1 TABLE OF CONTENTS Vision Mission and Values Notice of Annual General Meeting Agenda Minutes of 35TH AGM Corporate Profile Board of Directors Report Treasurer’s Report Letter From the Registrar of Cooperatives and Friendly Societies Audited Financial Statements Report of The JCIA Nominating Committee Resolutions: Distribution of Surplus and Fixing of Maximum Liability JCIA Current Staff Members Prayer of St Francis of Assisi 02 04 06 07 20 23 31 37 38 76 78 80 84
The primary provider of innovative insurance solutions, exceeding customer and Shareholder expectations To provide courteous efficient high quality service by a motivated cadre of employees, guided by the highest standards of integrity and professionalism supported by the spirit of Co-operatives. • Prudence • Financial Security • Integrity and Professionalism • Co-operation "Vision without action is merely a dream. Vision with action can change the world" Joel Arthur Barker
4 NOTICE OF THE ANNUAL GENERAL MEETING OF THE JAMAICA COOPERATIVE INSURANCE AGENCY LIMITED Notice is hereby given that the Annual General Meeting of the Jamaica Cooperative Insurance Agency Limited (JCIA) for the period January 1, 2023 – December 30, 2023, will be held at 5 pm on April 25, 2024, at the Sullivan Hall 2 – 2a Manhattan Road, Kingston 5. The meeting will be held in a hybrid Format. Delegates are to bring their completed Nomination Forms if they have not been recently sent to JCIA. Registration begins at 4:30 pm and the meeting will commence at 5 pm to allow members to: 1. 1. Transact the ordinary business of the Jamaica Co-operative Insurance Agency 2. 2. Election of the Board members 3. 3. Fixing of the Maximum Liability Members are invited to register to attend the meeting online using the email provided [email protected]. Online registration begins at 9:00 a.m. Wednesday, April 24, 2024, to April 25, 2024, and closes at 4:00 pm. Registration in person on the day of the meeting starting at 4:00 pm and closes at 5 p.m. Delegates are to bring their completed Nomination Forms if they have not been recently sent to JCIA. BY ORDER OF THE BOARD __________________________ IONIE HENRY SECRETARY Dated this 2nd April, 2024
6 AGENDA 1. Ascertainment of Quorum 2. Call to Order 3. Prayers 4. Roll Call of Delegates 5. Minutes of Last AGM a. Amendments and Correction of Minutes b. Confirmation of Minutes c. Matters Arising 6. Reports a. Board of Directors b. Treasurer c. Audited Financial Statements 7. Motions a. Arising from Audited Financial Statements b. Distribution of Surplus c. Fixing of Maximum Liability 8. Election 9. Any Other Business 10. Adjournment
7 MINUTES OF AGM 2023 Minutes of the 35th Annual General Meeting (AGM) of the Jamaica Co-Operatives Insurance Agency (JCIA) Held on Thursday, May 25, 2023, at Sullivan Hall, Credit Union House 2-2A Manhattan Road Kingston 5 Chairman, Lieutenant Colonel, Clifton Lumsden called the 35th Annual General Meeting of the JCIA to order at 5:17 p.m. after ascertaining a quorum. He invited the members physically present to stand and to recite the prayer of St Francis of Assisi. This was done. ROLL CALL Secretary, Ms. Ionie Henry, did the roll call by naming the representatives from the various organizations and she commenced with the members who were online. 1. COK Mr. Steadman Pitterson 2. JCCUL Mrs. Andrea Messam 3. J.T.A Dr Margaret Bailey 4. Gateway Mr Ornell Bedassie 5. Lascelles Credit Union Ms. Michelle Ambersley 6. Essential & Emergency Credit Union Miss S. Taylor She named the members attending face-to-face BJ Staff 1. Mr. Lascelle Powell, JCCUL 1. Lt. Col Clifton Lumsden, 2. Lt. Col Michael Anglin, 3. Mr. Norris Gilbert. J.T.A. 1. Mr. Ray Howell
8 Manchester Co-op, Credit Union 1. Mrs. Paulette Stephenson Taylor NUCS 1. Ms. Ionie Henry 2. Mr. Fitzgerald Rowe 3. Miss Brenda Cuthbert 4. Mr. Bornette Donaldson. Secretary Henry also highlighted the presence of the League’s Manager, Mr. Robin Levy, Mrs. Sheryl Brown from the Department of Co-operatives and Friendly Societies (DCFS), Miss Joydene Jarrett from JPS & Partners, Ms. Vera Lindo from the League and Mrs. Hilary Reid from COFB Coop. Ms Henry noted the stenographer’s presence, recognized the JCIA’s staff, and advised that the Auditor would be in physical attendance shortly. Ms. Henry read the Notice. Notice is hereby given that the Annual General Meeting of the Jamaica Cooperatives Insurance Agency Limited for the period January 1, 2022, to December 31, 2022, will be held at 5:00 p.m. on May 25, 2023, at the Sullivan Hall, 2 - 2A Manhattan Road, Kingston 5. The meeting will be held in hybrid form to transact the order of business of the Jamaica Cooperatives Insurance Agency such as: 1. Election of Board Members, 2. Fixing of the Maximum Liability, 3. Distribution of Surplus and 4. to pass Resolutions to amend Rules 9, 22 and 30. The reports and the proposed amendments for the rules will be distributed online and in hard copy. Members are invited to register to attend the meeting online using the email provided. Online registration begins at 9:00 a.m. Wednesday, May 24, 2023, to May 25, 2023, and close at 4:00 p.m. Registration in person on the day of meeting starts at 4:00 p.m. and closes at 5:00 p.m. Delegates are to bring their completed Nomination Forms if they have not been recently sent to the JCIA. Signed by the Secretary Ionie Henry dated 11th of April 2023.
