 0% - 0% -
foreign jurisdictions
Non deductible expense 0% 97% 1,575,875 0% 676% 1,558,965
Tax exempt income 0% (66)% (1,076,858) 0% (266)% (614,563)
Corporate income tax (57)% (106,505) (9)% (145,885) 14% (85,804) (38)% (88,281)
charge
Temporary difference 0% 14% 232,577 0% 100% 230,683
Prior year over provision (0)% (249) 0% - 0% - 0% -
Deferred tax (145)% (5)% (75,110) 45% (270,808) (83)% (190,627)
(270,807)
Information technology 0% - (0)% (6,202) 0% - (1)% (2,423)
tax levy
Tertiary education tax (0)% (94) (1)% (14,905) 0% (94) (6)% (14,904)
Exempted permanent 156% 71,051 (35)% (571,203) (59)% 352,451 (418)% (964,349)
differences
30% (163,959) 23% 376,787 30% (184,910) (7)% (16,312)
- (284,906) - (68,707)
Annual Report & Accounts 2018 223
Technology and Innovation
26. Share capital
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Authorized: 8,500,000 8,500,000 8,500,000 8,500,000
17,000,000,000 units ordinary shares of 50k each
Issued and fully paid: 6,691,369 6,691,369 6,691,369 6,691,369
13,382,738,248 units of ordinary shares of 50k each
(2017: 13,382,738,248 ordinary shares of 50k each)
27. Share premium
Share premium comprises additional paid-in capital in excess of the par value. This reserve is not available for
distribution.
28. Contingency reserves
In accordance with Section 21 (1) of Insurance Act 2003, the contingency reserve is credited with the greater of 3%
of total premiums, or 20% of the profits. This shall accumulate until the reserve reaches the amount of greater of
minimum paid-up capital or 50 percent of net premium.
(b) The movement in this account during the year is as follows: Group Company Company
2017 2018 2017
Group
2018 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000
31-Dec
N’000
Balance, beginning of year 2,061,153 1,807,949 1,742,067 1,550,425
Transfer from profit and loss 375,050 253,204 311,182 191,642
Balance, end of year 2,436,203 2,061,153 2,053,249 1,742,067
224 Annual Report & Accounts 2018
Technology and Innovation
29. Other reserves Group Group Company Company
2018 2017 2018 2017
(a). Revaluation reserve
31-Dec 31-Dec 31-Dec 31-Dec
Balance, beginning of year N’000 N’000 N’000 N’000
Balance, end of year 970,741 970,741 970,741 970,741
(b) Foreign currency translation reserve 970,741 970,741 970,741 970,741
Balance, beginning of year Group Group Company Company
Changes during the year 2018 2017 2018 2017
Balance, end of year 31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
(c) Fair value reserve 87,855 115,465
Balance, beginning of year (46,490) (27,610) - -
Changes during the year - -
Net reclassification adjustments for realised net gains/
(losses) 41,365 87,855 --
Impact of ECL allowance on opening reserves
IFRS 9 Impairment (352,890) (216,879) (280,347) (163,036)
(851,421) (7,292) (666,603) 11,408
Balance, end of year
(128,719) (128,719)
(d). Merger reserves
Balance, beginning of year 20,223 11,399
Changes during the year 2,361 (10,173)
Balance, end of year (1,181,727) (352,890) (945,724) (280,347)
(e). Share of other comprehensive income of associates (19,367) (19,367) (19,367) (19,367)
Balance, beginning of year - - - -
Changes during the year
(19,367) (19,367) (19,367) (19,367)
Balance, end of year
255,365 359,783 --
Total (258,342) (104,418) --
(2,977) 255,365 --
(191,965) 941,704 5,650 671,027
Annual Report & Accounts 2018 225
Technology and Innovation Group Group Company Company
2018 2017 2018 2017
30. Retained earnings
31-Dec 31-Dec 31-Dec 31-Dec
The movement in this account during the year was as N’000 N’000 N’000 N’000
follows;
2,068,616 662,291 61,095 (191,626)
Balance at 1 January 2018 (65,042) - (22,273) -
IFRS 9 Opening Adjustment 351,193 (417,273)
Transfer from profit or loss 1,530,810 (311,182) 315,644
Transfer to contingency reserve (see note 28(b) above) (375,050) (253,204) (191,642)
Transfer from revaluation reserve (see note 29(a) above) - -
128,719 128,719
Balance, end of the year
1,979,717 2,068,616 (689,633) 61,095
31. Net premium income Group Company Company
2017 2018 2017
Group
31-Dec 31-Dec 31-Dec
2018 N’000 N’000 N’000
31-Dec
N’000
Short-term insurance contracts: 13,730,988 9,701,299 10,372,723 6,388,069
(1,617,365) (218,488) (1,691,240) 106,342
– Gross premium -
(57,517) - -
– Movement in unearned premium
– Movement in Additional unexpired risk
reserve
Long-term insurance contracts: 161,496 106,317 - -
– Gross premium
Premium revenue arising from insurance 12,217,602 9,589,128 8,681,483 6,494,411
