Page 99 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
22 Other receivables and prepayments 2019 2018
N'000 N'000
Prepayments
Receivable from companies (see (a) below) 57,238 54,454
Receivable from property vendors (see note (b) below) 177,595 177,595
Interest receivable on statutory deposit 111,800 100,800
WHT receivable 14,609 10,763
Internally managed investments (see (c) below) 20,326 20,326
Other asset (see (d) below)
Sundry debtors 5,099 5,099
Rent receivable 7,689 -
13,720
Impairment 70,128 18,996
478,204 13,000
i. The movement in impairment during the year is as follows: (244,260) 401,033
233,944 (225,571)
Balance at 1 January 175,462
Additions during the year
(Write-back)(see note 13) 225,571 283,371
18,689 -
ii. Movement in impairment of other receivables and prepayments:
- (57,800)
a.) Receivable from companies 244,260 225,571
Profound Securities Limited 145,135 145,135
Capital Trust Asset Management Company Limited 27,460 27,460
Ventures & Trust Limited 5,000 5,000
177,595 177,595
b.) Receivable from property vendors
11,000 -
Land at Oworoshoki, Lagos State Residential Scheme 43,000 43,000
Land at Edmund Crescent, Yaba, Lagos 54,000 43,000
c.) Internally managed investments 4,969 4,969
7 7
Internally managed investments
Other receivables 4,976 4,976
d.) Other asset 7,689 -
244,260 225,571
Notes to the Financial Statements
Page 100 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
iii. Analysis of impairment of other receivables and prepayment and related assets:
2019 2018
N'000 N'000
Receivable from companies 177,595 177,595
Impairment (177,602) (177,602)
(7) (7)
Receivable from property vendors (see (b) below) 111,800 100,800
Impairment (54,000) (43,000)
57,800 57,800
The movement in impairment during the year is as follows:
Balance at 1 January 43,000 100,800
Additions during the year 11,000 -
Write-back during the year
- (57,800)
54,000 43,000
Internally managed investment 5,099 5,099
Impairment (4,969) (4,969)
130 130
Other asset 7,689 -
Impairment (7,689) -
-
-
The movement in impairment during the year is as follows:
Balance at 1 January - -
Additions during the year 7,689 -
7,689 -
(a) Receivable from companies represents funds placed with Profound Securities Limited, Capital Trust Asset
Management Company Limited and Ventures & Trust Limited over a long period of time but these companies
were unable to repay the obligation and the amount was fully impaired.
(b) Receivable from property vendors represents amounts paid by the Company in respect of the proposed purchase
of two investment properties. These properties were warehoused in other receivables because ownership and
control was disputed.
A summary of the facts and circumstances considered are presented below:
Notes to the Financial Statements
Page 101 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
S/n Property details Date purchased Vendor Impairments Status
Area of dispute (N'000)
1. 60 acres of Land 20/2/2012 Ewu-Losi The property is currently
at Simawa Ajebo, Family Encroachment 57,800 under sale and transaction
Losi Village is nearly completion.
within Sagamu
Local
Government
Area, Ogun State
2. Land at Edmund 04/10/2004 Sikiru Olatunji Under litigation 43,000 There is currently a
Crescent, Yaba, Sanusi dispute over the
Lagos ownership of the land and
the matter is in court - see
3. Land at 14/8/2007 Oworoshoki Title 11,000 Note 41.
Oworonshoki, Residential documentation
Lagos State Scheme in progress The Company is
Residential discussing with a view to
Scheme obtaining the Certificate
of Ownership. Full
impairment provisions
have been made on the
asset.
(c) Internally managed investments represent equity instruments for which recoverability is in doubt. These
investments which were reclassified to other receivables and impaired.
(d) Other assets represent investments in private companies for which recoverability is in doubt. These investments
which were reclassified to other receivables and impaired.
Maturity profile of other receivables and prepayments
2019 2018
N'000 N'000
Current 233,945 175,462
Non-current - -
233,945 175,462
23 Investment Properties
Balance at 1 January 2,036,000 2,006,000
Changes in fair value (see note (i) below) 193,000 30,000
Transfer to other receivables and prepayment (11,000) -
Balance at 31 December
2,218,000 2,036,000
Cost 1,167,239 1,178,239
i. Changes in fair values are recognised as gains in profit or loss and included in fair value gain on investment
properties. All gains are unrealised.
Notes to the Financial Statements
Page 102 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
(b) The items of investment properties are valued as shown below:
2019 2018
N'000 N' 000
5 bedroom detached house located on Festival Road, Victoria Island 480,000 480,000
Land at Oworonshoki, Lagos State Residential Scheme - 11,000
2 units of detached house at IEI Estate, Ibadan- Oyo State 110,000
1 unit of semi-detached house at IEI Estate, Liberty road Ibadan 110,000 45,000
10 Plots of Land at Lafiaji, Eti-Osa, Lagos 45,000 165,000
4 bedroom detached bungalow at Emeka Anyaoku, Garki District FCT, Abuja 186,000 150,000
2 acres of Land at Honey City, Abuja 165,000 180,000
5 floors building at Kasumu Ekemode, Victoria Island 185,000 895,000
1,047,000 2,036,000
2,218,000
(c) Movement in investment properties are shown below:
Property details Balance as at Transfer Fair value Balance as at
1 January N'000 gain 31 December
2019
N'000 N'000 2019
N'000
5 bedroom detached house located on Festival Road, VI 480,000 - - 480,000
Land at Oworoshoki, Lagos State Residential Scheme 11,000 (11,000) - -
2 units of detached house at IEI Estate, Ibadan-Oyo State 110,000 -
1 unit of semi-detached house at IEI Estate, Ibadan 45,000 - - 110,000
10 Plots of Land at Lafiaji, Eti-Osa, Lagos 165,000 - 21,000 45,000
4 bedroom detached bungalow at Emeka Anyaoku, Abuja 150,000 - 15,000 186,000
2 hectares of Land at Cadastral Zone, Gudu District, Abuja 180,000 - 5,000 165,000
Five (5) floors building at Kasumu Ekemode 895,000 - 152,000 185,000
2,036,000 - 193,000 1,047,000
(11,000) 2,218,000
Property details Balance as at 1 Fair Balance as at
January 2018 value 31 December
5 bedroom detached house located on Festival Road, VI gain
Land at Oworoshoki, Lagos State Residential Scheme N'000 N'000 2018
2 units of detached house at IEI Estate, Ibadan- Oyo State N'000
1 unit of semi-detached house at IEI Estate, Ibadan
60 acres of Land at Simawa Village, Ogun State 480,000 - 480,000
Land at Edmund Crescent, Yaba, Lagos 11,000 - 11,000
10 Plots of Land at Lafiaji, Eti-Osa, Lagos 100,000 10,000 110,000
4 bedroom detached bungalow at Emeka Anyaoku, Abuja 40,000 5,000 45,000
2 hectares of Land at Cadastral Zone, Gudu District, Abuja -
Five (5) floors building at Kasumu Ekemode - - -
- 15,000 -
150,000 - 165,000
150,000 - 150,000
180,000 - 180,000
895,000 30,000 895,000
2,006,000 2,036,000
Notes to the Financial Statements
Page 103 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
(d) Valuation techniques used for fair valuation of investment properties
Emeka Eleh
Associate, Nigerian Institution of Estate Surveyors and Valuers
FRCN No : FRC/2015/NIESV/00000013406
Investment properties are stated at fair value, which has been determined based on valuations performed by Messrs Ubosi
Eleh & Co., Estate Surveyors and Valuers (FRC/2014/NIESV/700000003997) as at 31 December 2019. The valuers are
industry specialists in valuing these types of investment properties. The fair value is supported by market evidence and
represents the amount at which the assets could be exchanged between a knowledgeable, willing buyer and a
knowledgeable, willing seller in an arm's length transaction at the date of valuation, in accordance with standards issued
by the International Valuation Standards Committee. Valuations are performed on an annual basis and the fair value
gains and losses are reported in profit or loss. The profits or losses on disposal are also reported in profit or loss as they
occur.
The details of valuation techniques and significant observable inputs used in determining the fair value of investment
properties are presented below:
Location of Properties Valuation technique Significant unobservable inputs
5 bedroom detached The basis of valuation is the Market value, Situation :Access through Ozumba
house located on that is, the price, which an interest in a Mbadiwe Road, Adetokunbo Ademola.
Festival Road, VI property might reasonably be expected to Neighborhood is traversed by a network
realize in a sale by Private Treaty assuming: of tarred and motorable roads,
· a willing buyer; predominated in commercial users.
· a reasonable period within which to
negotiate the sale taking into account the Property description: 5-bedroom detached
nature of the property and the state of the house, 2 bedroom guest chalet, 2
market; bedroom servant quarter, a generator
· values will remain static throughout the hut and a gate house.
period;
· the property will be freely exposed to Site: well drained and measures
the market; approximately 1,230.10 square meters
· no account is to be taken of an and secured by a perimeter fence wall
additional bid by a special purchaser;
no account is to be taken of expenses of
realization, which may arise in the event of
a disposal.
2 units of detached Property was valued on the basis of fair Situation :Access from Lagos Road
house at IEI Estate, value using Investment Method of through Challenge onto M. K. O. Abiola
Ibadan-Oyo State valuation and the comparison approach was Way; or alternatively from Obafemi
used as a check. The investment method Awolowo Way.
involved the analysis of prevailing rental
indices after reflecting the outgoing and tax Property description: a privately-built
for the property and capitalising same at the serviced residential estate made up of 24
appropriate years' purchase over the term Nos. semi-detached houses plus servants'
of their leases. quarters
The Comparison approach involved our Site: The site measures approximately
analyzing of similar properties that have 1234 square meters.
Notes to the Financial Statements
Page 104 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Location of Properties Valuation technique Significant unobservable inputs
recently been transacted upon in the Open
Market within the locality and adjusting
approximately to reflect the peculiarities
and level of completion of the subject
property in arriving at the value.
1 unit of semi- Property was valued on the basis of fair Situation:Access from Lagos Road through
detached house at IEI value using Investment Method of Challenge onto M. K. O. Abiola Way; or
Estate, Ibadan valuation and the comparison approach was alternatively from Obafemi Awolowo Way.
used as a check. The investment method
involved the analysis of prevailing rental Property description:a privately-built serviced
indices after reflecting the outgoing and tax residential estate made up of 4 Nos. semi-
for the property and capitalising same at the detached houses and 4 Nos. detached
appropriate years' purchase over the term houses
of their leases.
Site: The site measures approximately
The Comparison approach involved our 613.39 square meters.
analyzing of similar properties that have
recently been transacted upon in the Open
Market within the locality and adjusting
approximately to reflect the peculiarities
and level of completion of the subject
property in arriving at the value.
2 units of detached The basis of valuation is the Market value, Situation : Access to the property is vide Ring
house at IEI Estate, that is, the price, which an interest in a Road
Ibadan-Oyo State property might reasonably be expected to Immediate neighborhood is predominantly
realize in a sale by Private Treaty assuming: of residential cum commercial users.
· a willing buyer;
· a reasonable period within which to Property description: development on site
negotiate the sale taking into account the consists of 32 buildings comprising 2 (No)
nature of the property and the state of the 5-bedroom detached house (C1 & C2)
market;
· values will remain static throughout the Site: The site, which is rectangular in shape,
period; appears firm, leveled and well drained.
· the property will be freely exposed to the
market;
· no account is to be taken of an additional
bid by a special purchaser;
· no account is to be taken of expenses of
realization, which may arise in the event of
a disposal.
Notes to the Financial Statements
Page 105 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Location of Properties Valuation technique Significant unobservable inputs
1 unit of semi- The basis of valuation is the Market value, Situation :Access to the property is vide Ring
detached house at IEI that is, the price, which an interest in a Road
Estate, Ibadan property might reasonably be expected to Immediate neighborhood is predominantly
realize in a sale by Private Treaty assuming: of residential cum commercial users.
· a willing buyer;
· a reasonable period within which to Property description: development on site
negotiate the sale taking into account the consists of 32 buildings comprising a wing
nature of the property and the state of the of 5-bedroom semi-detached house (A4)
market;
· values will remain static throughout the Site: The site, which is rectangular in shape,
period; appears firm, leveled and well drained.
