CONSOLIDATED HALLMARK INSURANCE PLC - …

1 CONSOLIDATED HALLMARK INSURANCE PLC COMPANY RC:168762 ANNUAL REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ended 31st december 2017 (Chartered Accountants) 18b Olu Holloway Road Ikoyi, Lagos Box 55461, Falomo, Ikoyi, Lagos Tel: 01-4630871-2 Fax: 01-4630870 Website: E-mail: enquiries CONSOLIDATED HALLMARK INSURANCE PLC REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ended december 31, 2017 CHI PLC 2017 Page 1 Contents Page Corporate Information 2 Results at a Glance 5 Report of the Directors 6 Statement of Directors Responsibilities 23 Certification Pursuant to Section 60 (2) of Investment and Securities Act No.

2 29 of 2007 24 Report of the Independent Auditors 25 Report of the Audit Committee 31 Statement of Significant Accounting Policies 32 Statement of Financial Position 60 Statement of Comprehensive Income 61 Statement of Change in Equity 62 Statement of Cash Flows 64 Notes to the Financial Statements 65 Segment information 89 Capital Management Policy 91 Claim Development Table 95 Financial Risk Management Policy 107 Statement of Value Added 110 Group Financial Summary 111 Company Financial Summary 113 Segments Report Underwriting Result per class of business 116 CONSOLIDATED HALLMARK INSURANCE PLC REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ended december 31, 2017 CHI PLC 2017 Page 2 Corporate Information Directors Mr.

3 Obinna Ekezie Chairman Chief Andrew D. S. Odigie Vice Chairman Mr. Eddie Efekoha Managing Director/CEO Mr. Babatunde Daramola Executive Director- Finance, System & Investment Mrs. Mary Adeyanju Executive Director-Operations Mr. Joel Botete Avhurhi Non-Executive Director Mrs. Ngozi Nkem Non-Executive Director Mrs. Eziaku Ethel Obidegwu Non-Executive Director Prince Ben Onuora Non-Executive Director Mrs. Adebola F. Odukale Non-Executive Director Mr. Shuaibu Abubakar Idris Independent Director Company Secretary Mrs. Rukevwe Falana FRC/2016/NBA/00000014035 CONSOLIDATED HALLMARK INSURANCE Plc 266, Ikorodu Road Obanikoro, Lagos Registered Office CONSOLIDATED HALLMARK INSURANCE Plc 266, Ikorodu Road Obanikoro, Lagos Registration Number 168762 Corporate Head Office CONSOLIDATED HALLMARK INSURANCE Plc 266, Ikorodu Road Obanikoro, Lagos Registrars Meristem Registrars 213, Herbert Macaulay Road Adekunle, Yaba Lagos Tel.

4 +234 (1) 8920491-2 Lagos Bankers Access Bank Plc Ecobank Nigeria Limited Fidelity Bank Plc First Bank of Nigeria Limited GT Bank Plc Keystone Bank Plc Skye Bank Plc Stanbic IBTC Bank Plc CONSOLIDATED HALLMARK INSURANCE PLC REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ended december 31, 2017 CHI PLC 2017 Page 3 Corporate Information (Cont d) Sterling Bank Plc United Bank for Africa Plc Zenith Bank Plc Auditors SIAO (Chartered Accountants) 18b, Olu Holloway Road Off Alfred Rewane Road Falomo- Ikoyi 55461, Falomo Ikoyi, Lagos.

5 Tel: +234 01 463 0871-2 Website: E-mail: Actuary Ernst & Young UBA House 10th Floor 57 Marina Lagos Reinsurers African Reinsurers Corporation Continental Reinsurance Plc Subsidiaries CHI Capital Limited CHI Microinsurance Limited 33D Bishop Aboyade Cole Street 266, Ikorodu Road Victoria Island Obanikoro, Lagos HALLMARK Health Services Limited 264, Ikorodu Road Obanikoro, Lagos Branch Networks Corporate Head Office Victoria Island Office 266, Ikorodu Road Plot 33D Bishop Aboyade Cole Street Obanikoro, Lagos Victoria Island Lagos Tel: +234-1-2912543 Tel:01-4618222 0700 CHINSURANCE Fax 01-4618380 O7OO24467872 e-mail: website: CONSOLIDATED HALLMARK INSURANCE PLC REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ended december 31, 2017 CHI PLC 2017 Page 4 Corporate Information (Cont d) Regional Offices Port Harcourt Abuja 52, Emekuku Street Metro Plaza Annex B Amazing Grace Plaza Plot 991/992 Zakariya Maimalari Street Tel.