contracts issued
Short-term reinsurance contract: (5,427,814) (3,939,804) (4,131,014) (2,742,273)
– Reinsurance expense
Long-term reinsurance contract: (18,249) 2,715 - -
– Reinsurance expense
Reinsurance expenses (5,446,063) (3,937,089) (4,131,014) (2,742,273)
Net premium income 6,771,539 5,652,039 4,550,469 3,752,138
226 Annual Report & Accounts 2018
Technology and Innovation
32. Fee and commission income
Group Group Company Company
2018 2017
2018 2017
31-Dec 31-Dec
31-Dec 31-Dec N’000 N’000
N’000 N’000
Policy administration 832,796 682,888 549,713 471,328
– Insurance contracts
Total 832,796 682,888 549,713 471,328
33. Claims expenses
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Insurance claims and loss adjustment 4,612,047 3,230,058 2,423,774 1,638,237
expenses 346,018 590,500 299,697 125,859
– Claims paid
– Changes in outstanding claims
Total claims and loss adjustment expense 4,958,065 3,820,558 2,723,471 1,764,096
Recoverable from reinsurance (1,877,556) (758,848) (850,268) (81,745)
Net insurance benefits and claims 3,080,509 3,061,710 1,873,203 1,682,351
34. Underwriting expenses Group Company Company
2017 2018 2017
Group
31-Dec 31-Dec 31-Dec
2018 N’000 N’000 N’000
31-Dec
N’000
Commission paid 2,176,104 1,498,255 1,765,376 1,065,583
Other acquisition cost 389,920 341,060 300,305 313,613
Changes in deferred acquisition cost (201,912) (81,748) (280,995)
(36,488)
Total -
2,364,112 1,757,567 1,784,686 1,342,708
Annual Report & Accounts 2018 227
Technology and Innovation Group Company Company
2017 2018 2017
35. Net investment income
31-Dec 31-Dec 31-Dec
(a). Investment income N’000 N’000 N’000
Group
2018
31-Dec
N’000
Dividend income 62,843 135,346 449,210 328,529
Interest income on fixed income securities 973,289 974,019 405,454 233,744
Interest income on cash and cash equivalents 44,984 68,205 21,150 15,267
Interest income on statutory deposits 63,297 86,671 37,981 52,003
Loss from sale of investment property (9,620) (10,280) (9,620) (10,280)
Rental income 2,000 2,000
Interest income on deposit for shares 2,133 2,133
25,323 - 12,903 -
Total 1,162,250 1,255,961 919,211 621,263
(b) Profit on investment contracts
Interest income 91,131 160,457 - -
Other Income (Reversal of surplus reserves 122,078 72,639 - -
(see note 21(b)))
Guaranteed interest (60,511) (57,988) - -
Other expenses
(3,316) (79,000) - -
Total 149,382 96,108 - -
36. Net realised gains on financial assets
Group Group Company Company
2017
2018 2017 2018
31-Dec
31-Dec 31-Dec 31-Dec N’000
N’000 N’000 N’000
Sale of FVOCI/available for sale financial 5,161 614,534 5,161 614,534
assets:
– Securities
Total 5,161 614,534 5,161 614,534
228 Annual Report & Accounts 2018
Technology and Innovation
37. Net fair value gain/(loss) on assets
(a) Fair value gain/(loss) through profit or loss
Group Group Company Company
2017
2018 2017 2018
31-Dec
31-Dec 31-Dec 31-Dec N’000
N’000 N’000 N’000
Fair value loss on equity securities - 1,675 - 789
17,000 (2,338) 17,000 (2,338)
Fair value loss on investment property (see
note 14(e))
Total 17,000 (663) 17,000 (1,549)
Net fair value gains on assets relate to financial assets categorised upon initial recognition at fair value
through profit or loss and other assets recognised at fair value through profit or loss such as held for trading
financial assets, financial assets through profit or loss and investment properties.
(b). Fair value (loss)/gain through other comprehensive income
Fair value loss on equity securities (577,132) (16,762) (498,302) (15,685)
(274,289) 9,470 (168,301) 27,093
Fair value (loss)/gain on fixed income
securities - (128,719) - (128,719)
Fair value loss recycled to profit or loss on
disposal of available for sale securties
Total (851,421) (136,011) (666,603) (117,311)
38. Other operating income Group Company Company
2017 2018 2017
Group
31-Dec 31-Dec 31-Dec
2018 N’000 N’000 N’000
31-Dec
N’000
Profit from sale of property and equipment 1,696 11,875 - 10,524
Interest income on staff loans 18,136 4,445 18,136 4,445
Other income received 552,922 556,395 453,868 441,795
Net foreign exchange (loss)/gain (74,640) 591,817 (74,998) 523,792
Total 498,114 1,164,532 397,006 980,556
(a) Other income received included income from recovery of impaired receivables previously written off of N
(b) 309 million and Value Added Tax (VAT) recoverable of N 31 million.
Included in net foreign exchange gain/(loss) is realized gain/(loss) on the translation of domiciliary bank
account balances as at year end.
