NIGER INSURANCE PLC AUDITED FINANCIAL STATEMENTS …

1 NIGER INSURANCE PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 NIGER INSURANCE 2016 Page 1 NIGER INSURANCE PLC AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2016 CONTENTS PAGE NIGER INSURANCE PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 NIGER INSURANCE 2016 Page 2 Results at a Glance 2 Corporate Information 3 Statement of Directors responsibilities 5 Report of the Directors 6 Statement of management discussion and analysis 12 Independent Auditors' Report 14 Report of the Audit committee 19 Certification Pursuant to Section 60 (2) of Investment and Securities Act No.

2 29 of 2007 20 Company information and accounting policies 21 Consolidated statement of FINANCIAL position 45 Consolidated statement of comprehensive income 46 Statement of changes in equity 47 Statement of Cash Flows 48 Risk and capital management framework 49 Explanatory notes to the FINANCIAL STATEMENTS 57 Segment information 88 Group statement of value added 95 Company statement of value Added 96 Group five-year FINANCIAL summary 97 Company five-year FINANCIAL summary 98 RESULT AT GLANCE GROUP Variance COMPANY Variance NIGER INSURANCE PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 NIGER INSURANCE 2016 Page 3 2016 2015 2016 2015 N'000 N'000 % N'000 N'000 % Gross premium written 5,962,510 10,496,777 (43) 5,962,510 10,496,777 (43) Gross premium income 5,077,874 10,596,991 (52) 5,077,874 10,596,991 (52) Investment and other income 2,233,794 890,691 151 2,144,171 776,632 176 Profit before tax 99,045 736,029 (87) 93,819 703,948 (87) Operating profit transferred to general reserve 42,134 600,911 (93) 50,654 569,190 (91) Transfer to Contingency reserve 145,979 157,063 (7) 145,979 157,063 (7) Other comprehensive income 173,798 (18,715) 1,029 173,798 (18,715)

3 1,029 Ordinary share capital 3,869,747 3,869,747 - 3,869,747 3,869,747 - Shareholders fund 8,612,383 8,667,333 (1) 8,178,851 8,225,282 (1) INSURANCE Contract liability 8,866,422 7,903,309 12 8,866,422 7,903,309 12 Investment Contract liability 997,116 950,085 5 997,116 950,085 5 Total assets 22,511,216 20,990,156 7 21,881,113 20,386,496 7 Per share data: Earnings per share-Basic Net assets per share- Basic NIGER INSURANCE PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 NIGER INSURANCE 2016 Page 4 Corporate Information The Board: Yusuf Hamisu Abubakar, OON - Chairman Dauda Kolapo Adedeji - Managing Director/Chief Executive Ibrahim R.

4 Hassan - Executive Director (Technical & Market) Frederick S. Ugwuja - Executive Director (Finance & Corporate Services) Justus Clinton Uranta - Director Olufemi Owopetu (Mrs) - Director Ebi Enaholo - Director Umaru Hamidu Modibbo - Director Stephen Dike - Director Secretary: Taiwo A. Otuneye, , Registered office: 48/50, Odunlami Street, Lagos. Registered number: RC. 6484 RIC - 007 (R1 - 012) Bankers: Access Bank Plc First Bank of Nigeria Ltd Keystone Bank Ltd Mainstreet Bank Plc Skye Bank Plc Stanbic IBTC Chartered Bank Unity Bank Plc Union Bank of Nigeria Plc United Bank for Africa Plc Registrar: Meristerm Securities Limited, 124, Norman Williams Street, South West Ikoyi, Lagos Auditor: SIAO (Chartered Accountants), 18b, Olu Holloway Road Off Alfred Rewane Road Falomo - Ikoyi 55461, Falomo Ikoyi, Lagos Website.

