UNIVERSAL INSURANCE : QUARTER 3 - FINANCIAL STATEMENT FOR 2022

UNIVERSAL INSURANCE PLC MANAGEMENT ACCOUNT

For The Period Ended 30, SEPT. 2022

Universal Insurance Plc

RC 2460

UNIVERSAL INSURANCE PLC.

3RD QUARTER 2022 MANAGEMENT ACCOUNT

UNIVERSAL INSURANCE PLC

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at 30,SEPTEMBER 2022

COMPANY

NOTES 30-Sep-2230-Sep-2131-Dec-21

Assets
Cash and Cash Equivalents	6
Financial Assets	7
Trade Receivable	8
Reinsurance Assets	9
Deferred Acquisition cost	10
Deferred tax assets	23.a
Other Receivables	11
Investment in Subsidiaries	12
Investment Properties	13
Intangible Asset	14
Property, Plant and Equipment	15
Statutory Deposits	16
Total Assets
Liabilities
Insurance Contract Liabilities	17
Borrowings	18
Trade payable	19
Other payable	20
Employee benefit liability	21
Income Tax liabilities	22
Deferred tax liabilities	23

N'000	N'000	N'000
652,761	332,464	192,818
2,709,148	2,097,403	2,325,185
257,302	156,776	65,346
437,703	416,630	437,703
360,622	215,057	153,093
403,685	403,685	403,685
536,519	338,242	349,401
2,449,516	2,449,516	2,449,516
1,901,830	1,891,000	1,901,830
67,327	79,866	68,544
2,607,781	2,668,804	2,623,317
335,000	335,000	335,000
12,719,195	11,384,443	11,305,438
2,414,033	1,555,636	1,558,508
-	-	-
105,478	168,671	206,119
103,132	55,968	129,961
-	-	-
11,237	14,029	5,921
296,875	296,873	296,875

Total Liabilities		2,930,755	2,091,177	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	825,018
Contingency Reserves	24. 3	850,726	672,909	713,897
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	(662,092)	(979,450)	(1,205,650)
Shareholders funds		9,788,441	9,293,266	9,108,054
Other equtiy instruments		-		-
Non - controlling interests
TOTAL EQUITY & LIABILITIES		12,719,196	11,384,443	11,305,438

Signed on behalf of the Board of Directors on 12th October, 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 financia

1

UNIVERSAL INSURANCE PLC.

3RD QUARTER 2022 MANAGEMENT ACCOUNT

Universal Insurance Plc

Statements of Comprehensive Income

For the PERIOD ENDED 30 SEPTEMBER 2022

	Notes
			1/07/2021 to	1/07/2022 to
		30-Sep-22 31/09/2021	31/09/2022	30-Sep-21
		N'000	N'000	N'000	N'000
Gross Premium written	25	4,560,982	1,095,613	1,127,385	2,962,264
Decrease/(increase) in unearned premium		(1,065,881)	(608,164)	(1,065,881)	(537,909)
Gross Premium Earned		3,495,101	487,449	61,504	2,424,355
Reinsurance Premium Expense	26	(716,247)	(190,671)	(164,422)	(475,411)
Net Insurance Premium Income		2,778,854	296,778	(102,918)	1,948,944
Fees and Commission income	27	90,812	8,130	41,303	68,463
Total Underwriting Income		2,869,666	304,908	(61,615)	2,017,407
Insurance benefits
Claims expenses	28	(335,863)	(163,532)	12,998	(98,416)
Increase/(Decrease) in claims and IBNR reserves per actuarial valuation	28	-	-	-
Claims Expense Recovery from Reinsurance	28	55,028	7,410	47,608	39,465
Change in contract liabilities	28	-	-		-
Net insurance benefit and claims		(280,835)	(156,122)	60,606	(58,950)
Underwriting Expenses
Acquisition expenses	29	(560,331)	(150,828)	7,855	(376,652)
Maintenance expenses	29	(751,733)	(323,998)	(221,712)	(476,922)
Total Underwriting Expenses		(1,312,064)	(474,826)	(213,857)	(853,575)
Underwriting Profit/(Loss)		1,276,767	(326,040)	(214,866)	1,104,882
Investment income	30	148,361	842	61,364	101,800
Other operating income		-	-	-	-
Total investment income		148,361	842	61,364	101,800
Net Income		1,425,128	(325,198)	(153,502)	1,206,682
Unrealised fair value gain		363,963	-	363,963	51,949
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	(1,101,761)	(355,882)	(535,591)	(931,149)
Total Expenses		(737,798)	(355,882)	(171,628)	(879,200)
Result of operating activities		687,330	(72,916)	(325,130)	327,482
Interest expense	33	-	-	-	-
Profit or (Loss) before Taxation		687,330	(72,916)	(325,130)	327,482
Income Tax Expense/ (Credit)	22.1a	(6,942)	(736)	3,284	(11,462)
Profit or Loss after Taxation		680,388	(73,652)	(321,846)	316,020
Profit/(Loss) to Equity holder		680,388	(73,652)	(321,846)	316,020
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		680,388	(73,652)	(321,846)	316,020
Non-controlling interest		-	-
Profit/(loss) for the period		680,388	(73,652)	(321,846)	316,020
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

