UNIVERSAL INSURANCE : QUARTER 4 - FINANCIAL STATEMENT FOR 2021

4TH QUARTER 2021 MANAGEMENT ACCOUNT

For The Period Ended 31st December 2021

Universal Insurance Plc

RC 2460

UNIVERSAL INSURANCE PLC.

4TH QUARTER 2021 MANAGEMENT ACCOUNT

UNIVERSAL INSURANCE PLC

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at 31 December 2021

				COMPANY
	NOTES	31-Dec-21	31-Dec-20
Assets				N'000	N'000
Cash and Cash Equivalents	6			409,669	250,867
Financial Assets	7			2,097,403	2,045,454
Trade Receivable	8			67,509	39,638
Reinsurance Assets	9			410,536	410,194
Deferred Acquisition cost	10		143,692	109,061
Deferred tax assets	23.a	403,685	403,685
Other Receivable	11			431,402	316,060
Investment in Subsidiaries	12		2,449,516	2,449,516
Investment Properties	13		1,891,000	1,891,000
Intangible Asset	14		68,684	62,229
Property, Plant and Equipment	15		2,595,634	2,672,512
Statutory Deposits	16		335,000	335,000
Total Assets				11,303,730	10,985,217
Liabilities
Insurance Contract Liabilities	17		1,423,991	1,418,798
Borrowings	18		-	-
Trade payable	19		152,712	194,355
Other payable	20		64,295	91,867
Employee benefit liability	21		-	-
Income Tax liabilities	22		11,645	6,075
Deferred tax liabilities	23		296,875	296,875
Total Liabilities				1,949,517	2,007,970
Equity
Issued and paid Share capital	24.	1		8,000,000	8,000,000
Share Premium	24.	2		825,018	825,018
Contingency Reserves	24.	3		685,098	609,704
Fair value reserve	24.	4		6,460	6,460
Non Current assets revaluation reserve	24.	5		768,329	768,329
Retained earnings	24.	6		(930,692)	(1,232,264)
Shareholders funds				9,354,212	8,977,247
Other equtiy instruments				-	-
Non - controlling interests
TOTAL EQUITY & LIABILITIES				11,303,729	10,985,217

Signed on behalf of the Board of Directors on 27 January, 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

Universal Insurance Plc

Statements of Comprehensive Income

For the PERIOD ENDED 31 December 2021

Notes

Gross Premium written	25
Decrease/(increase) in unearned premium
Gross Premium Earned
Reinsurance Premium Expense	26
Net Insurance Premium Income
Fees and Commission income	27
Total Underwriting Income
Insurance benefits
Claims expenses	28
Claims Expense Recovery from reinsurance	28
Change in contract liabilities	28
Net insurance benefit and claims
Underwriting Expenses
Acquisition expenses	29
Maintenance expenses	29
Total Underwriting Expenses
Underwriting Profit/(Loss)
Investment income	30
Other operating income
Total investment income
Net Income
Unrealised fair value loss
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
Total Expenses
Result of operating activities
Interest expense	33
Profit or (Loss) before Taxation
Income Tax Expense/ (Credit)	22.1a
Profit or Loss after Taxation

Profit/(Loss) to Equity holder

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

Non-controlling interest

Profit/(loss) for the period

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

31 (ii)

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

UNIVERSAL INSURANCE PLC.

4TH QUARTER 2021 MANAGEMENT ACCOUNT

	COMPANY
	01/10/2021
	To		1/10/2020 to
31-Dec-21	31/12/2021	31-Dec-20	31/12/2020
N'000		N'000	N'000
3,701,938	2,858,318	3,396,005	1,879,756
(295,134)	(659,204)	(74,190)	57,644
3,406,804	2,199,113	3,321,815	1,937,400
(653,545)	(464,175)	(707,504)	(235,503)
2,753,259	1,734,938	2,614,311	1,701,897
92,352	86,839	133,874	79,947
2,845,611	1,821,777	2,748,185	1,781,844
(351,959)	(301,475)	(675,401)	(94,198)
45,831	36,144	(137,055)	6,299
-	-	113,784	-
(306,128)	(265,331)	(698,672)	(87,899)
(553,081)	(359,155)	(53,848)	(311,064)
(574,326)	(459,259)	(752,349)	(300,886)
(1,127,407)	(818,414)	(1,291,198)	(611,950)
1,412,076	738,032	758,315	1,081,996
102,642	215,082	212,151	105,387
-	-		-
102,642	215,082	212,151	105,387
1,514,718	953,114	970,467	1,187,383
51,949	246,859	675,461	-
-	-		-
-	-	(1,501)	-
-	-	500	-
(1,175,623)	(774,878)	(1,012,291)	(999,276)
(1,123,674)	(528,019)	(333,331)	(999,276)
391,043	425,095	637,135	188,107
-	-		-
391,043	425,095	637,135	188,017
(14,078)	(17,854)	(12,488)	(31,038)
376,966	407,241	624,647	157,069
376,966	407,241	624,647	157,069
-	-		-
-	-		-
376,966	407,241	624,647	157,069
-	-		-
376,966		624,647	157,069
-			-
-	-	-	-
-			-
-			-
-		-	-
376,966	407,241	624,647	157,069
376,966	407,241	624,647	157,069
-			-
376,966	407,241	624,647	157,069

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

34

2.36

2.55

3.90

0.98

2

																	UNIVERSAL INSURANCE PLC.
																4TH QUARTER 2021 MANAGEMENT ACCOUNT
		THE UNIVERSAL INSURANCE PLC
		UNDERWRITING REVENUE ACCOUNT
		FOR THE PERIOD ENDED 31 December 2021
															1/10/2021
								GENERAL							To		1/10/2020 To
						MOTOR	FIRE	ACCIDENT	BOND	ENGINEERING	OIL & GAS	AVIATION	AGRIC INS	MARINE	31/12/2021	Dec-21	31/12/2020	Dec-20
						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				483,439	519,473	349,258	111,568	244,775	751,121	204,867	10,442	271,379	2,327,495	2,946,322	1,753,611	2,768,589
Reinsurance Accepted				22,430	128,306	167,605	3,195	34,777	259,347	-	-	139,957	530,823	755,617	126,145	627,416
Gross Premium Written				505,869	647,779	516,863	114,762	279,552	1,010,468	204,867	10,442	411,336	2,858,318	3,701,938	1,879,756	3,396,005
Changes in Reserve for Unexpired Risk (*)			(88,546)	(58,174)	(95,597)	31,939	(69,798)	(160,226)	86,396	(3,189)	62,061	(659,204)	(295,134)	57,644	(74,190)
Gross Premium Earned				417,323	589,605	421,267	146,702	209,754	850,242	291,263	7,253	473,396	2,199,113	3,406,804	1,937,400	3,321,815
Net Reinsurance Recovery (UPR) per actuarial valuation				-	-	-	-	-	-	-	-	-	-	-	-	49,583
Reinsurance cost				(128,659)	(62,231)	(53,648)	(3,913)	(16,976)	(318,289)	-	-	(69,829)	(464,175)	(653,545)	(235,503)	(757,087)
Net Premium Written				288,664	527,374	367,619	142,789	192,778	531,953	291,263	7,253	403,567	1,734,938	2,753,259	1,701,897	2,614,311
Commission Receiveed				71,353	8,994	8,259	-	804	-	-	-	2,941	86,839	92,352	79,947	133,874
Net Income				360,017	536,369	375,878	142,789	193,582	531,953	291,263	7,253	406,508	1,821,777	2,845,611	1,781,844	2,748,185
Claims Incurred:
Direct Claims Paid				128,398	235,499	94,582	70,297	48,321	37,857	6,256	-	20,425	365,622	641,634	239,556	492,138
Provision for Outstanding claims (IBNR)			(14,648)	(162,046)	(10,323)	(21,642)	(9,291)	(43,379)	(10,454)	-	(14,833)	(194,763)	(286,615)	(64,583)	87,985
Additional charge to claims reserve per actuarial valuation (IBNR		-	-	-	-	-	-	-		-		-	-
Changes in Provision for Outstanding Claims (**)			14,872	(16,245)	34,009	(72,297)	18,165	16,823	-	-	1,347	130,616	(3,327)	(80,775)	95,277
Gross Claims Incurred			128,623	57,208	118,268	(23,642)	57,194	11,301	(4,198)	-	6,939	301,475	351,692	94,198	675,401
Reinsurance Claims Recovery per actuarial valuation													-	-	137,055
Reinsurance Recovery (IBNR) per actuarial valuation			-	-	-	-	-	-	-	-	-		-	-	(36,727)
Reinsurance Claims Recovery			(6,793)	(14,639)	(16,758)	(5,250)	(649)	-		-	(1,743)	(36,144)	(45,831)	(6,299)	(113,784)
Net Claims Incured				121,830	42,569	101,510	(28,892)	56,545	11,301	(4,198)	-	5,196	265,331	305,861	87,899	661,945
Underwriting Expenses:		-
Commission Paid				51,281	135,634	116,581	21,061	48,133	115,701	-	3,636	95,686	481,010	587,712	329,119	558,742
Changes in deferred commission			(10,843)	9,185	(25,296)	7,389	(11,435)	(12,929)	(1,865)	(69)	11,232	(121,855)	(34,631)	(18,055)	(31,915)
Additional (DCA) per actuarial valuation report				-	-	-	-	-	-	-		-		-	-	12,022
Maintenance expenses				71,485	70,347	70,347	70,251	70,347	70,251	70,251	-	81,049	459,259	574,326	300,886	752,349
Total Underwriting Expenses				111,924	215,165	161,631	98,700	107,045	173,023	68,386	3,567	187,966	818,414	1,127,407	611,950	1,291,198
Total Expenses				233,754	257,734	263,142	69,808	163,590	184,324	64,188	3,567	193,162	1,083,745	1,433,268	699,849	1,953,143
Underwriting Result				126,264	278,634	112,736	72,981	29,991	347,628	227,075	3,686	213,347	738,032		1,081,996	795,043
Provision for Unexpired Risk- 1 JANUARY 2021			133,910	123,437	78,612	31,939	52,886	39,589	126,134	-	100,834	613,151	687,341	532,451	613,151
Provision for Unexpired Risk- 31 Dec. 2021			222,456	181,610	174,209	-	122,684	199,815	39,738	3,189	38,774	1,272,355	982,476	474,807	761,043
Additional charge (UPR) per actuarial valuation				-	-	-	-	-	-	-		-		-	-	(73,702)
Provision for Unexpired Risk- 31 Dec. 2021			222,456	181,610	174,209	-	122,684	199,815	39,738	3,189	38,774	1,272,355	982,476	-	687,341
* Changes in reserve for unexpired Risk			(88,546)	(58,174)	(95,597)	31,939	(69,798)	(160,226)	86,396	(3,189)	62,061	(659,204)	(295,134)	57,644	(74,190)
Gross Claims Outstanding
Provision for Outsanding Claims- 1 JANUARY 2021			50,286	101,980	83,324	88,393	3,673	44,987	5,987	-	26,074	309,427	404,704	390,202	309,427
Provision for Outsanding Claims- 31 Dec. 2021			65,158	85,735	117,333	16,096	21,838	61,809	5,987	-	27,421	440,043	401,378	309,427	404,704
** Changes in provision for outstanding claims			14,872	(16,245)	34,009	(72,297)	18,165	16,823	-	-	1,347	130,616	(3,327)	(80,775)	95,277

3

UNIVERSAL INSURANCE PLC.

4TH QUARTER 2021 MANAGEMENT ACCOUNT

Universal Insurance Plc

Statements of Changes in Equity (COMPANY)

for the period ended 31 Dec 2021

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 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	-	-	-	-	-	376,966	376,966
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				75,393		(75,393)	-
Other comprehensive income	-	-	-	75,393	-	(75,393)	-
Total comprehesive income for the period	-	-	-	75,393	-	301,573	376,966
Transfer during the year	-	-	-	-	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-
Total contribution and distributions to owners	-	-	-	-	-	-	-
Balance at 31 Dec. 2021	8,000,000	825,018	768,329	685,098	6,460	(930,692)	9,354,212
Balance at 1 January 2020	8,000,000	825,018	2,524,040	484,775	6,459	(2,654,885)	9,185,407
IFRS 9 Transition						-	-
Total comprehensive income for the period							-
Profit or loss						624,647	624,647
Other comprehensive income							-
Gain on the revaluation of land and buildings	-	-	-	-	-	-	-
Net Fair value changes in AFS financial assets	-	-	-	-	-	-	-
Fair value reserve derecognised on disposal					-	39,751	39,751
Transfer to contingency reserve	-	-	-	124,929	-	(124,929)	-
	-	-	-		-		-
Other comprehensive income for the period	-	-		124,929		(85,178)	39,751
Total comprehesive income for the period	-	-		124,929	-	539,469	664,398
Balance at 31 Dec. 2020	8,000,000	825,018	2,524,040	609,704	6,459	(2,115,416)	9,849,805

4