Annual Report & Accounts 2018 229
Technology and Innovation
39. Employee benefit expense Group Company Company
2017 2018 2017
Group
31-Dec 31-Dec 31-Dec
2018 N’000 N’000 N’000
31-Dec
N’000
Staff cost 1,208,637 1,228,190 732,427 785,747
Pension cost 52,506 44,972 31,620 26,302
Staff training 77,307 54,519 27,048
Other staff cost 185,345 106,968 84,285
101,202 160,740
Total 1,523,795 1,481,332 979,306 923,382
40. Other operating expenses Group Company Company
2017 2018 2017
Group
31-Dec 31-Dec 31-Dec
2018 N’000 N’000 N’000
31-Dec
N’000
Depreciation (see note 18) 435,589 451,036 355,059 386,057
Amortization of intangible assets (see note 17) 114,168 35,218 112,766 33,651
Directors emoluments 82,092 33,700 45,850 33,700
Auditors remuneration 76,473 61,674 32,500
Professional fees: 41,115
- Legal services fees 24,328 16,195 11,631
- Professional fee on actuarial services and tax 62,935 91,249 18,499 32,647
advisory services 17,250
- Professional fees on advisory services 231,432 268,704 257,455
- Professional fees on consumer research - 5,828 231,432 -
- Professional fees on corporate strategy 12,316 -
development 214,588 12,316
Corporate branding and advert 99,306 152,937
Board expenses 192,896 70,970 52,006
Rent and rate 45,646 316,232 130,884 58,889
Insurance cost 353,046 22,627 45,646 139,634
Printing and stationaries 23,603 83,264 25,459 16,926
Newspapers and periodicals 44,260 18,149 66,205
Transport and tour 587 34,753
Support staff cost 608 202,080 453 284
Business marketing expenses 170,546 209,051 160,750 85,108
Subscription 427,444 217,335 179,442 161,237
Recruitment expense 216,609 170,925 202,905
46,148 11,524 33,020
15,631 1,608 2,742
4,171 782
230 Annual Report & Accounts 2018
Technology and Innovation
Write off of assets 30,000 - 30,000 -
Repairs and maintenance 375,016 318,098 354,798 288,928
Fines and penalty
Annual general meeting expense 200 26,894 200 26,894
Registrar maintenance expense 46,446 159,629 46,446 156,447
Statutory dues and levies 25,001 50,322 25,001 20,560
Audit and performance review expense 115,490 94,176
Bank charges 6,413 5,813
Investment management and custodian fees 7,734 19,348 7,409 12,681
Donations 12,505 10,044 11,329 7,659
Corporate philanthropy 26,590 69,240 24,151 69,240
14,300 14,300
Total 47,428 7,334 39,059 -
3,436,775 2,912,451 2,402,504 2,205,176
41. Earning per share
Basic earnings per share is calculated by dividing the profit/(loss) attributable to equity holders of the group
by the weighted average number of ordinary shares in issue during the year, excluding own ordinary shares
purchased by the Company. Diluted earnings per share is computed by dividing the profit/(loss) attributable
to equity holders of the Company by the weighted average number of ordinary shares outstanding after
adjusting the effects of all dilutive ordinary shares.
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Profit/(loss) attributable to the Company’s 351,193 1,530,810 (417,273) 315,644
equity holders
Weighted average number of ordinary shares in
issue (thousands)
Issued ordinary shares at 1 January/31 December 13,382,738 13,382,738 13,382,738 13,382,738
Basic and diluted earnings/(loss) per share (Kobo 3 11 (3) 2
per share)
Annual Report & Accounts 2018 231
Technology and Innovation
42. Staff information:
(a) Staff analysis:
i. Employees earning more than 1,000,000 per annum, other than the executive directors, whose duties were
wholly or mainly discharged in Nigeria, received emoluments (excluding pension contribution and other
allowances) in the following ranges:
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
Number Number Number Number
N1,000,001 – N2,000,000 - 39 - -
N2,000,001 – N3,000,000 37 42 22 21
N3,000,000 – N4,000,000 18 31 11 21
N4,000,001 – N5,000,000 38 20 25 11
N5,000,001 – N10,000,000 27 44 21 27
Above N10,000,000 13 23 10 18
Total 133 199 89 98
ii. The average number of full time persons employed by the Company during the year was as follows:
Group Group Company Company
2017
2018 2017 2018
31-Dec
31-Dec 31-Dec 31-Dec Number
Number Number Number
Management staff 9 14 6 10
Non management staff 124 185 83 88
Total 133 199 89 98
(b) Directors’ remuneration:
i. Remuneration paid to the directors of the Company was as follows:
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Directors’ fees and sitting allowances 82,092 33,700 45,850 33,700
Other directors’ expenses 141,192 129,810 141,192 129,810
Total 223,284 163,510 187,042 163,510
232 Annual Report & Accounts 2018
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ii. The directors’ remuneration shown above includes:
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
Chairman 3,600 2,700 3,600 2,700
Highest paid director 36,043 36,043 36,043 36,043
iii. The emoluments of all other directors fell within the
following range:
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
Number Number Number Number
N200,001 - N500,000 - - --
N500,001 - N5,000,000 - - --
N5,000,001 - N10,000,000 - - --
N10,000,001 - N20,000,000 11 11 11 11
Total 11 11 11 11
43. Contravention of laws and regulations
The Company paid fines totaling N200,000 in 2018. See table below for descriptions of the fines and amount paid
(31 December 2017: Nil)
Details Contravention
The company was fined for engaging the services of an Engaging the
unlicensed loss adjuster. A fine of N200, 000 was paid services of an
by the company to NAICOM unlicensed loss
adjuster
44. Litigations and claims
The Group in the ordinary course of business is presently involved in 16 (2017: 15) litigation cases while the Company is
involved in 15 (2017: 14) litigation cases. There was no other contingent liabilities against the Group and Company at the
reporting date. (2017: Nil).