-	-		-
-	-		-
-	-		-
-			-
680,388	(73,652)	(321,846)	316,020
680,388	(73,652)	(321,846)	316,020
-			-
680,388	(73,652)	(321,846)	316,020

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

34

4.25

(0.45)

(2.01)

1.98

2

UNIVERSAL INSURANCE PLC. 3RD QUARTER 2022 MANAGEMENT ACCOUNT

THE UNIVERSAL INSURANCE PLC

UNDERWRITING REVENUE ACCOUNT

FOR THE PERIOD ENDED 30 SEPT. 2022

							GENERAL								1/07/2022 to	1/07/2021 to
					MOTOR	FIRE	ACCIDENT	BOND	ENGINEERING	OIL & GAS	AVIATION	AGRIC INS	MARINE	Sep-22	30/09/2022	30/09/2021	Sep-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	N`000
Direct Premium Written			395,070	587,336	547,577	216,575	127,754	868,877	-	20,155	527,398	3,290,742	970,506	504,748	2,282,453
Reinsurance Accepted			79,397	221,901	40,821	12,808	22,608	775,992	-	18,997	97,716	1,270,240	156,880	105,038	679,811
Gross Premium Written			474,467	809,237	588,397	229,383	150,362	1,644,870	-	39,151	625,115	4,560,982	1,127,386	609,786	2,962,264
Changes in Reserve for Unexpired Risk (*)			(54,085)	(177,008)	(145,105)	(55,548)	18,269	(535,948)	10,164	(6,820)	(119,801)	(1,065,881)	(1,065,881)	(209,767)	(537,909)
Gross Premium Earned			420,382	632,229	443,292	173,835	168,632	1,108,922	10,164	32,331	505,313	3,495,101	61,505	400,019	2,424,355
Net Reinsurance Recovery (UPR) per actuarial valuation												-			-
Reinsurance cost			(180,037)	(57,635)	(41,847)	-	(556)	(404,030)	-	-	(32,141)	(716,247)	(164,422)	(190,901)	(475,411)
Net Premium Written			240,345	574,594	401,445	173,835	168,075	704,892	10,164	32,331	473,172	2,778,854	(102,917)	209,118	1,948,944
Commission Receiveed			60,885	14,407	8,534	-	149	-	-	-	6,837	90,812	41,303	35,870	68,463
Net Income			301,230	589,001	409,979	173,835	168,224	704,892	10,164	32,331	480,009	2,869,666	(61,614)	244,988	2,017,407
Claims Incurred:
Direct Claims Paid			116,347	68,152	103,625	36,629	85,971	26,455	95,374	985	12,681	546,219	197,358	157,478	499,487
Provision for Outstanding claims (IBNR)			(19,754)	(107,127)	(18,423)	(1,800)	(12,040)	(34,614)	(22,735)	(1,473)	(27,402)	(245,368)	(245,368)	(145,036)	(296,718)
Additional charge to claims reserve per actuarial valuation (IBNR)			-	-	-	-	-	-	-		-	-	-		-
Changes in Provision for Outstanding Claims (**)		(680)	27,061	(103,072)	35,000	21,813	40,147	-	-	14,743	35,012	35,012	(18,952)	(104,354)
Gross Claims Incurred			95,913	(11,915)	(17,870)	69,829	95,743	31,988	72,640	(488)	21	335,863	(12,998)	(6,510)	98,416
Reinsurance Claims Recovery per actuarial valuation												-			-
Reinsurance Recovery (IBNR) per actuarial valuation			-	-	-	-	-	-	-	-	-	-			-
Reinsurance Claims Recovery			(1,600)	-	-	(3,450)	(44,678)	-		-	(5,300)	(55,028)	(47,608)	(40,344)	(39,465)
Net Claims Incured			94,313	(11,915)	(17,870)	66,379	51,065	31,988	72,640	(488)	(5,278)	280,835	(60,606)	(46,854)	58,950
Underwriting Expenses:	-
Commission Paid			49,630	162,021	118,055	45,815	33,063	256,398	-	7,750	95,128	767,859	199,674	90,372	482,648
Changes in deferred commission			(6,890)	(36,451)	(30,222)	(11,584)	(4,214)	(104,104)	1,778	(1,699)	(14,144)	(207,529)	(207,529)	(33,787)	(105,995)
Additional (DCA) per actuarial valuation report												-	-		-
Maintenance expenses			93,624	92,772	92,772	92,772	92,772	92,772	92,772	-	101,480	751,733	221,712	135,391	476,922
Total Underwriting Expenses			136,364	218,342	180,605	127,003	121,620	245,066	94,550	6,051	182,464	1,312,064	213,857	191,976	853,575
Total Expenses			230,677	206,427	162,735	193,382	172,685	277,054	167,190	5,564	177,185	1,592,899	153,251	145,122	912,525
Underwriting Result			70,553	382,574	247,244	(19,547)	(4,460)	427,838	(157,026)	26,768	302,824	1,276,767	(214,865)	99,866	-
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			262,051	349,857	240,595	103,238	104,332	735,168	31,173	9,999	203,547	2,039,961	2,039,961	685,170	1,225,250
Additional charge (UPR) per actuarial valuation			-	-	-	-	-	-	-		-	-	-		-
Provision for Unexpired Risk- 30 June 2022		262,051	349,857	240,595	103,238	104,332	735,168	31,173	9,999	203,547	2,039,961	2,039,961	685,170	1,225,250
* Changes in reserve for unexpired Risk			(54,085)	(177,008)	(145,105)	(55,548)	18,269	(535,948)	10,164	(6,820)	(119,801)	(1,065,881)	(1,065,881)		(537,909)
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			54,911	63,163	(2,067)	70,251	44,385	80,294	2,404	-	33,091	346,431	346,431	404,704	300,351
** Changes in provision for outstanding claims			(680)	27,061	(103,072)	35,000	21,813	40,147	-	-	14,743	35,012	35,011	-	(104,354)

3

UNIVERSAL INSURANCE PLC.

3RD QUARTER 2022 MANAGEMENT ACCOUNT

Universal Insurance Plc

Statements of Changes in Equity (COMPANY)

for the period ended 30, SEPTEMBER 2022

In thousands of Nigerian naira	Share	Share	Revaluation	Contingency	Fair	Retained	Total
	Capital	Premium	reserve	reserve	value	earnings
					reserves
	N'000	N'000	N'000	N'000	N'000	N'000	N'000
Balance at 1 January 2022	8,000,000	825,018	768,329	713,897	6,460	(1,205,650)	9,108,053
							-
	8,000,000	825,018	768,329	713,897	6,460	(1,205,650)	9,108,053
Total comprehensive income
Profit and loss	-	-	-	-	-	680,388	680,388
Other comprehensive income							-
Gain on the revaluation of land and buildings			-				-
Foreign currency translation diferrence							-
Fair value reserve (available-for-sale) financial assets							-
Net change in fair value							-
Net amount transferred to profit or loss						-	-
Gain on the revaluation of land and buildings							-
Net Fair value changes in AFS financial assets							-
Net gain/loss on previous AFS reclassified to FVTPL						-	-
Fair value reserve derecognised on disposal							-
Transfer to contingency reserve				-		-	-
Other comprehensive income	-	-	-	-	-	-	-
Total comprehesive income for the period	-	-	-	-	-	680,388	680,388
Transfer during the year	-	-	-	-	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-
Total contribution and distributions to owners	-	-	-	-	-	-	-
Balance at 30 SEPT. 2022	8,000,000	825,018	768,329	713,897	6,460	(525,262)	9,788,441
Balance at 1 January 2021	8,000,000	825,018	768,329	609,704	6,460	(1,232,264)	8,977,247
							-
	8,000,000	825,018	768,329	609,704	6,460	(1,232,264)	8,977,247
Total comprehensive income
Profit and loss	-	-	-	-	-	316,020	316,020
Net gain/loss on previous AFS reclassified to FVTPL						-	-
Fair value reserve derecognised on disposal							-
Transfer to contingency reserve				63,204		(63,204)	-
Other comprehensive income	-	-	-	63,204	-	(63,204)	-
Total comprehesive income for the period	-	-	-	63,204	-	252,816	316,020
Transfer during the year	-	-	-	-	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-
Total contribution and distributions to owners	-	-	-	-	-	-	-
Balance at 30 September 2021	8,000,000	825,018	768,329	672,909	6,460	(979,448)	9,293,267

4