9 WELCOME & OPENING REMARKS Chairman Lumsden extended welcome to members of the Board of Directors, members representing the various organizations, JCIA’s staff and everyone attending the Annual General Meeting both face-to-face and online. He noted that based on all that was planned for the Meeting, he hoped that all could be done in a very expeditious manner, while at the same time ensuring full participation from those physically present as well as from those online. He added that the decision to have the Meeting in that format was made to provide the opportunity for greater participation especially because JCIA partnered with a wide range of organizations spreading across the length and breadth of the country. APOLOGY FOR ABSENCE/LATENESS No apology was tendered for absence or lateness. MINUTES OF THE LAST AGM. Ms. Henry stated that The Minutes was circulated and asked that it be taken as read. This was moved by member Fitzgerald Rowe, seconded by member Lascelle Powell and accepted. Secretary Henry then proceeded to guide the Meeting through the corrections, amendments, and confirmation of the Minutes. Corrections. ● There was an error in the section titled Reading and Correction of the Minutes, where Mr Blackwood was recorded as being from Essential & Emergency Services but he was actually from the Portland Cooperative Credit Union. ● On page 7, Church of the First Born should be COFB Cooperative Thrift Society Limited. ● It was also pointed out that the year listed at the bottom of each page should be 2022 and not 2021 as listed. ● On page 14, in the paragraph that started with expenses; in the third line, there was a “t” that was missing from the word participant. There being no other correction, Secretary Henry asked that the Minutes be confirmed. The Minutes were confirmed on a motion by Mr. Lascelle Powell, seconded by Mrs. Andrea Messam. Matters Arising There was no matter arising from the Minutes.
10 DIRECTORS’ REPORT President of the Board of Directors, Lt. Col. Clifton Lumsden said it gave him great pleasure to present the Directors report that outlined some of the details of the Board’s stewardship for the year ended 31st December 2022. He highlighted the fact that it was JCIA’s 35th anniversary and stated that an organization’s 35th Annual General Meeting was a special one as it showed that the company withstood three and a half decades of all the challenges associated with the development of a business. Lt. Col. Lumsden added that the afternoon’s assembly was a reminder that there was a lot for which the members ought to be grateful. He spoke of COVID-19, noting that it was no longer bearing down on the island in the menacing way that it did in the last three years, and that it showed that things could change drastically and immediately. He added that despite physical distancing, it boosted the interconnectivity among human beings and between persons and business entities. The Chairman said COVID-19 taught us many lessons. He mentioned the recognition of the importance of freedom of movement, the role of social interaction and the reinforcement of the practice of proper hygiene for survival. Additionally, he underscored the statement that many who were averse to the use of technology had embraced it and were seeing it as a regular part of their daily routine whilst more workers were opting for the continuation of work from home. This work from home phenomenon, he noted, had the potential to ease the kind of traffic and road conditions that existed prior to the COVID-19 pandemic. The Chairman then turned his attention to the impact of the pandemic on business in general. He spoke of lost time, lost profits and deferred timelines for goals, the need to boost customer satisfaction to ensure their retention to meet stakeholders’ expectations, the need to strongly focus on the workers’ health and safety, the recognition of mental health concerns, as well as the drive to expedite production back to pre-pandemic levels. Speaking specifically of JCIA, the Chairman said the company remained proactive and continued utilizing several strategies such as the greater use of technology for remote renewal of policies, online premium payment, online acceptance of new business cases and the online uploading of motor vehicle certificates that were established during the pandemic to aid with the achievement of its goals. JCIA, he added, was also mindful of enhancing the customer experience as in 2022, the company facilitated the move of both its Montego Bay and Mandeville offices to provide more comfortable spaces in better business locations and sought customer feedback by means of a survey that it conducted. Chairman Lumsden gave a picture of the national business space. He told the Meeting that in its Media Brief on the 23rd of November 2022, the PIOJ reported an estimated real value-added growth of 4.3% for the July to September 2022 quarter, relative to the corresponding quarter of 2021. This he noted emanated from the removal of COVID-19 containment measures globally and the increased business and consumer confidence. Chairman Lumsden highlighted the Goods Producing Industry that was estimated to have expanded by 3.2% due to improved performances in agriculture and manufacturing, two of the
11 four industries; the growth of the Services industry, the Finance and Insurance Services industry, that grew by 1% and that generally, the indications were that the Jamaican economy would continue on a growth trend within the short term. Turning again to JCIA, the Chairman said at the beginning of the year, the objectives were, increased profitability with the achievement of set company targets in all locations; improved and increased product delivery through enhanced technological capabilities; upgraded and enhanced corporate image and brand awareness through digital transformation and customer-centric activities as well as, to explore acquisitions, and to engage in joint venture, and partnership opportunities. He informed the Meeting that a reasonable amount of success was achieved in those areas as there was an improvement in productivity, specifically in the western end of the island with the resurgence of the tourism sector. Chairman Lumsden shared some of the production figure for the year under review: 1. Business written for the year was $468.5 Million up from $407 in 2021. 2. Cases written showed a total of 13,272 compared to 12,562 in 2021. 3. Claims handled in 2022 was 506 up from 499 in 2021. 4. Commission increased from $51.6 Million in 2021 to $55.2 Million in 2022. 5. Interest income experienced a decrease from $6.8 Million in 2021 to $6.4 Million in 2022 6. while other income grew in 2022 to $51.05 Million up from $39.37 Million in 2021, and 7. overall earnings grew from $98.6 Million in 2021 to $112.79 Million in 2022. He stated that he was pleased to report that JCIA recorded a modest surplus of $6.4 Million for the financial year 2022 and that the company continued to be proud of its sterling record of being compliant in all areas with the dictates of its regulators, the Financial Services Commission (FSC) and the Department of Co-operatives and Friendly Societies (DCFS). The Chairman on behalf of the Directors expressed congratulations to the company’s award winners for 2022. They were named in the various categories and would receive the awards at the League’s Annual General Meeting in June 2023. The Top Producers among the Cooperatives partners were the following: 1. Category III - Hector Deitrich Award - JTA Co-operative Credit Union. 2. Category II - O.J Thorbourne Award - JPS & Partners Co-op. C. U. 3. Category I - Ivan Green Award - BJ Staff Co-operative Credit Union. Sectional Top Achievers Awards 1. Group benefits award - Gateway Co-operative Credit Union and the runner up was Manchester Credit Union.