· the property will be freely exposed to the
market;
· no account is to be taken of an additional
bid by a special purchaser;
· no account is to be taken of expenses of
realization, which may arise in the event of
a disposal.
10 Plots of Land at The basis of valuation is the Market value, Situation : Access is from the popular Lekki-
Lafiaji, Eti-Osa, Lagos that is, the price, which an interest in a Epe Expressway, and at the second "toll
property might reasonably be expected to gate" by "Chevron", a right turning is made
realize in a sale by Private Treaty assuming: onto Lafiaji Road on which the subject
· a willing buyer; property is located. The immediate
· a reasonable period within which to neighborhood is predominantly industrial in
negotiate the sale taking into account the outlook and comprises a number of private
nature of the property and the state of the reside estates.
market;
· values will remain static throughout the Property description: prime vacant vast plot of
period; land ripe for immediate development.
· the property will be freely exposed to the
market; Site: The site measures approximately
· no account is to be taken of an additional 7,091.55 square meters.
bid by a special purchaser; Access into the land is wide open. The site is
· no account is to be taken of expenses of a bare land ripe for development.
realization, which may arise in the event of
a disposal.
4 bedroom detached The basis of valuation is the Market value, Situation: Access to the property is via
bungalow at Emeka that is, the price, which an interest in a Tafawa Balewa Road. Driving along
Anyaoku, Abuja. property might reasonably be expected to Tafawa Balewa Road from CBN junction
realize in a sale by Private Treaty assuming: towards Garki Hospital. The neighborhood
· a willing buyer; is mixed-use in outlook, characterized by
· a reasonable period within which to residential houses, offices, banks, guest
negotiate the sale taking into account the houses etc.
nature of the property and the state of the
market; Property description: Development on site
· values will remain static throughout the comprises 4 bedroom detached bungalow, 2
period; units of 1bedroom service quarters, an
office, gate house and outdoor store house.
Notes to the Financial Statements
Page 106 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Location of Properties Valuation technique Significant unobservable inputs
· the property will be freely exposed to the Site: The site measures approximately
market; 804.33 square meter fenced around its
· no account is to be taken of an additional perimeter boundaries to a height of about
bid by a special purchaser; 3meters with sandcrete block walls.
· no account is to be taken of expenses of
realization, which may arise in the event of
a disposal.
2 Acres of Land at The basis of valuation is the Market value, Situation: Access to the property is via Apo
Honey City, Abuja that is, the price, which an interest in a Mechanic Village Road which takes its
property might reasonably be expected to source
realize in a sale by Private Treaty assuming: from Nnamdi Azikwe dual carriage way by
· a willing buyer; Apo roundabout.
· a reasonable period within which to
negotiate the sale taking into account the Property description: an undeveloped parcel of
nature of the property and the state of the land measuring approximately 2 hectares.
market;
· values will remain static throughout the Site: The site is regular in shape; appears
period; firm and well drained and covers a gross
· the property will be freely exposed to the area of approximately 2 hectares.
market;
· no account is to be taken of an additional
bid by a special purchaser;
· no account is to be taken of expenses of
realization, which may arise in the event of
a disposal.
Five (5) floors building The basis of valuation is the Market value, Situation: Access to the property is vide Akin
at Kasumu Ekemode that is, the price, which an interest in a Adesola Road, which takes its route from
property might reasonably be expected to Falomo Bridge and terminates at Bar Beach.
realize in a sale by Private Treaty assuming: The neighborhood is predominantly of
· a willing buyer; commercial users.
· a reasonable period within which to
negotiate the sale taking into account the Property description: Development on site
nature of the property and the state of the consists of purposely built office building on
market; six floors and a water treatment house.
· values will remain static throughout the
period; Site: The site is regular in shape, appears
· the property will be freely exposed to the firm and well drained and it has a total
market; physically measured area of approximately
· no account is to be taken of an additional 936.603 square meters.
bid by a special purchaser;
· no account is to be taken of expenses of
realization, which may arise in the event of
a disposal.
Notes to the Financial Statements
Page 107 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Maturity profile of investment property
2019 2018
N'000 N'000
Current - -
Non-current 2,218,000 2,036,000
2,218,000 2,036,000
The fair values of the Company's investment property are categorised into Level 3 of the fair value hierarchy.
Level 3 fair value
The following tables show a reconciliation from the beginning balances to the closing balances for the fair value
measurements of the Company's investment property.
Balance as at 1 January 2019 N'000
Additions during the year 2,036,000
Transfer to other receivables and prepayment
Disposals -
Gains included in 'fair value gain' (11,000)
Changes in fair value (unrealised)
Transfer to other assets -
Balance as at 31 December 2019 -
193,000
-
2,218,000
The following table shows a reconciliation from the beginning balances to the closing balances for the fair value
measurements of the Company's investment property
Balance as at 1 January 2018 N'000
Additions during the year 2,006,000
Transfer to other receivables and prepayment
Changes in fair value (unrealised) -
Balance as at 31 December 2018 -
30,000
2,036,000
24 Intangible assets
Computer software: 2019 2018
Cost: N'000 N'000
Balance at 1 January
Additions during the year 74,543 48,293
Balance at 31 December - 26,250
74,543
Accumulated amortisation: 74,543
Balance at 1 January 48,293
Charge for the year 50,480 2,187
Balance at 31 December 8,750 50,480
Net book value: 59,230
Balance at 31 December 24,063
15,313
Notes to the Financial Statements
Page 108 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Maturity profile of Intangible assets 2019 2018
N' 000 N'000
Within 12 months
After 12 months - -
15,313 24,063
15,313 24,063
The intangible assets held by the Company are computer software. The computer software is accounted for using the cost
model (i.e. cost less accumulated amortization and accumulated impairment). This has also been assessed for impairment
and no impairment indicator was found.
i) No leased assets are included in the above intangible assets (2018: Nil)
ii) The Company had no capital commitments contracted or authorized as at 31 December 2019 (2018: nil).
iii) There was no item of intangible asset that has been pledged as security for borrowings as at year end (2018 : nil)
25 Property and Equipment
31 December 2019 Leasehold Leasehold Motor Furniture Office Plant & Computer
Cost Land Building Improvement Vehicles Machinery Equipment
& Fittings Equipment Total
N' 000 N' 000 N' 000 N' 000 N' 000
N' 000 N' 000 N' 000 N' 000
Balance as at 1 January 2019 - - 45,996 186,062 99,793 69,027 45,233 54,753 500,864
Additions -
Disposal - - - 58,313 7,070 1,802 5,822 5,881 78,888
Balance at 31 December 2019 -
- - (21,569) - - - - (21,569)
- 45,996 222,806 106,863 70,829 51,055 60,634 558,183
Accumulated depreciation - - 44,568 108,166 83,635 57,052 38,986 49,970 382,377
Balance as at 1 January 2019 -
Charge for the year - - 440 32,668 12,122 8,291 2,416 2,699 58,636
Disposal -
Balance at 31 December 2019 - - (21,569) - - - - (21,569)
- 45,008 119,265 95,757 65,343 41,402 52,669 419,444
Net book value
Balance at 31 December 2019 - - 988 103,541 11,106 5,486 9,653 7,965 138,739
i. No leased assets worthy of disclosure under IFRS 16 are included in the above property and equipment account.
ii. The Company had no capital commitments as at the reporting date (2018: Nil)
iii. Maturity profile of property and equipment
Current 2019 2018
Non-current N'000 N'000
- -
138,739 118,487
138,739 118,487
Notes to the Financial Statements
Page 109 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
31 December 2018 Leasehold Leasehold Motor Furniture Office Plant& Computer
Cost Vehicle Machinery Equipment
Land Building Improvement & Fittings Equipment Total
N' 000 N' 000 N' 000 N' 000
N' 000 N' 000 N' 000 N' 000 N' 000
Balance as at 1 January 2018 - - 45,996 102,880 96,454 68,015 45,233 59,201 417,779
Additions -
Disposal - - 86,600 3,339 1,032 - 1,555 92,526
Balance at 31 December 2018 -
(3,418) - (20) - (6,003) (9,441)
- 45,996 186,062 99,793 69,027 45,233 54,753 500,864
Accumulated depreciation - - 39,386 93,788 72,475 49,022 33,415 51,428 339,514
Balance as at 1 January 2018 -
Charge for the year - - 5,182 17,796 11,160 8,050 5,571 4,473 52,232
Disposal -
Balance at 31 December 2018 - - (3,418) - (20) - (5,931) (9,369)
- 44,568 108,166 83,635 57,052 38,986 49,970 382,377
Net book value - 1,428 77,896 16,158 11,975 6,247 4,783 118,487
Balance at 31 December 2018 -
26 Statutory deposit
This represents amounts deposited with the Central Bank of Nigeria (CBN) pursuant to Section 10(3) of the Insurance Act,
2003.
2019 2018
N’000 N’000
Life business statutory deposit 200,000 200,000
The statutory deposit balance represents restricted cash balance held with the Central Bank of Nigeria and is not available for
use in the day to day activities of the Company. They are measured at amortized cost.
Maturity profile of statutory deposit
Current - -
Non-current 200,000 200,000
200,000 200,000
27 Insurance contract liabilities 1,032,841 916,407
(a) Insurance contract liabilities comprises: 21,428,414 12,073,894
22,461,255 12,990,301
Outstanding claims (see (c) below)
Life insurance contract liabilities (see (f) below) 10,425,117 3,591,822
12,036,138 9,398,479
(b) Maturity profile of insurance contract liabilities 22,461,255 12,990,301
Current
Non-current
Notes to the Financial Statements
Page 110 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
(c(i)) Outstanding claims: represents the estimated ultimate cost of settling all claims arising from incidents reported as at the
reporting date.
The aging analysis for claims reported and loss adjusted for life insurance contracts
Days 2019 2018
N’000 N’000
0- 90
91- 180 90,522 73,203
181-270 27,481 41,411
271-360 21,856 30,435
Above 360 34,689 21,104
474,295 478,515
IBNR 648,843 644,668
383,998 271,739
1,032,841 916,407
IBNR Claims 271,739 250,096
At 1 January 112,259 21,643
Movement during the year 383,998 271,739
(c(ii)) The movement in outstanding claims inclusive of IBNR during the year is as follows: 916,407 1,018,397
743,595 604,150
At 1 January (627,161) (706,140)
Addition in the year (see note 8) 1,032,841 916,407
Payment during the year
At 31 December
For contracts where death is the insured risk, the most significant factors that could increase the overall frequency of claims
are epidemics (such as AIDS, SARS, Lassa fever and a human form of avian flu) or widespread changes in lifestyle, such as
eating, smoking and exercise habits, resulting in earlier or more claims than expected. At present, these risks do not vary
significantly in relation to the location of the risk insured by the Company. However, undue concentration by amounts
could have an impact on the severity of benefit payments on a portfolio basis. For contracts with fixed and guaranteed
benefits and fixed future premiums, there are no mitigating terms and conditions that reduce the insurance risk accepted.
The Company charges for mortality risk on an annual basis for all insurance contracts without a fixed term. It has the right
to alter these charges based on its mortality experience and hence minimize its exposure to mortality risk. Delays in
implementing increases in charges and market or regulatory restraints over the extent of the increases may reduce its
mitigating effect. The Company manages these risks through its underwriting strategy and reinsurance arrangements.
(d) Frequency and severity of claims
ARM Life Plc has a retention limit of N10 million on any single life insured. The Company reinsures the excess of the sum
assured over N10 million. Some of the private schemes are also ceded based on a quota arrangement which is based on a
percentage of ARM Life's proportion and this is a function of the nature of the scheme. The percentage ceded is usually
approved by the management. The same arrangement applies to Head of Service but the percentage ceded varies for the
3 years. For Public sector insurance contracts like Independent National Electoral Commission, Nigerian Ports Authority
e.t.c., the quota share arrangement varies as approved by the management.
Notes to the Financial Statements
Page 111 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
(e) The following table reports the year end aggregated insurance contract liabilities for the in-force life insurance contracts
by industry sector and location. The analysis of such contractual exposures are deemed to be the best indicator of the
insurance risk concentration by industry and location for these contracts.
i. Analysis by industry
2019 Amount (N'000) % contribution
Industry sector
Financial services 238,828 1
Consumer goods 106,419 0
Services 662,687 3
Energy & Natural Resources 506,592 2
Engineering 28,363 0
Retail 20,857,155 94
Others 61,211 0
22,461,255 100
2018 Amount (N'000) % contribution
Industry sector
Financial services 31,762 -
Consumer goods 20,748 0
Services 94,542 1
Energy & Natural Resources 35,912 0
Engineering 11,911 0
Retail 12,355,861 96
Others 439,565 3
12,990,301 100
ii. Analysis of concentration risk by location
2019 Amount (N'000) % contribution
Location
South West 18,105,657 80
North Central 3,779,836 17
South South 3
575,762 100
22,461,255
2018 Amount (N'000) % contribution
Location
South West 4,739,740 37
North Central 6,027,606 46
South South 2,222,955 17
12,990,301 100
Notes to the Financial Statements
Page 112 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
(f) Life insurance contract liabilities: Life insurance contract liabilities is assessed every year by qualified consulting
actuaries in accordance with the Company's accounting policy.
Life insurance contract liabilities comprises:
2019 2018
N' 000 N' 000
Individual life 949,892 553,852
Group life
PRA Annuity reserves 332,457 290,656
20,146,065 11,229,386
21,428,414 12,073,894
(f(i)) Unearned premium reserves
These provisions represents the liability for business contracts where the Company's obligations have not expired
at the year-end. Movements are shown below:
At 1 January 2019 2018
(Decrease)/ Increase in the year N' 000 N' 000
At 31 December 290,656 153,784
(48,422) 136,872
242,234 290,656
(f(ii)) Individual life
These provisions represents the reserve for individual life at the reporting date. Movements are shown below:
At 1 January 2019 2018
Increase in the year N' 000 N' 000
At 31 December 553,852 460,752
396,040 93,100
949,892 553,852
(f(iii)) The movement in the annuity fund is as follows;
2019 2018
N' 000 N' 000
At 1 January 11,229,386 8,057,381
Additions in the year
Payments to annuitants 7,407,779 4,510,036
Reserving
Actuarial deficit/(surplus) (2,277,558) (1,460,398)
At 31 December
- (135,301)
3,786,458 257,668
20,146,065 11,229,386
(f(iv)) At 1 January 11,229,386 8,057,381
Payments to annuitants (2,277,558) (1,460,398)
Increase on annuity contract liabilities 11,194,237 4,632,403
At 31 December 20,146,065 11,229,386
Notes to the Financial Statements
Page 113 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Actuarial valuation
The latest available actuarial valuation of the life business funds was as at 31 December 2019. The actuarial value of
the gross liability of the fund is N 21,812,322,915 (31 December 2018: N12,990,302,431.42)
The analysis of the gross liability due to the fund holders is stated below:
2019 2018
N' 000 N' 000
Gross liability 770,950 294,395
- Individual
20,146,065 11,229,386
Unearned premium
PRA Annuity reserves 332,457 290,656
Group life
IBNR* 383,998 271,739
AURR
Additional reserves 6,620 18,957
Credit Life
Outstanding claims 152,119 219,022
20,203 21,477
648,843 644,669
22,461,255 12,990,301
The valuation of the Company's life business fund as at 31 December 2019 was carried out by E&Y Advisory (Actuarial)
Services. The valuation was done based on the following principles:
(i) For individual business, the gross premium method of valuation was adopted. Reserves were calculated via a
cashflow projection approach, taking into account future office premiums, expenses and benefit payments (death).
Future cashflows were discounted back to the valuation date at the valuation rate of interest.
(ii) The valuation age has been taken as age last birthday at the valuation date. The period to maturity has been taken as
the full term of the policy less the expired term. Full credit has been taken for premiums due between the valuation
date and end of the premium paying term.
(iii) An unexpired premium reserve was included for Group business policies, after allowing for acquisition expenses at a
ratio of 20% of premium (31 December 2018: 20%). An Additional Unexpired Risk Reserve (AURR) was also held
to allow for any inadequacies in the UPR for meeting claims in respect of the unexpired period. The claims rates
underlying the AURR were based on pooled historical scheme experience.
(iv) No assets have been established in respect of Deferred Acquisition Costs (DAC).
(v) An allowance was made for IBNR (Incurred But Not Reported) claims in Group Life to take care of the delay in
reporting claims. This was based on a loss ratio approach, which uses historical claims experience to estimate the
ultimate claim rates, from which the IBNR portion is determined.
The reserve for Group Deposit Administration business is the value of the funds at the valuation date.
(vi) The valuation of the liabilities was made on the assumption that premiums have been credited to the accounts as they
fall due, according to the frequency of the particular payment.
(vii) No specific adjustment has been made for immediate payment of claims.
Notes to the Financial Statements
Page 114 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
(viii) No specific adjustment has been made for expenses after premiums have been ceased in the case of limited payments
policies i.e. they have been allocated the same level of expenses as premium paying policies.
(ix) The account balance has been held as a reserve for lapsed deposit based policies that have not been paid out and the
total premium paid till date has been held for the lapsed deferred annuity and personal pension plans. The reserve for
endowments have been limited to a minimum of the surrender value at the valuation date.
(x) Where negative reserves were calculated, these were set to zero to prevent policies being treated as assets.
(xi) Any policies issued according to substandard terms were valued using the same basis as standard policies.
(xii) The mortality table used in the valuation is the UK's Mortality of Assured Lives 1967-70 (A6670) with the exception
of annuity business which used the UK's PA90 Annuitants table.
(xiii) The rate of interest used in the valuation is 11.42% pa (31 December 2018: 14.21%), with the exception of annuities
which adopted an interest rate of 11.9% pa. (31 December 2018: 14.87%)
(xiv) Expenses for individual life, individual deposit business and annuity business were reserved for explicitly at N16,264
per policy per annum. All expenses were assumed to increase with inflation at 11% pa. (31 December 2018: 11%).
(xv) An additional reserve of N152,000,000 (31 December 2018: N219,022,300) representing a cautionary contingent
reserve against expense overrun, unallocated premiums at the valuation date and reserve for unpaid lapsed pension
policies is made over the 12 months following the valuation date.
(xvi) The solvency level at the valuation date was 99.7% (31 December 2018: 102.5%). That is, assets representing the Life
and Deposit Administration funds on the Company's balance sheet amount were 99.7% of the value of the
actuarially calculated net liabilities.
The valuation of the Company's regulated annuity fund as at 31 December 2019 was carried out by E&Y Advisory
(Actuarial) Services. The valuation was done based on the following principles:
Valuation Methodology
(i) The requirements of IFRS 4 was adopted in estimating the present value (at the review date) of the company's future
annuity payment obligations.
(ii) Each annuity policy was valued using a monthly discounted cash flow method. The reserves are set equal to the
present value of future annuity payments and attending expenses. The annuity guaranteed minimum payment
period were recognised in the calculations.
(iii) The calculations allow for the following key features of IFRS 4:
Ÿ IFRS prohibits provisions for possible claims under contracts that are not in existence at the end of the reporting
period.
Ÿ IFRS requires an insurer to keep insurance liabilities in its statement of financial position until they are
discharged or cancelled, or expire, and to present insurance liabilities without offsetting them against related
reinsurance assets.
Ÿ IFRS requires the adequacy of recognised insurance liabilities test and an impairment test for reinsurance assets.
(iv) Liability Adequacy Test
IFRS 4 paragraph 15 describes the liability adequacy test which, if the conditions are not met, requires any
Notes to the Financial Statements
Page 115 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
deficiency to be recognised in profit or loss. Section 16 states that:
“If an insurer applies a liability adequacy test that meets specified minimum requirements, this IFRS imposes no
further requirements. The minimum requirements are the following:
Ÿ The test considers current estimates of all contractual cash flows, and of related cash flows such as claims
handling costs, as well as cash flows resulting from embedded options and guarantees.
Ÿ If the test shows that the liability is inadequate, the entire deficiency is recognised in profit or loss.
The calculation method satisfies the Liability Adequacy Test mentioned above.
(v) Paragraphs 22-30 of IFRS 4 make reference to the setting of an IFRS compliant valuation basis.
The following points are noted in particular:
Paragraph 24 - Current market interest rates: An insurer is permitted, but not required, to change its accounting
policies so that it re-measures designated insurance liabilities to reflect current market interest rates and recognises
changes in those liabilities in profit and loss. At that time it may also introduce accounting policies that require other
current estimates and assumptions for the designated liabilities.
Paragraph 26 - Prudence: An insurer need not change its accounting policies for insurance contracts to eliminate
excessive prudence. However, if an insurer already measures its insurance contracts with sufficient prudence it shall
not introduce additional prudence.
In light of the above requirements, a valuation basis adopting the following principles was determined:
Ÿ The basis is a single set of realistic long term assumptions expected to reflect the average future experience of the
business.
Ÿ Adjustments are then made to the individual assumptions for prudence and other considerations.
(i) Valuation Interest Rate
2019 2018
Rate
Rate Annuity 15.37% Annuity
-0.25% 15.37%
Long Term FGN bond yield 12.40% 12.40% 0.00% -0.25%
Less prudent margin -0.91% -0.25%
Less reinvestment risk margin -0.25% -0.25% 14.21% 0.00%
Less tax (6%) 14.87%
Annuity valuation interest rate (adopted) 0.00% -0.25%
-0.73% 0.00%
11.42% 11.90%
(ii) Expenses
Provisions for expenses must be made, either explicitly or implicitly, in mathematical reserves of an amount which
is not less than the amount expected to be incurred in fulfilling our long term insurance contracts. IFRS 4 explicitly
requires the consideration of claims handling expenses. The best estimate of maintenance expenses were
calculated as the sum of per policy maintenance charges and the allocated operating expenses. The regulatory
maintenance expense assumptions are derived by adding an additional prudence margin to the best estimate
maintenance expenses to give the required assumption.
An expense analysis was carried out, which indicated that the actual maintenance per policy in 2018 was much
higher than N14,652 (estimated at around N28,640 per policy). The 2018 estimates implied that there was an
Notes to the Financial Statements
Page 116 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
expense overrun - which will continue to arise until the retail book expands to a more optimal level. A provision of
N211m (2017: N240m) has however been made on a three year run off for expense overrun. The expense
assumptions are as shown below:
Individual life N16,264pp
Group Life 20% of Gross Premium
Annuity business N16,264pp
Expense Overrun Reserve N123,000,000
(iii) Mortality Assumptions
The following sample average expectation of life in line with the PA (90) UK published tables was used.
Age Expectation of Life (in years)
2019 2018
Male Female Male Female
50 30 35 26 31
60 21 26 18 23
70 15 18 12 15
80 9 11 78
28 Investment contract liabilities
(a) The movement in this account during the year was as follows:
2019 2018
N’000 N’000
Balance at 1 January 3,086,961 2,530,032
Deposit for the year 1,620,594 1,203,605
Guaranteed interest (see note i)
340,427 121,038
Withdrawal 5,047,982 3,854,675
Balance at 31 December
(913,093) (767,714)
4,134,889 3,086,961
Current 1,047,928 1,121,399
Non-current 3,086,961 1,965,562
4,134,889 3,086,961
i. Guaranteed interest on investment contracts represents interest which accrues to the account of investment contract
holders. The contracts are designated as financial liabilities and measured at amortized cost.
(b) Investment Contract Revenue Account
Gross investment income 2019 2018
Interest expense N’000 N’000
Net interest income on investment contract 628,798 439,676
(340,427) (121,038)
288,371 318,638
Notes to the Financial Statements
Page 117 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
29 Trade payables 2019 2018
N’000 N’000
Commission payable (see (a) below)
Reinsurance payable (see (b) below) 6,605 6,735
Coinsurance payable (see (c) below) 17,763 22,453
15,180 8,410
(a) The movement in commission payable during the year is as follows: 39,548 37,598
Balance at 1 January 6,735 3,651
Additions during the year 16,476 4,576
Payments during the year (16,606) (1,492)
6,605 6,735
(b) The movement in reinsurance payable during the year is as follows:
Balance at 1 January 22,453 3,139
Additions during the year 266,051 22,453
Payments during the year (270,741) (3,139)
17,763 22,453
(c) The movement in coinsurance payable during the year is as follows:
Balance at 1 January 8,410 6,508
Additions during the year 8,309 46,495
Payments during the year (1,539) (44,593)
15,180 8,410
Maturity profile of trade payables
Current 39,548 37,598
Non-current - -
39,548 37,598
Notes to the Financial Statements
Page 118 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
30 Other payables
Other payables comprise:
2019 2018
N’000 N’000
Accruals (see note (i) below) 351,471 243,311
Pension payable 546 702
Dividend payable 911 911
Premium deposits (see note (ii) below)
Payable for Land of Honey, Abuja 363,051 130,030
Other liabilities (see note (iii) below) - 73,000
Amount due to related parties (see note (iv) below and note (40)) 19,351
WHT payable 19,906 26,034
Unearned rent income 21,782 18,733
Payable to employees (see note (v) below) 16,899 11,075
Sundry creditors (see note (vi) below) 11,625 53,038
Deposit for land (see note (vii) below) 60,512 79,291
Workmen's compensation (see note (viii) below) 85,299 40,000
Lease payable 60,000
726
247 61,803
41,006 850,439
1,033,255
i. Accruals include professional fees payable to Service Providers and regulatory fees such as Independent Actuaries, Tax
consultants, Estate Surveyors & Valuers, Supervisory levies, ITF, stamp duty, accrued utility bills, other accrued staff benefit
etc. These provisions are for services enjoyed in 2019 financial year and payment will be made in subsequent financial
period.
ii. Premium deposits represent premium collected from customers but yet to be recognized as premium in the books of the
Company as at 31 December 2019. The delay in recognition was as a result of incomplete documentation.
iii. Other liabilities represent cash inflows into the Company's bank accounts with incomplete information as at the reporting
date.
iv. Amount due to related parties represents expenditure on shared services initially borne by the related parties and
recoverable from the Company.
v. Payable to employees represents the nominal liability due to employees of the Company and was determined based on the
terms of the now defunct gratuity scheme which was discontinued effective 30 June 2013. Prior to that date, the Company
offered its employees defined benefit plans in the form of a gratuity scheme. The Gratuity Scheme covered all employees
and the terms of the scheme were such that payments were made to employees on resignation only if the employee has
served the Company for a period of not less than five years. The gratuity benefit was based on an employee's six weeks of
total emolument (Basic, Housing and Transport) for each completed year plus one year total emolument. Accordingly, the
total gratuity liability payable to staff was re-computed based on the actual liabilities as at 30 June 2013. The Payable to
employees increased during the year because the Company accrued interest on the balance of the discontinued gratuity
liability payable to existing staff.
vi. Sundry creditors represent obligations due to vendors of the Company as a result of part payment for services enjoyed.
vii. Deposit for Land is deposit of N60 Million received from a proposed buyer of Simawa Land. This includes an initial
payment of N40 million in 2018 and N20 million additional payment in 2019 financial year.
viii. Workmen compensation is a group personal accident cover paid along with group life premium by some scheme owners. As
this cover is usually provided by Non-Life Underwriters, the portion of the premium received from these group life schemes
is held in Other Payables until the Underwriting Department identifies the non-life underwriting company to transfer the
risk premium to and provide the cover. The amount disclosed represent such premiums for which the relevant non-life
underwriting company is yet to be identified.
Notes to the Financial Statements
Page 119 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Maturity profile of other payables 2019 2018
N’000 N’000
Current 568,265 523,734
Non-current 464,990 326,704
1,033,255 850,438
(a) The movement in this account during the year was as follows:
Balance at 1 January 27,030 22,912
Charge for the year (see note (b) below) 42,753 30,315
Payments during the year 69,783 53,227
Balance at 31 December (27,513) (26,197)
42,270 27,030
Maturity profile of current income tax liabilities
Current 42,270 27,030
Non-current - -
42,270 27,030
31 Current income tax liabilities
(a) The tax charge for the year comprises:
Corporate income tax charge
i. Minimum tax (see note 31(a)) 42,753 30,315
i. Income tax - 3,008
WHT on dividend income
Prior year under provision - 277
- 3,285
Deferred tax charge for the year 19,300 3,000
Income tax charge for the year 19,300 6,285
Minimum tax and current tax 62,053 33,315
Total tax charge 62,053 33,315
The Company's tax expense in the year has been assessed based on the minimum tax requirements as there was no taxable
profit in the year. The minimum tax was computed on the basis of gross income according to the section 16 of the tax law.
Notes to the Financial Statements
Page 120 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
31(b) The effective tax reconciliation is as follows:
Rate 2019 Rate 2018
% N’000 % N' 000
Profit before tax 30 1,131,262 30 486,961
Tax using the domestic corporation tax (148) 339,379 (79) 227,719
Non-taxable income (598,017)
Non-allowable expenses 3 (1,673,237) 7 55,340
Effect of unrecognized tax losses 117 35,755 44 335,058
Impact of industry tax law (3) (23,386)
WHT on dividend received (3) 1,323,831 0
Minimum tax 0 (29,832) 3 3,008
Prior year under-provision of tax 3 3,740 0 22,754
NITDA - 31,067 1
CGT on unrealized gain on investment properties 1 - 0 277
2 11,630 4 7,562
5 19,300 3,000
61,633 33,315
32 Deferred tax
Balance at 1 January 2019 2018
Movement during the year - Profit or loss N’000 N’000
86,900 83,900
19,300 3,000
106,200 86,900
Unrecognised deferred tax assets
At year end, the Company recorded a deferred tax asset of N13.539 billion. However, the deferred tax asset has not been
recognised because the Directors have determined that it is currently uncertain that there will be future taxable profit
against which the tax assets can be utilised due to the provision of the tax laws on expiration of losses for insurance
companies and the tax holiday on interest and income on debt securities.
The analysis of unrecognised deferred tax is as follows:
2019 2018
Gross amount Tax effect Gross amount Tax effect
N’000
N’000 N’000 N’000
Property and equipment 1,173,219 351,966 1,073,288 321,986
Unrelieved loss
Retirement benefit obligation 12,305,667 3,691,700 7,928,680 2,378,604
60,511 18,153 53,038 15,911
13,539,397 4,061,819 9,055,006 2,716,501
Notes to the Financial Statements
Page 121 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Tax losses carried forward
Tax losses for which no deferred tax asset was recognized expire as follows:
Expire 2019 Expiry date 2018 Expiry date
N'000 N'000 2019-2022
12,305,667 2020-2023 7,928,680
Recognised deferred tax liability
The Company recognised a deferred tax liability on the fair value gain on investment properties. This item is taxable under
Capital Gains Tax (CGT) as opposed to Company Income Tax (CIT) and has not been netted off the deferred tax asset.
The analysis of recognised deferred tax liability is as follows:
In thousands of Naira 2019 2018
Fair value gain (investment properties) N’000 N’000
106,200
106,200
Maturity profile of deferred tax 2019 2018
N’000 N’000
Within 12 months
After 12 months - -
106,200 86,900
106,200 86,900
33 Share capital 2019 2018
Share capital comprises: N’000 N’000
Authorized: 5,000,000 5,000,000
10,000,000,000 Ordinary shares of N0.50 each
Issued and fully paid: 4,786,960 4,786,960
9,573,920,792 Ordinary shares of N0.50 each
34 Share premium reserve
Share premium is the excess paid by shareholders over the nominal value for their shares.
35 Retained earnings
Retained earnings are the brought forward recognised losses plus current period profits or loss attributable to
shareholders.
36 Fair value reserves
The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets until the
Notes to the Financial Statements
Page 122 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
assets are derecognised or impaired.
37 Revaluation reserves
The revaluation reserves relates to the revaluation of property and equipment immediately prior to its reclassification as
investment property.
38 Statutory contingency reserves
The statutory contingency reserve is prescribed under Section 21 (1&2) of the Insurance Act. The Company is mandated to
maintain a statutory contingency reserve to cover for the fluctuations in securities and variations in statistical estimates.
The statutory contingency reserve is credited with an amount of not less than 1% of the gross premium or 10% of the net
profits (whichever is greater) and the amount shall accumulate until it reaches the amount of the minimum paid-up capital..
39 Earnings per share
Basic and Diluted earnings per share is calculated by dividing the profit attributable to shareholders by the weighted
average number of the shares.
Basic and Diluted earnings per share 2019 2018
Profit attributable to shareholders N' 000 1,069,209 725,747
Weighted average number of shares in issue 9,573,921 9,573,921
Earnings per share (kobo)
11 8
40 Related party transactions:
The Company is controlled by ARM Traditional Asset Management Company Limited which owns 75.16% of the issued
share capital. During the year, the Company entered into commercial transactions with ARM Company (the ultimate
parent), and other companies within the ARM Group. All outstanding balances with these related parties are priced on an
arm's length basis and are to be settled in cash within six months of the reporting date. None of the balances is secured. No
expense has been recognised in the current year for bad or doubtful debts in respect of amounts owed by related parties
(However for FY 2019, the balance was subjected to IFRS 9 impairment using the Expected Credit Loss (ECL) model).
The amounts are in respect of related party transaction as at reporting date to other companies within the ARM Group and
companies in which the directors have interest are set out below:
Relationship Nature of Note 2019 2018
Transaction N' 000 N' 000
(a) Premium written from related parties comprises:
ARM Pension Managers Fellow subsidiary Gross premium 36,240 30,355
2,388 1,634
ARM Securities Limited Fellow subsidiary Gross premium 1,981 2,077
ARM Trustees Fellow subsidiary Gross premium - -
945 1,709
ARM Capital Fellow subsidiary Gross premium 1,383 3,242
11,123 8,070
ARM Lakowe Lakes Fellow subsidiary Gross premium
ARM Infrastructure Fund Fellow subsidiary Gross premium
Mixta Real Estate Plc Fellow subsidiary Gross premium
Asset & Resource Management Company
Limited Ultimate parent company Gross premium 15,699 20,821
- 719
E-Motion Advertising Shareholder Gross premium
Notes to the Financial Statements
Page 123 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
Relationship Nature of Note 2019 2018
Transaction N' 000 N' 000
Cashcraft Asset Management Limited Shareholder Gross premium 510 101
Stephen Alangbo Managing Director Gross premium 375 1,530
Osahon Ogiemudia Executive Director Gross premium 346
Femi Ogundeji Executive Director Gross premium 420
Jumoke Ogundare Non Executive Director Gross premium - 15
Sadiq Mohammed Non Executive Director Gross premium 209 209
- -
71,197 70,902
(b) Claims paid : Claim expenses --
ARM Pension Managers
(c) Placements: Ultimate parent Cash and cash 16 - 66,658
Asset & Resource Management company equivalents
Limited
(d) Intercompany payable (see note (i) below):
ARM Investment Managers Limited Fellow subsidiary Other payable 14,637 2,094
ARM Traditional Asset Management 4,197 4,005
(1,311) 1,788
Company Holding Company Other payable
4,259 18,147
ARM Financial Advisers Other receivable 30 21,782 26,034
Asset & Resource Management
Company Limited Ultimate parent company Other payable
(e) Intercompany Receivable (see note (ii) below):
Mixta Real Estate Plc Fellow subsidiary Rent receivable 66,507 31,437
(f) Fund management fees: Ultimate parent company Fund manager fee 15 - 19,658
Asset & Resource Management
Company Limited
(g) Shared cost: Ultimate parent company Shared service 15 40,399 58,546
Asset & Resource Management
Company Limited
i. Intercompany payables are amounts due to related parties for payment of various service providers on behalf of
beneficiary companies within the Group under a shared services agreement.
ii. The intercompany receivables from Mixta Real Estate Plc arise mainly from rent on investment property. They are
due immediately services are rendered. The receivables are unsecured in nature and bear no interest.
Notes to the Financial Statements
Page 124 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
41 Litigation
The company, in its ordinary course of business, is presently involved in 1 case as a defendant. ARM Life Plc is the 8th
defendant in this suit. A portion of the land was acquired by ARM Life Plc from Capital Trust Investment & Assets
Management Limited in settlement of a debt. The plaintiff claimed the sum of N10,000,000 (Ten Million Naira) from the
defendants jointly and severally as damages for trespass. The directors having deliberated on the facts of the matter, are of
the opinion that no provision is deemed necessary for these claims.
42 Directors and employees
(a) Directors
The remuneration paid to the directors of the Company were:
2019 2018
N'000 N'000
Fees and allowances 10,875 10,000
Fees and other emoluments (excluding pension contributions)
disclosed include amounts paid to :
The Chairman
The highest paid Director 43,765 33,529
The number of directors who received fees and other emoluments (excluding pension contributions) in the
following ranges were:
2019 2018
Number Number
Below 1,500,000 22
1,500,001 - 2,000,000 22
2,000,001 - 5,000,000 --
5,000,001 - 9,000,000 33
Above 9,000,000 11
(b) Employees
2019 2018
Number Number
The average number of persons employed in the Company during the 31
year was: 74
Executive Director(s) 164 112
Management 174 117
Non- Management
The staff costs for the above persons was: 2019 2018
N'000 N'000
Salaries and wages 793,682 527,532
Other pension costs 38,452 28,734
Past service costs
- -
832,134 556,266
Notes to the Financial Statements
Page 125 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
(c) The number of employees of the Company, other than Directors, who received emoluments in excess of N100,000 are
shown in the following ranges:
2019 2018
N Number Number
100,001 - 2,000,000 112 69
2,000,001 - 2,800,000 13 5
2,800,001 - 3,500,000 49
3,500,001 - 4,000,000 51
4,000,001 - 5,500,000 11 17
5,500,001 - 6,500,000 12 5
6,500,001 - 7,800,000 42
7,800,001 - 9,000,000 11
9,000,001 - and above 12 8
174 117
(d). Key management personnel compensation for the year comprises:
2019 2018
N'000 N'000
Salaries, short term benefit and pension 162,936 106,941
Other allowances and benefits 45,709 20,901
Fees and allowances as Directors 22,627 7,475
231,272 135,317
44 Contravention of laws and regulations
The Company paid the following fines during the year for contravention of laws and regulationss.
Institution Contravention Fines and Penalties
1. Securities & Breach of Section 60(1) of the Investment and The Company was liable
Exchange Securities Act 2007 and Section 65 (1) was applied. and paid a fine of
Commission N2,400,000.
i. Failure to provide details of related parties and
2. Financial Reporting related party transactions. The Company was liable
Council of Nigeria and paid a fine of
ii. Failure to provide required disclosures relating to N5,000,000.
reclassification of some comparative amounts in the
statement of profit or loss and other comprehensive
income.
Notes to the Financial Statements
Page 126 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
45 Subsequent Events
Tangerine Life Insurance Limited, (formerly known as Metropolitan Life Insurance Nigeria Limited), acquired majority
equity stake of 77.22% in ARM Life Insurance Plc after relevant regulatory approvals were obtained. This acquisition
was effective on Monday, 2nd March 2020.
Consequently, ARM Life Plc has commenced integration process that will result in a merger with Tangerine Life
Insurance Limited with a view to meeting the new minimum statutory capital thus further strengthening the Company's
ability to continue to operate as a going concern under a new name (Tangerine Life Insurance Limited), a new
management and shareholding structure. The name ARM Life Plc will, on finalization of the merger process, cease to
exist but the Company affirms its assurance that it will continue to meet its obligations to its policyholders specifically and
stakeholders in general under the new name subject to ratification of shareholders at an extraordinary general meeting.
As at the date of issuance of the financial statement, the COVID-19 pandemic is still prevalent globally and also in
Nigeria. As a result, there has been government restriction of movement to reduce the spread of the virus within a
manageable level. This has potential impact on the life and livelihood of the people (Nigerian), Businesses and by
extension ARM Life Plc.
Management has been able to make preliminary assessment of the financial impact of COVID-19 and concluded that
there will be no material financial impact on its Business and there are no adjusting entries to the 31 December 2019
financial statements. The Company's Business continuity plan has been activated during this period to minimise or
eliminate any financial impact that may arise as a result the COVID-19 pandemic.
Notes to the Financial Statements
Page 127 ARM Life Plc Annual Report 2019
MANAGEMENT’S
DISCUSSION AND ANALYSIS
Operational Risk Management by experts within the business."
Operational Risk is the risk of loss arising from inadequate
or failed internal processes, people, systems and/or external Ÿ Issues Management: Like the RCSA, the issues
events. Operational risk is inherent in the Company's management is a forward looking approach to managing
business and support activities. These risks could result from operational risk issues before they metamorphose into loss
erroneous transactions, fraudulent acts, performance failure events. While RCSA is a yearly activity where potential and
of vendors, business disruption, poor customer service actual risk events are identified and such risks are
delivery etc. Also, ARM Life Plc has established procedures monitored through the year; the issues management log is
and controls to manage market, counterparty credit, maintained to keep track of risk issues that are spotted
reputational and strategic risks. The potential of failure or during the course of the year, but which have not
inadequacy in these procedures and controls would result in crystallised into loss events. Such identified issues are
an operational risk. These events could result in financial recorded on the log and mitigating/preventive actions are
losses, regulatory sanctions and/or reputational damage to proffered and such actions are also tracked and monitored
the Company. till completion.
Potential loss events relating to both internal and external Ÿ Internal Loss Data Collection (LDC): This
types of operational risk include: represents a process with which the Company collects data
on operational risk losses immediately after they occur.
Ÿ Execution, delivery and process management This data collection is facilitated with the use of a bespoke
Ÿ Business disruption and system failures operational risk system, The OpRisk Manager. With this,
Ÿ Disaster and other events risk events can be identified by any member of staff at any
Ÿ Clients, products and business practices location within the Company, loss events are then
Ÿ Employment practices and workplace safety subsequently assigned to a member of staff with sufficient
Ÿ External fraud knowledge and authority to perform a causal analysis, and
Ÿ Internal fraud to recommend remedial actions.
Operational risk management forms part of the day-to-day Ÿ Whistleblowing: Our Whistleblowing system enables
responsibilities of managers at all levels. Each unit is anonymous as well as confidential reporting of observed
responsible for the daily monitoring of operational risks and misconduct. Stakeholders such as vendors, shareholders,
for reducing and preventing losses resulting from exposures clients and staff can make use of the Whistleblowing portal
to operational risks. Qualitative and quantitative on the corporate website or call the Whistleblowing hotline
methodologies and tools are applied to identify and assess for seamless reporting of misconducts. All information
operational risks and to provide management with obtained via the Whistleblowing channels are thoroughly
information for determining appropriate mitigating investigated, and disciplinary actions are applied when
measures. Independent monitoring of operational risk necessary. In addition to the benefit of early identification
occurs through a number of activities within the Company's of misconduct, the Whistleblowing system serves as a
Risk Management function. preventive control for fraud, bribery and other forms of
misconduct within the Company.
The Company applies the following tools in managing
operational risk: Reports generated from data collected from these operational
risk management tools provide line managers, the Senior
Ÿ Risk and Control Self Assessment (RCSA): A Management and the Board/ Board Committees with
forward looking evaluation of both current and potential information to help monitor operational risk at appropriate
risks faced by the various units within the organization on levels within each business line.
a daily basis. It also involves assessing the controls
implemented to prevent, detect or mitigate the Operational risk is recognized as a distinct risk category which
occurrence of the risks; as well as recommending actions the company manages within acceptable levels through sound
for improving deficiencies, or designing new controls operational risk management practices. The ultimate aim of
within the process. It is conducted in a workshop attended the Company's operational risk management activities is to
Management’s Discussions and Analysis
Page 128 ARM Life Plc
Management’s Discussion & Analysis
improve operational efficiency as well as the quality of Responsibility, workplace culture, poor service
service delivery to clients through: delivery.
Ÿ Improved processes and operational guidelines;
Ÿ Minimising occurrence of avoidable risk events; The Company's Strategic & Reputational Risk is managed
Ÿ Creating company-wide risk awareness that guides within the Corporate Strategy Unit and the Marketing &
Corporate Communications Unit respectively. In addition,
behaviours and creates a careful approach to transaction strategic risk sessions are held with Executive Management on
handling and execution." a quarterly basis to review strategic risks and performance of
the solutions proffered to address such risks.
Regulatory and Compliance Risk Management
Compliance risk is the risk of loss to the Company's earnings Management's Discussions and Analysis
or capital arising from violations of, or non-conformance This Management's Discussion and Analysis (“MD&A”) is
with laws, rules, regulations, prescribed practices, internal designed to provide the reader with a greater understanding
policies and procedures or ethical standards. This risk would of the Company's business, business strategy and
not only result in financial loss via the payment of fines, but performance, as well as how it manages risk and capital
could also result in damages to the Company's reputation. resources.
ARM Life Plc has a dedicated Compliance unit that ensures It is intended to enhance the understanding of the audited
strict compliance with regulatory requirements and annual financial statements and accompanying notes, and
enforcement of internal guidelines at all times. In addition, should therefore be read in conjunction with these
the compliance Unit supports all units to ensure that documents.
regulatory reports and disclosures are made in a timely
manner. Reference in this MD&A to the “Company” means "ARM
Life Plc"
The Company's approach to managing compliance risk is
proactive and premised on accepted principles of risk All financial information presented in this MD&A is prepared
management. A regulatory Rule Library that contains key in accordance with International Financial Reporting
regulations, guidelines, framework pertaining to the Standards (“IFRS”).
Company's business activities is maintained. This Rule
Library enables easy monitoring of regulatory The Insurance industry regulatory reform of 'No premium
requirements; and helps prevent violations and/or non- No cover' and its strict adherence was effective January 1,
conformance. This Rule Library is updated as new/relevant 2013. The company has ensured full compliance with this
legislations are released. reform.
Strategic & Reputational Risk Management Forward-Looking Statements:
Strategic risk is the risk of loss to earnings or capital arising The forward-looking statements in this document reflect the
from adverse business decisions, improper implementation Company's expectations as at 19 March 2020 when the
of decisions, or lack of responsiveness to industry changes. Company's Board of Directors approved this document, and
Some strategic risk factors with which the Company is faced are subject to change after this date. These forward-looking
includes: activities of competitors, political terrain, social statements are not historical facts but reflect the Company's
mores, the economy, laws and regulations, strategic business current expectations concerning future results and events.
decisions (e.g. talent structure, remuneration, technology, They also reflect Management's current assumptions
business initiatives etc.), as well as actions of the regulators. regarding the risks and uncertainties referred to below and
their respective impact on the Company. The Company does
Reputational Risk on the other hand, is the risk of loss to not undertake any obligation to update publicly or to revise
earnings or capital arising from damage to the Company's any such forward-looking statements, unless required by
reputation. This damage could be as a result of poor applicable legislation or regulation."
communications & crisis mismanagement, regulatory non-
compliance, poor financial performance, corporate In this Annual Report, financial review, forward looking
governance & leadership, inadequate Corporate Social
Management’s Discussions and Analysis
Page 129 ARM Life Plc
Management’s Discussion & Analysis
statements reflect the Company's expectation that: Ÿ changes to or failure to comply with laws and regulations
affecting the Company and its business,
The Company's expected Gross Premium Written in 2020
will be approximately N15.91 billion. The Company's Ÿ changes in the Company's income tax and regulatory
aspiration is to have a major dominance in the retail liabilities including changes in tax laws, regulations or
environment. This aspiration is driven by the anticipated future assessments;
growth in the retail market through an increased awareness
on financial inclusion and literacy. The strategic actions of Ÿ the risk that the Company would experience a financial
the Company will revolve around creating a well-balanced loss if its counterparties fail to meet their obligations in
distribution platform, ensuring diversity on product accordance with the terms and conditions of their
offerings and creating amazing and repeatable experience contracts with the Company."
for all our customers. We will also focus on building strong
and competent teams to drive all the initiatives that will help This is not an exhaustive list of the factors that may affect the
us deliver unrivalled value to all Stakeholders. Company's forward-looking statements. Other risks and
uncertainties not presently known to the Company or that the
These forward-looking statements are subject to a number Company presently believes are not material could also cause
of risks and uncertainties that could cause actual results or actual results or events to differ materially from those
events to differ materially from current expectations. Some expressed in its forward-looking statements.
of these risks include but are not limited to:
Additional risks and uncertainties are discussed in the
Ÿ failure to realize revenue growth as a result of heightened Company's Enterprise Risk Management section of this
competition, whether from current competitors or new MD&A.
entrants to the marketplace; changes in economic
conditions including the rate of inflation or deflation, Readers are cautioned not to place undue reliance on these
changes in interest and currency exchange rates and asset forward-looking statements, which reflect the Company's
prices; expectations only as of the date of this MD&A. The
Company disclaims any intention or obligation to update or
Ÿ adverse results from the Company's initiatives such as, the revise these forward-looking statements, whether as a result of
inability of the Company's IT infrastructure to support new information, future events or otherwise, except as
the requirements of the Company's business; required by law.
Ÿ the inability of the Company to manage receivables or • Establish a very strong and experienced executive
the inability of the Company to collect the premiums as management team that will drive the creation of superior
they become due; value for all our stakeholders.
Ÿ failure by the Company to maintain appropriate records • Inspire confidence and trust in the minds of our clients
to support its compliance with accounting, tax or legal for the products and services offered by ARM Life Plc.
rules, regulations and policies;
• Support the attraction and recruitment of excellent talent
Ÿ failure of the Company to manage her relationship with by promoting ARM Life's strengths and conducive work
Brokers and Insurance Agents; environment to potential employees.
Ÿ over-reliance on the performance and retention of third- • Advance the mutually beneficial relationship between us
party service providers and our esteemed partners (brokers, re-insurers), and
support the growth of the insurance industry through
Ÿ supply and quality control issues with vendors; numerous initiatives.
Management’s Discussions and Analysis
Page 130 ARM Life Plc
Management’s Discussion & Analysis
Revenue and Underwriting Activities Current Period Prior Period Change
2019 2018
Items 64%
N'000 N'000 67%
Gross premium written 24%
Gross premium income 9,569,464 5,835,987 170%
Reinsurance expenses 9,521,042 5,699,115 24%
Net premium income (397,422) (320,751) 69%
Fees and commission income 9,123,620 3,382,302 49%
Net underwriting income 86%
Profit before tax 89,537 72,125 47%
Income taxes 9,213,157 5,450,489
Profit after tax 1,131,262
759,062
Financial Condition (62,053) (33,315)
1,069,209 725,747
Financial Profile
2019 2018 Change
Assets N'000 N'000
Cash and cash equivalents 248%
Investment securities: 2,881,514 829,073
5621%
Investment securities-fair value through profit or loss 24,940,711 435,928 -88%
Investment securities-held to maturity 1,929,048 16,727,454
Investment securities-available for sale -100%
Loans and receivables - 127,369 69%
Trade receivables 430 255 -80%
Reinsurance assets 2,087 -10%
Deferred acquisition costs 337,595 10,438 -4%
Other receivables and prepayment 28,467 374,874 33%
Investment properties 233,944 29,776 9%
Deferred tax asset 2,218,000 175,462
Intangible assets 2,036,000 -36%
Property and equipment - 17%
Statutory deposits 15,313 - 0%
138,739 24,063
Liabilities 200,000 118,487
32,925,848 200,000
Insurance contract liabilities 21,089,179
Investment contract liabilities
Trade payables 22,461,255 12,990,301 73%
Other payables 4,134,889 3,086,961 34%
Current income tax liabilities 5%
Deferred tax liability 39,548 37,598 21%
1,033,255 850,439 56%
27,030 22%
42,270 86,900
106,200 17,079,229
27,817,417
Management’s Discussions and Analysis
Page 131 ARM Life Plc
Management’s Discussion & Analysis
Key Financial Performance Indicators
The Company has identified specific key financial performance indicators to measure the progress of short and long term
objectives.
Financial trends and ratios
Business volumes and trends 2019 2018
Growth in gross premium written (in thousands of naira) 3,733,477 2,214,187
Premium growth rate
Renewal rates 64% 61%
95% 92%
Profitability -37% 1%
Underwriting profit ratio -17% -23%
Operating ratio 12%
Average return on investment 21% 9%
Return on equity 18%
Solvency and reserves 179% 134%
Net premium/Shareholders' funds 521% 401%
Policyholders' funds/Shareholders' funds
Solvency ratio 27% 24%
% growth, Shareholders' funds 70% 59%
% growth, Net premiums
Liquidity 923% 1939%
Policyholders' funds/Liquid assets 0% 0%
Trade debts/Assets
Cash claims cover 294% 165%
Trade debts/Shareholders' funds 0% 0%
Investments 12% 10%
Investment yield 92% 43%
% growth, Investment income
Underwriting performance 6% 5%
Underwriting performance ratio 96% 94%
Retention ratio 11% 9%
Claims (loss) ratio 18% 25%
Expense ratio 35% 40%
Combined ratio
Capital adequacy 10% 9%
Gross risk ratio 11% 9%
Net risk ratio
Management’s Discussions and Analysis
Page 132 ARM Life Plc
Management’s Discussion & Analysis
Financial instruments It should be recognized that due to inherent limitations, any
The Company discloses information on the classification controls, no matter how well designed and operated, can
and fair value of its financial instruments, as well as on the provide only reasonable assurance of achieving the desired
nature and extent of risks arising from financial instruments, control objectives and may not prevent or detect
and related risk management in the 2019 audited annual misstatements. Projections of any evaluations of effectiveness
financial statements. to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that
Disclosure Controls and Procedures the degree of compliance with the policies or procedures may
Management is responsible for establishing and maintaining deteriorate. Additionally, management is required to use
a system of disclosure, controls and procedures to provide judgment in evaluating controls and procedures.
reasonable assurance that all material information relating
to the Company is gathered and reported by senior Changes in Internal Control over Financial
management on a timely basis so that appropriate decisions Reporting
can be made regarding public disclosure. Management evaluated whether changes occurred in the
Company's internal controls over financial reporting during
Internal Control over Financial Reporting the period beginning on January 01, 2019 and ended on
Management is also responsible for establishing and December 31, 2019 that materially affected, or are reasonably
maintaining adequate internal controls over financial likely to materially affect, the Company's internal control over
reporting to provide reasonable assurance regarding the financial reporting. The evaluation revealed that no material
reliability of financial reporting and the preparation of changes occurred during this period.
financial statements for external purposes in accordance
with International Financial Reporting Standard (IFRS).
Supplementary Information Note 2019 2018
Deposit Administration Revenue Account N'000 N'000
28 628,798 439,676
Investment Income 28 (340,427) (121,038)
Guaranteed Interest
288,371 318,638
Management’s Discussions and Analysis
Page 133 ARM Life Plc
Annual Report & Financial Statements
For the year ended 31 December 2019
OTHER NATIONAL
DISCLOSURES
Statement of Value Added..................... 134
Financial Summary................................. 135
List of Unpaid Dividend........................ 137
Proxy Form............................................. 139
Full Dematerialization Form for
Migration................................................ 141
E-Dividend Mandate Activation Form .. 143
E-Service/Data Update Form ............... 145
Share Portal Application Form .............. 147
Page 134 ARM Life Plc
Other National Dislosures
STATEMENT OF
VALUE ADDED
2019 % 2018 %
N'000 N'000
60
Gross premium earned - Local 9,521,042 445 5,699,115 90
(50)
Other income - Local 3,868,673 180 1,981,266 100
Claims incurred, net commissions and operating expenses (11,247,032) (525) (6,353,119) 30
2
Value added 2,142,683 100 1,327,262
4
Applied as follows: 0
3
Employees (Staff cost) 832,134 39 556,266 61
100
Government taxes 42,753 2 30,315
Retained in business:
Depreciation 67,386 3 52,232
Deferred tax 19,300 1 3,000
To augment contingency reserve 111,901 5 56,992
Addition of reserves 1,069,209 50 628,457
Value added 2,142,683 100 1,579,245
Statement of Value Added
Page 135 ARM Life Plc
Other National Dislosures
FINANCIAL
SUMMARY
Statement of financial position 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2019 2018 2017 2016 2015
In thousands of Naira
2,881,514 829,073 1,678,427 2,163,349 2,722,266
Assets
Cash and cash equivalents 24,940,711 435,928 568,552 426,635 421,588
Financial assets: - 0 11,026,166 7,304,788 4,141,511
- Fair value through profit or loss 1,929,048 16,727,454 - - -
- Held to maturity - 0 139,197 110,534 142,953
- Amortised cost
- Available for sale - 127,369 - - -
- Fair value through Other 430 255 275 - 179
2,087 13,094 18,596 26,848
Comprehensive Income (OCI) 337,595 10,438 288,728 260,295 227,979
Loans and receivables 28,467 374,874 14,039 12,492 12,631
Trade receivables 233,944 119,651 101,199 68,890
Reinsurance assets 2,218,000 29,776 2,006,000 1,991,000 1,952,000
Deferred acquisition cost 15,313 175,462 -
Other receivables and prepayments 138,739 2,036,000 - 119,150 -
Investment properties 200,000 78,265 200,000 167,022
Intangible asset 32,925,848 24,063 200,000 12,708,038 200,000
Property and equipment 118,487 16,132,394 10,083,867
Statutory deposits 200,000
Total assets 21,089,179
Liabilities 22,461,255 12,990,301.35 9,690,314 7,400,871 6,281,648
Insurance contract liabilities 4,134,889 3,086,960.79 2,530,003 1,903,272 1,410,007
Investment contract liabilities 37,598.00
Trade payables 39,548 850,439.00 13,298 52,117 38,458
Other payables and liabilities 1,033,255 27,030.00 558,028 504,328 511,173
Current income tax liabilities 86,900.00 22,912 13,432 23,709
Deferred tax liability 42,270 17,079,229 83,900 82,400 78,826
Total liabilities 106,200 12,898,455 9,956,420 8,343,821
27,817,417
Net assets
5,108,431 4,009,949 3,233,939 2,751,618 1,740,046
Equity
Share capital 4,786,960 4,786,960 3,857,115 3,857,115 2,892,836
Share premium 800,094 800,094 795,325 795,325 802,439
Retained deficits
Deposit for shares (1,579,698) (2,562,502) (3,133,968) (3,541,313) (3,620,600)
Fair value reserves - - 967,000 967,000 1,002,000
Revaluation reserve 35,049 6,386
Statutory contingency reserve 218,765 214,988 384,806 384,806 23,805
Total equity 384,806 384,806 328,612 282,299 384,806
497,504 385,603 254,760
5,108,431 4,009,949 3,233,939 2,751,618 1,740,046
Financial Summary
Page 136 ARM Life Plc
Other National Dislosures
Statement of profit or loss
In thousands of Naira 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2019 2018 2017 2016 2015
Gross premium earned 9,521,042 5,699,115 3,580,983 827,718 862,700
Net premium earned 9,123,620 5,378,364 3,382,302 679,190 705,148
Profit/(loss) before taxation 1,131,262 759,062 486,961 123,212 (493,928)
Taxation (62,053) (33,315) (33,303) (16,386) (35,317)
Profit/(loss) after taxation 725,747 453,658 106,826 (529,245)
Transfer to contingency reserve 1,069,209 (56,991) (46,313) (27,539) (33,379)
Transfer to retained earnings (111,901) 668,756 407,345 79,287 (562,624)
957,308
-9k
Earnings per share (basic & diluted) 11k 8k 12k 1k
The financial summary presented represents the Company's available financial information from 31 December 2015.
Financial Summary
Page 137 ARM Life Plc
Other National Dislosures
LIST OF
UNCLAIMED DIVIDEND
S/N ACCOUNT NO. HOLDER'S NAME S/N ACCOUNT NO. HOLDER'S NAME
1 901019 WSTC FINANCIAL SERVICES LIMITED 39 2776209 OLUWAKEMI OLAITAN AKEJU
2 1674145 OGUNBANJO 40 1948653 ADEWUNMI OLARENWAJU ALAWOYA
3 1908687 HALBIZ INVESTMENTS LTD 41 35362 MOROLAKE AFOLASADE OGUNNUSI
4 2668845 CAPITAL TRUST INVESTMENT LTD 42 1990417 FRANCIS CHUWUYEM OJO
5 613700 LEKAN BELO 43 207756 SAMWELL NIGERIA LIMITED
6 2196394 BABA OTHMAN TOFA 44 2570593 TAIWO ADENIYI ASHAOLU
7 430696 A.A. ABUBAKAR 45 1119843 OLUTUNDE FAGBENRO
8 2719656 ADESOYE HOLDINGS LTD 46 2556568 OLUBUNMI ESTHER ADEBOWALE
9 2931424 TOS & TOPS ENTERPRISES 47 2963181 MONICA OGUNKEYE
10 2771021 DAVID OLUSEGUN AGBAJE 48 362284 FEMI OLADIMEJI ODEJOBI
11 957775 ESTHER OLUWEMIMO AGBAJE 49 807953 HELEN AGBON IDIAKHOA
12 261295 T. JUMOKE OSOBU (MR. & MRS) THOMAS 50 481451 HELEN OLOHIRENUAN IZIOGBA
13 2878510 BLR PROPERTIES LTD 51 1061583 OLADIPO LANLEHIN
14 2619398 DANIEL OLUWATOBI AGBAJE 52 173168 NJIDEKA CHRISTIANA OBIOMA-OBIKEZE
15 2149093 CHRISTOPHER KIYARAMO JOHNSON 53 768089 BENJAMIN OLADOTUN ALAWOYA
16 2188076 EMMANUEL ABAYOMI AGBAJE 54 33339 ISATEHI ENTERPRISES LIMITED
17 2359765 K.TAJUDEEN BAMGBOPA 55 2866751 JOSEPH ZUOBOFA OPUOWIE
18 1066728 EBENEZER OLUDAMOLA AGBAJE 56 548437 ADEFUNMIKE LYDIA ADEKOYA
19 784295 DANIEL AYODELE AGBAJE 57 64828 EMMANUEL SEYI ADEBAYO
20 203670 ADENIYI ADEBAYO NEHEMIAH 58 2332394 OGHENEKHARO ARUTERE
AROMOLARAN 59 12294 ADETUTU JANET FAGBENRO
21 2782442 ABIODUN BISI FAJOBI 60 416112 D.M.OLANIPEKUN KWAKU
22 1710856 ACCLINCE OYEINKURO FRANK 61 2790370 GBENGA SAMUEL AKERELE
ALAKANBI 62 1152969 INNOCENT PAUL NWEGBO
23 934093 FRANK EDEVWIE 63 2334516 O. BAMIDELE SAMUEL
24 2468720 OLUFUNKE OMOYAYO BALOGUN 64 363283 CHIBUZOR ENYINNAYA UANNKA
25 936754 PASCHAL ELENGWU 65 676859 SUAK-ADE ENTERPRISES(CHUHWU
26 1747049 OLUBOWALE SAMUEL ERINOSHO EMEKA)
27 2158074 OMOZEGIELE ISAH 66 98328 GBENGA ELEGBELEYE
28 1359413 ZAHEED ABAYOMI KUYE 67 2567145 MARIA AMAKA ORAEGBUNAM
29 1665317 OLUWASEGUN OLATUNJI BELLO 68 2927691 ADEBUKOLA ADENIKE ADESUYI
30 814268 AARINOLA OLUSHOLA IDOWU 69 1129438 ISRAEL CHINEZE ANUTA
31 47372 DANIEL OLUGBENGA AKINWALE 70 1686435 ASHIMIU OLAYIWOLA DOSUMU
32 2538050 SAMUEL OLUSEGUN EMMANUEL 71 1482729 CHRISTOPHER NNAMDI NWOKORIE
33 2430065 KAZEEM ADEMOLA OMOTOSHO 72 2725681 AGBABIAKA ADIJATU
34 327224 OLALEKAN AHMED JIMOH 73 2467215 ABIDEMI AMUDA
35 886719 PETER AZEBEOKHA EMOEKPERE 74 2753980 OMOTOSHO ADIGUN DUROSINMI
36 151399 TITILOPE OGUNTUGA 75 2740460 RICHARD ISHABIYI
37 596703 TITILAYO ENEYEME OBORO 76 2128257 METHODIST CHURCH OWUTU
38 2822209 ADEBOWALE ADEBUKOLA OJURI 77 1543030 TUNDE SOLOMON OYEGUNLE
Unpaid Dividend
Page 138 ARM Life Plc
Other National Dislosures
S/N ACCOUNT NO. HOLDER'S NAME S/N ACCOUNT NO. HOLDER'S NAME
78 1891179 PETER IKECHUKWU OKOYE 102 2526495 OLUFUNMILOLA ADESOLA ODUNLAMI
79 2505102 OLUWASEUN AKINYEMI AKINWUNMI 103 2668254 EVBADOLOYI ROLAND OBAZEE
80 2824498 OLADELE VINCENT IGE 104 2538544 P. CHUKWUJEKWU OKOYE
81 24864 A.MULIKAT FAYEMI 105 2074572 JEFFRY OMENKA ARUBI
82 1145616 JONATHAN C URAKWENI 106 2226763 ADEBANJI KAZEEM ADESHINA
83 1303887 OLUMIDE ADEDEJI ADEYEMI (MR. & 107 191669 OMOLARA AJOKE ESTHER
MRS). AROMOLARAN
84 347781 OLOWOKERE PHILLIP OYEKUNLE 108 1037620 A.NGOZI ATUONWU
85 1088949 BABATUNDE KUSIMO 109 1050386 TAJUDEEN FOLABI ADENIYI
86 1072535 OLUSOLA LANRE OLADOYINBO 110 1447813 CHARLES AYEMOBA
87 1944147 KWAJI KWADA BAKOGY 111 994268 IFEIOK JONAH IMEH
88 2158581 S. OBIORA EDWIN 112 2271712 SANNI SALIU
89 1890199 OLAYEMI CECILIA CLAY 113 2600898 OLAJIDE DAHUNSI
90 2746191 BEATRICE AGBON OJEME 114 506099 YINKA AFEEZ QUADRY
91 429741 O.FOLARIN OSINIBI 115 1475057 MURANA DAUDA
92 2459557 AUSTIN OKECHUKWU ONOGWU 116 1323036 GODWIN ABEN EJESI
93 1565840 IYABODE OLUWATOYIN AWOLOLA 117 314431 FUNMILAYO ADENIKE ABOLARINWA
94 1439286 SAMUEL STANLEY BURUFEGHA 118 1646419 SAMUEL TAIWO KILANKO
95 1603342 ROSELYN ODAGBU 119 199374 ISAH AUDU LABARAN
96 1569289 YEWANDE RAHEEMAT ADESHIYAN 120 2485663 OLUWASENI FESTUS ABAYOMI
97 203970 AMUDA LATEEF SANNI 121 413821 ADEWALE RASHEED
98 1446570 ISAAC TERSUU SWENDE 122 1121225 KUNLE ADEBANJO
99 108037 AJOKE RACHAEL OGUNBAWO 123 2357682 SHOLA PELUMI PITAN
100 2498469 LEO EDAM UDO EKONG 124 1166622 SULAIMON ATELA ISIAKA
101 1735512 ROMANUS CHINWENDU EZEUGWU
Unpaid Dividend
Page 139
PROXY FORM
ARM LIFE PLC.
RC.NO: 58532
The 22nd Annual General Meeting of ARM Life Plc to be held at 10 am on Tuesday, December 15, 2020 at the
Darlington Hall, Plot CDE Industrial Crescent, off Town Planning Way, Ilupeju, Lagos, Nigeria
*** Please fill in capital letters
I/WE ____________________________________________________________ being a member/members of
ARM LIFE PLC.
Do hereby appoint
*_____________________________________________________________________________________________
Or failing him the Chairman of the Meeting as my/our Proxy to vote on my/our behalf at the Annual General Meeting
of the Company to be held on Tuesday, December 15, 2020
Dated the ____ day of ________________ 2020
Shareholder's signature_________________________________
RESOLUTIONS For Against
ORDINARY BUSINESS
1. To receive the Audited Financial Statements for the year ended December 31, 2019 and
the Report of the Directors and Auditors thereon;
2. To re-elect Directors;
3. To authorize the Directors to appoint Auditors for the financial year ending December 31,
2020 and to fix the Remuneration of the Auditors; and
4. To elect members of the Statutory Audit Committee
SPECIAL BUSINESS
1. To ratify the appointment of Mr. Livingstone Magorimbo as a Director of the Company;
2. To ratify the appointment of Mr. Dipo Okuribido as a Director of the Company;
3. To ratify the appointment of Mr. Eric Idiahi as a Director of the Company;
4. To ratify the appointment of Mr. Osahon Ogiemudia as a Director of the Company;
5. To ratify the appointment of Mr. Femi Oyetunji as a Director of the Company;
Please indicate with an “X” in the appropriate column, how you wish your votes to be cast in respect of the resolutions set
out above.
This proxy form should NOT be completed and sent to the registered office of the Registrar if the member would be
attending the Meeting in person.
NOTES
1. A member (shareholder) who is unable to attend an Annual General Meeting is allowed to vote by proxy. This
proxy form has been prepared to enable you exercise your vote if you cannot personally attend. All proxy forms
should be deposited at the registered office of the Registrar (as stated in the notice) not later than 48 hours before
the Meeting.
Proxy Form
Page 140 ARM Life Plc
Annual Report 2019
2. Provision has been made on this form for the Chairman of the Meeting to act as your proxy, but if you wish you
may insert in the blank space on the form (marked *) the name of any person, whether a member of the Company
or not, who will attend the Meeting and vote on your behalf instead of the Chairman of the Meeting.
3. In the case of joint shareholders, any of them may complete the form, but the names of all joint shareholders must
be stated.
4. If executed by a corporation, the proxy form should be sealed with the common seal or under the hand of some
officers or an attorney duly authorized.
5. The proxy must produce the Admission form sent with the Annual Report and Accounts to obtain entrance at the
Meeting.
IF YOU ARE UNABLE TO ATTEND, PLEASE DO THE FOLLOWING:
a. Write the name of your proxy (if any) in the box marked with an asterisk (*).
b. Ensure that the form is signed by you.
c. Tear the proxy form along the perforated lines and post so as to reach the registered office of the Registrar ( Africa
Prudential Plc220B, Ikorodu Road, Palmgrove Lagos – Nigeria not later than 48hours before the time of holding
the Meeting.
______________________________________________________________________________________________
ADMISSION FORM TO ANNUAL GENERAL MEETING ***
ARM Life Plc (RC No:58532)
Please admit
To the 22nd Annual General Meeting of ARM Life Plc which will be held at the Darlington Hall, Plot CDE Industrial
Crescent, off Town Planning Way, Ilupeju, Lagos State at 2:00pm on Tuesday, December 15, 2020.
Shareholder's name _____________________________________________________________________
Shareholder's signature: __________________________________________________________________
Dated the __________ day of _________________________________ 2020
***Kindly fill in CAPITAL LETTERS
IMPORTANT NOTICE
1. The admission card must be presented by the Shareholder or his proxy in order to obtain entrance to the
Annual General Meeting.
2. Shareholders or their proxies are requested to sign the admission card in the appropriate place before
attending the Meeting.
CLP LEGAL
Company Secretary
Proxy Form
Africa Prudential
FULL DEMATERIALIZATION FORM FOR MIGRATION
INSTRUCTION: Please ll out the form in CAPITAL LETTERS. Section 'B' is applicable only if certicate(s) is/are misplaced, lost or destroyed.
Please credit my account at Central Securities Clearing System (CSCS) with shares from my holdings in Afx recent
passport
“the company”. I recognize this will invalidate any certicate(s) in my possession,
photograph
or which might come into my possession in respect of my total holding(s) in this/this company.
USE GUM ONLY
SECTION A: : NO STAPLE PINS
SHAREHOLDER'S FULL NAMES First Name Middle Name
Surname
ADDRESS:
GSM NUMBER: E-MAIL:
GENER: Male Female CSCS INVESTOR'S A/C NO.:
CLEARING HOUSE NUMBER(CHN): C REGISTRAR'S ID NO (RIN):
BANK DETAILS FOR DIRECT SETTLEMENT :
ACCOUNT NAME:
BANK MM YYYY
BANK A/C NUMBER:
DD
Must be NUBAN
BVN: AGE OF A/C:
Must be conrmed by bank Must be conrmed by bank
Authorized Signature (1) Authorized Signature (2) Shareholder's Signature & Date Shareholder’s Signature & Date (2) Thumb Print
(and stamp of Stockbroker) (and stamp of Stockbroker) (if applicable)
Company
CERTIFICATE DETAILS UNITS S/N CERTIFICATE NO. (IF ANY) UNITS Seal
4.
S/N CERTIFICATE NO. (IF ANY) 5.
6.
1.
2.
3.
SECTION B: INDEMNITY FOR MISPLACED, LOST OR DESTROYED CERTIFICATE(S)
I hereby request Africa Prudential Plc to credit my account at Central Securities Clearing System (CSCS) with unit of shares not covered in my share certicate(s) details
quoted in Section 'A' above. The holdings are registered in my name, and the original shares/stocks certicate(s) has/have been misplaced, lost or destroyed or was never
received. I hereby, with the Guarantor whose name hereunder appears, indemnify the said Company and Africa Prudential Plc against all claims and demands, money,
losses, damages, costs and expenses which may be brought against, or be paid, incurred or sustained by the said Company and/or Africa Prudential Plc by reason or in
consequence of the said certicate(s) having been misplaced, destroyed, lost or in consequence of a transfer being registered without surrender of the certicate(s) or
otherwise whatsoever. I further undertake and agree that if the said Certicate(s) shall hereafter be found, to forthwith deliver up to Africa Prudential Plc or their successors or
assigns without cost, fee or reward.
CERTIFICATE DETAILS Dated this day of , 20
S/N CERTIFICATE NO. UNITS S/N CERTIFICATE NO. UNITS Name:
(IF ANY) (IF ANY)
1. 4. Signature: Company
5. Seal
2. 6. Joint (2) (if applicable):
3.
Joint (3) (if applicable):
In the Presence of:
Name: GSM NO:
Address:
Signature:
THIS SECTION IS TO BE EXECUTED BY THE SHAREHOLDER'S STOCKBROKER, BANKER OR INSURANCE COMPANY
On behalf of Plc/Ltd, we hereby agree jointly and severally to keep the company and /or the Registrar or other persons
acting on their behalf fully indemnied against all actions, proceedings, Liabilities, claims, losses, damages, costs and expenses in relation to or arising out of your
accepting to re-issue to the rightful owner the shares/stocks, and to pay you on demand, all payments , losses, costs and expenses suffered or incurred by you in
consequence thereof or arising therefrom.
Authorised Signatory (1): Authorised Signatory (2): Company
Seal
HEAD OFFICE: 220B, Ikorodu Road, Palmgrove, Lagos. Tel: 07080606400
ABUJA: Innity House (2nd Floor), 11 Kaura Namoda Street, Off Faskari Crescent, Area 3, Garki, Abuja. Tel: 09-2900873
PORT-HARCOURT: Oklen Suite Building (2nd Floor), No. 1A, Evo Road, GRA Phase 2. Tel: 084-303457
E-MAIL: [email protected] | www.africaprudential.com | @afriprud
Africa Prudential Afx
Current
RC 649007 Passport
E-DIVIDEND MANDATE ACTIVATION FORM USE GUM ONLY
NO STAPLE PINS
INSTRUCTION
Please complete all section of this form to make it eligible for processing and return to (to be stamped by your banker)
the address below.
ONLY CLEARING BANKS ARE ACCEPTABLE
The Registrar
Africa Prudential Plc Please tick against the company(ies)
220B, Ikorodu Road, Palmgrove, Lagos. where you have shareholdings
I/We hereby request that henceforth, all my/our Dividend Payment(s) due to me\us from CLIENTELE
my/our holdings in all the companies ticked at the right hand column be credited directly
to my /our bank detailed below: 1. AFRICA PRUDENTIAL PLC
2. ABBEY MORTGAGE BANK PLC
Bank Verication Number (BVN): 3. AFRILAND PROPERTIES PLC
4. ALUMACO PLC
Bank Name: 5. A & G INSURANCE PLC
6. A.R.M LIFE PLC
Bank Account Number: 7. ADAMAWA STATE GOVERNMENT BOND
8. BECO PETROLEUM PRODUCTS PLC
DD MM YYYY 9. BUA GROUP
10. BENUE STATE GOVERNMENT BOND
Account Opening Date: 11. CAP PLC
12. CAPPA AND D'ALBERTO PLC
SHAREHOLDER ACCOUNT INFORMATION 13. CEMENT COY. OF NORTHERN NIG. PLC
14. CSCS PLC
Gender: Male Female 15. CHAMPION BREWERIES PLC
16. CWG PLC
Surname/Company’s Name First Name Other Name 17. CORDROS MONEY MARKET FUND
18. EBONYI STATE GOVERNMENT BOND
Address State Country 19. GOLDEN CAPITAL PLC
City 20. INFINITY TRUST MORTGAGE BANK PLC
Previous Address (if any) 21. INVESTMENT & ALLIED ASSURANCE PLC
22. JAIZ BANK PLC
Clearing House Number (CHN) (if any) Name of Stockbroking Firm 23. KADUNA STATE GOVERNMENT BOND
Mobile Telephone 2 24. LAGOS BUILDING INVESTMENT CO. PLC
C 25. MED-VIEW AIRLINE PLC
26. MIXTA REAL ESTATE PLC (formerly ARM Properties Plc)
Mobile Telephone 1 27. NEXANS KABLEMETAL NIG. PLC
28. OMOLUABI MORTGAGE BANK PLC
E-mail Address 29. PERSONAL TRUST & SAVINGS LTD
30. P.S MANDRIDES PLC
Signature: Signature: Company Seal(if applicable) 31. PORTLAND PAINTS & PRODUCTS NIG. PLC
32. PREMIER BREWERIES PLC
Joint/Company’s Signatories 33. RESORT SAVINGS & LOANS PLC
34. ROADS NIGERIA PLC
DISCLAIMER 35. SCOA NIGERIA PLC
"In no event shall Africa Prudential Plc be liable for any damages , losses or liabilities including without limitation, direct or indirect, 36. TRANSCORP HOTELS PLC
special, inciden tal, consequential damages, losses or liabilities, in connection with your use of this form or your inability to use the 37. TRANSCORP PLC
information, materials, or in connection with any failure, error, omission, defect, delay in operation or transmission, or system 38. TOWER BOND
failure, even if you advice us of the possibility of such damages, losses of expenses, whether express or implied in respect of such 39. THE LA CASERA CORPORATE BOND
information." 40. UACN PLC
41. UNITED BANK FOR AFRICA PLC
42. UNITED CAPITAL PLC
43. UNITED CAPITAL BALANCED FUND
44. UNITED CAPITAL BOND FUND
45. UNITED CAPITAL EQUITY FUND
46. UNITED CAPITAL MONEY MARKET FUND
47. UNITED CAPITAL NIGERIAN EUROBOND FUND
48. UNITED CAPITAL WEALTH FOR WOMEN FUND
49. UNIC DIVERSIFIED HOLDINGS PLC
50. UNIC INSURANCE PLC
51. UAC PROPERTY DEVELOPMENT COMPANY PLC
52. UTC NIGERIA PLC
53. WEST AFRICAN GLASS IND PLC
OTHERS:
HEAD OFFICE: 220B, Ikorodu Road, Palmgrove, Lagos. Tel: 07080606400
ABUJA: Innity House (2nd Floor), 11 Kaura Namoda Street, Off Faskari Crescent, Area 3, Garki, Abuja. Tel: 09-2900873
PORT-HARCOURT: Oklen Suite Building (2nd Floor), No. 1A, Evo Road, GRA Phase 2. Tel: 084-303457
E-MAIL: [email protected] | www.africaprudential.com | @afriprud
Africa Prudential
E-SERVICE/DATA UPDATE FORM
KINDLY FILL AND RETURN FORM TO ANY OF OUR OFFICE ADDRESSES STATED BELOW | * = COMPULSORY FIELDS Please tick against the company(ies)
where you have shareholdings
1. *SURNAME/COMPANY NAME
CLIENTELE
2. *FIRST NAME 3. OTHER NAME
4. *GENDER M F 5. E-MAIL 1. AFRICA PRUDENTIAL PLC
2. ABBEY MORTGAGE BANK PLC
6. ALTERNATE E-MAIL (2) 7. *DATE OF BIRTH 3. AFRILAND PROPERTIES PLC
8. *MOBILE (1) D D MM Y Y Y Y 4. ALUMACO PLC
5. A & G INSURANCE PLC
9. *ADDRESS 6. A.R.M LIFE PLC
7. ADAMAWA STATE GOVERNMENT BOND
10. OLD ADDRESS(if any) 8. BECO PETROLEUM PRODUCTS PLC
9. BUA GROUP
11. *NATIONALITY 12. *OCCUPATION 10. BENUE STATE GOVERNMENT BOND
11. CAP PLC
13. *NEXT OF KIN NAME MOBILE 12. CAPPA AND D'ALBERTO PLC
13. CEMENT COY. OF NORTHERN NIG. PLC
14. *MOTHER’S MAIDEN NAME 16. A/C NO. 14. CSCS PLC
15. BANK NAME 18. A/C OPENING DATE D D M M Y Y Y Y 15. CHAMPION BREWERIES PLC
17. A/C NAME 16. CWG PLC
19. BANK VERIFICATION NO. (BVN) 20. NAME OF STOCKBROKING FIRM 17. CORDROS MONEY MARKET FUND
21. CSCS CLEARING HOUSE NO. (CHN) C 18. EBONYI STATE GOVERNMENT BOND
19. GOLDEN CAPITAL PLC
Signature: Signature: Company Seal(if applicable) 20. INFINITY TRUST MORTGAGE BANK PLC
21. INVESTMENT & ALLIED ASSURANCE PLC
Joint/Company’s Signatories 22. JAIZ BANK PLC
23. KADUNA STATE GOVERNMENT BOND
24. LAGOS BUILDING INVESTMENT CO. PLC
25. MED-VIEW AIRLINE PLC
26. MIXTA REAL ESTATE PLC (formerly ARM Properties Plc)
27. NEXANS KABLEMETAL NIG. PLC
28. OMOLUABI MORTGAGE BANK PLC
29. PERSONAL TRUST & SAVINGS LTD
30. P.S MANDRIDES PLC
31. PORTLAND PAINTS & PRODUCTS NIG. PLC
32. PREMIER BREWERIES PLC
33. RESORT SAVINGS & LOANS PLC
34. ROADS NIGERIA PLC
35. SCOA NIGERIA PLC
36. TRANSCORP HOTELS PLC
37. TRANSCORP PLC
38. TOWER BOND
39. THE LA CASERA CORPORATE BOND
40. UACN PLC
41. UNITED BANK FOR AFRICA PLC
42. UNITED CAPITAL PLC
43. UNITED CAPITAL BALANCED FUND
44. UNITED CAPITAL BOND FUND
45. UNITED CAPITAL EQUITY FUND
46. UNITED CAPITAL MONEY MARKET FUND
47. UNITED CAPITAL NIGERIAN EUROBOND FUND
48. UNITED CAPITAL WEALTH FOR WOMEN FUND
49. UNIC DIVERSIFIED HOLDINGS PLC
50. UNIC INSURANCE PLC
51. UAC PROPERTY DEVELOPMENT COMPANY PLC
52. UTC NIGERIA PLC
53. WEST AFRICAN GLASS IND PLC
OTHERS:
HEAD OFFICE: 220B, Ikorodu Road, Palmgrove, Lagos. Tel: 07080606400
ABUJA: Innity House (2nd Floor), 11 Kaura Namoda Street, Off Faskari Crescent, Area 3, Garki, Abuja. Tel: 09-2900873
PORT-HARCOURT: Oklen Suite Building (2nd Floor), No. 1A, Evo Road, GRA Phase 2. Tel: 084-303457
E-MAIL: [email protected] | www.africaprudential.com | @afriprud
PORTAL
BUA CEMENT PLC
1. 2.
8. *DATE OF BIRTH 26.
27.
I/We hereby declare that the information I have provided is true and correct and that I shall be held 28.
personally liable for any of my personal details. 29.
I/We also agree and consent that Africa Prudential Plc ("Afriprud") may collect, use, disclose, process 30.
and deal in any manner whatsoever with my/our personal, biometric and shareholding information set 31.
out in this form and/or otherwise provided by me/us or possessed by Afriprud for administration of 32.
my/our shareholding and matters related thereto. 33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54. VFD GROUP PLC
55. WEST AFRICAN GLASS IND PLC
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ARM Life Annual Report 2019
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