Based on the advice of the solicitors, the Directors of the Company are of the opinion that none of the cases is likely to
have material adverse effect on the Company and they are not aware of any other pending and or threatened claims or
litigation which may be material to the financial statements.
45. Events after the end of the reporting period
No significant event that requires special disclosure occurred between the date of authorisation of the financial
statements and the date when the financial statements were issued.
Annual Report & Accounts 2018 233
Technology and Innovation
46. Dividend
There was no proposal for dividend in respect of the year ended 31 December 2018 (31 December 2017: Nil).
47. Comparatives
Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current
period.
48 Related parties
a) Parent
Wapic Insurance Plc is the parent Company of the Wapic Group.
b) Subsidiaries
The Company has two wholly owned subsidiaries as at 31 December 2018. These are Wapic Life Assurance
Limited, domiciled in Nigeria and Wapic Insurance (Ghana) Limited incorporated in Ghana. Transactions
between Wapic Insurance Plc and the subsidiaries also meet the definition of related party transactions. Where
these are eliminated on consolidation, they are not disclosed in the consolidated financial statements.
c) Associate
The Company has one associate company as at 31 December 2018, Coronation Merchant Bank Limited where
it has 25.5% (2017: 25.5%) holding. Transactions between Wapic Insurance Plc and the associate also meet
the definition of related party transactions. Where these are eliminated on consolidation, they are not disclosed
in the consolidated financial statements.
d) Transactions with key management personnel
The Group’s key management personnel and persons connected with them, are also considered to be related
parties for disclosure purposes. Key management personnel is defined as members of the board of directors of
the Company, including their close members of family and any entity over which they exercise control. Close
members of family are those who may be expected to influence, or be influenced by that individual in dealings
with Wapic Plc. and its subsidiaries.
234 Annual Report & Accounts 2018
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e) Key management personnel compensation
The compensation of key management personnel comprised the following:
Short term employees Group Group Company Company
benefits 2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000
313,487 276,420 301,996 258,828
Total 313,487 276,420 301,996 258,828
f) Key management personnel and director transactions
Key management personnel engaged in the following transactions with the Company during the year:
Transaction Transaction Balance Balance
values for values for the outstanding outstanding
the year
ended year ended as at as at
31-Dec 31-Dec 31-Dec 31-Dec
2018 2017
2018 2017
Directors Transactions
(i) Income received/receivable from key management personnel:
Mr. Aigboje Aig- Insurance 957 1,214 - -
Imoukhuede premium
Mr. Bababode Insurance 499 499 - -
Osunkoya premium
Mr. Barnabas Olise Insurance 5 5--
premium
Mrs. Ifeyinwa Osime Insurance 54 - - -
premium
Ms. Chizoba Ufoeze Insurance 46 46 - -
premium
Mr. Olusegun Insurance 10 - - -
Ogbonnewo premium
Mrs. Adeyinka Insurance 170 195 - -
Adekoya premium
Total 1,741 1,959 - -
(ii) Loans and advances to key management personnel:
Mr. Bode Ojeniyi Loans and - - 66,661 4,415
advances
Total - - 66,661 4,415
Annual Report & Accounts 2018 235
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g). Other related party transactions
Transactions with key management personnel’s related persons and entities as at end of year:
Transaction Transaction Balance Balance
values for values for the outstanding outstanding
the year
ended year ended as at as at
2018 2017 2018 2017
Entities Relationship Transactions
(i). Income received/receivable related entities:
Coronation Merchant Associate Insurance 21,983 48,445 --
Bank Limited company premium 166 1,265 --
- 1,732 --
Coronation Securities Associate Insurance 13,611 --
Limited company premium 16,481 1,447 --
2,545 934 --
Petralon Energy Common Insurance 1,469 --
director premium - - --
1,469 -
Coronation Capital Common Insurance 87,681
Limited director premium 946 68,904
- 87,681
Coronation Merchant Associate Interest 43,590 1,680
Bank Limited company income - --
1,042 --
Coronation Asset Associate Insurance -
Management company premium
105,000
Coronation Nomiees Associate Insurance 90
and Trustee Limited company premium -
35
Tengen Holdings Common Insurance -
director premium
90,424
Wapic Insurance Subsidiary Expense 242
(Ghana) Limited recoverable
196,833
Total
(ii). Expense paid/payable to related entities:
Coronation Merchant Common Claims expense
Bank Limited director
Coronation Securities Common Brokerage
Limited director service and