12 2. Property award - JTA Co-operative Credit Union and the runner up was First Heritage Co-operative Credit Union. 3. Motor award - The C&WJ Co-operative Credit Union and the runner up was COK Sodality Credit Union. Commendations were given to the Directors on the Board who served during the year 2022, by Chairman Lumsden. They were: 1. Lieutenant Colonel Michael Anglin, Vice President, 2. Mr. Norris Gilbert, Treasurer, 3. Miss Ionie Henry, Secretary 4. Mr. Ray Howell 5. Mr. Steadman Pitterson 6. Mr. Johnathan Brown. Their attendance record for the year was shared. The Chairman also expressed the Board’s gratitude to the many companies and stakeholders that worked alongside JCIA during what he described as a challenging year. In continuing his report, the Chairman said despite the global factors such as the war in Ukraine that was negatively affecting the supply chain, he was hopeful. He said as he considered JCIA’s theme for 2023, Achieving Growth Through People, Purpose and Technology, he realized that the focus in 2023 had to have the completion of the digitization of the company’s processes as a core activity. The Chairman mentioned the imminent danger posed by cyber-attacks and artificial intelligence (AI), then appealed to the gathering to revisit the strategies that they had in place to treat with this imminent danger while advising that of the JCIA’s Cyber Policy. He added that the return to normalcy in most sectors of the Jamaican life was an indication that in 2023 with sound leadership and a committed cadre of staff, the JCIA would have a great year. Before closing his presentation, the Board’s chairman recognized the contribution of the former General Manager of JCIA. He noted that Mrs. Joan Thompson proceeded on retirement at the end of December 2022 after several years of sterling contribution to the Agency. He added that Mrs. Thompson came to JCIA with many years of insurance experience and demonstrated the ability to create and write policies that benefited the company, and that the company was grateful for her years of service. The motion to accept the Board’s report was moved by Mr. Bornette Donaldson, seconded by Mrs Andrea Messam.
13 THE TREASURER’S & AUDITOR’S REPORTS Treasurer Norris Gilbert was asked to present his report and he apprised the Meeting that the Treasurer’s report started on page 28 of the AGM booklet. He advised that the Auditor’s report was on pages 36 – 38 and that pages 39 to 68 contained the Audited Financial Statements but that he would be asking the auditor, Mr. Andrew Thompson, from Mair Russell, Chartered Accountants to make his report. Mr Gilbert asked that a motion be moved to have the Auditor present an abridged version of the report. The motion was moved by Mr. Fitzgerald Rowe of NUCS, seconded by Mrs. Hilary Reid from the COFB Thrift Society Limited and all were in favour. Mr. Thompson presented the abridged version of the Independent Auditor’s report that would be given to the Registrar of Co-operatives and Friendly Societies. He said that his company had audited the Financial Statements of the Jamaica Co-operatives Insurance Agency Limited, (“the Agency”) which comprised, the statement of financial position as at December 31, 2022, statement of income and expenditure, Statement of other comprehensive income, statement of changes in equity and changes of cash flows for the year ended, and notes of the financial statements including a summary of significant accounting policies. Mr Thompson said in his company’s opinion, the accompanying financial statements gave a true and fair view of the financial position of the Agency as at December 31, 2022 and the financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS & the requirements of the Co-operative Societies Act. Mr. Thompson informed the Meeting that his company conducted the audit in accordance with International Standards on Auditing (ISAs), that Mair Russell was independent of the Agency, in accordance with International Ethical Standards Board for Accountants’ Code of Ethics of Professional Accounts, (IESBA Code) and that it fulfilled its ethical responsibilities in accordance with those requirements and the IESBA Code. Regarding the Legal and Regulatory Requirements; he state that as required by the Insurance and Co-operative Societies Act, the auditors obtained all the information and explanations which, to the best of their knowledge and belief, were necessary for the purposes of the audit. They were of the opinion that proper accounting records had been maintained, based on their examination of those records, and the financial statements which are in agreement therewith, gave the information required by the Co-operative Societies Act, in the manner required. The report dated May 8, 2023, was signed HLB Mair Russell, Chartered Accountants. Treasurer Gilbert thanked Mr. Thompson for his report and reiterated that the auditors were satisfied with the information provided to them that enabled them to form an opinion on JCIA’s financial position. He then asked for a motion that the Treasurer’s four-page report that started on page 28 be taken as read. The motion was moved by Mr Bornette Donaldson, seconded by Ms Brenda Cuthbert.
14 Mr Gilbert said that he would quickly highlight the major points of the report and entertain questions thereafter. Treasurer Gilbert highlighted the following from his report. Revenue and Expenditure For the year under review, the JCIA earned revenue of $112 Million which was 14% over the amount earned in the year 2021. This included: Commission Income of $55.29 Million compared to $47 Million the year before. This was $8 Million above what was earned in 2021 and the volume of business written that produced that level of commission was $468 Million Interest income was $6.46 Million when compared to $6.87 Million in 2021because at the beginning of 2022, the company didn't have as much in terms of excess cash to place on investments, and the interest rates were not as high, but they moved up during the year. Other income included service charges, foreign exchange gains and incentives that totalled $51 Million which was a 16% increase over the previous year. He then called attention to a table showing graphically what happened over the last four years in terms of the spread with the different income areas. Expenses - total expenses for the year was $104 Million and this was 17% above the year before. So, while income grew by 14%, expenses also grew but by 17%. Administrative expenses grew, and so did operating and general expenses. He stated that $43.87 Million was spent on emoluments for staff which represented 54% of the company’s expenses and this was more than the $40 Million spent the year before. Mr Gilbert pointed out that the staff welfare figure went up by 75% over the year and noted that the rise came as a result of the expanded cost for health insurance, the inclusion of all staff members in the lunch subsidy and the provision of all staff with the uniform allowance. Surplus- for the year being reviewed, the company made $6.48 Million compared to $8.78 made the year before. The Balance Sheet - assets at the end of 2022 totalled $244 Million and was up 12% above the company’s figure for the previous year. Current Assets were $227 Million Current Liabilities - predominantly trade and other payables was $143 Million showing a downward move when compared to 2021 Capital and Reserves amounted to $102 Million and this was up from the $95 Million the year before and was directly related to surplus made during the year. MOTION The motion for the acceptance of the Treasurer’s and Auditor’s Report was moved by Mrs. Andrea Messam representing JCCUL, seconded by Mr. Lascelle Powell from BJ Staff and accepted.
