INTERNATIONAL ENERGY INSURANCE PLC
AUDITED FINANCIAL STATEMENTS
For the year ended 31 December 2023
INTERNATIONAL ENERGY INSURANCE PLC | |
Financial Statements - 31 December 2023 | |
Table of contents | Page |
Corporate Information | 2 |
Consolidated Results at a Glance | 3 |
Shareholding Structure and Free float Status | 4 |
Directors' Report | 5 |
Management Discussion and Analysis | 8 |
Corporate Governance Report | 10 |
Certification Pursuant to Section 60(2) of Investment & Securities Act No. 29 of 2007 | 14 |
Risk Management Declaration | 15 |
Report of the Audit Committee | 16 |
Statement of Directors' Responsibilities in Relation to the Financial Statements | 17 |
Independent Auditor's Report | 18 |
Statement of Profit or Loss and Other Comprehensive Income | 23 |
Consolidated and Separate Statement of Financial Position | 25 |
Statement of Changes in Equity | 26 |
Statement of Cashflows | 27 |
Notes to the Financial Statements | 28 |
Other National Disclosures: | |
- Valued Added Statement | 99 |
- Five-Year Financial Summary | 100 |
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INTERNATIONAL ENERGY INSURANCE PLC | ||
Financial Statements - 31 December 2023 | ||
Corporate Information | ||
Directors | Mr. Buka Goni Aji, OON, CFR | Chairman |
Mr. Olasupo Sogelola | Managing Director/CEO | |
Mr. Majeed Shogo | Executive Director - Appointed - 02/01/23 & Resigned 03/08/23 | |
Mr. Anthony Edeh | Non-Executive Director | |
Alhaji Mohammed N. Mijindadi | Non-Executive Director | |
Dr. Chamberlain S. Peterside, Ph.D. Independent Non-Executive Director | ||
Dr. Adeyinka Hassan, Ph.D. | Non-Executive Director | |
Mr. Oluwateniola O. Eleoramo | Non-Executive Director | |
Mrs. Monsurat Ayoola | Non-Executive Director - Resigned wef 11/05/23 | |
Company Secretary | H. Michael & Co | |
No. 16, Biaduo Street | ||
Southwest Ikoyi, Lagos | ||
Registered Office | FF Towers, 13/14, Ligali Ayorinde Street, | |
Victoria Island, Lagos | ||
RC No | 6126 | |
Solicitors | Bayo Osipitan & Co. | |
2A Ireti Street | ||
Off Thorburn Avenue, Yaba | ||
Solola & Akpana | ||
3B, Tokunbo Omisore Street, | ||
Off Wole Olateju, Lekki Phase 1, Lagos | ||
Auditors | Doyin Owolabi & Co. (Chartered Accountants) | |
FRC/2013/ICAN/00000000101 | ||
14, Falolu Street, | ||
Surulere, Lagos. | ||
Bankers | Keystone Bank Limited | |
United Bank for Africa Plc. | ||
Zenith Bank Plc. | ||
First Bank of Nigeria | ||
Access Bank Plc. | ||
GT Bank Plc. | ||
Wema Bank Plc. | ||
Fidelity Bank Plc. | ||
Actuaries | Wayne van Jaarsveld (FIA FASSA) | |
FRC/2022/002/00000024507 |
Alexander Forbes Nigeria Limited
P.O. Box 74858,
3rd Floor, Lennox Mall Block 10
Plot 283, Admiralty Way, Lekki 1, Lagos
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INTERNATIONAL ENERGY INSURANCE PLC
Financial Statements - 31 December 2023
Financial Highlights
For the year ended 31 December 2023
Major statement of financial position items | ||||
In thousands of naira | 31-Dec-23 | 31-Dec-22 | Changes | % |
Total assets | 16,713,283 | 14,673,222 | 2,040,061 | 14 |
Insurance contract liabilities | 5,061,377 | 4,318,048 | 743,329 | 17 |
Total equity | (6,050,578) | (11,790,175) | 5,739,597 | (49) |
Major statement of profit or loss items | ||||
Insurance service result | 2,982,238 | 400,624 | 2,581,614 | 644 |
Total investment income | 198,869 | 718,852 | (519,983) | (72) |