professional
fee
Coronation Capital Common Consultancy 105,000 - -
Limited director Fee - - -
- -
Coronation Capital Common Claims expense 10,500 - -
Limited director 884 1,280,863 328,446
- - -
Coronation Merchant Common Consultancy - - -
Bank Limited director Fee -
Coronation Nomiees Common Claims expense
and Trustee Limited director
Wapic Life Assurance Subsidiary Claims expense
Limited
Mr. Aigboje Aig- Common Claims expense
Imoukhuede director
Mr Adamu Mahmoud Common Claims expense
Atta director
Total 118,064 1,280,863 328,446
236 Annual Report & Accounts 2018
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(iii). Cash and cash equivalents
Coronation Merchant Common Money market - - 71,795 109,270
Bank Limited director placement -
Total - 71,795 109,270
Annual Report & Accounts 2018 237
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49. Hypothecation - Group
The Group is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance assets and
insurance liabilities. In particular, the key financial risk is that the in the long- term its investment proceeds will not be
sufficient to fund the obligations arising from its insurance and investment contracts. In response to the risk, the Group’s
assets and liabilities are allocated as follows:
Group- 31 December
2018
Insurance contract Investment contract Shareholders funds Total
Non life Life Non life Life Non life Life
In thousands of Naira 2,210,746 535,236 -- - 142,253 2,888,235
ASSETS 1,281,046 1,460,279 1,171,551 195,161 1,164,229 5,272,266
Cash and cash equivalents 1,797,059 324,140 450,730 2,571,929
Financial assets at fair value - - - - 34,962 - 34,962
through P or L/ Held for 3,299,119 393,023
trading -- - - 3,692,142
- -
Financial assets at fair value - - - - 684,405 64,769 749,174
through OCI/ Available for
sale 195,000 - - - 1,018,002 417,322 1,435,324
- -
Financial assets at amortised - - -- 58,480 - 253,480
cost/ Held to maturity - - -- 8,763,246 - 8,763,246
- -- -
Trade receivables 860,323 - -- - 4,648 -
- -- 476,361 157,149 481,009
Reinsurance assets - -- 2,463,856 - 3,481,328
- 2,712,678 68,260 68,260
Deferred acquisition cost 9,643,293 -- 200,000
- 1,171,551 34,192 2,150,370 34,192
Other receivables and 438,044 638,044
prepayments 14,685,699 30,363,591
Investment property
Investment in associates
Investment in subsidiaries
Intangible assets
Property and equipment
Deferred tax asset
Current Income tax assets
Statutory deposit
TOTAL ASSETS
LIABILITIES 7,305,023 2,316,450 -- - - 9,621,473
Insurance contract liabilities - - - 1,170,785 - - 1,170,785
Investment contract
liabilities - - -- 216,841 38,543 255,384
Trade payables - - -- 1,773,424 173,317 1,946,741
Other Liabilities - - -- 119,797 258,900
Current income tax - - -- 139,103
Deferred tax liabilities 7,305,023 2,316,450 - 1,170,785 - - -
TOTAL LIABILITIES 331,657 13,253,283
2,129,368
GAP 2,338,270 396,228 - 766 12,556,331 1,818,713 17,110,308
238 Annual Report & Accounts 2018
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49. Hypothecation - Group
The Group is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance assets
and insurance liabilities. In particular, the key financial risk is that the in the long- term its investment proceeds will
not be sufficient to fund the obligations arising from its insurance and investment contracts. In response to the risk,
the Group’s assets and liabilities are allocated as follows:
Group- 31 December 2017
Insurance contract Investment contract Shareholders funds Total
Non life Life Non life Life Non life Life
In thousands of Naira 322,585 205,219 -- 919,808 297,730 1,745,342
ASSETS 3,650,204 1,826,986 - 1,178,387 1,742,857 1,097,501 9,495,935
Cash and cash equivalents -- 486,998
Financial assets - - -- 220,491 707,489
Trade receivables 838,139 273,383 -- 474,779 - 1,586,301
Reinsurance assets -- 386,941
Deferred acquisition cost - - 562,191 143,852 530,793
Other receivables and - - 499,340 1,061,531
prepayments
Investment property 186,000 - - - 126,750 - 312,750
Investment in associates - - 8,264,440
Investment in subsidiaries - - - - 8,264,440 -
Intangible assets - - -
Property and equipment - - -- -- 479,685
Deferred tax asset - - 3,787,381
Statutory deposit - - - - 479,639 46
TOTAL ASSETS 2,305,588 -
4,996,928 - - 3,632,007 155,374 632,964
28,604,611
-- --
- - 432,964 200,000
- 1,178,387 17,509,374 2,614,334
LIABILITIES 3,817,332 2,250,874 - - 1,073,259 - 7,141,465
Insurance contract -- - 1,063,860 - - 1,063,860
liabilities
-- - - 499,537 16,834 516,371
Investment contract --
liabilities - - 1,279,298 179,452 1,458,750
Trade payables - - -- 115,315 148,478 263,793
- - -- 202,547 - 202,547
Provisions and other 3,817,332 2,250,874 - 1,063,860 3,169,956 10,646,786
payables 344,764
Current income tax
Deferred tax liabilities
TOTAL LIABILITIES
GAP 1,179,596 54,714 - 114,527 14,339,417 2,269,570 17,957,825
Annual Report & Accounts 2018 239