15 RESOLUTIONS Distribution of Surplus Treasurer Gilbert directed the Meeting’s attention to the table on page 76 that contained the Distribution of Surplus. He reiterated the $6.4 Million that was available for distribution and outlined what was being proposed: 1. Dividends to shareholders - $2.7M. 2. Honoraria to Directors - $970,000 3. Social Outreach - $300,000 4. Statutory Reserves - at least 20%. 5. Set aside for distribution – 18% Prior to the motion for the Distribution of Surplus, Mr. B Donaldson queried the honoraria for directors in 2021 and 2022. Treasurer Gilbert provided the clarification of the figures. Treasurer Gilbert moved that the distribution as proposed be accepted and the motion was seconded by Mr. Bornette Donaldson. A vote was taken on the matter and all were in favour. The Maximum Liability Treasurer Gilbert explained that it was really permission for the directors to engage in liabilities on the Company’s behalf, that it was for the company’s protection and that it had to be fixed every year. The capital share stood at $60M. He moved that the maximum liability of the company be fixed at ten (10) times the capital share of the organization. The motion was seconded by Mr. Fitzgerald Rowe. A vote was taken on the matter and all voted in favour. Rule amendments The Chairman spoke of the proposal to amend three of JCIA’s rules, namely # 9, #22 and #30. Each he said would be addressed separately under the supervision of Mrs Sheryl Brown from the Department of Cooperatives and Friendly Societies. Rule #9 - speaks about membership and who can be a member and the conditions attached to termination of membership. The existing Rule #9 reads: Membership in the Society shall be terminated (c) on loss of membership in accordance with Rule 6 (ii)(a). The recommendation was that, that be changed and amended to, and replaced by, ‘upon failure to comply with Rules 6(ii)(a)’.
16 This Rule; (6(ii) (a) was read to the Meeting to remind members of its contents. Rule #22 (i) and (ii) address the appointment of officers to the Board of Directors. The recommended change was: 22(i), at the first meeting of the Board of Directors which shall be held as soon as possible after their election, the Board of Directors shall elect from the numbers a President and one or more Vice Presidents and Treasurer, and a secretary. And number (ii), the Directors so elected shall be officers. Member Lascelle Powell queried the term ‘as soon as possible’ and was told that the Regulator provided the specific time of ten days in which the action should be executed, but that the actual focus of the amendment was really to treat with the Treasurer and Secretary who at the existing time were really not constituted officers. It was also noted that the Registrar had already examined the recommendation and given the permission to the Board for the Rule to be changed as is. Rule #30 - speaks of the role of the Managing Director in the financial management of the company’s funds. The recommendation was for that Rule to be amended to read: The Treasurer having now been recognized based on the previous rule change shall have care and custody of all funds, et cetera, et cetera, et cetera. So, the amendment was the change from Managing Director to Treasurer. Prior to the vote on the amendments, Mrs. Sheryl Brown reminded the Chairman that there needed to be 75% of the quorum to pass the Resolution. She asserted that at the start of the Meeting, there were twenty-seven (27) representatives. After ascertaining the required quorum, Mrs Brown gave the approval, and the motion was moved by member Lascelle Powell, seconded by Dr. Margaret Bailey, and accepted. Report of the Nominating Committee Chairman of the Nominating Committee, Mr. Ray Howell directed the Members’ attention to page 77 of the AGM magazine and reported the following: The Nominating Committee was appointed by the Board of Directors in keeping with Rule 44 (i) and consisted of the following persons: 1. Mr. Ray Howell, Chairman, 2. Miss Vera Lindo, member 3. Mr. Johnathan Brown, member. The members retiring at the Annual General Meeting 2023 were : 1. Mr. Steadman Pitterson, 2. Lieutenant Colonel Michael Anglin, 3. Lieutenant Colonel Clifton Lumsden, 4. and Mr. Jonathan Brown who retired at the end of 2022.
17 The member slated to retire at AGM 2024 was : 1. Miss Ionie Henry Those members retiring at the AGM 2025 were: 1. Mr. Ray Howell and 2. Mr. Norris Gilbert. The members nominated to fill the vacancies were the following: 1. Lieutenant Colonel Michael Anglin for three years; 2. Lieutenant Colonel Clifton Lumsden, for three years, 3. Mr. Lascelle Powell, for three years, 4. Mrs. Andrea Messam for two years to complete the unexpired term of Norris Gilbert and 5. Mrs. Paulette Stephenson-Taylor, one year to complete the term of Mr. Johnathan Brown. The profiles of the persons nominated were attached. Mrs. Sheryl Brown of the DCFS was tasked with directing the elections. Prior to the elections, member Donaldson requested clarification on the statement that Mr Johnathan Brown retired but his unexpired term would be filled by Mrs. Stephenson-Taylor. It was explained that there was an unexpired period to be served, since the Director retired before the completion of his term in office. Mrs. Sheryl Brown corroborated the explanation given to Mr Donaldson’s question and then asked for someone to move for the adoption of the report. The motion was moved by Ms. Mitchelle Ambersley of Lascelles Employees and Partners, seconded by Mr. Bornette Donaldson of NUC, and carried. Mrs S. Brown then asked thrice if there was any nomination from the floor and there was none, so she pronounced the members duly elected. Ms Henry reminded the Meeting that the names of the persons duly elected should be submitted within ten days to the office of the Department of Cooperatives and Friendly Societies, and that the resolutions passed to amend the three rules would not be effected until they had the approval of the Registrar. ANY OTHER BUSINESS There being no other business, the Chairman reminded the members about the souvenirs and thanked everyone for their attendance and participation.
