AXA MANSARD INSURANCE : QUARTER 4 - FINANCIAL STATEMENT FOR 2022

AXA Mansard Insurance Plc and Subsidiary Companies

Unaudited Financial Statements

31 December, 2022

CERTIFICATION PURSUANT TO SECTION 60(2) OF INVESTMENT AND SECURITIES ACT NO.29 OF 2007

We the undersigned hereby certify the following with regards to our financial statements for the year ended 31 December 2022 that:

1. We have reviewed the financial statement;
2. To the best of our knowledge, the financial statement does not contain:

1. Any untrue statement of a material fact, or
2. Omit to state a material fact, which would make the statements, misleading in the light of circumstances under which such statements were made;

(c ) To the best of our knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operation of the Company and its

1. We:

1. Are responsible for establishing and maintaining internal controls.

1. Have designed such internal controls to ensure that material information relating to the Company and its consolidated subsidiaries is made known to such officers by others within those entries particularly during the year in which the periodic reports are being prepared;

1. Have evaluated the effectiveness of the Company's internal controls as of date within 90 days prior to the report;

1. Have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date;

1. We have disclosed to the auditors of the Company and Audit Committee:

1. All significant deficiencies in the design or operation of internal controls which would adversely affect the Company's ability to record, process, summarize and report financial data and have identified for the Company's auditors any material weakness in internal controls, and

1. Any fraud, whether or not material, that involves management or other employees who have significant roles in the Company's internal controls;

1. We have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Mrs. Ngozi Ola-Israel	Mr. Adekunle Ahmed
FRC/2017/ANAN/00000017349	FRC/2017/CIIN/00000017019
Chief Financial Officer	Chief Executive Officer

2

Consolidated Statement of Financial Position

as at 31 December, 2022

(All amounts in thousands of Naira)

		Group	Group	Parent	Parent
	Notes	31-Dec-22	31-Dec-21	31-Dec-22	31-Dec-21
ASSETS
Cash and cash equivalents	5	17,786,836	17,343,344	15,424,625	14,227,012
Investment securities:
- Fair value through profit or loss	6.1	3,386,475	3,653,526	3,386,475	3,653,526
- Available-for-sale assets	6.2	35,655,391	35,107,536	33,510,501	30,864,575
Financial assets designated at fair value	6.3	2,619,689	4,374,805	2,619,689	4,374,805
Trade receivables	7	8,916,147	7,013,359	1,578,446	1,196,453
Reinsurance assets	8	12,082,804	11,172,348	11,879,859	10,870,972
Deferred acquisition cost	9	862,218	752,954	514,011	620,749
Other receivables	10	3,507,500	3,929,886	2,945,116	2,981,536
Loans and receivables	11	3,773,987	1,655,085	4,229,582	2,666,458
Investment properties	12	14,009,208	14,560,934	-	-
Investment in subsidiaries	13	-	-	1,652,000	1,652,000
Intangible assets	14	445,594	400,647	391,201	354,896
Property and equipment	15	3,099,315	2,802,458	2,717,460	2,404,365
Right of use	15c	783,504	797,757	672,176	654,074
Statutory deposit	16	500,000	500,000	500,000	500,000
TOTAL ASSETS		107,428,668	104,064,639	82,021,141	77,021,421
LIABILITIES
Insurance liabilities	17	44,745,794	36,928,441	30,735,827	25,594,713
Investment contract liabilities:
- At amortised cost	18.1	4,211,202	6,868,168	4,211,202	6,868,168
- Liabilities designated at fair value	18.1	2,619,689	4,374,805	2,619,689	4,374,805
Trade payables	19	14,667,779	11,638,229	14,592,595	11,286,130
Other liabilities	20	3,651,796	4,513,072	2,787,254	3,141,233
Current income tax liabilities	21	1,526,519	1,962,020	633,760	645,958
Borrowings	22	2,237,944	2,454,143	-	-
Deferred tax liability	23	864,463	932,573	-	-
TOTAL LIABILITIES		74,525,186	69,671,451	55,580,327	51,911,007
EQUITY
Share capital	24.1	18,000,000	18,000,000	18,000,000	18,000,000
Share premium	24.2	78,255	78,255	78,255	78,255
Contingency reserve	24.3	5,120,169	4,816,716	5,120,169	4,816,716
Treasury shares	24.5	(111,476)	(111,476)	(111,476)	(111,476)
Fair value reserves	24.6	(996,830)	(62,329)	(743,168)	(8,764)
Retained earnings	24.7	6,717,836	7,351,131	4,097,033	2,335,683
SHAREHOLDERS' FUNDS		28,807,954	30,072,297	26,440,814	25,110,414
Total equity attributable to the owners of the parent		28,807,954	30,072,297	26,440,814	25,110,414
Non-controlling interest in equity	25	4,095,528	4,320,891	-	-
TOTAL EQUITY		32,903,482	34,393,188	26,440,814	25,110,414
TOTAL LIABILITIES AND EQUITY		107,428,668	104,064,639	82,021,141	77,021,421
Signed on behalf of the Board of Directors on January 30, 2023
Mrs. Ngozi Ola-Israel	Mr. Adekunle Ahmed		Mr. Olusola Adeeyo
FRC/2017/ANAN/00000017349	FRC/2017/CIIN/00000017019		FRC/2013/NIM/00000001919
Chief Financial Officer	Chief Executive Officer		Chairman

3

Consolidated Statement of Comprehensive Income

for the year ended 31 December, 2022

	Notes
		Group	Group	Parent	Parent
		31-Dec-22	31-Dec-21	31-Dec-22	31-Dec-21
Continuing operations
Gross written premium	27	68,980,044	60,197,851	41,232,118	37,546,391
Gross premium income	27	69,445,474	55,722,892	43,555,440	34,054,988
Re-insurance expenses	27	(23,238,239)	(18,580,710)	(22,995,550)	(18,318,198)
Net premium income	27	46,207,235	37,142,182	20,559,890	15,736,790
Fee and commission on insurance contracts	28	2,397,298	1,860,567	2,397,298	1,860,567
Net underwriting income		48,604,533	39,002,749	22,957,188	17,597,357
Claims:
Claims expenses (gross)	29	(37,878,695)	(28,927,967)	(14,384,001)	(11,930,407)
Claims expenses recovered from reinsurers	29	4,784,363	4,610,999	4,625,399	4,436,812
Underwriting expenses	30	(5,549,431)	(4,774,332)	(4,496,586)	(4,002,736)
Changes in individual life reserves	17.3	(1,735,536)	(1,580,635)	(1,735,536)	(1,580,635)
Changes in annuity reserves	17.4	147,643	899,102	147,643	899,102
Net underwriting expenses		(40,231,656)	(29,772,833)	(15,843,081)	(12,177,864)
Total underwriting profit		8,372,877	9,229,916	7,114,107	5,419,493
Investment income	31	6,274,261	5,080,874	6,473,625	5,439,214
Net gains/(losses) on financial instruments	32	(731,792)	(48,271)	(16,696)	(905,070)
Net gains on investment property	12	-	39,981	-	-
Profit on investment contracts	33	409,048	230,156	409,048	230,156
Other income	34	229,796	948,511	26,574	343,087
Total investment income		6,181,313	6,251,251	6,892,551	5,107,387
Expenses for marketing and administration	35	(1,668,663)	(1,527,477)	(1,895,899)	(1,722,175)
Employee benefit expense	36	(4,509,327)	(3,730,129)	(3,556,022)	(2,839,330)
Other operating expenses	37	(4,314,781)	(4,067,203)	(3,004,537)	(2,790,917)
(Impairment)/writeback of other assets	10	-	2,370	-	2,370
(Impairment)/writeback of premium receivables	7.1	(100,000)	(86,050)	-	11,950
Results of operating activities		3,961,419	6,072,679	5,550,200	3,188,778
Finance cost	38	(332,374)	(287,707)	(132,117)	(74,227)
Profit before tax		3,629,045	5,784,972	5,418,083	3,114,551
Income tax expense	39	(1,394,250)	(2,049,807)	(563,279)	(623,858)
Profit from discontinued operations (net of tax)		-	-
Profit for the year		2,234,795	3,735,165	4,854,804	2,490,693
Profit attributable to:
Owners of the parent		2,460,158	3,490,816	4,854,804	2,490,693
Non-controlling interest	25	(225,363)	244,349	-	-
		2,234,795	3,735,165	4,854,804	2,490,693
Other comprehensive income:
Items that may be subsequently reclassified to the profit or loss account:
Changes in available-for-sale financial assets (net of taxes)	24.6	(934,501)	(5,327,135)	(734,404)	(5,041,306)
Items that will not be subsequently reclassified to profit or loss account	-	-	-	-
Other comprehensive income for the year		(934,501)	(5,327,135)	(734,404)	(5,041,306)
Total comprehensive income for the year		1,300,294	(1,591,970)	4,120,400	(2,550,613)
Attributable to:
Owners of the parent		1,525,657	(1,836,319)	4,120,400	(2,550,613)
Non-controlling interests	25	(225,363)	244,349	-	-
Total comprehensive income for the year		1,300,294	(1,591,970)	4,120,400	(2,550,613)
Earnings per share:
Basic (kobo)		27	35	54	28
Diluted (kobo)		28	35	55	28

4

Consolidated Statements of Changes in Equity

(All amounts in thousands of Naira unless otherwise stated) for the year ended 31 December, 2022

				Capital and						Non
	Share	Share	Contingency	other statutory	Share scheme	Treasury	Fair value	Retained	Total	Controlling	Total
	Capital	premium	reserve	reserves	reserves	shares	reserves	earnings		interest	equity
Balance at 1 January 2022	18,000,000	78,255	4,816,716	-	-	(111,476)	(62,329)	7,351,131	30,072,297	4,320,891	34,393,189
Total comprehensive income for the year
Profit for the year	-	-	-	-	-	-	-	2,460,158	2,460,158	(225,363)	2,234,795
Transfer to contingency reserves	-	-	303,453	-	-	-	-	(303,453)	-	-	-
Other comprehensive income
Changes in fair value of available-for-sale	-	-	-	-	-	-	(934,501)
financial assets		(934,501)	-	(934,501)
Total comprehensive income for the year	-	-	303,453	-	-	-	(934,501)	2,156,705	1,525,657	(225,363)	1,300,294
Transactions with owners, recorded directly in equity
Dividends to equity holders	-	-	-	-	-	-	-	(2,790,000)	(2,790,000)	-	(2,790,000)
Impact of vesting of shares in the equity settled
share based payment	-	-	-	-	-	-	-	-	-	-	-
Bonus issue expenses		-		-	-	-	-	-	-	-	-
Recapitalization	-	-		-	-	-	-	-	-	-	-
Additional subsidiary investment with NCI	-	-	-	-	-	-	-	-	-	-	-
Total transactions with owners of equity	-	-	-	-	-	-	-	(2,790,000)	(2,790,000)	-	(2,790,000)
Balance at 31 December, 2022	18,000,000	78,255	5,120,169	-	-	(111,476)	(996,830)	6,717,836	28,807,954	4,095,528	32,903,482
Year ended 31 December, 2021
Group
				Capital and						Non
	Share	Share	Contingency	other statutory	Share scheme	Treasury	Fair value	Retained	Total	Controlling	Total
	Capital	premium	reserve	reserves	reserves	shares	reserves	earnings		interest	equity
Balance at 1 January 2021	18,000,000	-	4,345,125	-	167,381	(304,924)	5,264,806	6,470,482	33,942,870	3,750,585	37,693,455
Total comprehensive income for the year
Profit for the year	-	-	-	-	-	-	-	3,164,859	3,164,859	570,306	3,735,165
Transfer to contingency reserves	-	-	471,591	-	-	-	-	(471,591)	-	-	-
Other comprehensive income	-								-	-	-
Changes in fair value of available-for-sale
financial assets	-	-	-	-	-	-	(5,327,135)	-	(5,327,135)	-	(5,327,135)
Total comprehensive income for the year	-	-	471,591	-	-	-	(5,327,135)	2,693,268	(2,162,276)	570,306	(1,591,970)
Transactions with owners, recorded directly in equity
Dividends to equity holders	-	-	-	-	-	-	-	(1,980,000)	(1,980,000)	-	(1,980,000)
Impact of vesting of shares in the equity settled
share based payment
Bonus issue expenses
Recapitalization	-	78,255	-	-	(167,381)	193,448	-	167,381	271,703	-	271,703
Additional subsidiary investment with NCI	-	-	-	-	-	-	-	-	-	-	-
Total transactions with owners of equity	-	78,255	-	-	(167,381)	193,448	-	(1,812,619)	(1,708,297)	-	(1,708,297)
	-	-	-	-	-	-	-	-	-	-	-
Balance at 31 December, 2021	18,000,000	78,255	4,816,716	-	167,381	(111,476)	(62,329)	7,351,131	30,072,297	4,320,891	34,393,188

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