6 09092861724, 09033543581 Central Business District Tel: 09-2347965 Fax: 097804398 Branch Offices Aba Office Kaduna Office 4, Eziukwu Road NK 9, Constitution Road Tel: 08180001164 Kaduna Tel: 08180001148 Owerri Office Akure Office 5B Okigwe Road 3rd Floor, Bank of Industry (BOI) House Opp. Govt College Owerri Alagbaka Akure 08180001162 Tel: 08180001154 Kano Office Warri Office 17, Zaria Road 179, Jakpa Road, Effurun Gyadi Gyadi Tel: 08180001157 Tel: 08180001146 Onitsha Office Enugu Office 41, New Market Road Onitsha 77, Ogui Road Tel: 08180001139 Tel: 08180001142 Ibadan Office 1st Floor, Navada Plaza 140/142 Liberty Stadium Road Tel.

7 08180001152 CONSOLIDATED HALLMARK INSURANCE PLC REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ended december 31, 2017 CHI PLC 2017 Page 5 Results at a glance 31 december 2017 31 december 2016 % 31 december 2017 31 december 2016 % Change NNNNNF inancial PositionCash and cash equivalents1,921,271,578 1,836,824,537 5%1,850,386,963 1,587,501,284 17%84,447,042 Financial assets3,129,629,708 2,122,441,443 47%2,732,022,161 2,090,553,934 31%1,007,188,265 Trade receivables150,356,282 182,091,091 -17%150,356,282 182,091,091 -17%(31,734,809) Investments4,089,806,837 3,106,098,332 32%3,946,037,484 3,006,453,166 31%983,708,505 Other receivables & prepayments174,488,859 177,968,732 -2%166,066,755 213,530,118 -22%(3,479,872) Inventories- 3,920,887 -100%- - (3,920,887)

8 Intangible Assets24,621,130 13,119,349 88%18,458,195 12,383,037 49%11,501,781 Total assets9,490,174,394 7,442,464,370 28%8,863,327,840 7,392,512,630 20%2,047,710,024 INSURANCE contract liabilities3,532,407,618 2,410,701,988 47%3,532,407,618 2,410,701,988 47%1,121,705,630 Total liabilities4,801,168,279 3,039,663,661 58%4,791,575,832 3,025,511,824 58%1,761,504,618 Issued and paid up share capital3,000,000,000 3,000,000,000 0%3,000,000,000 3,000,000,000 0%- Contingency reserve1,400,446,908 1,230,030,314 14%1,400,446,908 1,230,030,314 14%170,416,594 Statutory reserve16,304,970 9,279,386 76%- - 7,025,584 Retained earnings272,254,237 163,491,009 67%201,305,100 136,970,491 47%108,763,228 Shareholders fund4,689,006,115 4,402,800,709 7%4,601,752,008 4,367,000,805 5%286,205,406 Comprehensive IncomeGross premium5,680,553,122 5,826,950,292 -3%5,680,553,122 5,826,950,292 -3%(146,397,170)

9 Net Premium earned3,683,192,076 3,508,281,773 5%3,683,192,076 3,508,281,773 5%174,910,302 Net underwriting income4,053,742,495 3,711,989,442 9%4,053,742,495 3,711,989,442 9%341,753,053 Other revenue867,176,335 656,150,468 32%740,314,559 589,660,996 26%211,025,867 Total Revenue4,920,918,830 4,368,139,910 13%4,794,057,054 4,301,650,438 11%552,778,920 Claims paid(1,422,944,099) (1,387,143,712) 3%(1,422,944,099) (1,387,143,712) 3%(35,800,387) Other expenses(2,856,922,709) (2,612,863,070) 9%(2,806,433,566) (2,552,532,618) 10%(244,059,639) Total Benefits, Claims and Other Expenses(4,279,866,808) (4,000,006,782) 7%(4,229,377,664) (3,939,676,330) 7%(279,860,026) Profit before tax641,052,022 368,133,127 74%564,679,389 361,974,107 56%272,918,894 (234,846,616) (173,145,284) 0%(209,928,186) (163,358,219) 29%Profit for the year406,205,405 194,987,843 108%354,751,203 198,615,888 79%211,217,562 (79,133,028) Income tax expenses132,084,534 Total comprehensive income for the year net of tax406,205,405 194,987,843 108%354,751,203 198,615,888 79%Basic and diluted earnings per share (Kobo)

10 108% 79%GroupGroup CONSOLIDATED HALLMARK INSURANCE PLC