UNIVERSAL INSURANCE : QUARTER 2 - FINANCIAL STATEMENT FOR 2022

AUDITED FINANCIAL STATEMENTS

For The Period Ended 30, JUNE 2022

Universal Insurance Plc

RC 2460

UNIVERSAL INSURANCE PLC.

2ND QUARTER 2022 MANAGEMENT ACCOUNT

UNIVERSAL INSURANCE PLC

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at 30,JUNE 2022

COMPANY

	NOTES	30-Jun-22	30-Jun-21	31-Dec-21
Assets			N'000	N'000	N'000
Cash and Cash Equivalents	6		708,306	193,250	9,108,054
	192,8 8
Financial Assets	7		2,688,391	1,984,636	2,325,	85
Trade Receivable	8		219,121	274,458	65,346
Reinsurance Assets	9		437,710	562,725	437,703
Deferred Acquisition cost	10	371,547	176,636	153,093
Deferred tax assets	23.a	403,685	403,685	403,685
Other Receivables	11		621,048	435,294	349,401
Investment in Subsidiaries	12	2,449,516	2,449,516	2,449,5 6
Investment Properties	13	1,901,830	1,891,000	1,90 ,830
Intangible Asset	14	57,121	69,295	68,544
Property, Plant and Equipment	15	2,641,040	2,632,665	2,623,3 7
Statutory Deposits	16	335,000	335,000	335,000
Total Assets			12,834,315	11,408,160	11,305,438
Liabilities
Insurance Contract Liabilities	17	2,450,975	1,510,355	1,558,508
Borrowings	18	-	-		-
Trade payable	19	73,940	200,090	206,	9
Other payable	20	94,734	45,632	129,961
Employee benefit liability	21	-	-		-
Income Tax liabilities	22	14,039	9,925	5,921
Deferred tax liabilities	23	296,875	296,875	296,875
Total Liabilities			2,930,563	2,062,877	2,197,384
Equity
Issued and paid Share capital	24.	1	8,000,000	8,000,000	8,000,000
Share Premium	24.	2	825,018	825,018	825,0 8
Contingency Reserves	24.	3	817,229	683,312	7 3,897
Fair value reserve	24.	4	6,460	6,460	6,460
Non Current assets revaluation reserve	24.	5	768,329	768,329	768,329
Retained earnings	24.	6	(513,283)	(937,836)	(1,205,650)
Shareholders funds			9,903,752	9,345,283
Other equtiy instruments			-			-
Non - controlling interests
TOTAL EQUITY & LIABILITIES			12,834,315	11,408,160	11,305,438

Signed on behalf of the Board of Directors on 26th July, 2022

BENEDICT UJOATUONU	SAMUEL U. NDUBUISI
CHIEF EXECUTIVE OFFICER	CHIEF FINANCE OFFICER
FRC/2013/CIIN/0000003282	FRC/2013/ICAN/0000003290

The accounting policies and the accompanying notes form an integral part of these financial s

UNIVERSAL INSURANCE PLC.

2ND QUARTER 2022 MANAGEMENT ACCOUNT

Universal Insurance Plc

Statements of Comprehensive Income

For the PERIOD ENDED 30 JUNE 2022

	Notes
			1/04/2022 to 1/04/2021 to
		30-Jun-22	30/06/2022	31/06/2021 30-Jun-21
		N'000			N'000
Gross Premium written	25	3,444,384	1,095,613	609,786	2,083,131
Decrease/(increase) in unearned premium		(1,216,327)	(608,164)	(209,767)	(419,534)
Gross Premium Earned		2,228,057	487,449	400,019	1,663,597
Reinsurance Premium Expense	26	(484,877)	(190,671)	(190,901)	(225,094)
Net Insurance Premium Income		1,743,180	296,778	209,118	1,438,503
Fees and Commission income	27	48,829	8,130	35,870	44,149
Total Underwriting Income		1,792,009	304,908	244,988	1,482,652
Insurance benefits
Claims expenses	28	(23,646)	(163,532)	(157,478)	(190,458)
Increase/(Decrease) in claims and IBNR reserves per actuarial valuation	28	-	-
Claims Expense Recovery from Reinsurance	28	7,420	7,410	40,344	120
Change in contract liabilities	28	-	-		-
Net insurance benefit and claims		(16,226)	(156,122)	(117,134)	(190,338)
Underwriting Expenses
Acquisition expenses	29	(352,738)	(150,828)	(90,372)	(257,685)
Maintenance expenses	29	(468,364)	(323,998)	(135,391)	(295,375)
Total Underwriting Expenses		(821,102)	(474,826)	(225,762)	(553,060)
Underwriting Profit/(Loss)		954,680	(326,040)	(97,908)	971,576
Investment income	30	87,432	842	54,937	59,307
Other operating income		-	-	-	-
Total investment income		87,432	842	54,937	59,307
Net Income		1,042,113	(325,198)	(42,971)	1,030,882
Unrealised fair value loss		343,206	-		(60,819)
Net realised gains/(loss) on financial assets	31 (i)	-			-
Deferred tax derecognised on reclassification of financial
assets	23	-	-		-
Net fair value gain/(loss) on investment properties		-	-		-
Other operating and administrative expenses	32	(581,501)	(355,882)	(324,273)	(594,670)
Total Expenses		(238,295)	(355,882)	(324,273)	(655,489)
Result of operating activities		803,818	(72,916)	(157,479)	375,393
Interest expense	33	-	-	-	-
Profit or (Loss) before Taxation		803,818	(72,916)	(157,479)	375,393
Income Tax Expense/ (Credit)	22.1a	(8,119)	(736)	3,087	(7,358)
Profit or Loss after Taxation		795,699	(73,652)	(154,392)	368,035
Profit/(Loss) to Equity holder		795,699	(73,652)	(154,392)	368,035
Other comprehensive income /(loss)		-
Revaluation surplus on PPE		-
Total other comprehensive income
Total comprehensive income / (loss) for the year
Profit attributable to:
Equity holders of the Company		795,699	(73,652)	(154,392)	368,035
Non-controlling interest		-	-
Profit/(loss) for the period		795,699	(73,652)	(154,392)	368,035