18 TERMINATION All matters having been exhausted, Chairman Lumsden terminated the Meeting at 6:58 p.m. ____________________________ _________________________ Signature of Chairman Signature of Secretary ___________________ _______________________ Date Date
20 CORPORATE PROFILE JAMAICA CO-OPERATIVES INSURANCE AGENCY LIMITED The Jamaica Co-operatives Insurance Agency (JCIA) Formerly National Union of Co-operatives Insurance Services - NUCS_CIS, is an Insurance Agency which was formed under the Cooperatives Act and the Companies Act and is owned mainly for members of the Co-operative Movement in Jamaica. The company was formed in 1983 and is today one of the oldest insurance intermediaries operating in Jamaica. The company presently operates from four locations island-wide: 1. Head Office – 2-2a Manhattan Road, Kingston 5 2. COK Credit Union - Shop #8, Caledonia Mall, Mandeville Manchester 3. C&W Credit Union - 4-6 La Beadles Plaza, Santa Cruz St. Elizabeth 4. Gateway Credit Union - Unit #13, Fairview, Market Place, Montego Bay St. James The company currently has a staff complement of twenty-four (24) experienced and dedicated individuals ready to serve our corporate and individual clients. The Organisation is managed by a seven-member Board of Directors and a two-member management team and has membership in: 1. The Jamaica Insurance Agencies Association 2. The Jamaica Chamber of Commerce 3. The Business Process Industry Association of Jamaica 4. The Credit Union Managers Association 5. Caribbean Confederation of Credit Unions Currently, our Insurance Partners are: 1. Advantage General Insurance Company Ltd 2. Key Insurance Company Ltd 3. British Caribbean Insurance Company Ltd 4. General Accident Insurance Company Ltd 5. Guardian General Insurance Jamaica Ltd 6. Insurance Company of the West Indies 7. Sagicor Jamaica Ltd
21 We continue to be market innovators generating new ideas, resulting in new and dynamic products at affordable cost for all our clients. These Insurance products include: 1. Creditor Life Insurance 2. Motor Vehicle Insurance 3. Property Insurance 4. Cyber Insurance 5. Travel Insurance 6. Health Insurance 7. Group Life Insurance 8. Personal Accident Insurance
22 BOARD OF DIRECTORS Lt. Col. Micheal Anglin Ray Howell Andrea Messam Paulette Taylor Stephenson Ionie Henry Lascelle Powell Lt. Col. Clifton Lumsden Vice President Director Treasurer Director Secretary Director President
23 BOARD OF DIRECTORS REPORT For the year ended 31 st December 2023 On behalf of the Board of Directors, I take this opportunity to welcome you to our 36th AGM. For the year ended 31 December 2023, JCIA continued to improve over its performance of the prior years, and we will give more details of that at today’s AGM. Overview of the Jamaican Economy Preliminary reports from the world bank indicate that the Jamaican Economy grew by 2.3% in 2023. The PIOJ reported an estimated Real Value Added growth of 1.9% for the October–December 2023 quarter, relative to the corresponding quarter of 2022. The estimated out-turn for the review quarter largely reflected the impact of: 1. Higher levels of employment, which drove firms to increase operations to meet the growth in demand 2. Increased productive capacity in the Mining & Quarrying Industry, which facilitated an increase in alumina production, and 3. Increased Consumer confidence, associated with the perceived favourable prospects for job opportunities. 2024 Outlook for Jamaica Generally, the prospects in the short to medium term are positive based on: 1. Continued growth in the economies of Jamaica’s main trading partners, which augurs well for increased external demand, for example, tourism services 2. Higher demand stemming from increased employment levels, and 3. Increased economic activities, as firms continue to invest to meet higher domestic and external Lt. Col. Clifton Lumsden, JP PRESIDENT
24 demand, particularly within the Hotels & Restaurants and Manufacturing industries. The Hotels & Restaurants industry is expected to continue to record growth. Overview of JCIA JCIA continued to grow from strength to strength. This is reflected in our, staff and customer satisfaction as well as the performance of our main business targets, namely Business Written, Cases Written, Commission and Service Charge as well as our handling of customer claims and our financial performance. These are detailed below. Staff and Customer Satisfaction Surveys were done in 2023 to ascertain the level of Staff (October 2023) and Customer (December 2023) Satisfaction. The results were deemed commendable though there is always room for improvement. The overall results were staff 80% and Customers 90% satisfaction. 2023 JCIA Performance against Targets Table 1: Business Written 2023 LOCATION Business Written Actual Target Variance Kingston Personal Lines Kingston - Corporate Santa Cruz Mandeville Montego Bay 135,626,851 279,293,232 34,713,026 30,864,334 38,227,666 175,000,000 260,000,000 40,000,000 40,000,000 45,000,000 (39,373,149) 19,293,232 (5,286,974) (9,135,666) (6,772,334) TOTAL 518,725,109 560,000,000 (41,274,891) Table 2: Cases Written LOCATION Cases Written Actual Target Variance Kingston Personal Lines Kingston - Corporate Santa Cruz Mandeville Montego Bay 2,870 8,314 1,379 2,131 1,659 2,000 7,000 1,250 1,750 1,500 870 1,314 129 381 159 TOTAL 16,353 13,500 2,853
25 Table 3: Service Charge 2023 LOCATION Service Charge Actual Target Variance Kingston Personal Lines Kingston - Corporate Santa Cruz Mandeville Montego Bay 9,973,201 24,440,587 3,146,358 4,993,656 3,539,402 12,000,000 21,400,000 3,800,000 5,000,000 4,300,000 (2,026,799) 3,040,587 (653,642) (6,344) (760,598) TOTAL 46,093,204 46,500,000 (406,796) Table 4: Commission 2023 LOCATION Commission Actual Target Variance Kingston Personal Lines Kingston - Corporate Santa Cruz Mandeville Montego Bay 16,652,559 32,780,368 4,155,218 3,524,489 4,440,390 19,000,000 29,000,000 4,500,000 4,500,000 5,500,000 (2,347,441) 3,780,368 (344,782) (975,511) (1,059,610) TOTAL 61,553,024 62,500,000 (946,976) Claims For 2023 there were 464 claims received, the balance of open claims b/f was 962, claims closed 957 and so we ended the year with 677 open claims. We therefore started 2024 with 677 open claims. This monthly activity is detailed in the table below:
26 Table 1: 2023 Claims Activity by Month LOCATION Total Claims Reported this Month Total Claims Closed this Month Total YTD Claims Total Open Claims Overall Number Estimates of Loss/Damage Reported Number Estimates of Loss/Damage January February March April May June July August September October November December 40 36 38 41 38 42 42 42 49 34 33 29 11,061,354 14,281,357 8,827,006 8,548,768 6,882,771 12,073,592 18,052,955 9,184,032 10,359,336 24,986,320 15,571,960 8,178,411 102 42 67 25 20 33 488 26 54 36 35 29 40 76 114 155 193 235 277 319 368 402 435 464 1,104 1,098 1,069 1,085 1,103 1,112 666 682 677 679 677 677 168,944,546 180,005,900 194,287,257 203,114,263 211,663,031 218,545,802 230,619,395 248,672,349 256,600,207 298,031,703 263,422,780 264,986,090 YTD Total 464 139,829,451 957 Surplus Surplus is the amount by which the Revenue earned exceeds the level of expenditure. It is therefore regarded as a good indicator of the company’s financial performance. For 2023 we ended with a surplus of $9.4m against the 2023 performance of $6.4m. The level of Surplus for the last 6 years is detailed in the table and graphs below: Table 1: Surplus for 2018 to 2023 Year Income Expenditure Surplus 2018 2019 2020 2021 2022 2023 66,404,423 82,391,150 79,267,515 98,571,347 112,792,684 121,524,067 52,372,578 67,635,176 83,113,257 89,328,043 73,479,583 75,490,470 13,956,441 15,283,179 - 9,616,913 8,783,643 6,479,222 9,440,882 YTD Total 139,829,451
27 Graph 1: Surplus for 2018 to 2023 Regulatory Compliance JCIA continues to be proud of its record of being compliant with both of our regulators – the Financial Services Commission (FSC) and the Department of Co-operatives and Friendly Society (DCFS) during 2023. Annual JCIA Awards The 2023 top Producers among our Co-operatives Partners are: Category 1 – Ivan Green Award - Jamaica Defence Force CU Category 11 – Rev O J Thorbourn Award – Public Sector Employees CU Category 111 – Hector Dietrich Award – C & W CCU Sectional Top Achievement Awards 1. Group Benefits a. Top Achiever TIP Friendly Society b. Runner Up Manchester CCU 2. Property a. Top Achiever JTA Credit Union b. Runner Up C&WJ Credit Union 3. Motor a. Top Achiever C&WJ Credit Union b. Runner Up COK Sodality
28 Board of Directors 1. President Lt Col Clifton Lumsden 2. Vice President Lt Col Michael Anglin 3. Treasurer Andrea Wilson Messam 4. Secretary Ionie Henry 5. Director Ray Howell 6. Director Paulette Stephenson Taylor 7. Director Lascelle Powell Board Governance During the year, the Board provided oversight of the JCIA, through attendance at the following meetings: 1. Monthly Board Meetings – detailed in Table 1 below. 2. Strategic Management Retreat 3. Meetings of sub-committees Table 1: Monthly Board Meetings Directors Possible Meetings Attendance Apologies 1 2 3 4 5 6 7 Lt Col Clifton Lumsden Lt Col Michael Anglin Andrea Messam Ionie Henry Ray Howell Paulette Stephenson Taylor Lascelle Powell 12 12 7 12 12 7 7 11 12 6 12 12 7 6 1 1 1 Acknowledgements The Board of Directors are grateful for the continued growth of the Agency under their leadership and guidance. We couldn’t have done this without our staff members who are always willing to go the extra mile to ensure that our customers are satisfied.
29 We thank the following Companies and Stakeholders in particular that we worked with during 2023. Regulators 1. Financial Services Commission (FSC) and 2. Department of Co-operatives and Friendly Society (DCFS) Insurance Companies 1. Advantage General 2. British Caribbean Insurance Company 3. General Accident Insurance Company 4. Guardian General Insurance Company 5. Insurance Company of the West Indies 6. Key Insurance Company 7. Sagicor Life Jamaica Limited Investment Companies 1. Cumax Wealth Company 2. Sagicor Wealth Management 3. V M Wealth Management Partners 1. Jamaica Co-operatives Credit Union League 2. NUCS Suppliers 1. MAPCO Printers 2. Touchline Industries 3. Witters Promotional Items Contractors 1. EPIC Technologies 2. Salus Technologies
30 Looking Ahead to 2024 For 2024 we will strive to grow the Agency by working closely with our partners, staff and clients. The strategic plan for 2024 which was crafted and agreed in our last Board Retreat will become our path to the improved operations and continuing success. Every effort will be made to maintain our loyal clients and through extensive marketing efforts to attract new clients. We will continue to review our products and offering to ensure that we are able to offer the best from the Insurance Industry and to fulfil the needs of our clients. We will never lose sight of the fact that we were established to serve the needs of the Credit Unions and we will continue to work with them to establish strategic working arrangements that will see us expanding our physical presence at the Credit Unions. For and on behalf of the Board of Directors __________________________________ Lt. Col. Clifton Lumsden, JP PRESIDENT
31 TREASURER’S REPORT For the year ended 31 st December 2023 Financial Overview of JCIA 2023 was a good year for JCIA. Income was at the highest level for the last six years and while expenditure was higher than the previous year, surplus was at its highest level since 2019, though it is still below the 2018/19 levels. The details are shown in Table 1 below and the Graphs that follow. Table 1: JCIA Financial Performance 2018 to 2023 Year Income Expenditure Surplus 2018 2019 2020 2021 2022 2023 66,404,423 82,391,150 79,267,515 98,571,347 112,792,684 121,524,067 52,372,578 67,635,176 83,113,257 89,328,043 73,479,583 75,490,470 13,956,441 15,283,179 -9,616,913 8,783,643 6,479,222 9,440,882 Graph 1: Income 2018 to 2013 Andrea Wilson - Messam TREASURER
32 Table 2: Breakout of Expenditure 2018 to 2023 Year Administrative Operating Staff Financial & Other 2018 2019 2020 2021 2022 2023 11,691,538 16,622,116 22,220,995 26,804,351 26,899,442 26,540,002 7,893,982 10,862,841 11,419,382 10,386,473 15,796,485 17,466,625 30,109,721 36,361,080 50,292,235 49,887,343 57,683,098 58,023,845 1,472,248 1,703,133 6,395,853 1,322,958 2,219,144 3,605,290 Graph 2: Expenditure 2018 to 2013 Table 4: Surplus for 2018 to 2023 Year Income Expenditure Surplus 2018 2019 2020 2021 2022 2023 66,404,423 82,391,150 79,267,515 98,571,347 112,792,684 121,524,067 52,372,578 67,635,176 83,113,257 89,328,043 73,479,583 75,490,470 14,031,845 14,755,974 - 3,845,742 9,243,304 39,313,101 46,033,597
33 Graph 3: Surplus 2018 to 2023 Balance Sheet The highlights from our Balance SSheet performance are shown in Table 2 below. Table 2: JCIA Six Year Balance Sheet Breakout Year Non-Current Assets Current Assets Capital & Reserves Current Liabilities 2018 2019 2020 2021 2022 2023 94,293,695 153,316,405 42,540,864 40,163,371 16,977,769 14,010,475 101,590,449 89,272,674 194,588,310 237,639,487 227,985,223 264,644,776 101,139,678 115,340,118 95,051,073 102,803,718 101,879,940 110,671,388 94,744,466 127,248,961 142,078,101 174,999,140 143,083,052 167,983,863 Outlook for 2024 For 2024 we will continue on our strategic growth path and will endeavor to improve the levels of staff and customer satisfaction as well as the company’s financial viability.