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49. Hypothecation - Company
The Company is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance
assets and insurance liabilities. In particular, the key financial risk is that the in the long- term its investment
proceeds will not be sufficient to fund the obligations arising from its insurance and investment contracts. In
response to the risk, the Company’s assets and liabilities are allocated as follows:
Company- 31 December 2018
Insurance Shareholders Total
contract funds
In thousands of Naira
ASSETS
Cash and cash equivalents 2,056,736 0 2,056,736
Financial assets at fair value through P or L/ Held for trading - --
Financial assets at fair value through OCI/ Available for sale 1,217,930 1,413,091
Financial assets at amortised cost/ Held to maturity 359,102 450,730 809,832
Trade receivables - 34,962 34,962
Reinsurance assets 2,187,984 - 2,187,984
Deferred acquisition cost - 598,828 598,828
Other receivables and prepayments - 1,017,312 1,017,312
Investment properties 186,000 67,480 253,480
Investment in associates - 5,059,810 5,059,810
Investment in subsidiaries - 5,360,915 5,360,915
Intangible assets 465,961 465,961
Property, plant and equipment 860,323 2,396,569 3,256,892
Deferred tax asset - 68,260 68,260
Statutory deposit - 300,000 300,000
TOTAL ASSETS 6,868,075 15,820,827 22,884,062
LIABILITIES 5,629,277 - 5,629,277
Insurance contract liabilities - - -
Investment contract liabilities - 162,970
Trade payables - 2,697,095 162,970
Provisions and other payables - 139,103 2,697,095
Current income tax liabilities - -
Deferred tax liabilities 2,999,168 139,103
TOTAL LIABILITIES 5,629,277 -
GAP 1,238,797 8,628,445
12,821,659 14,255,617
240 Annual Report & Accounts 2018
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49. Hypothecation
The Company is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance assets
and insurance liabilities. In particular, the key financial risk is that in the long- term its investment proceeds will not
be sufficient to fund the obligations arising from its insurance and investment contracts. In response to the risk, the
Company’s assets and liabilities are allocated as follows:
Company- 31 December 2017
Insurance Shareholders Total
contract funds
In thousands of Naira 322,585 588,438 911,023
ASSETS 3,650,204 706,725 4,356,929
Cash and cash equivalents 486,997
Financial assets - 486,997
Trade receivables 838,139 - 838,139
Reinsurance assets 317,832 317,832
Deferred acquisition cost - 871,239 871,239
Other receivables and prepayments - 126,750 312,750
Investment properties 186,000 5,059,810 5,059,810
Investment in associates - 3,876,571 3,876,571
Investment in subsidiaries - 476,144 476,144
Intangible assets 3,521,507 3,521,507
Property, plant and equipment -
Deferred tax asset - - -
Statutory deposit - 300,000 300,000
TOTAL ASSETS 4,996,928 16,332,013 21,328,941
LIABILITIES 3,817,332 - 3,817,332
Insurance contract liabilities - 415,414 415,414
Trade payables - 1,417,790
Provisions and other payables - 115,315 1,417,790
Current income tax liabilities - 202,548 115,315
Deferred tax liabilities 2,151,067
TOTAL LIABILITIES 3,817,332 202,548
5,968,399
GAP 1,179,596
14,180,946 15,360,542
Annual Report & Accounts 2018 241
Technology and Innovation
Other national disclosures:
Value Added Statement
For the year ended 31 December 2018
Group Group Company Company
2018 2017 2018 2017
31-Dec 31-Dec 31-Dec 31-Dec
N’000 % N’000 % N’000 % N’000 %
Net premium income - 5,967,535 4,848,867 4,550,469 3,752,138
Nigeria
- -
- Foreign 804,004 803,172 941,371 1,234,248
Investment Income - 1,193,376 3,193,586 - -
Nigeria 397,006 980,556
- -
- Foreign 140,416 160,552
(5,043,899) (4,393,226)
Other income - Nigeria 411,371 1,054,399 - -
- Foreign 86,743 110,133
Claims incurred, net commissions and operating expenses
- Nigeria (5,594,648) (5,217,412)
- Foreign (748,010) (1,363,018)
Value added 2,260,787 100 3,590,279 100 844,947 100 1,573,716 100
Applied to pay 1,523,795 67 1,481,332 41 979,306 116 923,382 59
Employee benefit expense (163,959) (7) 91,881 (5)
Government taxes 3 (184,910) (22) (85,019)
Retained in the business: 435,589 19 451,036 13 355,059 42 386,059 25
114,168 5 35,219 2
Depreciation of property 375,050 17 253,204 1 112,766 13 33,651 12
and equipment (23,857) (1) 1,277,607 8
7 311,182 37 191,642
Amortisation of intangible
assets 36 (728,455) (87) 124,001
To augment contingency
reserve
(Depletion)/augmentation
of reserves
Value added 2,260,787 100 3,590,279 100 844,947 100 1,573,716 100
242 Annual Report & Accounts 2018
Annual Report & Accounts 2018 Financial Summary Group Group Group Group Company Company Company Company Company
Statement of Financial position 2017 2016 2015 2014 2018 2017 2016 2015 2014
Group 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec
2018 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
31-Dec
N’000