Other Comprehensive income

Items within OCI that may be reclassified to the profit or loss; Fair value changes in AFS financial assets

Deferred tax impact of changes in AFS financial assets

Items within OCI that will not be reclassified to the profit or loss;

2020 impairment gain/loss on Financial Assets PPE revaluation gains

Deferred tax impact of revaluation gains Other comprehensive income for the period

Total comprehensive income

Total comprehensive income attributable to:

Equity holders of the company

Non-controlling interests

Total comprehensive income for the period

-	-		-
-	-		-
-	-		-
-	-		-
-	-		-
-			-
795,699	(73,652)	(154,392)	368,035
795,699	(73,652)	(154,392)	368,035
-			-
795,699	(73,652)	(154,392)	368,035

Earnings per share-(basic and diluted)(Kobo)

34

4.97

(0.45)

(0.96)

2

2

UNIVERSAL INSURANCE PLC. 2ND QUARTER 2022 MANAGEMENT ACCOUNT

THE UNIVERSAL INSURANCE PLC

UNDERWRITING REVENUE ACCOUNT

FOR THE PERIOD ENDED 30 JUNE 2022

							GENERAL								1/04/2022 to	1/04/2021 to
					MOTOR	FIRE	ACCIDENT	BOND	ENGINEERING	OIL & GAS	AVIATION	AGRIC INS	MARINE	Jun-22	30/06/2022	30/06/2021	Jun-21
					N`000	N`000	N`000	N`000	N`000	N`000	N`000	N`000	N`000	N`000	N`000		N`000
Direct Premium Written			294,279	434,024	450,769	149,852	25,166	589,545	-	12,775	372,903	2,329,313	862,702	504,748	1,615,397
Reinsurance Accepted			43,021	162,162	29,756	5,104	18,305	771,694	-	16,462	68,566	1,115,070	232,911	105,038	467,734
Gross Premium Written			337,300	596,186	480,525	154,956	43,471	1,361,239	-	29,237	441,470	3,444,384	1,095,613	609,786	2,083,131
Changes in Reserve for Unexpired Risk (*)			(20,438)	(212,979)	(197,057)	(59,835)	96,173	(686,924)	10,466	(4,238)	(141,497)	(1,216,327)	(608,164)	(209,767)	(419,534)
Gross Premium Earned			316,861	383,208	283,468	95,121	139,644	674,315	10,466	24,999	299,973	2,228,057	487,449	400,019	1,663,597
Net Reinsurance Recovery (UPR) per actuarial valuation												-			-
Reinsurance cost			(93,320)	(44,394)	(30,172)	-	-	(304,211)	-	-	(12,780)	(484,877)	(190,671)	(190,901)	(225,094)
Net Premium Written			223,541	338,814	253,297	95,121	139,644	370,105	10,466	24,999	287,193	1,743,180	296,778	209,118	1,438,503
Commission Receiveed			27,829	10,905	7,098	-	-	-	-	-	2,998	48,829	8,130	35,870	44,149
Net Income			251,370	349,719	260,394	95,121	139,644	370,105	10,466	24,999	290,191	1,792,009	304,908	244,988	1,482,652
Claims Incurred:
Direct Claims Paid			76,620	49,343	95,853	34,629	24,613	19,220	34,269	545	12,414	347,507	163,532	157,478	322,049
Provision for Outstanding claims (IBNR)			(22,461)	(107,141)	(31,497)	(1,800)	(5,907)	(32,780)	(19,627)	(1,473)	(26,634)	(249,321)	-	(145,036)	(290,073)
Additional charge to claims reserve per actuarial valuation (IBNR)			-	-	-	-	-	-	-		-	-	-		-
Changes in Provision for Outstanding Claims (**)		(26,396)	(27,204)	(27,671)	(35,000)	39,524	(21,807)	31,076	-	(7,061)	(74,540)	-	(18,952)	(37,904)
Gross Claims Incurred			27,762	(85,002)	36,685	(2,171)	58,230	(35,367)	45,718	(928)	(21,281)	23,646	163,532	(6,510)	(5,928)
Reinsurance Claims Recovery per actuarial valuation												-			-
Reinsurance Recovery (IBNR) per actuarial valuation			-	-	-	-	-	-	-	-	-	-			-
Reinsurance Claims Recovery			(4,220)	-	-	(3,200)	-	-		-	-	(7,420)	(7,410)	(40,344)	(36,055)
Net Claims Incured			23,542	(85,002)	36,685	(5,371)	58,230	(35,367)	45,718	(928)	(21,281)	16,226	156,122	(46,854)	(41,983)
Underwriting Expenses:	-
Commission Paid			35,410	120,052	97,952	30,507	8,328	203,990	-	6,282	68,671	571,192	150,828	90,372	325,259
