UNIVERSAL INSURANCE : QUARTER 5 - FINANCIAL STATEMENT FOR 2022

AUDITED FINANCIAL STATEMENTS

For The Period Ended 31, DECEMBER. 2022

Universal Insurance Plc

RC 2460

UNIVERSAL INSURANCE PLC.

2022 ANNUAL REPORT AND ACCOUNTS

UNIVERSAL INSURANCE PLC

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at 31,DECEMBER 2022

				GROUP		COMPANY
	NOTES	31-Dec-22	31-Dec-21		31-Dec-22	31-Dec-21
Assets				N'000	N'000		N'000	N'000
Cash and Cash Equivalents	6			573,786	197,139	572,664	192,818
Financial Assets	7			2,532,487	2,325,185	2,532,487	2,325,185
Trade Receivable	8			62,013	30,191	57,147	65,346
Reinsurance Assets	9			817,107	437,703	817,107	437,703
Deferred Acquisition cost	10		200,224	153,093	200,224	153,093
Deferred tax assets	23.a	403,685	403,685	403,685	403,685
Other Receivables	11			532,626	440,358	424,022	349,401
Investment in Subsidiaries	12		-	-	2,457,516	2,449,516
Investment Properties	13		5,273,110	5,251,526	1,923,414	1,901,830
Intangible Asset	14		70,160	68,544	70,160	68,544
Property, Plant and Equipment	15		2,638,984	2,677,217	2,594,691	2,623,317
Statutory Deposits	16		335,000	335,000	335,000	335,000
Total Assets				13,439,181	12,319,641	12,388,116	11,305,437
Liabilities
Insurance Contract Liabilities	17		2,124,249	1,558,508	2,124,249	1,558,508
Borrowings	18		-	-	-	-
Trade payable	19		88,628	234,542	73,025	206,119
Other payable	20		148,617	131,051	148,075	129,961
Employee benefit liability	21		-	-	-	-
Income Tax liabilities	22		21,973	7,639	19,254	5,921
Deferred tax liabilities	23		386,668	386,668	296,875	296,875
								-
Total Liabilities				2,770,135	2,318,407	2,661,478	2,197,383
Equity
Issued and paid Share capital	24.	1		8,000,000	8,000,000	8,000,000	8,000,000
Share Premium	24.	2		825,018	825,018	825,018	825,018
Contingency Reserves	24.	3		883,887	713,897	883,887	713,897
Fair value reserve	24.	4		6,459	6,459	6,460	6,460
Non Current assets revaluation reserve	24.	5		2,524,040	2,524,040	768,329	768,329
Retained earnings	24.	6		(1,570,358)	(2,068,181)	(757,055)	(1,205,650)
								-
Shareholders funds				10,669,046	10,001,232	9,726,638	9,108,053
Other equtiy instruments				-		-
Non - controlling interests
TOTAL EQUITY & LIABILITIES				13,439,181	12,319,640		12,388,116	11,305,436

Signed on behalf of the Board of Directors on March 5, 2023

BENEDICT UJOATUONU	REGINALD ANYANWU	SAMUEL U. NDUBUISI
CHIEF EXECUTIVE OFFICER	EXECUTIVE DIRECTOR	CHIEF FINANCE OFFICER
FRC/2013/CIIN/0000003282	FRC/2013/NIM/0000003245	FRC/2013/ICAN/0000003290

The accounting policies and the accompanying notes form an integral part of these financial statements

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UNIVERSAL INSURANCE PLC

2022 ANNUAL REPORT ACCOUNTS

Universal Insurance Plc

Statements of Comprehensive Income

For the PERIOD ENDED 31, DECEMBER 2022

Notes GROUP

		31-Dec-22	31-Dec-21
		N'000	N'000
Gross Premium written	25	5,666,321	3,473,084
Decrease/(increase) in unearned premium		(64,081)	(286,739)
Gross Premium Earned		5,602,240	3,186,345
Reinsurance Premium Expense	26	(1,169,262)	(782,642)
Net Insurance Premium Income		4,432,978	2,403,703
Fees and Commission income	27	171,340	73,973
Total Underwriting Income		4,604,319	2,477,676
Insurance benefits
Claims expenses	28	(656,603)	(498,917)
Increase/(Decrease) in claims and IBNR reserves per actuarial valuation	28	(501,660)	217,954
Claims Expense Recovery from Reinsurance	28	-	(101,762)
Change in contract liabilities	28	-	17,212
Net insurance benefit and claims		(1,158,263)	(365,513)
Underwriting Expenses
Acquisition expenses	29	(897,497)	(488,651)
Maintenance expenses	29	(506,125)	(630,072)
Total Underwriting Expenses		(1,403,622)	(1,118,723)
Underwriting Profit/(Loss)		2,042,433	993,440
Investment income	30	207,705	118,171
Other operating income		56,359	48,612
Total investment income		264,064	166,783
Net Income		2,306,497	1,160,223
Unrealised fair value gain		187,302	279,731
2022 impairment gain/loss on Financial Assets	31	42,136	17,961
Deferred tax derecognised on reclassification of financial
assets	23	-	-
Net fair value gain/(loss) on investment properties		21,584	13,044
		-	10,830
Other operating and administrative expenses	32	(1,875,342)	(1,319,555)
Total Expenses		(1,624,320)	(997,989)
Result of operating activities		682,177	162,234
Interest expense	33	-	-
Profit or (Loss) before Taxation		682,177	162,234
Income Tax Expense/ (Credit)	22.1a	(14,363)	(10,807)
Profit or Loss after Taxation		667,814	151,427
Profit/(Loss) to Equity holder		667,814	151,427
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		667,814	151,427
Non-controlling interest		-	-
Profit/(loss) for the period		667,814	151,427
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;
		-	-
PPE revaluation gains		-	-
Deferred tax impact of revaluation gains		-	-
Other comprehensive income for the period		-	-
Total comprehensive income		667,814	151,427
Total comprehensive income attributable to:
Equity holders of the company		667,814	151,427
Non-controlling interests		-	-
Total comprehensive income for the period		667,814	151,427

COMPANY

31-Dec-2231-Dec-21

N'000 N'000

5,666,321 3,473,084

(64,081) (286,739)

5,602,240 3,186,345

(1,169,262) (782,642)

4,432,978 2,403,703

171,340 73,973

4,604,319 2,477,676

(656,603) (498,917)

(501,660) 217,954

• (101,762)
• 17,212
  (1,158,263) (365,513)

(897,497) (488,651)

(506,125) (630,072)

(1,403,622) (1,118,723)

2,042,433 993,440

207,705 118,171

4,008 -

211,713 118,171

2,254,146 1,111,611

187,302 279,731

1. 2,734

--

21,584 13,044

• 10,830
  (1,830,765) (1,277,298)
  (1,622,227) (970,959)

631,919	140,652
-	-
631,919	140,652
(13,333)	(9,846)
618,585	130,806
618,585	130,806
-	-
-	-

618,585	130,806
-	-
618,585	130,806
-	-
-	-
-	-
-	-
-	-
-	-
618,585	130,806
618,585	130,806
-	-
618,585	130,806

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

34

3.87

2.36

3.87

2.36

2

UNIVERSAL INSURANCE PLC.

2022 ANNUAL REPORT ACCOUNTS

THE UNIVERSAL INSURANCE PLC

UNDERWRITING REVENUE ACCOUNT

FOR THE PERIOD ENDED 31 DEC. 2022

							GENERAL
					MOTOR	FIRE	ACCIDENT	BOND	ENGINEERING	OIL & GAS	AVIATION	AGRIC INS	MARINE	Dec-22	Dec-21
					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			611,988	703,355	651,233	308,447	209,192	1,108,091	137,248	24,395	505,429	4,259,380	2,946,322
Reinsurance Accepted			93,027	255,319	47,627	19,311	28,667	778,383	36,725	25,951	121,933	1,406,942	755,617
Gross Premium Written			705,015	958,674	698,860	327,758	237,860	1,886,474	173,973	50,345	627,362	5,666,321	3,701,938
Changes in Reserve for Unexpired Risk (*)			87,411	(79,881)	(84,447)	(104,372)	(20,665)	194,114	21,771	(10,623)	(67,388)	(64,081)	(295,134)
Gross Premium Earned			792,426	878,793	614,413	223,385	217,194	2,080,588	195,744	39,722	559,974	5,602,240	3,406,804
Net Reinsurance Recovery (UPR) per actuarial valuation			27,120	29,367	22,776	10,258	(6,975)	20,683	(15,029)	5,047	12,289	105,536	8,757
Reinsurance cost			(72,231)	(224,550)	(141,225)	(34,887)	(31,357)	(524,606)	(44,111)	(14,843)	(81,452)	(1,169,262)	(653,545)
Net Premium Written			747,315	683,610	495,964	198,757	178,862	1,576,665	136,604	29,927	490,811	4,538,514	2,753,259
Commission Receiveed			10,469	57,991	37,942	11,157	9,384	17,767	-	2,969	23,656	171,335	92,352
Net Income			757,784	741,601	533,906	209,913	188,246	1,594,432	136,604	32,895	514,467	4,709,849	2,845,611
Claims Incurred:
Direct Claims Paid			160,828	103,121	107,189	39,235	91,549	62,190	75,500	4,118	12,874	656,603	641,634
Provision for Outstanding claims (IBNR)			(105,432)	(246,667)	(134,328)	(50,801)	(62,891)	(115,603)	(26,153)	(10,567)	(77,094)	(829,536)	(286,615)
Additional charge to claims reserve per actuarial valuation (IBNR)			-	-	-	-	-	-	-		-	-	-
Changes in Provision for Outstanding Claims (**)		(6,013)	171,275	(11,498)	(35,000)	(36)	(21,807)	138,205	-	(16,986)	218,141	(3,327)
Gross Claims Incurred			49,383	27,729	(38,637)	(46,566)	28,622	(75,220)	187,552	(6,449)	(81,206)	45,207	351,692
Reinsurance Claims Recovery per actuarial valuation												(307,751)	(57,955)
Reinsurance Recovery (IBNR) per actuarial valuation			-	6,756	7,374	18,677	30,697	10,171	-	4,572	12,475	90,722	17,212
Total Outstanding Reinsurance Recoveris			-	227,565	145,851	19,590	44,345	14,031	881	5,456	19,164	(476,883)	(40,743)
Reinsurance Claims Recovery			(16,312)	(44,968)	(72,143)	(19,652)	(44,883)	(29,209)		(264)	(5,170)	(232,337)	(101,762)
Net Claims Incured			33,071	217,082	42,445	(27,951)	58,781	(80,227)	188,433	3,315	(54,737)	(881,041)	305,861
Underwriting Expenses:	-
Commission Paid			73,757	194,195	143,879	65,462	51,217	280,014	-	11,457	124,646	944,628	587,712
Changes in deferred commission			19,514	(31,687)	(17,780)	(21,253)	(13,137)	27,509	3,898	(2,385)	(11,810)	(47,131)	(34,631)
Additional (DCA) per actuarial valuation report												-	-
Maintenance expenses			63,127	61,615	61,615	61,615	61,615	61,615	61,615	-	73,311	506,125	574,326
Total Underwriting Expenses			156,398	224,123	187,714	105,823	99,695	369,138	65,513	9,073	186,147	1,403,622	1,127,407
Total Expenses			189,469	441,204	230,159	77,872	158,476	288,910	253,946	12,388	131,410	522,581	1,433,268
Underwriting Result			568,315	300,397	303,747	132,041	29,770	1,305,522	(117,342)	20,508	383,057	4,187,268	-
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	687,341
Provision for Unexpired Risk- 31 December 2022			120,556	252,730	179,936	152,063	143,267	5,107	19,565	13,802	151,134	1,038,161	982,476
Additional charge (UPR) per actuarial valuation			-	-	-	-	-	-	-		-	-	-
Provision for Unexpired Risk- 31 December 2022		120,556	252,730	179,936	152,063	143,267	5,107	19,565	13,802	151,134	1,038,161	982,476
* Changes in reserve for unexpired Risk			87,411	(79,881)	(84,447)	(104,372)	(20,665)	194,114	21,771	(10,623)	(67,388)	(64,081)	(295,134)
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	404,704
Provision for Outsanding Claims- 31 December 2022			49,578	207,377	89,507	251	22,537	18,340	140,609	-	1,362	529,560	401,378
** Changes in provision for outstanding claims			(6,013)	171,275	(11,498)	(35,000)	(36)	(21,807)	138,205	-	(16,986)	218,141	(3,326)

3

UNIVERSAL INSURANCE PLC.

2022 ANNUAL REPORT ACCOUNTS

Universal Insurance Plc

Statements of Changes in Equity (COMPANY)

for the period ended 31, DECEMBER 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	-	-	-	-	-	618,585	618,585
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				169,990		(169,990)	-
Other comprehensive income	-	-	-	169,990	-	(169,990)	-
Total comprehesive income for the period	-	-	-	169,990	-	448,596	618,585
Transfer during the year	-	-	-	-	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-
Total contribution and distributions to owners	-	-	-	-	-	-	-
Balance at 31 December 2022	8,000,000	825,018	768,329	883,887	6,460	(757,055)	9,726,638
Balance at 31 December 2021	8,000,000	825,018	768,329	713,897	6,460	(1,205,650)	9,108,054
							-
	8,000,000	825,018	768,329	609,704	6,460	(1,232,264)	8,977,247
Total comprehensive income
Profit and loss	-	-	-	-	-	130,806	130,806
Net gain/loss on previous AFS reclassified to FVTPL
					-	-
Fair value reserve derecognised on disposal							-
Transfer to contingency reserve				104,193		(104,193)	-
Other comprehensive income	-	-	-	104,193	-	(104,193)	-
Total comprehesive income for the period	-	-	-	104,193	-	26,614	130,806
Transfer during the year	-	-	-	-	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-
Total contribution and distributions to owners	-	-	-	-	-	-	-
Balance at 31, DECEMBER 2021	8,000,000	825,018	768,329	713,897	6,460	(1,205,650)	9,108,053

4