UNIVERSAL INSURANCE : QUARTER 1 - FINANCIAL STATEMENT FOR 2023

FIRST QUARTER MANAGEMENT ACCOUNT

For The Period Ended 31 MARCH. 2023

Universal Insurance Plc

RC 2460

UNIVERSAL INSURANCE PLC.

1ST QUARTER 2023 MANAGEMENT ACCOUNT

UNIVERSAL INSURANCE PLC

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at 31 March, 2023

				COMPANY
	NOTES	31-Mar-23	31-Mar-22
Assets				N'000	N'000
Cash and Cash Equivalents	6			921,465	246,580
Financial Assets	7			2,791,797	2,501,227
Trade Receivable	8			1,181,304	848,961
Reinsurance Assets	9			801,988	437,710
Deferred Acquisition cost	10		278,038	366,884
Deferred tax assets	23.a	403,685	403,685
Other Receivables	11			450,983	436,492
Investment in Subsidiaries	12		2,464,079	2,449,516
Investment Properties	13		1,923,414	1,901,750
Intangible Asset	14		67,679	74,676
Property, Plant and Equipment	15		2,546,044	2,623,344
Statutory Deposits	16		335,000	335,000
Total Assets				14,165,475	12,625,826
Liabilities
Insurance Contract Liabilities	17		3,079,049	2,313,155
Borrowings	18		-	-
Trade payable	19		72,472	117,542
Other payable	20		123,760	74,448
Employee benefit liability	21		-	-
Income Tax liabilities	22		41,372	5,870
Deferred tax liabilities	23		296,875	296,875
Total Liabilities				3,613,528	2,807,890
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		996,481	783,916
Fair value reserve	24.	4		6,460	6,460
Non Current assets revaluation reserve	24.	5		768,329	768,329
Retained earnings	24.	6		(44,340) -	565,787
Shareholders funds
			10,551,948	9,817,936
Other equtiy instruments				-
Non - controlling interests
TOTAL EQUITY & LIABILITIES
			14,165,476	12,625,826

Signed on behalf of the Board of Directors on April 27, 2023

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

60

UNIVERSAL INSURANCE PLC.

1ST QUARTER 2023 MANAGEMENT ACCOUNT

Universal Insurance Plc

Statements of Comprehensive Income

For the PERIOD ENDED 31 MARCH, 2023

Notes

		31-Mar-23	31-Mar-22
		N'000	N'000
Gross Premium written	25	3,753,130	2,333,972
Decrease/(increase) in unearned premium		(1,463,626)	(1,009,476)
Gross Premium Earned		2,289,504	1,324,496
Reinsurance Premium Expense	26	(358,789)	(280,089)
Net Insurance Premium Income		1,930,715	1,044,407
Fees and Commission income	27	17,650	16,530
Total Underwriting Income		1,948,365	1,060,937
Insurance benefits		197,230	70,854
Claims expenses	28
Increase/(Decrease) in claims and IBNR reserves per actuarial valuation	28	-	-
Claims Expense Recovery from Reinsurance	28	70	-
Change in contract liabilities	28	-	-
Net insurance benefit and claims		197,300	70,854
Underwriting Expenses
Acquisition expenses	29	(688,212)	(204,980)
Maintenance expenses	29	(371,496)	(219,501)
Total Underwriting Expenses		(1,059,708)	(424,481)
Underwriting Profit/(Loss)		1,085,957	707,310
Investment income	30	1,280	261
Other operating income		-	-
Total investment income		1,280	261
Net Income		1,087,237	707,571
Unrealised fair value gain		232,377	176,042
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	(472,188)	(204,662)
Total Expenses
	(239,811)	(28,621)
Result of operating activities		847,426	678,951
Interest expense	33	-	-
Profit or (Loss) before Taxation		847,426	678,951
Income Tax Expense/ (Credit)	22.1a	(22,118)	(4,821)
Profit or Loss after Taxation		825,308	674,130
Profit/(Loss) to Equity holder
	825,308	674,130
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		825,308	674,130
Non-controlling interest		-	-
Profit/(loss) for the period		825,308	674,130
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		825,308	674,130
Total comprehensive income attributable to:
Equity holders of the company		825,308	674,130
Non-controlling interests		-	-
Total comprehensive income for the period		825,308	674,130
Earnings per share-(basic and diluted)(Kobo)	34	5.16	4.21

61

																UNIVERSAL INSURANCE PLC.
															1ST QUARTER 2023 MANAGEMENT ACCOUNT
		THE UNIVERSAL INSURANCE PLC
		UNDERWRITING REVENUE ACCOUNT
		FOR THE PERIOD ENDED 31 MARCH, 2023
							GENERAL								1/01/2022 to
					MOTOR	FIRE	ACCIDENT	BOND	ENGINEERING	OIL & GAS	AVIATION	AGRIC INS	MARINE	Mar-23	31/03/2022
					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				208,849	378,934	221,484	216,005	82,977	1,013,868	-	-	226,463	2,348,581	1,450,001
Reinsurance Accepted			45,227	159,132	29,395	7,839	23,478	1,081,885	-	11,380	46,213	1,404,549	883,971
Gross Premium Written			254,077	538,065	250,880	223,845	106,455	2,095,753	-	11,380	272,677	3,753,130	2,333,972
Changes in Reserve for Unexpired Risk (*)			(92,199)	(145,421)	(25,502)	(20,071)	78,736	(1,246,045)	(21,081)	4,837	3,119	(1,463,626)	(1,009,476)
Gross Premium Earned			161,878	392,644	225,378	203,774	185,191	849,709	(21,081)	16,216	275,796	2,289,504	1,324,496
Net Reinsurance Recovery (UPR) per actuarial valuation												-	-
Reinsurance cost			(29,392)	(27,236)	(15,192)	(3,609)	-	(278,273)	-	-	(5,088)	(358,789)	(280,089)
Net Premium Written			132,486	365,408	210,185	200,165	185,191	571,436	(21,081)	16,216	270,708	1,930,715	1,044,407
Commission Receiveed			4,948	6,230	4,606	722	-	-	-	-	1,145	17,650	16,530
Net Income			137,434	371,638	214,791	200,887	185,191	571,436	(21,081)	16,216	271,853	1,948,365	1,060,937
Claims Incurred:
Direct Claims Paid			70,028	25,712	69,393	-	9,265	37	136,775	-	387	311,596	183,975
Provision for Outstanding claims (IBNR)			(71,218)	(110,264)	(85,081)	(48,950)	(50,678)	(78,907)	(862)	(9,094)	(48,996)	(504,049)	(243,045)
Additional charge to claims reserve per actuarial valuation (IBNR)			-	-	-	-	-	-	-		-	-	-
Changes in Provision for Outstanding Claims (**)			38,754	76,344	14,660	-	(21,567)	2,485	(117,445)	-	1,992	(4,777)	(11,784)
Gross Claims Incurred			37,565	(8,207)	(1,028)	(48,950)	(62,980)	(76,385)	18,468	(9,094)	(46,618)	(197,230)	(70,854)
Reinsurance Claims Recovery per actuarial valuation												-	-
Reinsurance Recovery (IBNR) per actuarial valuation			-	-	-	-	-	-	-	-	-	-	-
Reinsurance Claims Recovery			(70)	-	-	-	-	-		-	-	(70)	-
Net Claims Incured			37,495	(8,207)	(1,028)	(48,950)	(62,980)	(76,385)	18,468	(9,094)	(46,618)	(197,300)	(70,854)
Underwriting Expenses:	-
Commission Paid			32,049	112,574	51,083	44,395	15,906	443,548	-	2,515	46,534	748,604	418,770
Changes in deferred commission			(36,380)	12,654	658	30,470	897	(87,072)	960	(1)	17,423	(60,392)	(213,791)
Additional (DCA) per actuarial valuation report												-	-
Maintenance expenses			46,626	45,996	45,996	45,996	45,996	45,996	45,996	-	48,895	371,496	219,501
Total Underwriting Expenses			42,295	171,223	97,737	120,861	62,799	402,471	46,956	2,514	112,852	1,059,708	424,481
Total Expenses			79,789	163,016	96,708	71,911	(181)	326,086	65,424	(6,580)	66,234	862,408	353,626
Underwriting Result			57,645	208,622	118,083	128,976	185,372	245,350	(86,505)	22,796	205,619	1,085,957	707,310
Provision for Unexpired Risk- 1 JANUARY 2022			120,556	252,730	179,936	152,063	143,267	5,107	19,565	13,802	151,134	1,038,161	974,080
Provision for Unexpired Risk- 31,March 2023			212,755	398,152	205,438	172,133	64,531	1,251,152	40,646	8,966	148,015	2,501,787	1,983,556
Additional charge (UPR) per actuarial valuation			-	-	-	-	-	-	-		-	-	-
Provision for Unexpired Risk- 30 June 2022			212,755	398,152	205,438	172,133	64,531	1,251,152	40,646	8,966	148,015	2,501,787	1,983,556
* Changes in reserve for unexpired Risk			(92,199)	(145,421)	(25,502)	(20,071)	78,736	(1,246,045)	(21,081)	4,837	3,119	(1,463,626)	(1,009,476)
Gross Claims Outstanding
Provision for Outsanding Claims- 1 JANUARY 2022			49,578	207,377	89,507	251	22,537	18,340	140,609	-	1,362	529,560	311,420
Provision for Outsanding Claims- 31,March 2023			88,332	283,721	104,167	251	970	20,824	23,164	-	3,354	524,783	299,635
** Changes in provision for outstanding claims			38,754	76,344	14,660	-	(21,567)	2,485	(117,445)	-	1,992	(4,777)	(11,784)

88

UNIVERSAL INSURANCE PLC.

1ST QUARTER 2023 MANAGEMENT ACCOUNT

Universal Insurance Plc

Statement Of Cash Flows	COMPANY
For the year ended 31 MARCH, 2023	31-Mar-23	31-Mar-22
Cash flows from operating activities	N'000	N'000
Insurance premium received from policy holders,	3,420,787	1,815,397
Brokers & Agents, Cedants
Commission received	17,650	16,530
Reinsurance receipts in respect of claims	(295,952)	(295,952)
Reinsurance premium paid	(358,789)	(280,089)
Prepaid Minimum and Deposit on Oil & Gas	(11,276)	(52,312)
Other operating cash payments	(659,522)	(568,700)
Insurance benefits and Claims paid	(311,596)	(183,975)
Payments to intermediaries to acquire insurance	(748,604)	(418,770)
contracts
(371,496)	(219,501)
Maintenance expenses
Interest Received	865	261
Dividend Income Received	-	-
Cash generated from operations	682,067	(187,112)
Interest Paid	-	0
Company Income Tax paid	-	-
Net cash provided by operating activities	682,067	(187,112)
Cash Flows from Investing Activities
Purchase of property, plant and equipment	(5,387)	(1,388)
Purchase of Intangible Assets	(2,212)	(6,133)
Purchase of Listed Equities	-	0
Investment income and other receipts	415	0
Unlisted AFS Disposed	-	0
Net Cash provided by investing activities	(7,184)	(7,520)
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	246,581	441,213
Net increase/decrease in cash and cash equivalents	674,883	(194,632)
Cash and Cash equivalent at the end of period	921,464	246,581

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