Changes in deferred commission			(3,738)	(41,045)	(41,604)	(11,986)	14,044	(116,549)	1,882	(877)	(18,580)	(218,453)	-	(33,787)	(67,574)
Additional (DCA) per actuarial valuation report												-	-		-
Maintenance expenses			58,433	57,791	57,791	57,791	57,791	57,791	57,791	-	63,185	468,364	323,998	135,391	295,375
Total Underwriting Expenses			90,106	136,798	114,138	76,313	80,163	145,231	59,673	5,404	113,276	821,102	474,826	191,976	553,060
Total Expenses			113,648	51,796	150,823	70,942	138,393	109,865	105,391	4,477	91,995	837,328	630,948	145,122	511,076
Underwriting Result			137,722	297,922	109,571	24,179	1,251	260,240	(94,925)	20,523	198,196	954,680	(326,040)	99,866	971,576
Provision for Unexpired Risk- 1 JANUARY 2022		207,967	172,850	95,490	47,690	122,601	199,221	41,337	3,179	83,746	974,080	974,080	685,170	687,341
Provision for Unexpired Risk- 30 June 2022			228,405	385,828	292,546	107,525	26,428	886,145	30,870	7,417	225,242	2,190,407	974,080	685,170	1,106,875
Additional charge (UPR) per actuarial valuation			-	-	-	-	-	-	-		-	-	-		-
Provision for Unexpired Risk- 30 June 2022		228,405	385,828	292,546	107,525	26,428	886,145	30,870	7,417	225,242	2,190,407	974,080	685,170	1,106,875
* Changes in reserve for unexpired Risk			(20,438)	(212,979)	(197,057)	(59,835)	96,173	(686,924)	10,466	(4,238)	(141,497)	(1,216,327)	-		(419,534)
Gross Claims Outstanding
Provision for Outsanding Claims- 1 JANUARY 2022		55,590	36,102	101,005	35,251	22,573	40,147	2,404	-	18,348	311,420	311,420	404,704	404,704
Provision for Outsanding Claims- 30 June 2022			29,194	8,898	73,334	251	62,096	18,340	33,480	-	11,286	236,880	311,420	404,704	366,800
** Changes in provision for outstanding claims			(26,396)	(27,204)	(27,671)	(35,000)	39,524	(21,807)	31,076	-	(7,061)	(74,540)	-	-	(37,904)

3

UNIVERSAL INSURANCE PLC.

2ND QUARTER 2022 MANAGEMENT ACCOUNT

Universal Insurance Plc

Statement Of Cash Flows
	COMPANY
For the year ended 30 JUNE. 2022	30-Jun-22		30-Jun-21
	N'000		N'000
Cash flows from operating activities
Insurance premium received from policy	3,499,721		2,118,078
holders,Brokers & Agents,Cedants
Commission received	48,829		44,149
Reinsurance receipts in respect of claims	(295,952) -	295,952
Reinsurance premium paid	(484,877) -	225,094
Prepaid Minimum and Deposit on Oil & Gas	(52,312) -	209,319
Other operating cash payments	(821,576) -	594,910
Insurance benefits and Claims paid	(347,507) -	322,049
Payments to intermediaries to acquire insurance	(571,192) -	325,259
contracts
Maintenance expenses	(468,364) -	295,375
Interest Received	7,515		3,749
Dividend Income Received	79,917		55,009
Cash generated from operations	594,203	-	46,972
Company Income Tax paid	-	-	3,508
Net cash provided by operating activities	594,203		(50,480)
Cash Flows from Investing Activities
Purchase of property, plant and equipment	(71,490) -	9,772
Purchase of Intangible Assets	(7,657) -	15,817
Purchase of Listed Equities	-		-
Investment income and other receipts	-		548
Unlisted AFS Disposed	-		-
Net Cash provided by investing activities	(79,147)		193,250
Cash Flows from Financing Activities	-		-
Proceeds from borrowings	-		-
Net cash provided by financing activities	-		-
Net Increase/(decrease) in cash and cash equiv.
Cash and Cash equivalent at the beginning	193,250		268,770
Net increase/decrease in cash and cash equivalents	515,056	-	75,520
Cash and Cash equivalent at the end of period	708,306		193,250

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