5 Reinsurers: African Reinsurance Corporation CICA Reinsurance Company Continental Reinsurance Plc Nigeria Reinsurance Company Plc Swiss Reinsurance WAICA Reinsurance Corporation Plc Corporate Information (Cont d) NIGER INSURANCE PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 NIGER INSURANCE 2016 Page 5 Actuarist: TAF Consulting Group 22, Oluseun Crescent, Gbagada Anthony, Lagos, Nigeria. Valuer: Tokun & Associates Estate Surveyors & Valuers Western House, 17th Floor 8/10, Broad Street, Lagos NIGER INSURANCE PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 NIGER INSURANCE 2016 Page 6 STATEMENT OF DIRECTORS RESPONSIBILITIES The directors accept responsibility for the preparation of the annual consolidated FINANCIAL STATEMENTS that give a true and fair view of the statement of FINANCIAL position of the Group and Company at the end of the year and of its comprehensive income in the manner required by the Companies and Allied Matters Act 2004 FINANCIAL Reporting Council Act and

6 The INSURANCE Act of Nigeria 2003. The responsibilities include ensuring that the Group: i. keeps proper accounting records that disclose, with reasonable accuracy, the FINANCIAL position of the Group and comply with the requirements of the Companies and Allied Matters Act and the INSURANCE Act. ii. establish adequate internal controls to safeguard its assets and to prevent and detect fraud and other irregularities; and iii. prepare its FINANCIAL STATEMENTS using suitable accounting policies supported by reasonable and prudent judgements and estimates, that are consistently applied. The directors accept responsibility for the FINANCIAL STATEMENTS , which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in compliance with: - International FINANCIAL Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB); - relevant guidelines and circulars issued by the National INSURANCE Commission (NAICOM) and the requirements of the Companies and Allied Matters Act, and the FINANCIAL Reporting Council Act.

7 The directors are of the opinion that the FINANCIAL STATEMENTS give a true and fair view of the FINANCIAL position of the Group and of the profit for the year. The directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of FINANCIAL STATEMENTS , as well as adequate systems of internal FINANCIAL control. The directors have made assessment of the Group s ability to continue as a going concern and have no reason to believe that the Group will not remain a going concern in the year ahead. Signed on behalf of the Board of Directors by: Dauda K. Adedeji Yusuf Hamisu Abubakar, OON FRC/2014/ICAN/00000003021 FRC/2016/NBA/00000014422 NIGER INSURANCE PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 NIGER INSURANCE 2016 Page 7 REPORT OF THE DIRECTORS 1.

8 Accounts The directors are pleased to submit their report together with the group AUDITED FINANCIAL STATEMENTS for the year ended 31 December, 2016. Result for the year N 000 Company total comprehensive income - Life (335,345) - Non-life 559,797 224,452 ======== 2. Legal form The company was established in 1962 as an affiliate of Yorkshire INSURANCE Company ( ) and was then known as Yorkshire INSURANCE Company Nigeria Limited, with the registered office at 47, Marina, Lagos. Following the implementation of the indigenisation Act 1976, the Federal Ministry of Finance through NICON wholly acquired the company and its name was changed to The NIGER INSURANCE Company Limited . As a result of privatization policy of the Federal Government, the company s shares were sold to the public in 1989 and its name changed to NIGER INSURANCE Plc.

9 The Company has two wholly owned subsidiaries: NIC Securities & Trust Limited and NIC Properties Limited. 3. Principal activities The principal activities of the company are the underwriting of life and general INSURANCE business. 4. The Directors The current composition of the Board of Directors is as set out on page 3 of these FINANCIAL STATEMENTS . 5. Directors' interests The interests of the directors in the issued share capital of the company are as follows:- Number of shares held as at 31/12/2016 31/12/2015 Dauda Kolapo Adedeji 26,518,355 37,042,491 Ibrahim R. Hassan 15,129,774 15,035,984 Fredrick Sunday Ugwuja 16,201,184 16,201,184 Yusuf Hamisu Abubakar - Indirect (Goldust Ltd) 114,908,943 114,908,943 Justus Clinton Uranta 81,054,470 81,054,470 Umaru Hamidu Modibbo 52,000,000 52,000,000 Olufemi Owopetu (Mrs) 217,765 217,765 Ebi Enaholo - - Stephen Dike Indirect (Chrome Oil Services Ltd)

10 2,122,062,377 2,122,015,587 ========= ========= NIGER INSURANCE PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 NIGER INSURANCE 2016 Page 8 REPORT OF THE DIRECTORS (CONT D) 6. Shareholdings (a) Summary of the shareholding position: As at 31/12/16 As at 31/12/15 Number of Number of Shareholders shares held % shares held % Management Alliance Company Limited 790,023,319 790,023,319 Chrome Oil Services 2,122,015,587 2,122,015,587 Asset Management Nominees 589,237,956 589,237,956 Other Nigerian Individuals and Associations 4,238,218,840 4,238,218,840 7,739,495,702 100 7,739,495