Assets 2,888,235 1,745,342 2,220,395 7,053,721 5,173,243 2,056,736 911,023 311,223 3,320,235 3,190,253
Cash and cash 7,844,195 9,495,935 7,401,489 4,312,821 8,786,496 2,222,923 4,356,929 3,429,338 2,330,981 6,030,939
equivalents 34,962 707,489 553,575 552,079 2,699 34,962 486,997 553,574 534,723 -
922,583 838,139 724,547
Financial assets 3,692,142 1,586,301 1,572,830 414,545 667,928 2,187,984 317,832 1,094,415 339,529 618,021
749,174 530,793 447,934 253,508 598,828 281,344 214,138
Trade receivables
1,435,324 1,061,531 1,145,019 1,225,121 314,624 1,017,312 871,238 1,137,047 1,284,950 203,031
Reinsurance assets
8,763,246 8,264,440 7,173,843 5,244,301 - 5,059,810 5,059,810 5,059,810 4,364,339 -
Deferred acquisition
cost - - - - - 5,360,915 3,876,571 3,876,571 3,876,571 3,231,976
Other receivables and 253,480 312,750 539,930 674,950 4,056,314 253,480 312,750 539,930 639,950 4,021,314
prepayments 68,260 - - 363,353 664,759 68,260 - - 131,679 479,583
2,374,523 2,284,511
Investment in 3,481,328 3,787,381 4,025,510 1,570,978 3,256,892 3,521,507 3,811,639 1,480,074
associates
481,009 479,683 203,896 35,065 49,814 465,961 476,144 199,171 31,844 45,835
Investment in 638,044 632,964 617,632 521,547 518,508 300,000 300,000 300,000 300,000 300,000
subsidiaries
34,192
Investment property
30,363,591 28,604,609 25,902,053 23,694,609 22,058,871 22,884,062 21,328,940 20,594,062 20,163,859 19,815,164 Technology and Innovation
Deferred tax asset
Property, plant and
equipment
Intangible assets
Statutory deposit
Current income tax
asset
Total assets
Equity and Liabilities: 9,621,473 7,141,465 6,373,682 4,676,611 3,070,797 5,629,277 3,817,332 3,763,964 3,200,391 2,201,313
Liabilities Group Group Group Group Company
2018 2017 2016 2015 2017
Insurance contract
liabilities
Group Company Company Company Company
2014 2018 2016
243 2015 2014
244 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec Technology and Innovation
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Investment contract 1,170,785 1,063,860 920,154 1,196,180 1,176,266
liabilities - - - - -
255,384 516,371 235,800 210,576 417,655
Trade payables 1,946,741 1,458,748 1,320,043 2,496,916 2,893,034 162,970 415,414 157,870 104,066 328,885
2,697,095 1,417,790 1,157,450 2,228,084 2,731,208
Provisions and other - 202,547 277,657 - -
payables - 202,548 393,175 - -
258,901 263,793 208,382 152,029 300,498
Deferred income tax 139,103 115,315 88,114 57,636 162,681
liabilities
Current income tax
liabilities
Total liabilities 13,253,284 10,646,784 9,335,718 8,732,312 7,858,250 8,628,445 5,968,399 5,560,573 5,590,177 5,424,087
Equity attributable to 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369
parent company 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983
Share capital 2,436,203 2,061,153 1,807,949 1,625,511 1,436,917 2,053,249 1,742,067 1,550,425 1,389,162 1,232,784
Share premium (191,965) 1,209,743 (209,751)
Contingency reserves 1,979,717 941,704 325,958 5,650 671,027 788,338 19,025 460,605
Other reserves 2,068,616 662,291 660,185 (448,606) (689,633) 61,095 (191,626) 279,143 (188,664)
Retained earnings
Total Equity 17,110,307 17,957,825 16,566,335 14,962,297 14,200,621 14,255,617 15,360,541 15,033,489 14,573,682 14,391,077
Total Liabilities and 30,363,591 28,604,609 25,902,053 23,694,609 22,058,871 22,884,062 21,328,940 20,594,062 20,163,859 19,815,164
Equity
Annual Report & Accounts 2018
Annual Report & Accounts 2018 Statement of Profit or Loss and other Comprehensive Income
Group Group Group Group Group Company Company Company Company Company
2015 2014 2018 2017 2016 2015 2014
2018 2017 2016
31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec
31-Dec 31-Dec 31-Dec N’000 N’000 N’000 N’000 N’000 N’000 N’000
5,203,960 3,760,515 10,372,722 6,388,069 5,212,600 4,015,687 2,380,024
N’000 N’000 N’000
Gross premium written 13,892,484 9,807,616 7,100,713
Net underwriting 7,604,335 6,334,927 4,370,306 3,160,425 2,843,023 5,100,182 4,223,466 3,067,264 2,155,678 1,566,602
income 2,892,613 1,844,587
1,477,693 1,315,838 1,873,087
Total underwriting (5,453,885) (4,798,790) 2,893,778 1,817,085 2,942,261 (3,657,889) (3,025,059) 1,317,237 1,638,150
expenses 4,371,471 3,132,923 1,194,177
3,468,246 3,074,352 2,207,035
Underwriting profit 2,150,450 1,536,137 1,667,662 (99,238) 1,442,293 1,198,407 838,441 (71,548)
(370,277) 58,572 2,274,227 1,338,378 2,214,804 3,401,212 1,122,716 1,766,104
Total investment 1,831,907 3,130,472 1,297,385 178,261 2,364,884
income 236,833 1,036,327
(209,654) (412,142)
Net income 3,982,357 4,666,609 (64,419) 2,174,989 2,780,671 3,413,211 1,961,157 1,694,554
(116,437) 2,804,118 (3,382,854) (3,182,586) 624,185 2,235,984 1,904,404
Expenses (4,938,638) (4,432,116) (151,321) (629,129) (274,827) (209,850)
(325,143) (602,183) 230,625
Profit before tax 187,234 1,622,691 - 421,002 184,910 85,019 269,613 241,326
115,525 (208,127) 315,644 (5,214) 31,476
Income tax expense 163,959 (91,881) - (417,273)
Profit after tax 351,193 1,530,810
Other comprehensive income:
Items that are or may be reclassified to profit or loss:
Foreign currency (46,490) (27,610) (30,579) - - - --
translation difference
of foreign operations
Net changes in fair
value of AFS financial
instruments:
- Unrealised net gains/ (274,289) (7,292) 325,143 (168,301) 11,408 (116,437) (151,321) 325,143
(losses) arising during
the period
- Net reclassification - (128,719) - (128,719) (325,143) - Technology and Innovation
adjustments for
realised net gains/
(loses)
Share of other (258,342) (104,418) -- --
comprehensive income
of associates
245
246 Items will not be reclassified to profit or loss: Technology and Innovation
Revaluation gain -- - - 255,903 - - - - 243,898
on property and - - (36,836) - - - - (33,235)
equipment, net of tax
761,676 198,333
Deferred tax on -- 10 2
revaluation gain 10 2
on property and
equipment
Total comprehensive (802,699) 1,262,771 21,093 305,504 (1,094,049) 182,605 (156,535) 567,282
income for the year 2 (2) (3) 5 (0) 0
2 (2) (3) 5 (0) 0
Earnings per share 3 11
(basic)
Earnings per share 3 11
(adjusted)
Annual Report & Accounts 2018
Technology and Innovation
Annual Report & Accounts 2018 247
Technology and Innovation
05.
SHAREHOLDER
INFORMATION
Shareholder Engagement 249
Notice of Annual General Meeting 250
Explanatory Notes to Proposed Resolution 251
Capital Formation 253
E-Dividend Mandate Form 254
Shareholder Information Update Form 255
Proxy Form 256
Complaint Management 258
Investor Enquires 265
248 Annual Report & Accounts 2018
Technology and Innovation
Shareholder
Engagement
The Board and Management of Wapic Insurance Plc are AGM, the Company considers it important to hear from
committed to ensuring transparency in their dealings representatives of various shareholder associations in
with stakeholders. Accordingly, we provide Shareholders order to address shareholders’ concerns and receive advice
with a continuous and timely flow of financial and from them. This is held annually.
non- financial information in order to ensure that their
expectations are aligned with the Company’s corporate Rights and Responsibilities of Shareholders
objectives. Wapic Insurance Plc continues to carry out
several enhancements of its Investors Relations program Our Shareholders are encouraged to share in the
to effectively communicate with Shareholders. The responsibility of sustaining the Company’s corporate
Company, in keeping with best practice, employs various values by exercising their rights, which include:
channels of communication to provide information to its
Shareholders: • Voting at the Shareholders’ meeting
• Sharing in the property of the company upon
Channel Description
dissolution
Annual Report and Accounts: The Annual Report & • Participating in Shareholders’ meetings
Accounts is a comprehensive report of the Company’s • Electing and removing Directors
activities throughout the preceding year. They are • Approving by laws and changes thereto
produced in paper and electronic formats and posted • Appointing the auditor of the company
to Shareholders and other stakeholders at least 21 days • Examining corporate records, financial statements
before the AGM as required by law.
and Directors’ reports, and
Website: The Company’s website- www.wapic.com serves • Approving major or fundamental changes (such as
as a go-to resource and is continuously updated with
relevant information for our Shareholders. those affecting a company’s structure or business
activities).
Result Announcement: The Company ensures complete Investor Relations and Financial Information
access to financial performance information through
the publication of quarterly and annual results in the • Individual Shareholder Enquiry
papers and online media. Conference Calls Following the United Securities Ltd
publication of the Company’s results is the conference call Telephone: 234(1) 2714566-7
with Shareholders, investors and analysts. This allows the Email: [email protected]
investment community to gain a better understanding of
the Company’s performance and future plans. • Financial analysts and Institutional Investors
Annual General Meeting (AGM): The AGM is an annual Wapic Insurance Plc
event during which the Company’s Management and Telephone: +234 (1) 271 4500 Ext.4920
senior team meet with Shareholders to discuss the Email: [email protected]
Company’s performance, strategy and other concerns of
benefit to shareholders. Resolutions are voted upon by the * Contact your local Shareholders’ Association for details
Shareholders with the majority of votes as a determinant. on how you can be represented at the Meetings
Shareholder Associations Meetings*: In addition to the 249
Annual Report & Accounts 2018
Technology and Innovation
250 Annual Report & Accounts 2018
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