34 Acknowledgements We appreciate the support of our clients, staff and suppliers. We will continue to provide good service and to manage our operations efficiently. On behalf of the Directors __________________________ Andrea Wilson - Messam Treasurer
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 37
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 38 Jamaica Co- operative Insurance Agency Limited Financial Statements December 31, 2023
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 39 Jamaica Co-operative Insurance Agency Limited December 31, 2023 Contents Page Independent auditor’s report 3-3 Financial Statement Statement of financial position 6 Statement of income and expenditure and Other comprehensive income 7 Statement of changes in equity 8 Statement of changes in equity 9 Statement of cash flows 10
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 40 hlbjm.com Partners: Sixto P. Coy, Karen A. Lewis 3 Haughton Avenue, Kingston 10, Jamaica W.I. 56 Market Street, Montego Bay, Jamaica W.I. TEL: (876) 926-2020/2 TEL: (876) 926-9400 TEL: (876) 952-2891 EMAIL: [email protected] HLB Mair Russell is an independent member of HLB the global advisory and accounting network Independent auditor’s report To the Registrar of Co-operative and Friendly Societies Re: Jamaica Co-Operative Insurance Agency Limited Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Jamaica Co-operative Insurance Agency Limited (“the Agency”), which comprise the statement of financial position as at December 31, 2023, statement of income and expenditure, statement of other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements including a summary of significant accounting policies. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Agency as at December 31, 2023, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and the requirement of the Co-operative Societies Act. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Agency in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) and we have fulfilled our other ethical responsibilities in accordance with these requirements and IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information Management is responsible for the other information. The other information comprises the annual report but does not include the financial statements and our auditor’s report thereon. The annual report is expected to be made available to us after the date of this auditor’s report. Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Responsibilities of Management and those charged with governance for the financial statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRS and the Co-operative Societies Act, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 41 HLB Mair Russell is an independent member of HLB the global advisory and accounting network Independent auditor’s report (cont’d) To the Registrar of Co-operative and Friendly Societies Re: Jamaica Co-operative Insurance Agency Limited Report on the Audit of the Financial Statements (cont’d) In preparing the financial statements, management is responsible for assessing the Agency’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Agency or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Agency’s financial reporting process. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Agency’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Agency to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that presents a true and fair view. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Agency to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 42 HLB Mair Russell is an independent member of HLB the global advisory and accounting network Independent auditor’s report (cont’d) To the Registrar of Co-operative and Friendly Societies Re: Jamaica Co-operative Credit Insurance Agency Limited Report on the Audit of the Financial Statements (cont’d) Auditors’ Responsibilities for the Audit of the financial statements (cont’d) We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matters or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements As required by the Insurance and the Co-operative Societies Act we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. In our opinion, proper accounting records have been maintained, so far as appears from our examination of those records, and the financial statements, which are in agreement therewith, give the information required by the Insurance and the Co-operative Societies Act, in the manner so required. The engagement partner on the audit resulting in this independent auditor’s report is Sixto Coy. Kingston, Jamaica March 4, 2024 Chartered Accountants
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 43 Jamaica Co-operative Insurance Agency Limited 6 Statement of financial position December 31, 2023 Note 2023 2022 $ $ Assets Non-current assets Earning Property, plant and equipment (4) 8,647,475 9,697,460 Investments (5) 25,000 5,551,309 Retirement benefits asset (6) 5,338,000 1,729,000 14,010,475 16,977,769 Current assets Trade and other receivables (7) 82,540,958 82,369,739 Prepayments 1,342,540 568,550 Cash and cash equivalents (8) 180,761,278 145,046,934 264,644,776 227,985,223 278,655,251 244,962,992 Equity and liabilities Capital and reserves Issued capital (9) 60,008,531 60,008,531 Statutory reserve (10) 20,800,578 17,616,558 Social outreach programme 370,000 70,000 Revenue reserve (11) 2,043,127 2,043,127 Indemnity reserve (12) 650,000 650,000 Retirement benefit reserve (13) 5,338,000 1,729,000 Unappropriated surplus 21,461,152 19,762,724 110,671,388 101,879,940 Current liabilities Trade and other payables (14) 167,983,863 143,083,052 167,983,863 143,083,052 Total equity and liabilities 278,655,251 244,962,992 The notes on the accompanying pages form an integral part of these financial statements. Approved for issue by the Board of Directors on March 4, 2024 and signed on its behalf by: ____________________) President ____________________________) Treasurer Clifton Lumsden Andrea Wilson-Messam
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 44 Jamaica Co-operative Insurance Agency Limited 7 Statement of income and expenditure and Other comprehensive income Year ended December 31, 2023 Note 2023 2022 $ $ Revenue: Commissions 61,553,024 55,288,822 Interest income 13,877,839 6,456,636 Other income (15) 46,093,204 51,047,226 121,524,067 112,792,684 Less Expense: Administrative expenses (16) (26,540,002) (26,897,442) Affiliation expenses (980,000) (1,181,750) Regional expenses (15) (3,069,460) (2,535,543) Impairment of financial asset (2,397,963) - (32,987,425) (30,614,735) Operating and general expenses (75,490,470) (73,479,583) Surplus before interest and tax 13,046,172 8,698,366 Financial and other: Bank charges and interest (2,861,058) (2,219,144) Gain/loss on foreign exchange (744,232) - (3,605,290) (2,219,144) Surplus for year 9,440,882 6,479,222 Other comprehensive income Honorarium paid (1,182,434) (1,100,000) Remeasurement on defined benefit plan 3,233,000 (6,303,000) Total comprehensive income/(deficit) for the year 11,491,448 (923,778) The notes on the accompanying pages form an integral part of these financial statements.