Net insurance and investment income | 3,170,802 | 1,110,469 | 2,060,332 | 186 |
Profit before taxation | 5,773,378 | 241,572 | 5,531,806 | 2290 |
Tax expense | (197,100) | (8,671) | (188,429) | 2173 |
Profit for the year | 5,576,278 | 232,901 | 5,343,377 | 2294 |
Earnings per share | 434.26 | 18.14 | 416 | 2294 |
Basic and diluted earnings/ (loss) per share | 434.26 | 18.14 | 416 | 2294 |
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INTERNATIONAL ENERGY INSURANCE PLC | ||||
Financial Statements - 31 December 2023 | ||||
Shareholding Structure and Free float Status | ||||
For the year ended 31 December 2023 | ||||
31-Dec-23 | 31-Dec-22 | |||
Percentage | Percentage (in | |||
(in relation to | relation to | |||
Issued Share | Issued Share | |||
Description | Units | Capital | Units | Capital |
Substantiated Shareholding (5% & above) | ||||
NORRENBERGER ADVISORY PARTNERS | 649,873,013.00 | 50.61% | 649,873,013.00 | 50.61% |
Substantial Shareholding | 649,873,013 | 50.61% | 649,873,013 | 50.61% |
Directors Shareholding (Direct & Indirect), Excluding directors | ||||
with Substantial interests | ||||
MS. IBIYEMI ADEYINKA(BRIDGET) | - | 0.00% | 38,888 | 0.0000% |
Total Directors' Shareholding | - | 0.00% | 38,888 | 0.00% |
Details of Other influential shareholdings, if any (E.g. | ||||
Government, Promoters) | ||||
0.00% | - | 0.00% | ||
Total of Other Influential Shareholdings | - | 0.00% | ||
Free Float in Units and percentage | 634,192,476 | 49.39% | 634,153,588 | 49.39% |
Total | 1,284,065,489 | 100% | 1,284,065,489 | 100% |
Free Float in value
Declaration
- IEI Plc has a free float of N881,527,541.64k as at 31 DEC '23
- IEI Plc has a free float of N240,978,362.44k as at 31 DEC '22
Declaration:
- International Energy Insurance Plc with a free float percentage of 49.30% as at 31st December 2023, is compliant with The Exchange's Free Float requirements for companies listed on the Main Board.
- International Energy Insurance Plc with a free float value of f N240,978,362.64k as at 31st December 2022, is compliant with The Exchange's Free Float requirements for companies listed on the Main Board
Securities Trading Policy
In compliance with Rule 17.15 Disclosure of Dealings in Issuers' Shares, Rulebook of the Exchange 2015 (Issuers Rule) International Energy Insurance Plc maintains a Security Trading Policy which guides Directors, Audit Committee members, employees and all individuals categorised as insiders as to their dealings in the company's securities. The policy is periodically reviewed by the Board and updated. The Company has made specific inquiries to all its director and other insiders and is not ware of any infringement of the policy during the period under review.
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INTERNATIONAL ENERGY INSURANCE PLC
Financial Statements - 31 December 2023
Directors' Report
For the year ended 31 December 2023
The Directors present their annual report on the affairs of International Energy Plc ("The Company") together with the Company Audited Financial Statements and the Auditors' Report for the year ended December 31, 2023.
Principal activities and Business review
The principal activities of International Energy Insurance Plc are the provision of general business risk underwriting and related financial services to corporate and retail customers.
Operating results:
The following is a summary of the Company's operating results:
In thousands of naira | 2023 | 2022 |
Profit/(loss) before income tax expense | 5,773,378 | 241,572 |
Income tax expense | (197,100) | (8,671) |
Profit/(loss) for the year | 5,576,278 | 232,901 |
Other comprehensive income for the year, net of tax | 163,319 | (166,708) |
Total comprehensive income/(loss) for the year | 5,739,596 | 66,193 |
Board of Directors
The following are members of the Board of Directors who held office during the year and at the date of this report, these directors were:
Mr. Buka Goni Aji, OON, CFR | Chairman |
Mr. Olasupo Sogelola | Managing Director/CEO |
Mr. Majeed Shogo | Executive Director (Appointed - 02/01/23 and Resigned - 03/08/23) |
Mr. Anthony Edeh | Non-Executive Director |
Alhaji Mohammed N. Mijindadi | Non-Executive Director |
Dr. Chamberlain S. Peterside, Ph.D. | Independent Non-Executive Director |
Dr. Adeyinka Hassan, Ph.D. | Non-Executive Director |
Mr. Oluwateniola O. Eleoramo | Non-Executive Director |
Mrs. Monsurat Ayoola | Non-Executive Director - Resigned wef 11/05/23 |
Directors' interest in contracts
In accordance with Section 277 of the Companies and Allied Matters Act of Nigeria, CAP C20 Laws of the Federation of Nigeria, none of the Directors has notified the Company of any declarable interest in contracts during the year.
Directors' interest in shares
The Directors had no interest in, nor held shares in the Company.
Agents and Brokers
The Company maintains a network of licensed agents. The Company also renders services directly to its customers as well as through a varied network of brokers who are licensed by the National Insurance Commission (NAICOM) contracts during the year.
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INTERNATIONAL ENERGY INSURANCE PLC
Financial Statements - 31 December 2023
Directors' Report (Continued)
Complaints Management Policy Framework
Complaint Management Policy has been prepared in compliance with the requirement of the Nigerian Capital Market (SEC Rules) issued by the Securities & Exchange Commission and the Nigerian Stock Exchange Directives (the NSE Directives) as well as in recognition of the importance of effective engagement in promoting shareholders/investors' confidence in the Company and the capital market.
Reinsurance
The Company had reinsurance treaty arrangements with the following companies during the year:
African Reinsurance Corporation | Continental Reinsurance Plc. |
WAICA Reinsurance Corporation Plc. | Nigerian Reinsurance Corporation |
CICA Reinsurance Company | PTA/ZEP Reinsurance Company |
NCA Reinsurance Company |
Post balance sheet events
There has been no material change in the Company's financial position since 31st December, 2023 that would have affected the true and fair view of the Company's state of affairs as at that date.
Property and Equipment
Investment in property and equipment during the year is limited to the amounts shown in the financial statements. In the opinion of the directors, the market value of property and equipment is not less than the value indicated in the financial statements.
Research and Development
The Company is not involved in any research and development activities.
Employment and Employees:
Employment of disabled persons
The Company believes in giving full and fair consideration to all current and prospective staff. No disabled person (2022: Nil) is currently employed by The Company. There are procedures in respect for those employees who became disabled, to be assigned duties that are commensurate to their disabilities.
Employees' Involvement and Training
The Company is committed to keeping employees fully informed as much as possible regarding the Company's performance and progress. Views of employees are sought, where practicable, on matters which particularly affect them as employees. The Company runs an open door management policy. Management, professional and technical expertise are the Company's major assets and investment in developing such skills is continuous. The Company's expanding skills base is being brought about by a wide range of in-house and external training. Opportunities for career development within the Company have also been broadened. Incentive schemes designed to meet the circumstances of each individual are implemented wherever appropriate and some of these schemes include staff retirement benefit, productivity bonus, promotion and salary review.
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INTERNATIONAL ENERGY INSURANCE PLC Financial Statements - 31 December 2023
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INTERNATIONAL ENERGY INSURANCE PLC
Financial Statements - 31 December 2023
Management Discussion and Analysis
For the year ended 31 December 2023
Management objectives
This Management Discussion and Analysis ("MD & A") is designed to provide the readers with an overview of the Company's profile, business strategies, performance update and its forward-looking statements.
The Management Discussion and Analysis has been prepared as at 31 December 2023 and should be read in conjunction with the audited financial statements and the related notes to the audited financial statements.
International Energy Insurance Plc is a registered Company incorporated in Nigeria and its major business activities are provision of Insurance risk underwriting to Public Sector, corporate and individuals customers in Nigeria. The Company is also established and run in such a way that it will become one of the major operators in the Insurance Industry in Nigeria with future outlook to expand and to diversify its business.
Management focus in the period to come is to adopt initiatives and actions that will guarantee the growth of the Company including introducing additional capital necessary to reposition the Company
Business Strategy of the Company and Overall Performance
IEI Plc is running a (5) five year strategic cycle plan from 2023 - 2027. Our ambition is to be a major key player in the Insurance Industry in Nigeria, focusing on more revenue generation and market share within the corporate and retail market segments. We would pay more attention to improving Operational Efficiency to deliver quality service, Simple and unique customer experience across all selling points. We will seek to maintain best practice in buisness ethics. Our Brokers remain our biggest partners, we would strive to strengthen our relationships with them. We will continue to grow the market by pursuing new customer segments and distribution channels. We can only serve these new segments by understanding the customer and coming up with innovative products that meet their needs, that is within their budget and easily accessible. We believe that the Retail and Travel Insurance segments will deliver the next phase of our growth. We would work towards driving insurance uptake by segment by becoming the Insurer they think of in momemts that matter.
Financial performance
The following is a summary of the Company's operating results:
In thousands of naira | 2023 | 2022 | Changes | % |
Insurance Revenue | 2,718,177 | 758,907 | 1,959,270 | 258 |
Insurance Service Result | 2,982,238 | 400,624 | 2,581,614 | 644 |
Net Investment Income | 198,869 | 718,852 | (519,983) | (72) |
Other Income | 886,800 | 28,416 | 858,384 | 3,021 |
Operating expenses including employee benefit expenses | (1,690,454) | (453,524) | (1,236,930) | 273 |
Profit before tax | 5,773,378 | 241,572 | 5,531,806 | 2,290 |
Earnings per share in kobo | 434 | 18 | 416 | 2,294 |
The Company reported profit of 6.5billion for the year ended 31st December 2023 compared to the loss of N349Million expereinced in the prior year 2022 and Insurance Revenue grew by 258% compared to that of 2022.
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INTERNATIONAL ENERGY INSURANCE PLC
Financial Statements - 31 December 2023
Management Discussion and Analysis (Continued)
The Company reported an insurance result at the end of the year amounted to an underwriting profit of N4.03Billion compare to an underwriting loss of N61Million reported during the year ended 31 December 2022.
Operating expenses for the year totalled N2.4Billion (December 2022: N899Million), representing 169% increase when compared to prior year expense. The Company has continued to put structures in place to ensure costs incurred are optimised and value created.
Forward Looking Statements
The Management Discussion and Analysis contains factual statements relating to International Energy Insurance Plc's financial and other projections, expected future plans, event, financial and operating results, objectives and performance as well as underlying assumptions all of which involve risk and uncertainties. These statement reflect management's current belief and are based on information available to International Energy Insurance Plc and are subject to certain risk, uncertanties and assumptions.
Some aspects of the statement above relate to the Company's future outlook. Reference to the Company's or Management's budget, estimates, excpectations, forecasts, predictions or projections constitute aspect of the "forward looking statements". Such statements may also be deduced from the use of conditional or forward-looking terminologies including but not limited to words such as "anticipates", "believes", "estimates", "expects". "may", "plans", "projects", "should", "will", or the adverse varliants of such which appear within the body of this document.
Many factors and assumptions may affect the manifestation of the Company's projections, including, but not limited to, production rate, claims rate, employee turnover, relationships with brokers, agents and suppliers, economic and political conditions, non-compliance with laws or regulations by the Company's employees, brokers, agents, suppliers, and/or partners, and other factors that are beyond its control.
Without prejudice to the Company, such forward looking statements reflect Management's current belief and are based on available information which are subject to risks and uncertainties as identified. Therefore, the eventual action and /or outcome could differ materally from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes.
The forward-looking statements in this document reflect the Company's expectations at the time the Company's Board of Directors approved this document, and are subject to change after this date. The Company does not undertake any obligation to update publicly or to revise any such forward-looking statements, unless required by applicable legislation or regulation.
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International Energy Insurance plc published this content on 29 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2024 16:30:19 UTC.