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 45 Jamaica Co-operative Insurance Agency Limited 8 Statement of changes in equity Year ended December 31, 2023 Issued Capital Statutory Reserve Social Outreach programme Revenue Reserve Indemnity Reserve Retirement Benefit Reserve Unappr- Surplus Total $ $ $ $ $ $ $ $ Balance at December 31, 2022 60,008,531 17,616,558 70,000 2,043,127 650,000 8,082,000 14,333,502 102,803,718 Surplus for the year - - - - - - 6,479,222 6,479,222 Other comprehensive income Honorarium - - - - - - (1,100,000) (1,100,000) Pension income - - - - - - (6,303,000) (6,303,000) Total comprehensive income - - - - - - (923,778) (923,778) Transaction with owners: Benefit reserve - - - - - (6,353,000) 6,353,000 - Total transaction with owners - - - - - 6,353,000 6,353,000 - Balance at December 31, 2022 60,008,531 17,616,558 70,000 2,043,127 650,000 1,729,000 19,762,724 101,879,940 Surplus for the year - - - - - - 9,440,882 9,440,882 Other comprehensive income Honorarium paid - - - - - - (1,182,434) (1,182,434) Pension income - - - - - - 3,233,000 3,233,000 Total comprehensive income - - - - - - 11,491,448 11,491,448 Transaction with owners: Benefit reserve - - - - - 3,609,000 (3,609,000) - Transfer to Social Outreach programme - - 300,000 - - - (300,000) - Dividends to members - - - - - - (2,700,000) (2,700,000) Transfer of statutory reserves - 3,184,020 - - - - (3,184,020) - Total transaction with owners - 3,184,020 300,000 - - 3,609,000 (9,793,020) (2,700,000) Balance at December 31, 2023 60,008,531 20,800,578 370,000 2,043,127 650,000 5,338,000 21,461,152 110,671,388 The notes on the accompanying pages form an integral part of these financial statements.
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 46 Jamaica Co-operative Insurance Agency Limited 9 Statement of changes in equity Year ended December 31, 2023 (cont’d) Issued Capital Statutory Reserve Social Outreach programme Revenue Reserve Indemnity Reserve Retirement Benefit Reserve Unappr- Surplus Total $ $ $ $ $ $ $ $ Balance at December 31, 2021 60,008,531 17,616,558 70,000 2,043,127 650,000 9,228,000 5,434,857 95,051,073 Surplus for the year - - - - - - 8,783,645 8,783,645 Other comprehensive income Pension income - - - - - - (1,031,000) (1,031,000) Total comprehensive income - - - - - - 7,752,646 7,752,645 Transaction with owners: Transfer to retirement - - - - - (1,146,000) 1,146,000 - Total transaction with owners - - - - - (1,146,000) 1,146,000 - Balance at December 31, 2021 60,008,531 17,616,558 70,000 2,043,127 650,000 8,082,000 14,333,502 102,803,718 Surplus for the year - - - - - - 6,479,222 6,479,222 Other comprehensive income Honorarium paid - - - - - - (1,100,000) (1,100,000) Pension income - - - - - - (6,303,000) (6,303,000) Total comprehensive income - - - - - - (7,403,000) (7,403,000) Transaction with owners: Benefit reserve - - - - - (6,353,000) 6,353,000 - Total transaction with owners - - - - - (6,353,000) 6,353,000 - Balance at December 31, 2022 60,008,531 17,616,558 70,000 2,043,127 650,000 1,729,000 19,762,724 101,879,940 The notes on the accompanying pages form an integral part of these financial statements.
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 47 Jamaica Co-operative Insurance Agency Limited 10 Statement of cash flows Year ended December 31, 2023 2023 2022 $ $ Cash flows from operating activities: Surplus/(deficit) for the year 11,491,448 (923,778) Adjustments for: Dividends (2,700,000) - Movement in pension expense (3,609,000) 6,353,000 Interest income (13,877,839) (6,456,636) Depreciation 2,748,148 2,617,500 (Increase)/decrease in trade and other receivables (171,219) 5,476,712 (Increase)/decrease in prepayments (773,990) 91,221 Increase/(decrease) in trade and other payables 24,900,811 (31,916,088) Cash from used in operations 18,008,359 (24,758,069) Interest received 13,877,839 6,456,636 Net cash provided by/(used in) operating activities 31,886,198 (18,301,433) Cash flows from investing activities: Purchase of property, plant and equipment (1,698,163) (2,269,177) Investments 5,526,309 16,484,279 Net cash provided by investing activities 3,828,146 14,215,102 Net increase/(decrease) in cash and cash equivalents 35,714,344 (4,086,331) Cash and cash equivalents at beginning of year 145,046,934 149,133,265 Cash and cash equivalents at end of year 180,761,278 145,046,934 The notes on the accompanying pages form an integral part of these financial statements.
JAMAICA CO-OPERATIVES INSURANCE AGENCY LTD | AUDITED FINANCIAL STATEMENTS 48 ___ Jamaica Co-operative Insurance Agency Limited Notes to the financial statements December 31, 2023 11 1. General information and nature of operation The Co-operative is registered under the Co-operative Societies Act and approved by the Financial Services Commission as a general insurance agency. The Society’s main activity is to facilitate, as agents, the provision of insurance, coverage for the members of Agency and Co-operative Societies. On April 14, 2010 the delegates of the Co-operative approved an amendment to the rules to have its name changed to Jamaica Co-operatives Insurance Agency Limited. The change was approved and registered by the Registrar of Co operatives and Friendly Societies on May 5, 2010. The Co-operative is exempt from Income Tax under Section 59(i) of the Co-operative Societies Act and Section 12 of the Income Tax Act. These financial statements are expressed in Jamaican dollars which is the functional currency of the Cooperative. 2. Statement of compliance with IFRS and going concern assumptions Statement of compliance These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and have been prepared under the historical convention as modified by the revaluation of certain property, plant and equipment. 3. Summary of significant accounting policies The Agency’s financial statements have been prepared in accordance with IFRS and have been prepared on an accrual basis and under the historical cost convention except for the revaluation of properties and certain financial assets and financial liabilities. a Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Certain new and amended standards and interpretations to existing standards have been published and became effective during the current financial year. The Agency has assessed the relevance of all such new standards, interpretations and amendments and determined that the following are relevant to the Agency. Amendments to IAS 1, Practice Statement 2, and IAS 8, (effective for annual periods beginning on or after 1 January 2023). The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies.