Wapic 2017 Annual Report PDF

DIGITAL TR ANSFORMATION
Wapic Insurance Plc | Annual Report & Accounts 2017 1

CONTENTS
01. OVERVIEW
Business and Financial Highlights
Chairman’s Statement 8
Chief Executive’s Review 11
6
02.
BUSINESS REVIEW
Corporate Philosophy 16
Reports of External Consultants 17
Technical Operations 18
Corporate Sales Division 21
Retail Sales and Distribution Division 24
Customer Experience 25
Investment 29
Digital and Technological Services 31
Our People, Culture and Diversity 35
Sustainability Report 36
Risk-Management 40
03.
GOVERNANCE
The Board 92
Directors, Officers and Professional Advisors 99
Management Team 101
Directors’ Report 121
Corporate Governance 108
Directors’ Responsibilities 121
Report of the Statutory Audit Committee 122
Customer Complaints Feedback 123
Non-Dealing Period Policy 126
2 Wapic Insurance Plc | Annual Report & Accounts 2017

04. FINANCIAL STATEMENTS

Independent Auditor’s Report
General Information 135
Statement of Significant Accounting Policies
Consolidated Statement of Financial Position
Consolidated Statement of Profit or Loss and Other
128
140
158
Comprehensive income 160

Consolidated Statement of Changes in Equity 162
Consolidated Statement of Cash Flows 166
Notes to the Financial Statements 168
05. SHAREHOLDER INFORMATION

Shareholder Engagement 234
Notice of Annual General Meeting
Explanatory Notes to the Proposed Resolutions
Share Capital History 238
235
236
E-Dividend Mandate Form 239

Shareholder Information Update Form 240
Proxy Form 241
06. CORPORATE INFORMATION

Corporate office
Branches 243
243
Subsidiaries Highlights 243

INTRODUCING VITAL CHANGE
Welcome
Welcome to the digital era of social networks, mobile internet, newly networked and data-based services- digitization is
bringing about fundamental changes in society and business, taking the Insurance Industry along with it.
At Wapic, we are constantly developing strategies and reconfiguring our business models by adapting the organization, IT,
structures and processes to the requirements of the “Digital Age”, realigning the value chain, developing SMART solutions
and approaching customers in new ways. The Insurance companies of the future will be driven by technology, we have put
our best foot forward by “planning today what customers and the business needs tomorrow”
Wapic is a risk solution provider, and we measure success by the degree to which we help mitigate the risk of those we insure.
We provide full range, best-in-class and premium services to our customers through a variety of pocket friendly and risk
specific products. Mitigating risk means that we pay attention to diverse issues and invest in a broad range of skills in order
to make tailored products, thereby providing progressive solutions to our customers.
Customers are at the heart of our business. With a customer centric vision and mission, Wapic upholds a culture of out-
standing service, operational efficiency and inclusive product offerings, all within a firm strategy that promotes technological
innovation, and which ensures that Wapic is the customer’s most enjoyable company to do business with. In line with our
strategic intentions of becoming the Employer of Choice, and as part of our ongoing transformation agenda to affirm insur-
ance leadership position in Sub-Saharan Africa, Wapic incessantly invests in human capital development in order to grow
the most productive workforce in the industry.
Our network in Nigeria and Ghana enables us provide value consistently to an international customer base. This gives us
the platform to address international risks and develop solutions in line with global; best practices, thereby showing our

01.
dedication to international compliance and sustainability.
dedica 01. Overview

A brief review of Wapic Insurance Plc’s financial and operational achievements in the past year
• Business and Financial Highlights
• Locations and Offices
• Chairman’s Statement
• Chief Executive’s Review

Business and Financial Highlights

For the year ended 31 December 2017
2017 2016 2015

Gross Earnings 13,620,976 12,394,435 10,424,313
Profit Before Tax 1,622,691 1,193,446 1,667,662
Profit After Tax 1,530,810 586,023 1,297,385
Gross Written Premium 9,807,616 8,005,308 7,100,713
Claims Paid 3,230,058 2,850,434 1,597,993
Policyholders’ Funds 8,205,325 7,293,836 5,872,791
Shareholders’ Funds 17,957,824 16,566,335 14,962,297
Total Assets 28,604,611 25,902,053 23,694,609
N’million
2017 13,621
Gross Earnings 2016 12,394
9.9%
2015 10,424
2017 1,623
Profit Before Tax 2016 1,193

36.0%
2015 1,668
2017 1,531
Profit After Tax 2016 586

161.2%
2015 1,297
2017 9,808
Gross Written Premium 2016 8,005

22.5% 7,101
2015
2017 3,230
Claims Paid
2016 2,850
13.3%
2015 1,598
2017 8,205
Policyholders' Funds 7,294
2016
12.5%
2015 5,873

Shareholders’ Funds 2017 17,958

8.4%
2016 16,566
2015 14,962
Total Assets 2017 28,605

10.4% 2016 25,902
2015 23,695

Aigboje Aig-Imoukhuede (CON)

Chairman
Chairman’s Statement
I welcome you to the 59th Annual General Meeting of this was despite a significant drop in the exchange rate
Wapic Insurance Plc, taking place in the year we celebrate gains which we enjoyed in 2016. Contributions from our
our diamond jubilee anniversary. It is most gratifying associate company Coronation Merchant Bank Limited
that as we mark this significant milestone, we continue remained strong validating our investment strategy
to make great progress in our quest to reposition your to strategically concentrate our equity investments in
Company as one of the region’s leading underwriters. sectors which are well known to us and businesses with
strong long-term growth prospects. With proactive
Operating Environment planning and astute timing, we continue to make the
needed financial investments to support our growth
The Nigerian economy emerged from recession in plans whilst keeping a lid on expenses which grew 7%
2017, recording improvements across a number of key (less than the annual rate of inflation). Consolidated
macroeconomic indices. The adoption of market friendly Net profits rose from N586m 2016 to N1.53bn in the
policies in the area of foreign exchange management year just concluded. Our Nigerian business comprising
was well received by investors leading to significant our Life and Non-life franchise accounted for 87% of
inflows of foreign portfolio investment into the country. group revenue. We will intensify efforts to diversify our
Holders of local currency sovereign debt instruments revenue and earnings base by strengthening our Ghana
did very well on the back of high interest rates offered operations.
in order to attract foreign portfolio investment. 2017
was also a good year for equity investors as the Nigeria Dividend
Stock Exchange Index grew by 42% ranking as the 2nd
best performing Stock Market globally. The Federal The Board recognises the importance of dividends to
Government continued its efforts towards improving the shareholders. However, given the possibility of in-
business environment through its Economic Recovery creased regulatory capital requirements in the near fu-
and Growth Plan. Whilst the plan is still at its early stages ture, the Board of Directors does not deem it prudent
of implementation, improvements are being noticed to recommend the payment of dividends for the period
in certain aspects of public service delivery, anecdotal ended December 31, 2017.
evidence suggests that the economic recovery is leading
to an improved willingness and ability on the part of the Corporate Governance
insuring public to insure their assets and analysts expect
the insurance industry growth rate for 2017 will be better The Board of Directors continues to ensure that Wapic
than the prior year. operates with the highest levels of corporate governance.
In furtherance of this, we subjected ourselves to the
Business Strategy Corporate Governance Rating System (CGRS) jointly
operated by the Nigerian Stock Exchange and the
Our ‘stretch’ 2014-2019 Corporate Strategic Plan Convention for Business Integrity. Having met the
requires us to deliver on a number of projects and stringent compliance requirements, I am pleased to
initiatives concurrently. Thus far with excellent inform you that Wapic stands amongst the first Nigerian
governance and sound management we have been able Companies who carry the CGRS Certification. I am also
to successfully conclude most of our initiatives. During pleased to inform you that all members of your Board
the year we successfully ‘cut over’ to a new core operating have passed the Fiduciary Awareness Certification Test
software which we acquired from ‘Asseco’ Poland. Our (FACT) which is an essential element of the certification.
new insurance application called WapX has been highly In the course of the year we established a Board
customised to ensure your Company interacts with Information Technology Committee to assist the Board
customers and other stakeholders in ways that ensure we of Directors in its oversight of the implementation of the
become the most enjoyable underwriter to do business Company’s technology initiatives. I believe this may be
with. Giving birth to WapX has been challenging and first for any public company in Nigeria.
could not have been achieved without the support and
collaboration of our customers and partners. But the The Board of Directors in the exercise of its powers under
pain will certainly be worth it. We believe that WapX has your Company’s Articles of Association appointed Mr.
the potential to have the same impact on the insurance Olusegun Ogbonnewo as a Non-Executive Director of the
sector as online real time systems had on the Banking Company. Mr. Olusegun Ogbonnewo is an accomplished
sector. banking and finance professional whose appointment
will significantly strengthen the board in the area of
Financial Performance technology and payments. His appointment is subject to
the necessary regulatory and shareholders approvals.
In 2017 we grew our gross written premium by 23%
exceeding our annual growth target of 20%. Claims
incurred totalled N3.1bn in 2017 against N2.9bn Further to our report at the last Annual General Meeting
recorded in 2016 due to improved underwriting and risk that your Company had taken steps to appoint Executive
selection. This positively impacted our Underwriting Directors responsible for Technical/Operational matters,
Profit which grew 304% from N381mm to N1.5bn. We I am pleased to inform you that we have received the
recorded a strong investment performance during the National Insurance Commission (NAICOM) approval for
period, growing investment income 23% year on year

the appointment of Mr. Peter Ehimhen and Mr. Adewale viability of this initiative. Ultimately the Claims Reference
Koko as Executive Directors Technical/Operations for and Analytics Utility will be established and operated
Wapic Insurance Plc and Wapic Life Assurance Limited by a consortium of leading insurance companies as an
respectively. Our ability to fill these newly created positions independent company for the benefit of the entire country.
from our internal talent pool, evidences the efficacy of our To foster a culture of safe road use in Nigeria, Wapic has
succession planning and talent management policies. launched the ‘Safety-On-Wheels Initiative, this initiative
is geared towards creating safe driving awareness among
Our People drivers and road users through specialised training.
This training is delivered in partnership with relevant
We continue to invest heavily in the development of our government agencies including the Federal Road Safety
talent pool. In 2017 the Wapic Academy produced its Corp (FRSC) and the Nigerian Police Force.
fifth class of Entry Level Graduate Trainees comprising
outstanding University graduates from Nigeria and Conclusion
Ghana. Also in 2017 the Company continued to support
its employees in their efforts to obtain professional I conclude with sincere appreciation to our employees
qualifications particularly those issued by the Chartered for their dedication, our customers for their loyalty and
Insurance Institute of Nigeria (CIIN). A number of our patronage and our shareholders for your support and
employees achieved Chartered status during the period confidence in our Board and Management. Together we
and one of them emerged the ‘Best Female Student’ in the will achieve great things as we transform and illuminate
2017 CIIN qualifying examinations. Nigeria’s Insurance Industry.
Sustainability Thank you and God bless.
In line with our mission to ‘Lead in all that is Worthy’ your

company in 2017 led a number of sustainability initiatives
which will have significant impact on the citizenry, the
insurance industry as well as the economy at large. In this AIGBOJE AIG-IMOUKHUEDE CON
regard, Wapic Insurance Plc is sponsoring the creation
of Nigeria’s first Insurance Claims and Analytics Bureau. CHAIRMAN
An initial assessment has confirmed the feasibility and
BOARD OF DIRECTORS

Chief Executive
Officer’s Statement
Introduction
On this occasion of our 59th Annual General Meeting,
I am delighted to present to you, distinguished
Shareholders, the report of the activities of Wapic
Insurance Plc. under my stewardship for the period
ended Dec 31, 2017.
Following the economic recession in Nigeria leading
into 2017, the financial year started with firm
commitment to keeping our organisation’s head
above the water, and a desire to not only break even,
but record significant growth and remain profitable,
no matter the challenges we may be faced with. And
this, we achieved.
Top on the agenda in 2017 was the technology
transformation project designed to help Wapic
attain operational efficiency in all its processes
with the overarching objective of enhancing overall
Customer Experience. The journey in the search of a
befitting software started two years prior, and after
a thorough review of available options, a strategic
selection of StarINS from Asseco Europe was made.
StarINS has now been aptly renamed and rebranded
as WapX. We went live on the new core insurance
application on September 4, 2017.
Your company can now boast of the best-in-class core
insurance application supported by a robust array of
other applications including the Enterprise Resource
Planning (ERP) platform using Microsoft Nav, the
refreshed and reinvigorated wapic.com website
with the online functionalities and the Historical
Data Portal (HDP). The new solutions have brought
faster processing time, faster resolution time, better
document management, and a wholesome customer
experience.
Following its launch in April 2017 by our subsidiary-
Wapic Life Assurance Ltd, our SMART Life products
have positively contributed to our incremental
growth and financial fortunes. They remain best-
in-class and offer a full spectrum of sustainable
solutions which promote financial inclusion and
wiser wealth management. Leveraging on digital
innovation to enhance the lives and wellbeing of a
smart generation, the provision of a diverse array
of pocket friendly products under Smart Life is a
testament to Wapic’s commitment to “lead in all that
is worthy”.
Adeyinka Adekoya
Managing Director\Chief Executive Officer

Operating Environment and Market Strategy and Growth Opportunities

Analysis Customer expectations are evolving rapidly and we are
An upsurge in crude oil prices, the major determinant excited about the many opportunities from technology
of export earnings, government revenues and overall to expand choices, increase convenience and provide a
economic wellbeing, led to a reported rise of US$56.79/ consistent experience across all our delivery channels. Over
barrel in September 2017. In November 2017, the price hit the years, we have focused on enhancing our technological
a 28-month high of US$64/barrel more than US$19 higher advantage based on the conviction that innovation
than the country’s oil price benchmark of US$44.5/barrel will remain one of the key drivers of competitiveness
for the year’s budget, making exchange rate pressures to in the industry. Therefore, harnessing technological
ease. advancements to broaden our access, improve customer
service whilst reducing the costs of service delivery are
This good fortune stimulated a more conducive business essential priorities that will ensure we remain nimble to
environment to sell insurance. Emerging from a national take advantage of attractive opportunities.
economic climate that was the most regressive in recent
history, amidst insecurity brought on by insurgency as well Under our Wapic Technology Transformation Project,
as an overwhelmingly competitive business environment, “Project WaTT”, and as a front-end support for our
Wapic delightfully reports good performance as the WapX core insurance solution, we have also adopted
Company attained its bid to sustain stability, improve the iPortal, a customized and integrated composite core
performance and provide premium value to customers insurance software system upon which we run our general
and shareholders. insurance and life insurance business. Our technology
transformation strategy is the largest single transformation
project in the Nigerian insurance market and establishes
Wapic as a technology leader within the industry. Further
The Regulatory Environment to the implementation of this project in September 2017,
subsequent staff trainings and knowledge development
Nigeria has a large population but the awareness and of the systems as well as further project scaling will be
understanding of the concept of insurance by segments attained through 2018.
of the population remains largely below par, hence,
insurance penetration in the country has remained at its
low level of less than 0.1%. To address this, the National
Insurance Commission (NAICOM) introduced four forms Future Outlook
of operational guidelines for the insurance sector. These
include the Web Aggregators Operational guidelines; In line with the Company Vision to “transform and
State Government’s Implementation of Compulsory illuminate the insurance industry for the benefit of our
Insurance (or State Financial Advisers) guidelines; customers and other stakeholders”, transformational
Independent Agents Operational guidelines; and the leadership and sustainability remains Wapic’s core focus
Mutual Organizations, Associations, Community Based, in 2018. The Company aims to champion the course in
Micro guidelines. sustainable insurance, in accordance with global best
practice.
Plugging into this, Wapic deployed a broad spectrum
of marketing strategies to increase and leverage on the Business sustainability remains focal to our business.
increased channels of distribution, consciously developed, Wapic recognizes that customers are crucial to this, and
while still catering to government and corporate clients, a therefore, will remain dedicated to ensuring customer
variety of retail products which promote advancement in satisfaction, leveraging on technology to create various
insurance and financial literacy. touch points through which the Company can interact
with, listen to, understand and anticipate customer needs
and go about providing solution in ways that guarantee
premium customer fulfilment through a firm strategy
Financial Performance which ensures that Wapic becomes the “most enjoyable
company to do business with”.
In 2017, in spite of the economic recession, the Group’s
Gross Written Premium grew by 23% year on year to We will, in 2018, remain committed to responsible
N9.8bn while Net Claims grew from N2.86bn reported in corporate citizenship by investing strategically and
2016 to N3.1bn. Underwriting profit grew by 304%, from sustainably in social development projects in thematic
N381m recorded in the prior year to N1.6bn for the period. areas of Health, Education and Environment, with a view
to drive social progression, gain social license, ensure that
The Group also recorded an impressive growth in its customers and the public alike experience the company
bottom line by returning a Profit Before Tax of N1.62bn in ways that add value to them, altogether positioning the
from N1.2bn and a Profit After Tax of N1.52bm from Company as the Insurance Company of Choice.
N586m recorded in the previous year. Our Total assets
grew by 10% to N28b, from N25.9bn in 2016. Consistent with our strategic intentions of becoming
the Employer of Choice, and as part of our ongoing
Our Shareholders’ Funds also grew by 8% from N16.6bn in transformation agenda to sustain insurance leadership
2016 to N17.9bn. Earnings per share for the period closed position in Sub-Saharan Africa, Wapic will continue to
at 11k against 4k recorded in 2016. invest in human capital development as a means to attract,
recruit and retain the best talent, as well as grow the most

productive workforce in the industry. We will invest in investment goals. We are prepared to take advantage of
building a strong body of socially and environmentally the opportunities present in retail business to further our
responsible staff by providing employees with the expansion.
necessary motivation, financial and moral support to take
on employee volunteering projects that influence social I look ahead with confidence, knowing that the tenacious
development. pursuit of our strategic objectives, coupled with the
undisputed support and expert guidance of our ever strong,
Taking into cognisance the macroeconomic realities such ethical and independent Board of Directors will carry us
as exchange rate volatility that will shape the business to attaining our goals, make profit and gain competitive
landscape in 2018, Wapic pledges to navigate the business advantage.
year with optimism, to anticipate good fortunes for the
nation, to consciously approach business with a firm Thank you for your sustained confidence and interest
determination to remain credible in all dealings, and to in Wapic. I look forward to sharing a much greater and
consciously utilise hard work and 100% effort in creating bigger accomplishment by your company, with you in the
value for our customers and shareholders. coming year.
Furthermore, and in synergy with the January 2018

NAICOM regulatory priority for inclusive (micro)
insurance, Wapic is set to bridge the insurance gap and
cater to all cadres of the insurable public through our ADEYINKA ADEKOYA
micro-insurance investment options for low income and
upwardly mobile individuals, families and businesses Managing Director\Chief Executive Officer
that are passionate about meeting specific savings and


02.
02. Business Review

An analysis of Wapic Insurance Plc’s Business Divisions, Risk Management Framework, Our People,
Culture & Diversity and Sustainability
• Corporate Philosophy
• Reports of External Consultants
• Technical Operations
• Corporate Clients
• Retail Sales and Distribution Division
• Products & Services
• Investment Report
• Our People, Culture and Diversity
• Sustainability Report
• Risk-Management

Corporate Philosophy
Our vision Our mission

To transform and illuminate the To lead in all that is worthy
insurance industry for the benefit of our
customers and other stakeholders
Excellence Leadership
We strive for our personal best in We are all leaders in our own way.
our thoughts, our words and our
actions, being better today than we We hold ourselves accountable for our
were yesterday. choices. We take ownership of our tasks,
our actions and our decisions.
Professionalism Innovation
Our interactions with customers We build on what we know works,
and colleagues embody constantly refining and finding better ways
competence, a good work ethic to serve our customers and our colleagues
and a focus on serving others
Empathy Sustainability
We consider the experience of others in We look to the future, ensuring that our
everything we do. Our interactions with actions today build towards a healthy
our colleagues and customers reflect tomorrow, where our business, team,
kindness and understanding of their community and wider environment survives
situation. We appreciate the efforts and and thrives
experiences of others.

Reports of External Consultants

Technical Operations
At the early start of 2017, the Nigeria economy was in vides a promise to promptly pay covered losses and pro-
recession but by Q2 the nation had technically exited from tect the financial well-being of our esteemed customers.
the recession. Our economic team identified, analysed and We view this promise as fundamental to our business and
monitored the macroeconomic factors that influenced the pride ourselves on personable service and responsiveness
key levers of the economy and its impact on the insurance throughout the claims process.
sector as well as Wapic as an entity. One of the key issues
highlighted for the reviewed period was the instability in The insurance industry is founded upon utmost good faith
the movement of the foreign exchange rate. The Company and we recognize the importance of good claims service.
has put measures in place to mitigate and monitor those In Wapic, customers are rest assured, knowing that their
insurance transactions consummated in foreign currency claims will be promptly and professionally handled.
likely to be impacted by the movement of the foreign
Also, the internal ombudsman continues to provide im-
exchange rate. Particularly, this impacted partial-loss
mense support to Wapic in the effective resolution of all
claims, which the replacement costs have increased
claims related issues.
significantly as a result of high inflationary rate, difficulty
in sourcing foreign currencies, and increased adverse
selection of risk. In view of the proactive and concerted
measures put in place, the technical operations recorded UNDERWRITING
a 304% growth in 2017 underwriting profit over 2016
position despite the 7% increase in Net claims expense in The Company experienced a growth in its underwriting
2017. performance (Underwriting result less expenses) because
of improved technical performance in 2017. The company
In line with the Company’s transformational leadership improved in its underwriting risk selection process and
objective on operational efficiency, the Company avoided any adverse selection of risk against the company.
on September 4th, 2017 commissioned a new core The Company declined businesses with bad loss ratio
application called “WapX”. The application automates trend, whilst accepting others based on modification of
all technical processes and integrates with the Enterprise terms and conditions or imposing limits. The result was
Resource Planning (ERP) Solution, which enables it link favourable for the company, as the company did not
to the finance modules and payment made to respective participate in underwriting businesses that resulted in
clients’ accounts. This enables the automation of a typical major losses in 2017.
underwriting process from end-to-end without any human
intervention. This application enhances the achievement The Non-life business portfolio experienced a 19% growth
of the company’s vision of excellent customer centric in Gross Written Premium (GWP). The growth was driven
service delivery. by General Accident, Oil & Energy and Motor Insurance
Premium Income. The Engineering line of business topped
The technical and sales personnel were engaged in all other lines of business segments. The Engineering class
numerous technical insurance workshops with a view to grew by 123% over 2016 performance, followed by Motor
enhance the technical skills required to service and exceed and Oil & Energy with 36% and 24% respectively. General
the customers’ expectations. Accident class contributed 31% to GWP as against 33% in
2016. Motor and Oil & Energy business segments contrib-
uted 30% and 16%, respectively in 2017.
CLAIMS
The Company is committed and has continued to settle In 2017, the Net Premium Income recorded a growth of
simple claims within 48 hours upon claims notification. 40%. This growth was driven largely by General Accident
This measure has exceeded customers’ expectations, as and Oil & Energy with 30% and 31% respectively in the
the Company understands that prompt claims settlement year under review.
is key and at the heart of consumers. This feat is made
possible with the commission of the core application,
WapX. This has aided the company to automate the
approval processes and streamline its claims handling REINSURANCE
procedure and making it easier to pay our claims promptly. Wapic is committed to continually maintain a dynamic
This has also enhanced our regulatory compliance level. reinsurance arrangement with the best and highly rat-
In 2017, Wapic settled a total claim amount of N3.1bn, out ed global reinsurance companies. The Company ensures
of which a total of N2.1bn was paid on Non-Life business- that A-rated reinsurance companies are patronized and
es while about N0.94bn was settled on Life businesses. are made to lead the reinsurance programmes. The above
This bring about 7% increase in the volume of claims set- aligns with the primary aim of reinsurance, which is to
tled in 2017 over the same period in 2016. The increase in protect the company against the volatility of insurance
the claims volume is simply a reflection of the company’s risks, the absence of reinsurance could have a devastating
resolution and commitment to settle all genuine claims effect on the capital and ongoing operations of the com-
but pay no less or more in value. This has consolidated pany.
the confidence reposed on the Company by our customers, The objective is to provide market leading capacity for
insuring public and other key stakeholders. our customers and at the same time protect the Group’s
In return for selecting a Wapic policy, the Company pro- balance sheet and optimize our capital efficiency. In 2017,

the Company again conducted reinsurance optimization to ceding risks to these reinsurance companies, we ensure
exercise using our actuarial consultant, reinsurance bro- that in-depth analysis is carried out on each line of busi-
kers and reinsurance companies. The company continu- ness to obtain the optimal reinsurance cover at the most
ally monitored the efficiency of the reinsurance utilization competitive terms.
with a view to achieve an optimal level of reinsurance cost,
retention limit, capital reserve, and profit. Based on our
improved efficiency and increased Gross Written Premi-
Through its reinsurance arrangements, the Company is
um in 2017, the Company’s ability to absorb larger risks
compensated for financial losses incurred above its reten-
were enhanced with increased capacity on all our treaty
tion or deductibles under the insurance contracts issued to
arrangements.
our numerous clients for all lines of business. Our reinsur-
Considering the importance of reinsurance to our busi- ance partners are duly rated as follows:
ness, we ensure that adequate coverage is obtained from
both local and world-class reinsurance companies. Prior
FOREIGN REINSURERS RATING AGENCY

Munich Reinsurance Company Ltd AA- A.M Best
Swiss Reinsurance Company Limited A+ A.M Best
LOCAL REINSURERS
African Reinsurance Corporation A A.M Best
Continental Reinsurance Plc B+ A.M Best
WAICA Reinsurance Corporation B+ GCR
Nigerian Reinsurance Plc BBB+ GCR
ACTUARIAL
Insurance contract liabilities remain an important compo- reserves is to ensure that all present and future liabilities
nent in assessing and determining the quality of our com- of the company at the valuation date have been adequately
pany’s capital adequacy. Wapic’s actuarial team regularly provided for.
determine the amount to reserve as technical provision
derived from the assumed liabilities. The actuarial team In 2017, the gross IBNR amount was N2.2bn out of which
regularly advise the investment units on the composition N1.38b and N824m relate to Non-life and life businesses,
and maturity of the liabilities. The Investment team en- respectively. Gross UPR for the period was N2.95bn, out
sures that assets are adequately matched to liabilities. of which N2.20bn relate to the unearned premium for the
Non-life business and N771m for the life business. Out-
In support of the company’s strategic drive, the introduction standing Claims reserve (OCR) figure was N1.62bn, out
of WapX, a robust core application in 2017 had aided the of which N1.1bn and N520m are for the Non-life and life
effective computation of technical liabilities, i.e. Unearned businesses, respectively.
Premium Reserve (UPR), Incurred But Not Reported
(IBNR), and Life valuations. The essence of holding these


Corporate Sales Division

The Corporate Sales Division is the largest market- • Access Bank Plc
facing business of the Company. The division supports
its stakeholders with value adding tailored solutions • Other Commercial Banks & Subsidiaries
and services to allow them operate efficiently and grow • Microfinance Banks (MFBs) and Partnerships
market share.
• Capital Market Operators (CMOs) / Leasing /
Our clients are highly diversified, multinational Development Finance Institutions (DFIs)
companies, local corporates and financial institutions
occupying primal positions in the economy. • Merchant Banks/Primary Mortgage Institutions
(PMIs)
The Corporate Sales Group understands that successful
partnership with our customers is about service, and
service is about people, trust and commitment.
Large Corporates Group
Wapic adopts a One-company service and marketing
strategy to deliver optimal service to corporate clients The Large Corporates Group comprise:
with operations across borders • Oil & Gas
• Manufacturing
Our Business Model • Construction & Infrastructure
Our business model is centered on value creation for • Telecoms & ICT
our stakeholders. Our focus and vision remain clear-
to ensure that our clients WIN regardless of economic • Asian Corporates
trends. Consequently we deploy bespoke solutions for
our clients.
Our business model is structured to serve institutions Oil & Gas Unit
and corporates operating within the public and private The Oil & Gas Team operates as an Integrated One-
sectors of the economy with annual gross turnover of Stop Energy desk that provides customized financial
N500 Million and above, segmented as follows: products and services to the Oil and Gas Industry. The
• Financial Institutions Oil & Gas Group covers corporate customers in the
• Large Corporates Upstream and Downstream of the Oil and Gas Industry.
In 2017, the Team witnessed increased growth in the
• Public Sector Insurance Premium generated from the Oil and Gas
Players and this is due largely to the economic reforms
in the Country and the recovery in Global Oil Prices.
Financial Institutions Group A number of new Projects commenced in 2017 which
includes Mobil Producing Nigeria Unlimited Offshore
The Financial Institutions Group (FI) is a specialized Integrity Project, Ensco Plc Offshore Project, etc
group equipped with appropriate skills and capacity to amongst others. This helped the Team achieve its
cater to the sophisticated needs of customers within intended target for the year and we believe this would
the financial sector of the economy. be sustained in 2018.
Our customer base includes banks and non-bank The 2018 Industry Outlook presents high growth
financial institutions. The FI Group distinctly manages potentials in the Industry with early signals witnessed
the unique needs of the financial markets through its in the increase in Oil Price ($69.7/barrel as at April,
need-based value proposition to the targeted financial 2018). This would lead to upsurge of projects and
institutions. activities which would have positive impact on
The ultimate goal of the FI group is to provide value to insurance income generation. Such upcoming Projects
its sophisticated customers through its differentiated include Shell AXA project, Total CAR Project, SPDC
products & services given its established competences BONGA II etc. Projects relating to Mobil and Nigeria
for the underwriting and administration of financial Agip were executed in the 1st quarter of 2018.
sector-related insurances which are uniquely managed
under key partnerships and industries as follows:

Manufacturing Unit risks of two leading telecom operators and other key
players within the industry and the value chain.
Nigerian manufacturers are faced with a myriad of
business pressures as they make every effort to play on In 2018, it is expected that the global telecommunications
a global scale making them prone to both traditional and market will continue its transformation into the industry
evolving risks. underpinning the digital, sharing and interconnected
economy. This transformation will be driven mainly by
The Manufacturing team with the support of the the ongoing innovations and technological developments
technical teams have proven technical excellence within that are taking place. All these will hopefully create new
underwriting, risk consulting and claims, which means insurance opportunities in the sector.
we understand the requirements and pressures of the
manufacturing sector. With this knowledge, we have The unit has an objective to lead on 5 major accounts in
developed an insurance proposal personalized to cater 2018 and thereby increase its growth rate by over 50%.
to the unique needs of our clients. The focus segments
include: Cement, Food and Beverages, Tobacco, Textile Asian Corporates Unit
and leather products, Chemicals and Pharmaceutical The Asian Corporates Unit was created to cater to
products, Plastic and Rubber products, Electrical and the needs of Asian (Indian, Lebanese, Chinese etc.)
Electronic products and Motor vehicles Assembly. organizations. These organizations are driven by a more
The Tier 1 businesses contribute more than 80% of dynamic and well-structured management team and in
the total insurance premium in the Manufacturing most cases, they are affiliated with an off-shore parent
sector. Wapic currently participates in the insurances company. The Asian businesses consist of four major
of at least 90% of the tier 1 Manufacturing companies. areas of activities namely; manufacturing, construction,
The onus is now on us to take it many steps further by trading, hospitality, and lifestyle.
taking leadership on Tier 1 accounts. In 2017, we made The Asian continent still remains the world’s fastest
giant strides in that regard by taking leadership in the growing economy and the influence of their expansion
Contractors’/Erection All Risk policies of Dangote Oil into other continents is felt in Nigeria by the high influx
Refining Company and Dangote Fertilizer Ltd. We are of Asian businesses.
poised to take full advantage of the relationship in 2018
as well as other key accounts within the space. We are The company has steadily grown its business portfolio
also positioned to deepen our penetration into the Tier 2 of Asian businesses in the last two years and have also
and Tier 3 businesses within the space. created an awareness buzz within the various Asian
business communities through the partnership with
influential Asian groups in the country.
Construction & Infrastructure Unit The unit will continue to leverage on these partnerships
The construction unit offers relevant insurance products to improve its network base of customers and create
and manages insurable risk of Construction companies significant business patronage from the Asian business
thereby creating solutions that caters for the specific communities.
insurance needs of our clients which range from and not
limited to Real estate developers, Surveyors, Architects,
Engineers, etc. Public Sector Group
There is an increase in investment in Construction The Public Sector Group is responsibile for exploiting
space, or at least a commitment to such an approach. opportunities in all organizations that exist as part
Governments are stimulating their economies by of Government machinery for implementing policy
spending on infrastructure and housing projects which decisions and delivery of service that are of value to the
sector intends to leverage on insurance services therein. citizens.
From the foregoing, the unit is charged with the Our marketing strategy for the Public Sector Group
responsibility of signing on new key names within this is geographical. The group is present in Abuja and
sector by providing solutions to the target market Lagos proffering insurance solutions and services to
Federal Government, State Government, Ministries,
Telecoms & ICT Unit Departments, Agencies and Parastatal & NGOs. The
The Telecoms & ICT unit is charged with the responsibility Group established direct relationship with Government
of managing and developing the company’s business in top officials, effective engagement of Government in
the Telecommunications and ICT industry. In 2017, we constructive business dialogue and also provide technical
surpassed our targeted 40% portfolio growth rate as we support systems to develop their work flow processes,
won lead insurer position on the accounts of some major information Management and capacity building for a
ICT companies and continue to manage the insurable formidable partnership.

The Sector is made up of core Civil Service composed of outstanding and un-paid premiums. In the last two years,
line Ministries, Departments and Agencies. The Public the Group has made a significant linear progression
Bureaucracy composed of enlarged public Service which in generating premiums from this critical sector of the
includes Services of States and National Assemblies, economy as we were able to win some major accounts
Judiciary, Armed Forces, The Police Force, Paramilitary like the Group Life assurance scheme for the Federal Civil
Services and Local Government Area Councils. Servants, CBN, Presidential Air-Fleet, INEC, NigComSat,
NPA and few others. 2018 and beyond looks better with
The Procurement Act 2007 established the National the regulatory reforms embarked upon by NAICOM
Council of Bureau of Public Procurement, charged with recently in reviewing Group Life rates. This would
the responsibility for accountability, fair and competitive definitely enhance the growth of premium in that class of
effective cost as well as transparent value for the business.
procurement of professional services.
The total volume of Insurance business in this sector is

well over N58b in both Group Life and Non-Life classes.
However, due to process of democratic bureaucracies,
budget approval delays often results to huge backlogs of

Retail Sales and Distribution Division

The Retail Sales & Distribution Division provides tailored to take the lead in both the on-line and direct marketing
insurance solutions and risk management services to space to drive the sale of our retail products. With the suc-
individuals and Small and Medium Enterprises (SMEs) with cessful launch of our e-business platform, Wapic.com, and
annual financial turnover of up to N 500 million. the company’s i-Portal expected to go-live by the first-half
of 2018, all is set for a revolution that will indeed, transform
Our mandate is to create a retail sales network and portfolio the sale of retail insurance products in the insurance indus-
that will deliver a leadership position for retail penetration try.
in Nigeria. The opportunities for growth in the Retail space
is huge and will remain so in the medium term given the cur- Our People
rent level of insurance penetration in the country. We aim
to penetrate the largely untapped retail insurance sector in The Division’s strength has always been its people who have
Nigeria, as a growth strategy, by offering insurance solutions been significantly instrumental to the successes recorded
that are flexible, easy to access, transparent and tailored to thus far.
suit specific needs.
Central to achieving the growth objective is our Salesforce.
Our business model is inseparably linked to changing Our Sales Managers are uniquely positioned and highly mo-
customer needs and we continue to differentiate ourselves tivated to influence and empower our Agents to efficiently
accordingly by developing products tailored to meet these harness opportunities that abound in our target markets.
needs, deploying highly effective distribution channels,
leveraging on cutting-edge technology, that ensures retail Our Agents are trained to understand the beliefs, behaviours
products and service delivery are simple and seamless and buying decisions of our target customers with a view to
developing a superior customer value proposition. We have
Our goal is to create valuable alliances with reputable institu- equipped our Agents with the necessary technological tools
tions and organizations both within and outside the finance to consummate transactions with ease and in real time in
industry with a view to providing unique service offerings line with our vision to drive insurance penetration in Nige-
that meet specific individual need and business objectives. ria.
Products & Services We consistently retool and re-skill our staff to ensure that
they adapt to the rapidly changing business landscape.
Our need-based products and services provide solutions for
personal wealth preservation and management as well as Travel Insurance
maximizing business interest for SMEs.
We are pleased to announce that we have obtained the re-
In addition to the traditional insurance products, we offer a quired regulatory approval to commence the sale of Over-
wide array of structured investment solutions that help our seas Travel Insurance cover in Nigeria working with our In-
customers develop a wealth strategy that will create, pre- ternational Partners, Mapfre Asistencia,
serve and enhance their wealth for life.
The Wapic Travel insurance desk will be launched in due
We are happy to announce that our range of 5 SMART course.
investment-linked products launched last year have received
huge market acceptance. These array of index-linked savings We are poised to ensure the continued growth and expan-
plans provided the platform for customers to systematically sion of Wapic’s market share within the Retail space.
accumulate funds towards meeting short, medium and long
Looking Forward
term obligations, with assurances of a life cover, in the event
of demise. Smart Life+ remains the flagship product among The Division, in alignment with the Company’s overall stra-
the investment linked product bouquet. tegic intent and aspiration, aspires to build a high quality
and profitable retail business portfolio for the company in
Technology
a sustainable manner. We will continue to build strategic
The successful implementation of our core insurance alliances; build competencies among members of staff and
application, WapX, has provided the technology platform Agents; leverage customer data to improve the quality of our
tailored offerings as well as deliver cutting-edge innovative
solutions for our clients.

Customer Experience
Wapic has pledged to be the most enjoyable Company to
do business with and this we are committed to achieve
Customers’ Complaints
through the delivery of excellent customer experience. We
continuously harness our people, processes and systems
Feedback
in our quest for uniformed and consistent excellent Wapic Insurance Plc is fully committed to providing ex-
service delivery at all our touchpoints. This is reinforced cellent customer service at all times. Given the number
through staff trainings, process reviews, data analytics, and complexity of financial transactions that occur daily,
customer education and feedback management, research particularly with respect to claims payments, the Com-
and learning from the knowledge and experience of the pany recognizes that there will inevitably be occasions
local financial services sector and reputable international when mistakes and misunderstandings occur. In these
institutions. situations, Wapic Insurance Plc encourages customers
to bring their concerns to the attention of the Company
We adopt an “Outside In” service mantra which for prompt resolution. In addition, deliberate efforts are
emphasizes putting our customers at the centre of our made to solicit customers’ feedback on our products and
business. Our goal as a financial services provider is to be services.
the No.1 in Customer Service in the Insurance Industry.
Some of the practices that Wapic engages in to drive the Wapic Complaints Channels
delivery of excellent customer experience includes Cus-
tomer Engagement, the outcome of which forms the basis To facilitate seamless complaint and feedback process,
Wapic has provided various channels for customers.
for our Service Experience Design. The implementation
of the designed experiences at the various Touchpoints These include:
are monitored for service quality.
Contact Center
In line with our strategic intent of being the “Most En- Email: contactcentre@wapic.com
joyable Company to do Business With”, Wapic prides
itself on providing exceptional services to customers at Telephone: 01-2774500, 4566, 4577 or 0700DialWapic
all times and we make deliberate efforts to solicit and ac-
commodate customers’ feedback in our products devel-
opment and service delivery. Ombudsman
Email: complaints.ombudsman@wapic.com
Telephone: 01-2774541
Ways to Reach Us
Wapic has provided various channels for customers to
ensure easy access. The channels include: Online (Social Media)
Contact Center facebook.com/mywapic
Email: contactcentre@wapic.com twitter.com/mywapic

Live: Wapic.com/Livechat Instagram: mywapic
Telephone: 01-2774500, 4566, 4577 or 0700DialWapic
Correspondence from
Website (Wapic.com) customers
Request a call: Our Contact Centre agents would put a call Complaints Handling
across to you immediately We handle customer complaints with sensitivity and in
due regard for the needs and understanding of each com-
plainant. Efforts are made to resolve customer’s com-
Online (Social Media) plaints at first level. Where this cannot be achieved, they
are immediately referred to the appropriate persons for
facebook.com/mywapic resolution. All complaints are logged and tracked for res-
twitter.com/mywapic olution and feedback is provided to the customer.
Instagram: mywapic
Head Office Complaints Tracking and Reporting
Physical Address: 119, Awolowo Way, Ikoyi Lagos We diligently track complaint information for continuous
Dedicated phone number to the office of the Group improvement of our processes and services. An indepen-
dent review of the root cause of complaints made is car-
Managing Director available on specific days in the month ried out and lessons learnt are fed back to the relevant

business units to avoid future repetition.
WAPIC CUSTOMERS’ COMPLAINTS FOR THE YEAR ENDED DECEMBER 31, 2017
Complaints via our Contact Centre
ICOM.
SN Description Number
1 Pending Complaints B/F (2016) 0
2 Received Complaints 97
3 Resolved Complaints 92
4 Unresolved Complaints escalated to Ombudsman 5
5 Unresolved Complaints pending with Ombudsman 0
6 Total resolved complaints in 2017 97
Wapic Customers’ Complaints For The Year Ended December 31, 2017
Complaints In 2017
15
9 9 9
8 8
66
5
2
September
November
December
February
January
October
August
March
April
June
May
Jul y
Complaints via Ombudsman
SN Description Number
1 Pending Complaints B/F (2016) 0
2 Received Complaints 13
3 Resolved Complaints 13
4 Unresolved Complaints escalated to NAICOM 0
5 Unresolved Complaints pending with NAICOM 0
6 Total resolved complaints in 2017 13

Solicited Customer Feedback and Service Improvement

The Management of Wapic makes deliberate efforts to solicit feedback from customers and staff on services and prod-
ucts through the following:
• Administering Questionnaires
• Conducting Customer interviews
• Customers forum
• Voice of Customer Surveys
• Monthly Service Reviews (for staff)
•
The various customer feedback efforts and service improvement practices are coordinated by our Service and Fulfill-
ment Group. The feedback obtained from customers are reviewed and lessons learnt are used for staff training and
service improvement across the company.

Wapic Ombudsman Desk

Insurance practice as an integral part of commercial and mitigate reputational risk against the Company.
business relationship between an individual and a cor-
porate body or between corporate bodies is not devoid of • Proffers solution to Lingering disputes against the
disputes and conflicts; hence the extent to which an orga- Company through recommendations to the Compa-
nization can manage disputes and conflicts in a business ny’s Management.
relationship, directly impacts on its customer experience
• To maintain and strengthen the Company’s relation-
and goes a long way in determining its success, failure and
ship with its customers especially after resolution of
continuity in business.
disputes.
Bearing the above business reality in mind, The Nation-
• Files regulatory returns to the Securities and Exchange
al Insurance Commission in its 2015 guidelines on Mar-
Commission.
ket Conduct and Business Practice for Insurance Institu-
tions, mandated all insurance institutions to establish a
well-documented policy, procedures and processes for dis-
pute management to ensure, as far as possible, that such Benefits of the Ombudsman Desk
situations are resolved promptly and fairly.
• Improve internal policies and procedures of the Com-
In line with the Company’s mission of leading in all that is pany through feedback from customers.
worthy, Wapic Insurance has set up an Ombudsman desk,
whose primary responsibility is to amicably resolve in an • Speedy and fair settlement of disputes.
unbiased manner, disputes arising from its business rela- • Identify potential risks and problems areas as well as
tionship with the policy holders. This is the first of its kind advice accordingly.
in Nigeria Insurance Industry
• Reduce the risk of paying frivolous claims against the
Who is an Ombudsman Company through effective negotiation and mediation
The Ombudsman is an independent officer of the company process.
with the responsibility to informally investigate and medi- • Reduce incidence of litigation against the Company.
ate fair settlement of dispute between the Company and its
Customers through an Alternative Dispute resolution driv- • Prevent escalation of disputes to regulatory bodies or
en process. The Ombudsman engages the parties informal- to the media
ly with a view to resolving the dispute timeously, encour-
age business continuity and improve customer experience. • Prevent reputational damage to the image of the Com-
pany through effective management of customer dis-
Functions of an Ombudsman putes.
• Acts as an intermediary between the Company and the •
customers during dispute resolution.
The Ombudsman Channels
• Investigates disputes and make recommendations to
the Company on ways of resolution. Disputes can be escalated to the Ombudsman through the
following channels:
• Organizes mediation sessions between the representa-
tives of the Company and the customers. Email: complaints.ombudsman@wapic.com
• Promotes the Company’s brand through effective and Tel: 01- 2774541
speedy resolution of disputes.
Website: www.wapic.com
• Speedily resolves disputes within the organization to

Investment Report
Assets Under Management The governance structure and framework established by
the Board of Directors for the management of the invest-
The growth trend of the total AUM continued in year 2017 ment are periodically monitored and reviewed to ensure
with the value increased by N2.4billion to close the year consistency and provide assurance of sustainable busi-
at N19.82billion. The growth in assets represents 14.32% ness. The framework is also layered with integration of
over previous year position. The country’s economic re- risk management and investment management process
covery from recession led to improved macroeconomic for efficient ALM.
indicators that provided impetus for the growth recorded
in the value of AUM. The pace of Company investments in Coronation Merchant Bank Limited remains a strategic
business infrastructures and transformational initiatives investment with consistent strong growth and superior
was sustained during the year for operational efficiency returns relative to its peers in the industry. The growth
and to increase its market share. Information technolo- trend is consistent with strategic intent of the acquisition
gy was a key strategic investment made by the Company aimed at providing earning stability and financial
in the year and has its impact on the reported growth in leadership in the industry. The Associate status was
AUM. maintained during the year with no new shares acquisition
or disposal.
The balanced and dynamic approach to the portfolio
structure provides sustainable long term growth of assets Our company equity investment in Coronation Merchant
and superior returns. Total portfolio value at the yearend Bank Limited of N8.26billion as at 31st December 2017,
was well diversified and stable to meet the operational de- represents 15.2% year-on-year growth and opportunity
mand of the business. Asset allocation review and chang- for cash flows from dividend payments.
es are constantly made in tandem with changing business The charts below show the composition and year-on-year
mix and the dynamics of the markets for long term re- changes in Assets Under Management as at 31st Decem-
turns. The coverage of the company underlying liabilities ber 2017(previous year: 2016).
and adequacy of its assets continues to be core of various
team functions.
Year on Year Change in Assets Assets Under Management Mix
71.62% 9%
42% Bank
28.30% 15.20% 41% 13% Placement
Financial
-21.39% -20.00% Assets
Bank Placement Financial Assets Inv. property Inv. in Associate 3% Inv.
43%
Property
-68.52% -42.08%
48% Inv.
1% in Associate
2017 2016
Inner circle: 2016
Outer circle: 2017
The drive to convert the stock of Investment Property in the portfolio to high yield investment assets further yielded
result with reduction in its component of the portfolio to 2% in 2017, 100 basis points lower to its mix in 2016. The
reduction in Investment Property holding efforts will be sustained to release and optimize returns in the property
value locked up.
Bank Placement assets reviews were carried out to take advantage of fixed income investments yield uptick opportuni-
ty during the year. The portfolio assets switch aligned with deliberate strategy of high cash position to take advantage
of emerging opportunities.

Investment Income
The income generated in year 2017 increased when compared with N1.08billion realized in year 2016. The year-on-
year growth in investment income represents 23%, at N1.26billion. The trajectory of interest rate spike on fixed income
securities which started in H2 2016 continued till third quarter in 2017. The yield levels supported interest income
growth of 31%, before moderation of yield driven by improved macroeconomics drivers and impact of Debt Management
Office strategy of refinancing maturing local debt with longer term Eurobond issues.
The analysis of investment income mix is shown in the table below:
Naira in Thausand for the year ended 2017 2016 Growth(%)

Dividend income 135,346.00 158,665.00 -15
Interest income on held-to-maturity financial assets 974,019.00 741,377.20 31
Interest income on Bank Placements 68,205.00 143,026.00 -51
Interest income on statutory deposits 86,671.00 53,556.00 62
Loss from sale of investment property (10,280.00) (79,899.00) 87
Rental income 2,000.00 1,333.00 50
Total 1,255,961.00 1,018,058.20 23

Digital and Technological Services Division

Information Technology execute in the customer engagement center market. With
the completion of the base stage, Wapic’s digital revolution
Information Technology in Wapic Insurance has trans- of the industry is positioned to take center stage.
formed over the years with the greatest of the transfor-
mation embedded in the recent Wapic Technology Trans- In 2017, IT moved all our core infrastructure to an out-
formation (WATT) project. The WATT project has placed sourced data center (Rack Centre in Ikeja, Lagos, Nigeria)
Information Technology (IT) at the heart of innovation in line with new modern trends. We are the first insurance
and automation in the company. It involved transforma- company to fully outsource our data center. This has im-
tion of people, platforms, processes, policies and projects. mediately yielded the expected result. The infrastructure
All these aimed at ensuring IT provides Wapic a sustain- uptime since the migration is 99.97%. Our Core Insur-
able journey into the future. ance application has thus experienced one of the highest
possible uptime in the financial market industry. We also
successfully deployed the disaster recovery (DR) center on
the Island with MainOne to ensure full redundancies are
Deployment of a New Core in place in case we experience any crisis. Part of the in-
Insurance Application frastructure stabilization includes deploying various appli-
cation to the cloud, deploying network redundancies and
The major crust of the transformation was the go-live of security infrastructure. Our infrastructure partners are
the Core Insurance application and associated platforms all well established and award-winning organizations that
designed to stabilize operations, improve efficiencies and share in our aspirations.
provide the base for digitalization and full automation of
our processes. The Core Insurance application now cap-
tioned WapX – Core by Wapic is branded StarIns by Asse-
co. Asseco was selected by Wapic as their vision and strat- Business Continuity Plans and
egies aligns with our goal to be the most innovative and
profitable insurance company in our operating regions. Capacity Development.
Asseco Group is a federation of companies engaged in in- IT successfully ran Business Continuity Plan (BCP) test
formation technology. Asseco Group operates in most of working with Risk Management and other internal stake-
the European countries as well as in Israel, USA, Japan, holders and we are glad to report that we can now success-
and Canada. Asseco Group companies are listed on the fully run the business from our BCP Centers. The BCP test
Warsaw Stock Exchange, Tel-Aviv Stock Exchange as well entailed failing-over from our Production to Back-Up serv-
as on the American NASDAQ. They are the largest tech- ers, moving staff from the head office to another location
nology company quoted on the Warsaw Stock Exchange, and ensuring they are able to work seamlessly from the
represented in more than 30 countries and employs over new location. We will continue to run the tests quarterly in
21,500 employees directly across her operations. line with the Board’s mandate.
Our company, Wapic Insurance is the first in West Afri- As technology converses more with the business, Wapic IT
ca to deploy a Core Insurance Application of this level of Team has been scaled with new team members including
current and future capability. Apart from the internal effi- the resumption of a new Group Chief Information Officer
ciencies the application brings onboard including giving a (CIO). The team is better structured and manned to auto-
one-customer view, the application comes with an Internet mate the insurance business. Several trainings have been
Insurance Portal that empowers individuals, brokers and planned including one in Poland – The home of our Core
agents to be in control of initializing, managing and termi- Insurance Partner, Asseco to ensure that your IT Team is
nating most transactions at the convenience of their offices able to support the newly deployed application and build
and homes. In addition, the application provides Wapic various other applications to supplement the Core plat-
Insurance the capability to connect our agents, channels form.
and various partner platforms through well-secured appli-
cation programming interfaces (API).
The Roadmap Ahead
The IT Team will be working with various stakeholders
Increasing Internal Efficiencies across various arms of the business to automate our busi-
With the deployment of WapX – Core, we also deployed ness and give customers a delightful and unforgettable in-
the world renowned Microsoft Dynamics Nav as our En- surance experience. With the set-up of the Digital Insur-
terprise Resource Planning application. Our new ERP ance Group, we will be deploying various omni-channel
platform also christened (WapX – ERP) is part of the Mc- platforms within the customer’s preferred channels. The
rosoft Dynamics family that has won various global awards IT Team will also be enabling our agents to be better re-
including being positioned by Gartner as a leader in the sourced to work. We intend to deploy agent management
industry based on its completeness of vision and ability to and monitoring tools to enable agents better serve the cus-

tomers and also be properly aligned to the Wapic way.
With the deployment of various other tools, we also believe customers will be able to track their investments, view and
renew policies, make payment through various safe channels using their phone numbers, bank account or cards and
pseudo-names. Wapic will be partnering with the best of Nigeria’s payment firms to achieve this. The goal of IT is to
ensure that there is full automation within the organization. This will enable the company penetrate the retail market
with best of suite and simple retail insurance products.

Our People, Culture and Diversity

Our employees are at the core of our success as we
Top Management Gender Composition
attain our aspirations in 2017 and beyond. At Wapic, we
remain committed to building and sustaining a culture
of Excellence, Professionalism, Innovation, Teamwork,
Leadership and Empathy hence our commitment in Female
enhancing employees’ capabilities in order to ensure 29%
continuous growth and career development for a more Male
prosperous tomorrow. 71%
Wapic’s workforce of 201 Professional Staff across Nigeria
and Ghana is key to our growth and enduring future
while incessantly promoting diversity and inclusion in the
Company.
Staff Composition Board Gender Composition
Female
29%
Wapic Ghana
Insurance Ltd
29%
Wapic Male 71%
InsurancePlc
Wapic Life 49%
Assurance Ltd
22%
The Wapic Women Forum celebrated the International

Women’s Day with the theme ‘Be Bold, Stand for Change”.
The objective of the program was to appreciate female
Diversity and Inclusion
members of staff and customers for their continuous loy-
We strive for diversity and inclusion in all facets of the alty, support and dedication to the organization. We be-
workforce; our staff composition shows no bias for gender lieve that women should be given equal employment op-
and nationality. Women are well represented at our Board portunities at every level in the organization.
Level, Top Management and the entire workforce as we
strive to have a gender ratio of 1:1. Our women make up
51% of the total workforce of the group, 29% of Top Man-
agement and 29% of The Board.
Gender Composition of Employees
Female, 51% Male, 49%

Institute’s Examinations. A few non-technical staff attend-

ed a 3-month Insurance Foundation Course with West
African Insurance Institute to further strengthen their
understanding of core insurance. Furthermore, as part of
capacity building for our new insurance core application,
a number of our staff attended a 3-week technical train-
ing in Bratislava, Europe; to gain an in-depth understand-
ing of the core insurance application which forms part of
our Technology Transformation Initiative. We also have
a reinsurance partnership with international reinsurance
companies such as Munich Re and Swiss Re. This strategic
partnership has given our staff the opportunity to attend
international reinsurance trainings.
In Wapic, we ensure that every employee has a sense of
belonging and believe they have equal opportunity to Mentoring
succeed. We embrace the diverse backgrounds and per- At Wapic, through our mentorship programmes, we pro-
spectives of employees, which cuts across various cul- vide a stimulating environment for our employees by as-
tural backgrounds and ethnic groups to create a unique signing mentors to our ELTP graduates upon resumption
environment for innovation and creativity. This diversity in the organization. This helps in providing guidance and
enables the company to gain access to a wide talent pool advice to enable them grow professionally. In addition,
while striving to achieve its business objectives. business leaders from leading corporate organizations
are invited to engage our employees by sharing their ex-
Employee Engagement periences in their fields. In 2017, we played hosts to the
As part of our People Leadership intent, team bonding ac- Managing Directors of companies such as Airtel Nigeria,
tivities such as Thank God It’s Friday (TGIF), HR Day, End Eterna Oil Plc, Page Microfinance Bank, Folawiyo Group,
of Year Party amongst others are organized. These activi- Resourcery Plc, MainOne Cable Nigeria Ltd, Jagal Group,
ties are used as a tool to foster improved and open commu- Seplat Petroleum Development Company Plc amongst
nication among employees across the Group. others.
Age Distribution
Age Distribution
100
We have a young and dynamic workforce which gives the
company the opportunity to tap into the creative and fresh
perspectives from the young minds while also utilizing the 80
knowledge base of the more experienced employees. Our
objective is to ensure effective succession planning, sus- 60
tainability and business continuity. 98
40
Career Development
20
Wapic views its people as its most valuable asset, therefore 32 24
we provide a unique learning environment where all em- 15 15 17
0
ployees can develop valuable skills, learn from colleagues
while contributing to business growth. This principle is
applied at all levels and across all functions. Wapic boasts 25 25-30 31-35 36-40 41-45 46 and
Years Years Years Years Years Above
of a best-in-class Insurance training school -“The Wapic
Academy” which recruits and trains fresh graduates on a
4-month intensive training programme christened the En- Number of Entry Level professionals
try Level Training Programme (ELTP). The ELTP is an ex-
30
tensive programme which since its inception in 2012 have
produced 120 highly skilled professionals. 25
20 25 24
We employ the hybrid learning approach which ensures 23
that our employees have several ways in which they can 15
15 15
acquire the knowledge and expertise needed to transform 10
14
the organization. We ensure that our staff are constant- 5
ly encouraged to take the relevant certification examina- 0 0 4 0
0
tions. In 2017, a number of our employees got certified by
Chartered Insurance Institute of Nigeria (CIIN), one of our
2012 2013 2015 2016 2017
staff emerged as the Best Qualifying Female Student in the
Nigeria Ghana


Sustainability Report
There is a rising global awareness of the importance Stakeholder Engagements
of adopting a culture that conserves resources, creates
opportunities and develops sustainable solutions that In order to ensure that our sustainability policies and strat-
protect lives and opportunities for future generations. Now, egies address key issues that are material to our stakehold-
more than ever, stakeholders are seeking accountability ers, we ensure that our stakeholders are effectively engaged
from organizations on the impact of their affairs on the in order to identify and understand the issues that are ma-
economy, environment and society. Sustainability has terial to them. Our priority stakeholders are our employees,
been identified to directly impact the profitability of the customers, investors, regulators and communities.
businesses and governments on a global scale. It is clearly
a valuable tool and key driver of global economic and social In engaging, we communicate the Company’s strategies
development. and policies through different channels. We communicate
these policies and strategies to our customers through our
This, we have achieved by supporting vibrant and success- website, through customer surveys, events, meetings and
ful communities in every market we operate in reducing business forums, publications social media, discussions
corruption, promoting and protecting human rights and and focus groups. We also communicate these policies and
ensuring a healthy and rewarding working environment strategies to our shareholders through our annual reports
for our employees. By facilitating and financing sustainable and accounts, public announcement of quarterly results,
economic growth, we are leading the way in financial inclu- Annual General Meetings (AGMs), shareholder association
sion and education, helping develop enterprises and being meetings etc.
at the forefront of sustainability regulation and thought
leadership. We continue to increase the efficiency of our op- We communicate our sustainability policies and strate-
erations, by minimizing energy and resource consumption gies to our suppliers through e-mails and letters, forums,
and mitigating any impacts on our environment. This has events and exhibitions, visits to their business sites etc. To
helped position us as the leading financial institution in sus- our communities, we communicate our sustainability pol-
tainability across the nation and in the continent. icies and strategies through community outreaches, our
employee volunteering initiatives, partnerships with com-
Wapic approaches sustainability in a forward looking man- munity-facing Non-Governmental Organisations (NGOs),
ner, having firmly embedded it into the core of our activi- charitable donations and sponsorships.
ties and decision making processes, while ensuring that all
aspects of our operational value chain are free from ESG With our regulators, we communicate through - regulato-
clogs. Our commitment to our stakeholders is evident in the ry consultations, Industry working groups and committee
manner in which we approach value- in ensuring our prod- meetings, onsite meetings/supervisory visits by representa-
ucts and services are affordable and address their needs, tives of regulatory bodies and so on.
in ensuring sustained yearly growth, in giving back to our
communities through CSR and employee volunteering, al-
together building a lasting institution that is environmen-
tally and socially reliable.
Ethics, Anti-Corruption &
Wapic remains committed to setting standards for sustain- Whistleblowing
able business practices whilst adopting innovative solutions At Wapic, we are strongly committed to high ethical stan-
to build a future that is desirable dards and integrity. We continue to create awareness
amongst our staff on the importance of ethical conduct,
while maintaining a corporate culture that rewards honest
Human Rights practices and discourages unethical actions.
Wapic fully demonstrates respect for human rights and all The Company demonstrates its continuous commitment
related charters on the subject matter. We demonstrate our to ethical practices by working with leading institutions to
respect for the rights of all people, through our gender-in- build capacity for ethical behaviour amongst its employees.
clusive, equal opportunities and non-discriminatory work- In order to enable staff and other members of the public to
place culture. At Wapic, we respect the rights of all people, report unethical activities affecting the Company, we have
men, women, old, young, People Living with HIV/AIDS deployed a robust whistleblowing system. This enables our
(PLWHA), disabled, amongst others. In addition, we also internal and external stakeholders to report unethical activ-
promote human rights compliance through our financial ities affecting the Company, so that Wapic can implement
decisions and supply chain relationships. measures to address them before they escalate into future
liabilities, business threats and losses.
In 2017, we continued to maintain a grievance mechanism
on human rights, among other issues, through our whis- Details of the whistleblowing channels are provided below:
tleblowing line, through which our internal and external
stakeholders can report any human rights abuses. Clearly, Telephone
the availability of this line has strongly guarded and pre- Toll free numbers for calls from MTN numbers only: 0703-
vented members of the Bank’s staff from indulging in hu- 000-0026 0703-000-0027
man rights abuses.

Toll free numbers for calls from Airtel numbers only:

0808-822-8888 0708-060-1222
Toll free numbers for calls from Etisalat numbers only:
0809-933-6366
Email
kpmgethicsline@ng.kpmg.com.
Employee Volunteering
Wapic Insurance Plc. is committed to providing employ-
ees with the necessary motivation, financial and moral
support to take on activities that help build strong staff so-
cial and environmental responsibility. Helping employee’s
to be actively responsible for positive social change and
development helps to increase their fulfillment with self,
with their jobs, and ultimately, keeps them firmly aligned A Word a Day
with the sustainability culture and vision of their organi-
zation. Employee volunteering creates staff ambassadors, Beneficiary: Ilasan Primary School, Eti-Osa, Lekki
and Wapic is proud about the positive social impacts its
staff have engendered in the workplace, the communities In furtherance of Wapic’s core commitment to social and
and in Nigeria. educational advancement, the company’s Governance di-
vision, as a part of the yearly Employee Volunteering pro-
In 2017, employee volunteering programmes catered to gram, contributed their time and resources towards the
the following social needs: organization of an educational CSR initiative for the stu-
dents of Ilasan Primary School, Eti-Osa, Lekki. This ini-
tiative was themed “A Word a Day”, and its overarching
Operation Save the Children objective was to encourage a reading culture among stu-
dents, by providing them with carefully selected age and
Beneficiary: Lagos Island Maternity Clinic class appropriate books to ensure they are effectively en-
In past years as in 2017, Wapic gave health matters a spot- ticed and drawn into self-enhancing their ability to master
light in its investment agenda. They say Mothers are the the life skill that is reading. Each student was gifted 4 new
backbone of the society, but what happens when childbirth books during a school visit. Asides gifting the students’
becomes a death sentence? And children, the leaders of to- books, the Governance Division also conducted reading
morrow, what happens when they cannot live through to- sessions for the students wherein staff went into the school
day, and so do not reach tomorrow? Nigeria suffers a high periodically over the course of the year to read to and stim-
cil and childbirth mortality rate, and this puts our collec- ulate interactive discussions with the students.
tive future at risk. To raise awareness about this problem,
to educate on ways to mitigate it, and to reduce the nation’s
childbirth and child mortality rate, Wapic embarked on a
health intervention themed “Operation Save the Children”.
By this intervention, Wapic partnered with the Lagos Is-
land Maternity Centre to create awareness and advocacy
videos directed at educating the public on the necessity of
applying collective effort towards stalling childbirth and
child mortality. Wapic also provided for free, invaluable
medical supplies such as Electronic Sphygmomanometer,
Patients Screen, Thermometers, pillows and bedsheets to
the clinic.

Ending Malaria by 2030 Breaking The Digital Divide

Beneficiary: Residents of Makoko Community Beneficiaries:
Malaria remains a great issue for concern in Nigeria, espe- 1. Ireti Girls Primary School, Ikoyi, Lagos
cially for slum communities situated around mostly stag-
2. Jinadu Anglican Primary School. Ikoyi, Lagos
nant water bodies. The Makoko community is one that has
drawn both local and international attention in relation to 3. Ikoyi Girls Mordern Academy, Ikoyi, Lagos
the many health challenges residents face within the slum
island. The desire to create value within a community that
solely needed malaria focused intervention caused the The Service and Fulfillment, Enterprise Resource and
Technical Division to choose to go to Makoko on Christ- Digital & Technology Services Divisions embarked on
mas Day, the 25th of December 2017 to celebrate with, a mission to “Break(ing) the Digital Divide”. Starting in
share in the cheer of the season and to distribute Long 2017, and continuing through 2018, the overarching ob-
Lasting Insecticide Treated mosquito nets to individuals, jective of this programme is to provide access to comput-
with priority on pregnant women and women with babies. ers to over 2000 primary school children in public schools
The distribution of mosquito nets was followed with cor- in Ikoyi, Lagos, through the deployment of computers and
responding lecture on how to use them. The overarching other peripherals. Computer classrooms will be setup in
objective of the program was to contribute to “ending Ma- identified schools over a one-year period. In addition, the
laria by 2030” by combating the infection and reducing children were mentored on a monthly basis. The project
mosquitos which cause the ailment, especially in view was activated through a 3 step phase, which included the
of the fact that the Makoko is a waterfront community donation of 30 computers per phase to 3 schools or more.
through the following: The selected schools exist within a cluster, allowing all
01. Raising greater awareness about the need to keep schools access to the computers provided by means of a
clean environments especially clean and effective shared facility. The 1st phase of this project included set-
drainage systems. ting up a computer classroom which consisted of:
1. Computers
02. Raising awareness about the need to destroy all
breeding grounds for mosquitos such as stagnant wa- 2. UPS
ter bodies especially those which collect in ill-disposed
bottle caps and discarded tyres around the home. 3. Desks and Chairs
4. Air conditioners
03. Encouraging all persons, particularly pregnant wom-
en and nursing mothers to use the nets as instructed 5. Whiteboard
to prevent threats to their health and that of their un-
born and newborns. The project is being implemented in collaboration with
the Ikoyi-Obalende L.C.D.A in view of the brilliant work
This initiative was made possible by plugging into the the L.C.D.A is doing through its Youth Empowerment and
Christmas On The Streetz programme, one done yearly in
Makoko since 2012. Women Programme (YWEP).


Risk Management
Introduction
Over the past five years, Wapic has taken risk management a Board Information Technology Committee which has
as an integral part of its operations and business activities. the responsibility to review and approve all information
Enterprise risk management system has been enhanced on technology policies, finance, and projects, on behalf of
and aligned with the Group’s strategies and the company’s the Board.
approved risk appetite. We continuously optimizing our The company has adequate risk policies and procedures
risk management framework, standardizing our risk in place for the management of material risks including
management procedures, and adopting both qualitative and
sovereign risk. There also exists a robust system for
quantitative risk management methodologies to identify,
assessing sovereign risk in the company’s cross-border
evaluate and mitigate risks. A robust risk management
exposure. The country’s political risk is elevated as the
system is maintained to support our decision-making and
facilitate the effective, sustainable and healthy growth of banking liquidity issue became weakened. The industry felt
the Group, in transforming and illuminating the insurance the effect of a tight monetary and liquidity policy pursued
industry. by CBN. The effect of the depreciation of the naira still
reflected on the price of replacement assets. Wapic has a
It has been a remarkable year for risk management, in well-tested enterprise-wide risk management framework,
which the country macroeconomics was characterized and this proved pivotal in anticipating the risks arising
“The Turning Tides” as Nigeria GDP gradually turned from macroeconomics and this enabled early intervention
positive following the exit of the economy from recession. measures to be taken, whilst remaining positioned to take
The economy exited from recession in second quarter advantage of emerging opportunities.
2017 with an average GDP growth rate of 0.5% y/y after
successive declines over five quarters. This recovery was The company continued its journey of further deepening
supported by a strong rebound in the oil sector (8.8 % of its risk practices and successfully completed a number of
GDP), which expanded by 1.6% y/y (–15.6%y/yin Q1 2017). risk and capital management culture enhancing mecha-
The non-oil sector, on the other hand was boosted by a nisms. These included:
strengthened manufacturing sector, reflecting the impact
of improved foreign exchange availablity. Thereafter (Q3 • Implementation of our economic risk based capital
2017), GDP grew by 1.4% y/y while growth in oil sector was model
25.89% y/y representing an increase of 48.92% relative to
the rate recorded in the corresponding quarter of 2016. • Implementation of Own Risk and Solvency Assessment
(ORSA)
The Group risk management maintained a strong
and sustained focus on planning for the possibility • Capital Management Framework
of, and ultimately managing the market volatility and
• Risk-adjusted Performance Measures Framework
macroeconomic uncertainty. Our well-established risk
governance structure and experienced risk team has • WapX core insurance application
allowed us to control successfully risk exposures to the
Company throughout the year. Our risk management • ERP for the finance module
framework provides essential tools to enable us take
timely and informed decisions to maximize opportunities The above is in addition to all the existing robust risk
and mitigate potential threats. practices, including effective risk monitoring process,
enhanced enterprise-wide stress testing, and tested
In order to meet and exceed our customers and other business resilience practice. In all, the above practices
stakeholders’ expectations, the Company ensures that have enhanced the integrity of our risk identification,
adequate capital (economic or regulatory) are held at risk analysis and risk monitoring with attendant positive
all times. Furthermore, risk capital reflecting our risk impact on the risk metrics we have achieved, including
profile and cost of capital are important aspects which sustaining the rating assigned by AM Best Agency.
were taken into account in making business decisions. We
closely monitor the capital position of Wapic and apply Our Enterprise Risk Management Remains Cus-
regular stress tests (standardized and historical stress test tom-made
scenarios). This allows us to take appropriate measures to
ensure our continued capital and solvency strength. Our Enterprise-wide Risk Management (ERM) remains
custom-made, assisting our stakeholders achieve their
Specifically, ERM, Economic Capital, Capital ambitions. The ERM lies at the heart of our processes as we
Management, Risk-Adjusted Performance Measures and apply tailored risk management framework in identifying,
Own Risk Solvency Assessment (ORSA) workshops were assessing, monitoring, controlling and reporting the
held company-wide regularly with a view to upscale staff inherent and residual risks associated with the pursuit of
knowledge with the management of risk and capital. these ambitions and ensuring they are achieved the right
way. We help in connecting our customers to opportunities
The company optimized its ERM framework by establishing

through our affirmed promise of risk insured rest assured. that are consistent with our risk appetite. The Risk Man-
agement Group is responsible for the enforcement of the
Risk is an inherent part of the Group and its subsidiary Group’s risk policies by constantly monitoring risk, with
companies’ business activities. The Group’s overall risk the aim of identifying and quantifying significant risk ex-
tolerance is established in the context of our earnings posures and acting upon such exposures as necessary.
power, capital, and diversified business model. The Com-
pany’s organizational structure and business strategy is Risk Management in Wapic has become a culture and
aligned with its risk philosophy. As we navigate through everyone from the junior cadre to the Executive Manage-
new frontiers in a growth market in the ever-dynamic risk ment has cultivated some level of risk culture. The Group’s
universe, proactive ERM framework becomes even more officers approach every transaction with care, taking into
critical. We are committed to continually push the fron- consideration the Group’s acceptable risk appetite.
tiers of overall risk profile whilst remaining responsive to
the ever-dynamic risk universe. To some institutions, risk is viewed as a threat or
uncertainty, but to us, it goes beyond that. Risk to us,
Wapic views and treat risks as an intrinsic part of business presents potential opportunity to grow and develop our
and maintains a disciplined approach to its management business within the context of our clearly articulated
of risk. Its Group Risk functions remain dynamic and re- and Board-driven risk appetite. Hence our approach to
sponsive to the needs of stakeholders as it improves its fo- risk management is not limited to considering downside
cus on the inter-relationships between risk types, it uses impacts or risk avoidance; it also encompasses taking
on-going reviews of risk exposure limits and risk control to risk knowingly for competitive advantage. The Group
position itself against adverse scenarios. This is an invalu- approaches risk, capital and value management robustly
able tool with which the company predicted and success- and we believe that our initiatives to date have positioned
fully managed the headwinds which continued to impact the Group at the leading edge of risk management.
the macroeconomic throughout 2017. The Group regularly
subjects its exposures to a range of scenario analyses and
stress tests across a wide variety of products, currencies, Risk Management Framework
portfolios and customer segments to effectively manage
the market volatility and economic uncertainty. All activities and processes of the Group, involve the
identification, measurement, evaluation, acceptable
The Group’s risk management architecture, as designed, and management of risk or combinations of risks. The
continued to balance corporate oversight with well-defined Board advised by the various Board and Management
risk management functions, which fall into one of three Risk Committees requires and encourage a strong risk
categories where risk must be managed: lines of business, governance culture, which shapes the Group’s attitude to
governance and control and corporate audit. The Board of risk. Risk management encompasses the insights delivered
Directors and management of the Group are committed to by information which facilitate appropriate actions. Our
constantly establishing, implementing and sustaining test- annual risk cycle is designed to give management relevant,
ed practices in risk management to match those of leading up-to-date information from which trends can be observed
international insurance companies. We are convinced that and assessed. The governance structure supporting our
the long-term sustainability of our Group depends critical- risk cycle is designed to deliver the right information, at
ly on the proper governance and effective management of the right time, to the right people.
our business. As such, risk management occupies a signif-
icant position of relevance and importance in the Group.
Risk strategies and policies are set by the Board of Directors In Wapic, we have a holistic view of all major risks
of the Group. These policies define acceptable levels of facing the Group. We remain conscious with regard to
risk for day-to-day operations as well as the willingness both known and emerging risks and ensure that we are
of the Group to assume risk weighed against the expected strong enough to withstand any exogenous shocks. Our
rewards. The umbrella risk policy is detailed in the Board-driven committees play a critical role in providing
Enterprise Risk Management (ERM) Framework, which oversight of risk management and ensuring that our risk
is a structured approach to identifying opportunities, appetite, risk culture and risk profile are consistent with
assessing the risk inherent in these opportunities and and support our strategy to deliver long-term, sustainable
actively managing these risks in a cost-effective manner. success in achieving our strategic vision of being the top
Specific policies are also in place for managing risks in the two Insurance Companies in Africa.
different core risk areas of underwriting, claims, credit,
By definition, risk is dynamic in nature. Consequently,
market and operational risks as well as for other key risks
the management of risk must be evolving necessitating
such as liquidity, strategic and reputational risk.
regular review of the effectiveness of each enterprise risk
The role of the Chief Risk Officer in the Group remains piv- management component. It is in the light of this that
otal as he is the custodian of the ERM Framework of both Wapic’s ERM Framework is subject to continuous review
the Group and its subsidiaries. He provides robust frame- to ensure effective and cutting-edge risk management. The
work and drives the Group’s risk culture through both review is done in the following ways: through continuous
best practice risk policies and metrics, as well as through self-evaluation and monitoring by the risk management
leading the enthronement of the behaviour and practices and compliance functions in conjunction with internal

audit; and through independent evaluation by external monitoring of strategic and potential risks. It highlights
auditors, examiners and consultants. the vulnerabilities of our business and capital plans to the
adverse effects of extreme but plausible events.
We believe that understanding and managing our risks
and continuously improving our controls are central As a part of our core risk management practice, the
to the delivery of our strategic objectives. The Board’s Group conducts enterprise-wide stress tests on a periodic
risk committees play an active role in ensuring that we basis to better understand earnings, capital and liquidity
undertake well-measured, profitable risk-taking activities sensitivities to certain economic scenarios, including
that support long-term sustainable growth. economic conditions that are more severe than anticipated.
The outcome of the testing and analysis is also used to
assess the potential impact of the relevant scenarios on the
Balancing Risk and Return demand for regulatory capital compared with its available
capital. These enterprise-wide stress tests provide an
Balancing risk and return and taking cognizance of the understanding of the potential impacts on our risk profile,
capital required demands rigorous analysis. The ultimate capital and liquidity. It generates and considers pertinent
aim is to optimize the upside and minimize the downside and plausible scenarios that have the potential to adversely
with a view to adding value to our shareholders and affect our business.
providing security to our other capital providers and
clients, as well as ensuring overall sustainability in our Stress testing and scenario analysis are used to assess the
business activities. Every business activity in our Group financial and management capability of Wapic to continue
requires us to put capital at risk in exchange for the operating effectively under extreme but plausible trading
prospect of earning a return. In some activities, the level of conditions. Such conditions may arise from economic,
return is predictable, whereas in other activities the level legal, political, environmental and social factors. Scenarios
of return can vary over a very wide spectrum, ranging from are carefully selected by a group drawn from senior line
a loss to a profit. Accordingly, over the past years we have of business, risk and finance executives. Impacts on each
expended substantial energy on improving our Risk and line of business from each scenario are then analyzed and
Management Framework, to focus on taking risks where determined, primarily leveraging the models and processes
we: utilized in everyday management routines. Impacts are
assessed along with potential mitigating actions that may
• Understand the nature of the risks we are taking, be taken in each scenario. The Group would continue to
and what range of outcomes could be under various invest in and improve stress testing capabilities as a core
scenarios, for taking these risks; business process.
• Understand the capital required in order to assume Our stress testing framework is designed to:
these risks;
• Contribute to the setting and monitoring of risk ap-
• Understand the range of returns that we can earn on petite
the capital required to backs risks; and
• Identify key risks to our strategy, financial position,
• Attempt to optimize the risk-adjusted rate of return we and reputation
can earn, by reducing the range of outcomes and capital • Examine the nature and dynamics of the risk profile
required arising from these risks, and increasing the and assess the impact of stresses on our profitability
certainty of earning an acceptable return. and business plans
The Company’s objective of balancing risk, return and • Ensure effective governance processes and systems
capital has enhanced substantially our risk management are in place to co-ordinate and integrate stress testing
methodologies. This enables the Company to identify
• Inform senior management
threats, uncertainties and opportunities and in turn
develop mitigation and management strategies to achieve • Ensure adherence to regulatory requirements
an optimal outcome.
Value is added for shareholders if our process allows us

Risk Management Philosophy, Culture, Appetite
to demonstrate sustainable risk-adjusted returns in excess and Objectives
of our cost of capital. The process provides security to our
capital providers and clients by assuring them that we are Wapic Insurance Risk Culture Statement:
not taking on incremental risks which adversely affect the
outcomes we have contracted to deliver to them. At Wapic, we embrace a moderate risk appetite, whilst
delivering strategic objectives. We anticipate the risks
Enterprise-wide Scenario and Stress Testing in our activities and reward behaviour that aligns with
our core values, controls and regulations. Challenges are
At Wapic, robust and appropriate scenario stress testing discussed in an open environment of partnership and
is used to assess the potential impact on the Group’s shared responsibility.
capital adequacy and strategic plans. Our stress testing
and scenario analysis programme is central to the Wapic Insurance’s Risk management philosophy and

culture remain fundamental to the delivery of our strategic • Retain ownership and accountability for risk and risk
objectives. Risk management is at the core of the operating management at the business unit or other point of in-
structure of the Group. We strive to limit adverse variations fluence level;
in earnings and capital by managing risk exposures within • Accept that ERM is mandatory, not optional
our moderate risk appetite. Our risk management approach
includes minimizing undue concentrations of exposure, • Strive to achieve best practices in enterprise risk man-
limiting potential losses from stress events and the prudent agement;
management of liquidity and capital. • Document and report all significant risks and enter-
In 2017, our risk management process was optimized fur- prise-risk management deficiencies;
ther to continue achieving desired results despite the in- • Adopt a holistic and integrated approach to risk man-
crease economic uncertainty and in size and scale of op- agement and bring all risks together under one or a
erations. The Group’s risk management is continuously limited number of oversight
evolving with improvements, as there can be no assurance
• Empower risk officers to perform their duties profes-
that all market developments, in particular those of ex-
sionally and independently without undue interfer-
treme nature, can be fully anticipated at all times. Hence, ence;
management has remained closely involved with important
risk management initiatives, which have focused on pre- • Ensure clear segregation of duties between market fac-
serving appropriate levels of liquidity and capital, as well as ing business units and risk management/control func-
managing the risk inherent in the portfolios. tions;
Risk management is fundamental to the Group’s decision- • Strive to maintain a conservative balance between risk
and profit considerations; and
making and management process. It is embedded in the
role of all employees through the organizational culture, • Continue to demonstrate appropriate standards of be-
thus enhancing the quality of strategic, capital allocation havior in development of strategy and pursuit of objec-
and day-to-day business decisions. tives.
The Group considers risk management philosophy and • Internalize and share the Company’s Risk Culture
culture as the set of shared beliefs, values, attitudes and Statement and Pledge to affirm commitment to desired
behaviour.
practices that characterize how the Group considers risk
in everything it does, from strategy development and im- b) Risk officers’ partners with other stakeholders within
plementation to its day-to-day activities. In this regard, the and outside the Group and are guided in the exercise of
Group’s risk management philosophy is that a moderate their powers by a deep sense of responsibility, profession-
and guarded risk attitude ensures sustainable growth in alism and respect for other parties.
shareholder value and reputation. c) The Group also partners with its customers to improve
The Group believes that enterprise risk management pro- their attitudes to risk management and encourage them
to build corporate governance culture into their business
vides the superior capabilities to identify and assess the full
management
spectrum of risks and to enable staff at all levels better un-
derstand and manage risks. This will ensure that: d) Risk management is governed by well-defined policies,
which are clearly communicated across the Group.
• Risk acceptance is done in a responsible manner;
e) Equal attention is paid to both quantifiable and
• The executive and the Board of the Group have ade- non-quantifiable risks.
quate risk management support;
f) The Group avoids products and businesses it does not
• Uncertain outcomes are better anticipated; understand.
• Risk mitigating actions are implemented;
• Accountability is strengthened; and Group Risk Oversight Approach
• Stewardship is enhanced. Our risk governance framework of which our risk appetite
framework is a significant element, ensure the appropriate
The Group identifies the following attributes as guiding
oversight of and accountability for the effective manage-
principles for its risk culture;
ment of risk. Our oversight starts with the strategy setting
(a) Management and culture: and business planning process. These plans help us articu-
late our appetite for risk, which is then set as risk appetite
• Consider all forms of risk in decision-making; limits for each business unit to work within.
• Create and evaluate business-unit and Group-wide risk The Group’s risk management function provides a central
profile to consider what is best for their individual busi- oversight of risk management across the Group to ensure
ness units/department that the full spectrum of risks facing the Group are properly
identified, measured, monitored and controlled in order to
• Adopt a portfolio view of risk in addition to under- minimize adverse outcomes.
standing individual risk elements;
The function is complemented by the financial control

and Strategy groups in the management of strategic and Management function and recommended changes are
reputational risks. approved by the Board.
The Chief Risk Officer coordinates the process of monitoring In 2017, the risk appetite metrics were tracked against ap-
and reporting risks across the Group. Internal audit has proved triggers and exceptions were reported to manage-
the responsibility of auditing the risk management and ment for prompt corrective actions. Key issues were also
control function to ensure that all units charged with
risk management perform their roles effectively on a escalated to the Enterprise-wide Risk Management Com-
continuous basis. Audit also tests the adequacy of internal mittee and Board Risk Management Committee.
control and makes appropriate recommendations where
there are weaknesses.
Risk Management Objectives
Strategy and Business Planning
The broad risk management objectives of the Group are:
Risk management is embedded in our business strategy
and planning cycle. Testament to this is the inclusion of • To identify and manage existing and new risks in a
risk management as one of our strategic priorities. By set- planned and coordinated manner with minimum dis-
ting the business and risk strategy, we are able to deter- ruption and cost;
mine appropriate capital allocation and target setting for
the Group and each of our businesses. • To protect against unforeseen losses and ensure sta-
bility of earnings;
All business units are required to consider the risk impli-
cations of their annual plans. These plans include analysis • To maximize earnings potential and opportunities;
of the impact of objectives on risk exposure. Throughout
the year, business performance is monitored regularly fo- • To maximize share price and stakeholder protection;
cusing both on financial performance and risk exposure. • To enhance credit ratings and depositor, analyst, in-
The aim is to continue the process of integrating risk man- vestor and regulator perception; and
agement into the planning and management process and
to facilitate informed decisions. • To develop a risk culture that encourages all staff to
identify risks and associated opportunities and to re-
Through ongoing review, the links between risk appetite, spond to them with cost effective actions
risk management and strategic planning are embedded in
the business so that key decisions are made in the context
of the risk appetite for each business unit.
Risk Categorization
Risk Appetite
The Group is exposed to an array of risks through its oper-
Risk appetite is an articulation and allocation of the risk ations. The Group has identified and categorized its expo-
capacity or quantum of risk the Group is willing to accept sure to these broad risks as listed below:
in pursuit of its strategy, duly set and monitored by the
executive committee and the Board, and integrated into • Credit risk
our strategy, business, risk and capital plans. Risk appetite
reflects the Group’s willingness and capacity to absorb • Operational risk
potential losses arising from a range of potential outcomes • Market risk
under different stress scenarios.
• Liquidity risk
The Group defines its risk appetite in terms of both
volatility of earnings and the maintenance of minimum • Underwriting risk
regulatory capital requirements under stress scenarios.
Our risk appetite can be expressed in terms of how much • Strategic risk
variability of return the Group is prepared to accept in
order to achieve a desired level of result. It is determined • Capital risk
by considering the relationship between risk and return. • Property price risk
We measure and express risk appetite qualitatively and in
terms of quantitative risk metrics. The quantitative metrics • Reputational risk
include earnings at risk (or earnings volatility), liquidity
and economic capital adequacy. In addition, a large These risks and the framework for their management are
variety of risk limits, triggers, ratios, mandates, targets detailed in the Enterprise-wide Risk Management Frame-
and guidelines are in place for all the financial risks (e.g. work.
credit, market and asset and liability management risks).
Responsibilities and Functions
The Group’s risk profile is assessed through a ‘bottom- The responsibilities of the Risk Management Group,
up’ analytical approach covering all of the Group’s major the Financial Control and Strategy Group, and other
businesses and products. The risk appetite is approved by key stakeholders with respect to risk management are
the Board and it forms the basis for establishing the risk highlighted below:
parameters within which the businesses must operate,
including policies, concentration limits and business Risk Management Division
mix. The Risk Appetite is reviewed annually by the Risk a) Champion the implementation of the ERM

Framework across the Company and subsidiaries.

Routinely share risk reports with management
highlighting key risk areas, control failures and Risk Management Governance Framework
remedial action steps taken by management.
The framework details Wapic’s risk universe and gover-
b) Develop risk policies, principles, process and nance structure comprising three distinct layers:
reporting standards that define the Company’s risk
1. The enterprise-wide risk management and corporate
strategy and appetite in line with the Company’s
governance committee forums;
overall business objectives.
2. The executive management committees; and
c) Ensure that controls, skills and systems are in place
to enable compliance with the Company’s policies 3. Risk management responsibilities per risk area.
and standards, and with all regulatory requirement.
Roles of the Board of Directors
d) Facilitate the identification, measurement,
assessment, monitoring and control of the level of The Board of Directors’ role as it relates to risk
risks in the Company. management is divided into seven areas; general, credit,
market, liquidity, underwriting, operational, reputational
e) Embed risk culture in the Company to ensure that and strategic risk. Specific roles in these areas are further
everyone in the Company takes into consideration defined below:
Wapic’s risk appetite in whatever they do.
f) Collect, process, verify, monitor and distribute risk
information across the Company and other materi- General
al risk issues to senior management, the Board and
regulators. a) Develop a formal enterprise-wide risk management
framework;
g) Monitor compliance with company-wide risk poli-
cies and limits. b) Review and approve the establishment of a risk man-
agement function that would independently identify,
h) Empower Business unit risk champion to identify, measure, monitor and control risks inherent in all
monitor and report on the effectiveness of risk miti- risk-taking units of the Group;
gation plans in reducing risk incidence as related to
day to day activities in the unit. c) Ratify the appointment of qualified officers to manage
the risk management function;
i) Ensure that laws, regulations and supervisory
requirements are complied with including d) Approve and periodically review the Group’s risk
consequence management. strategy and policies;
j) Champion the implementation of Solvency II e) Approve the Group’s risk appetite and monitor the
Group’s risk profile against this appetite
k) Promote risk awareness and provide education on
risk. f) Ensure that the management of the Group has an ef-
fective ongoing process to identify risk, measure its
l) Provide assurance on compliance with internal and potential impact and proactively manage these risks;
external policies with respect to risk management.
g) Ensure that the Group maintains a sound system of
risk management and internal control with respect to:
Financial Control and Strategy • Efficiency and effectiveness of operations
a) Prepare and monitor the implementation of the Com- • Safeguarding of the Group’s assets (including in-
pany’s Strategic Plan formation
b) Conduct strategic and operational review of the Com- • Compliance with applicable laws, regulations and
pany’s activities supervisory requirements
c) Conduct regular scanning of the Company’s operating • Reliability of reporting
environment
• Behaving responsibly towards all stakeholders
d) Coordinate and monitor the Company’s rating exer-
cises by external rating agencies
e) Prepare business intelligence reports for the Compa- h) Ensure that a systemic, documented assessment of
ny’s management the processes and outcomes surrounding key risks is
undertaken at least annually;
f) Prepare periodic management reports on subsidiaries
and associates i) Ensure that management maintains an appropriate
system of internal control and review its effectiveness
g) Perform competitive analysis in comparison with in-
dustry peers j) Ensure risk strategy reflects the Group’s tolerance for
risk;
h) Conduct strategic/operational review of branches
k) Review and approve changes/amendments to the risk

management framework; Compliance Risk

l) Review and approve risk management procedures and a) Approve the Company’s code of conduct and ethics;
control for new products and activities; and
b) Monitor the Company’s compliance with laws and
m) Periodically receive risk reports from management regulations, its code of conduct and ethics and
highlighting risk areas, control failures and remedial corporate governance practices;
action steps taken by management.
c) Ensure new and changed legal and regulatory
requirements are identified, monitored and reflected
in Company processes;
Credit Risk
d) Approve the compliance structure, mechanisms and
a) Approve Wapic overall risk tolerance in relation to processes established by management to ensure
credit risk based on the recommendation of the Group compliance with current laws, regulations and
Chief Risk Officer; supervisory requirements; and
b) Ensure that Wapic overall counterparty credit risk ex- e) Ensure the Company’s has a compliance culture that
posure is maintained at prudent levels and consistent contributes to the overall objective of risk management
with the available capital through quarterly review of
various types of credit exposure;
c) Ensure that top management as well as individuals Operational Risk
responsible for counterparty credit risk management
possess the requisite expertise and knowledge to ac- a) Oversee the overall governance of the Company’s op-
complish the risk management function; erational risk management process;
d) Ensure that the Company implements a sound meth- b) Set the Company’s operational risk strategy and direc-
odology that facilitates the identification, measure- tion in line with the Company’s corporate strategy;
ment, monitoring and control of credit risk;
c) Approve the Company’s operational risk management
e) To put in place effective internal policies, systems and framework;
controls to identify, measure monitor, and control
d) Periodically review the framework to ensure its rele-
credit risk concentrations.
vance and effectiveness;
f) Ensure that detailed policies and procedures for credit
e) Ensure that senior management is performing its risk
risk exposure creation, management and recovery are
management responsibilities; and
in place; and
f) Ensure that the Company’s operational risk manage-
g) Appoint credit officers and delegate approval authori-
ment framework is subject to effective and compre-
ties to individuals and committees.
hensive internal audit by operationally independent,
appropriately trained and competent staff.
Market Risk
a) Define Company overall risk appetite in relation to Reputational Risk
market risk;
a) Set an appropriate tone and guidelines regarding the
b) Ensure that the Company’s overall market risk expo- development and implementation of effective reputa-
sure is maintained at levels consistent with the avail- tion
able capital;
b) Risk management practices, including an explicit
c) Ensure that top management as well as individuals statement of a zero tolerance policy for all unethical
responsible for market risk management possess behaviour;
sound expertise and knowledge to accomplish the risk
c) Approve the Company’s framework for the
management function;
identification, measurement, control and management
d) Approve the Company’s strategic direction and toler- of reputational risk;
ance level for liquidity risk;
d) Monitor the Company’s compliance with its repu-
e) Ensure that the Company’s senior management has tational risk management policies and recommend
the ability and required authority to manage liquidity sanctions for material breaches of internal policies;
risk;
e) Review all exception reports by external parties such
f) Approve the Company’s liquidity risk management as regulators and auditors; ensure that appropriate
framework; and sanctions are applied to erring officers; demand
from management appropriate explanations for all
g) Ensure that liquidity risk is identified, measured, exceptional items; ensure that management puts in
monitored and controlled. place effective and remedial actions and reports on
progress to the Board on an on-going basis;

f) Ensure that Board members do not compromise their g) Ensure that senior management is competent in im-
fit and proper status with regulators. They shall en- plementing strategic decisions approved by the Board
sure that only Board members who do not tarnish the and supervising such performance on a continuing
Wapic’s image and reputation remain as members; basis
and
The Board and Management Committees
g) Ensure that only fit and proper persons are appointed
to senior management positions in the Company. The Board of director is the highest approval authority for
risk policies and risk appetite setting in Wapic. It carries
out its oversight function through its standing committees
Strategic Risk each of which has a charter that clearly defines its purpose,
a) Oversee the strategic risk management process. composition, structure, frequency of meetings, duties,
tenure, and reporting lines to the Board. In line with best
b) Ensure that Wapic has in place an appropriate practice, the Chairman of the Board does not sit on any of
strategic risk management framework which suits its
own circumstances and needs; the Committees. The Board has five standing committees
namely: The Board Risk Management and Governance
c) Ensure that the strategic goals and objectives are set Committee, the Board Audit and Compliance Committee,
in line with its corporate mission and values, culture,
the Board Establishment and Remuneration Committee,
business direction and risk tolerance;
the Board Finance, Investment and General Purpose
d) Approve the strategic plan (including strategies con- Committee and the Board Information Technology
tained therein) and any subsequent changes, and re- Committee.
view the plan (at least annually) to ensure its appro-
priateness; The management committees which exist in the Company
e) Ensure the organization’s structure, culture, include: The Executive Committee (EXCO), Enterprise-
infrastructure, financial means, managerial resources wide Risk Management and Governance Committee
and capabilities, as well as systems and controls (ERMC), Finance, Investment and General Purpose
are appropriate and adequate to support the Management Committee (FIMC), Underwriting and
implementation of its strategies.
Claims Management Committee (UCMC), and Information
f) Review high-level reports periodically submitted to Technology Steering Committee (ITSC). Without prejudice
the Board on the overall strategic risk profile, and en- to the roles of these committees, the full Board retains
sure that any material risks and strategic implications ultimate responsibility for risk management.
identified from those reports are properly addressed;
and
Board Committees Functions

Board Audit and Com- • Oversight of financial reporting and accounting
pliance Committee • Oversight of the external auditor
• Oversight of regulatory compliance
• Monitoring the internal control process
• Oversight of enterprise risk management
Board Enterprise Risk • Assist in the oversight of the review and approval of the companies’ risk
Management and management policy including risk appetite and risk strategy;
Governance Committee • Review the adequacy and effectiveness of risk management and controls;
• Oversee management’s process for the identification of significant risks
across the company and the adequacy of prevention, detection and reporting
mechanisms;
• Review of the company’s compliance level with applicable laws and regulato-
ry requirements that may impact the company’s risk profile;
• Review changes in the economic and business environment, including
emerging trends and other factors relevant to the company’s risk profile; and
• Review large underwritten risks for adequacy of reinsurance and other risk
management techniques including environmental & social management
system
• Review and recommend for approval of the Board risk management proce-
dures and controls for new products and services.

Board Finance, • Reviews and approves the company’s investment policy

Investment and General
Purpose Committee • Approves investments over and above managements’ approval limit
• Ensures that optimum asset allocation is achieved
• Assists the Board on its oversight function of managing financial risks.
• Review and make recommendation on long term financial plan for the
company.
• Review the company capital appropriation.
• Provides periodic oversight of Boards approved programs.
Board Establishment • Advises the Board on its oversight responsibilities in relation to

and Remuneration compensation, benefits and all other human resource matters affecting the
Committee directors and employees of the Company.
• Monitor the Group’s people-risk universe.
• Ensure the right caliber of executive management is attracted, retained,
motivated and rewarded.
Board Information • Advises the Board on its oversight responsibilities in relation to development
Technology Committee and implementation of company’s information technology strategy
• Monitor company’s investment on technology and information systems
Risk Management Unit – relationship with other for each business unit to work within.
units
The Group’s risk management and compliance division
The relationships between risk management unit (RMU) provides a central oversight of risk management across
and other units are highlighted below: the Group to ensure that the full spectrum of risks facing
the Group are properly identified, measured, monitored
• RMU sets policies and defines risk limits for other units and controlled in order to minimize adverse outcomes.
in the Company;
• RMU performs group-wide risk monitoring and report- The division is complemented by the financial control and
ing; regulatory/reputation risk group in the management of
• Other units provide relevant data to RMU for risk mon- strategic and reputational risks respectively.
itoring and reporting and identify potential risks in their
line of business and RMU provides a frame-
work for managing such risks; The Chief Risk Officer coordinates the process of monitor-
• RMU and market facing units collaborate in designing ing and reporting risks across the Group. Internal audit
new products; has the responsibility of auditing the risk management
• RMU and internal audit co-ordinate activities to pro- and control function to ensure that all units charged with
vide a holistic view of risks across the Group; risk management perform their roles effectively on a
continuous basis. Audit also tests the adequacy of internal
• RMU makes recommendations with respect to capital controls and makes appropriate recommendations where
allocation, pricing and reward/sanctions based on risk there are weaknesses.
reports; and
• Information technology support group provides rele- Risk Identification and Classification
vant user support to the RMU function in respect of the
various
risk management software. Credit risk:
Credit risk is the risk of default arising from the uncer-
Group risk oversight approach tainty of counterparty’s ability to perform its contractual
obligations. This may arise from the following but not
limited to premium receivables, reinsurance recoveries,
Our oversight starts with the strategy setting and busi- fund placements in deposit money banks, vendors, and
ness planning process. These plans help us articulate our fund’s managers. However, in terms of premium payment
appetite for risk, which is then set as risk appetite limits and investments in counterparties, considerable risks ex-

ist that brokers and lead insurers who are allowed extend-
ed payment period may default. Credit risk is that of the Liquidity risk:
lender and includes lost principal and interest, disruption Liquidity risk is the risk that the Group may be unable to
to cash flows, and increased collection costs. The three meet its obligations associated with financial liabilities
sources of credit risk identified are: that are settled by delivering cash or another financial
assets. This usually occurs due to the inability to convert
a security or hard asset to cash without a loss of capital
- Direct Default Risk: risk that the Group will not receive and/or income in the process. The Group recognizes the
the cash flows or assets to which it is entitled because a risk of loss due to insufficient liquid assets to meet cash
party with which the firm has a bilateral contract defaults flow requirements or to fulfill its financial obligation once
on one or more obligations. a claim crystallize.

- Funding liquidity risk: Arising from our invest-
- Downgrade Risk: risk that changes in the possibility ment-linked products where there is a financial obligation
of a future default by an obligor will adversely affect the to customers.
present value of the contract with the obligor today.
- Asset liquidity risk: arising from our financial assets
where we might not be able to execute transactions at
- Settlement Risk: risk arising from the lag between the prevailing market price because there is temporarily, no
value and settlement dates of securities transactions. appetite for the deal at the other side of the market.

Operational risk: Underwriting risk:
This is the risk of loss resulting from inadequate or failed Underwriting activities are primarily concerned with the
internal processes, people and systems or from external pricing, acceptance and management of risks arising from
events. This includes legal risk, strategic risk and reputa- our contracts with policyholders. It entails the risk that:
tional risk. Legal risk includes, but is not limited to, ex-
posure to fines, penalties, or punitive damages resulting
from supervisory actions, as well as private settlements. - The prices charged by the Group for insurance contracts
will be ultimately inadequate to support the future obliga-
tions arising from those contracts, risk exposure under its
Market risk: insurance contracts that were unanticipated in the design
Market risk is the risk that the fair value or future cash and pricing of the insurance contract;
flows of a financial instrument will fluctuate due to move-
ments in market factors. Volatility frequently refers to
the standard deviation of the change in value of a finan- - Risks are not adequately ceded to reinsurers exposing
cial instrument with a specific time horizon. The Group the Group to potential high claims pay-out;
is exposed to this risk through its financial assets and it
comprises of:
- Many more claims occur than expected or that some
claims that occur are much larger than expected claims
- Interest rate risk: the risk that the fair value of a fixed resulting in unexpected losses; and
income security will fall as a result of movement in
market interest rates. Interest rate risk also arises from
fluctuations in future cash flows of a financial instrument - The Group’s policyholder will act in ways that are unan-
because of changes in market interest rates. ticipated and have an adverse effect on the Group.

Property price risk:
- Equity price risk: the risk that the fair value of equities The Group’s portfolio is subject to property price risk
decreases as a result of changes in the levels of equity arising from changes in the market value of investment
indices and the value of individual stocks. properties and fluctuations in expected rental incomes
realised from the Group’s properties.

- Foreign Exchange risk: The risk that the fair value of
future cash flows of a financial instrument will fluctuate Reputational risk:
because of changes in foreign exchange rates associated The Group is exposed to this risk through events that
with foreign currency denominated transactions which damage its image amongst stakeholders and the public
the Group is exposed to. which may impair the ability to retain, generate and drive
sustainable business. We understand that reputational
- Property price risk: the risk arising from changes in the risk is the biggest risk to our business as it poses a special
market value of properties and fluctuations in expected threat to the confidence of our customers, regulators and
rental incomes. industry.

Operational Risk Management

Operational risk is the risk of loss resulting from inade- operating controls, there are three distinct levels of op-
quate or failed internal processes, people, or systems, or erational risk governance structure in the Group.
from external events. Our definition of operational risk
excludes regulatory risks, strategic risks and potential Level 1 refers to the oversight function carried out by the
losses related solely to judgments with regard to tak- board of directors, board risk committee and the exec-
ing credit, market, interest rate, liquidity, or insurance utive management. Responsibilities at this level include
risks. ensuring effective management of operational risk and
adherence to the approved operational risk policies.
It also includes the reputation and franchise risk as-
sociated with business practices or market conduct in
which the Group is involved. Operational risk is inherent Level 2 refers to the management function carried out
in the Group’s global business activities and, as with by operational risk management group. It has direct
other risk types, is managed through an overall frame- responsibility for formulating and implementing the
work designed to balance strong corporate oversight Group’s operational risk management framework in-
with well-defined independent risk management. This cluding methodologies, policies and procedures ap-
framework includes: proved by the board.

• Recognized ownership of the risk by the businesses;
Level 3 refers to the operational function carried out
• Oversight by independent risk management; and by all business units and support functions in the
Group. These units/functions are fully responsible and
• Independent review by Corporate Audit. accountable for the management of operational risk in
their respective units. They work in liaison with opera-
tional risk management to define and review controls
We seek to minimize exposure to operational risk, to mitigate identified risks. Internal audit provides in-
subject to cost trade-offs. Operational risk exposures are dependent assessment and evaluation of the Group’s
managed through a consistent set of management pro- operational risk management framework. This periodic
cesses that drive risk identification, assessment, control confirmation of the existence and utilization of controls
and monitoring. in compliance with approved policies and procedures,
The goal is to keep operational risk at appropriate levels provide assurance as to the effectiveness of the Group’s
relative to the characteristics of our businesses, the operational risk management framework. Importantly,
markets in which we operate, our capital and liquidity, the tools used to assess, measure and monitor opera-
and the competitive, economic and regulatory environ- tional risks in the Group include but are not limited to a
ment. Notwithstanding these controls, the Group incurs loss database of operational risk events; an effective risk
operational losses. and control self-assessment process that helps to ana-
lyze business activities and identify operational risks that
Our operational risk strategy seeks to minimize the could affect the achievement of business objectives; and
impact that operational risk can have on shareholders’ key risk indicators which are used to monitor
value.
operational risks on an ongoing basis.
The Group’s strategy is to:

• Reduce the likelihood of occurrence of expected The Group’s operational risk framework
events and related cost by managing the risk factors
and implementing loss prevention or reduction tech- The Group’s current operational risk framework was
niques to reduce variation to earnings. implemented to meet internal and regulatory require-
ments. There has been significant investment in the
• Minimize the impact of unexpected and catastrophic implementation of improved measurement and man-
events and related costs through risk financing strategies agement approaches for operational risk to strengthen
that will support the Group’s long term growth, cash control, improve customer service, improve process
flow management and balance sheet protection. efficiencies and minimize operating losses. The Group
recognizes the fact that it is neither cost-effective nor
• Eliminate bureaucracy, improve productivity, reduce possible to attempt to eliminate all operational risks.
capital requirements and improve overall performance Events of small significance are thus expected to occur
through the institution of well designed and implement- and are accepted as inevitable with relevant budgeting
ed internal controls. for these losses being exercised where appropriate.
Events of material significance are limited and the
In order to create and promote a culture that emphasizes Group seeks to reduce the risk from these extreme
effective operational risk management and adherence to events in a framework consistent with its agreed risk

appetite. Processes are in place to monitor management identification, assessment, modelling and benchmarking.
and future mitigation of such events.

Risk and control self assessments (RCSA)
The role of risk department is to establish, implement and
maintain the operational risk framework for the model-
ling and managing of the Group’s operational risk, while In order to pro-actively identify and actively mitigate
reinforcing and enabling operational risk management risks, the operational risk framework utilizes RCSAs.
culture throughout the Group. The aim is to integrate, RCSA is used at a granular level to identify relevant ma-
based on international norms and best practices, all op- terial risks and key controls mitigating these risks. The
erational risk activities and to compile a reliable opera- risks and controls are assessed on a quarterly basis and
tional risk profile contributing to the Group’s risk- reward relevant action plans are put in place to treat, tolerate,
profile. The key advantage introduced by the current terminate or transfer the risks, taking into account the
framework is the financial quantification and modelling relevant business risk appetites. The RCSA programme
of operational risks. This functionality has significantly is extensive and covers the entire Group. The Internal
improved the Group’s operational risk measurement and Audit further tests the effectiveness of the RCSAs within
management capabilities. the normal course of auditing and relevant metrics are
monitored and actioned where relevant.
Management and control responsibilities
Key risk indicators (KRIs)
A comprehensive set of KRIs are in place across the
The first line of governance for managing operational risk Group, with relevant and agreed thresholds set by the
rests with business and operational risk management business. KRIs are monitored on a Group as well as busi-
that forms part of the day-to-day responsibilities of all ness unit level, based on significance. Threshold breaches
business unit management. Business unit staff report any are managed in accordance with an agreed process across
identified breakdowns in control and any risk events that the Group.
may result in financial loss and/or reputation damage.
Amongst others, business management are responsible Reporting
to ensure that processes for identifying and addressing
ineffective controls and the mitigating of risk events are Business units are required to report on both a regular
implemented and executed. Operational risk teams form and an event-driven basis. The reports include a profile
the secondary line of governance by ensuring that pro- of the key risks to their business objectives, RCSA and
cesses to identify weaknesses are effective and identified KRI results, and operational risk events. Risk reports are
weaknesses are acted upon. The Group operational risk presented to executive management and risk committees.
profile is presented to the Board quarterly. Control effec-
tiveness is monitored at the Risk Management Committee Allocating Capital to Business Units
and at the Board; and the multi-layered system of defens-
es ensures pro-active operational risk management. An allocation methodology is applied for allocating
capital to business units. For each business unit, the
Measuring and managing operational risk allocation takes into consideration not only the size of the
business unit, but also measures of the business unit’s

control environment. This translates to a risk-sensitive
The Group recognizes the significance of operational risk
allocation with the opportunity afforded to business to
and is committed to enhancing the measurement and
identify actions to positively impact on their respective
management thereof. Within the Group’s operational risk
allocated operational risk capital.
framework, qualitative and quantitative methodologies

and tools are applied to identify and assess operational
risks and to provide management information for deter- Expected loss (EL) budgeting mitigation
mining appropriate mitigating measures.
The ERM team developed a database for loss event colla-
tion named Loss Event Register. This register allows staff
Risk event data collection and reporting to report actual and near-miss (an unplanned event that
did not result in injury, illness, or damage – but had the
potential to do so) loss events. Summary statistics from
A standard process is used Group-wide for the recogni- the loss event database are used to show trends of total
tion, capture, assessment, analysis and reporting of risk losses and mean average loss, with analysis by type of loss
events. This process is used to help identify where process and business line.
and control requirements are needed to reduce the recur-
rence of risk events. Risk events are loaded onto a central Information Security and Continuity of Business
database and reported monthly to the ERMC. The Group
also uses a database of external public risk events and is Information security and the protection of confidential
part of a consortium of other insurance companies that and sensitive customer data are a priority of Wapic Insur-
share loss data information anonymously to assist in risk ance Plc. The Group has developed and implemented an

Information Security Risk Management framework that operational disruption.

is in line with best practice. The framework is reviewed
and enhanced regularly to address emerging threats to • The effective communication between our primary serv-
customers’ information. ers and secondary servers was ascertained following the
conduct of a comprehensive failover test. It was affirmed
A critical tool in managing our operational risk is the that our data are accurately and completely backed up in
Business Continuity Plan (BCP) that documents the our designated secondary and tertiary servers.
procedures to be executed by relevant teams in the event
of a disaster. The Group assesses the feasibility of its BCP
annually by simulating a disaster and gaps noted are • Established a Digital Division to boost the creation of
properly mitigated to ensure that business operations are opportunities for the Group in the digital space and truly
not disrupted in the event of a disaster. Furthermore, in position Wapic as a Group that has come to transform
a bid to ensure data security, failover tests are conducted and illuminate the industry.
periodically to ascertain the effectiveness of our secondary
servers as well as the accuracy and completeness of data • Ensured the early identification and effective manage-
in the secondary servers. ment of risk issues by conducting a comprehensive risk
assessment on all our core business processes.
Information Security and Continuity of Business

• In order to guarantee the Group’s continuing growth
• Established the resilience of the Group following a major and success, an effective and robust succession plan was
operational disruption such as flood and fire by conduct- established with the sole purpose of ensuring timely re-
ing a comprehensive test of the business continuity plan. placement of talents occupying key positions.
A major outcome of the exercise is our Information Tech-
nology (IT) Team’s capacity to resume critical IT-related
services from anywhere within 3 hours following a major

Credit Risk Management

Credit risk arises from the failure of a counterparty of the The Group is exposed to risk relating to its debt holdings in
Group to repay amount due as at an agreed date or failure its investment portfolio, outstanding premiums from bro-
to perform as agreed. The Group’s exposure to credit risk is kers, co-insurance and the reliance on reinsurers to make
primarily derived from the following activities: payment when certain loss conditions are met. Following
the Nigeria economy exited recession in the second half
2017 and the downgrade of some Nigerian Banks, Wapic
• Unpaid premium from insured or brokers; and has reviewed its banking counterparties profiling in line
with the current downgrade. Wapic through its governance
• Non-recovery of claims paid from reinsurers. process increased its monitoring on the banking industry as
it observed the developments in the industry with a view to
The Group’s Risk Management philosophy is that moderate proactively mitigate any downside risk that may emanate.
and guarded risk attitude will ensure sustainable growth in
shareholder’s value and reputation. The Group’s policy is to
set out specific rules for risk origination and management
of the investment portfolio. The plan also sets out the roles The Group’s investment portfolio and receivables are ex-
and responsibilities of different individuals and committees posed to credit risk through its fixed income money market
charged with these responsibilities. instruments, trade receivables and reinsurance receivables.
The maximum exposures from the Group’s and Company’s
financial assets to credit risk are as follows:

31 December 2017
Group Company
In thousands of naira In thousands of naira
Note
Cash and cash equivalents 8 1,745,342 14% Cash and cash 911,023 16%
equivalents
Fixed income instruments 9 7,766,078 60% Fixed income 2,706,063 48%
instruments
Held for trading assets 9 1,380 0% Held for trading assets 796 0%
Trade receivables 10 707,489 5% Trade receivables 486,997 9%
Other receivables (excluding pre- 13 924,102 7% Other receivables 834,520 15%
payments) (excluding prepayments)
Reinsurance assets (excluding 11 1,087,216 8% Reinsurance assets 403,620 7%
prepaid reinsurance) (excluding prepaid
reinsurance)
Statutory deposit 19 632,964 5% Statutory deposit 300,000 5%
12,864,571 100% 5,643,019 100%
31 December 2016
Group Company
In thousands of naira In thousands of naira
Note
Cash and cash equivalents 8 2,220,395 19% Cash and cash 311,223 6%
equivalents
Fixed income instruments 9 6,395,121 54% Fixed income 2,506,018 48%
instruments
Held for trading assets 9 105 0% Held for trading assets 7 0%
Trade receivables 10 553,575 5% Trade receivables 553,574 11%

Other receivables (excluding pre- 13 1,027,649 9% Other receivables 1,069,803 20%

payments) (excluding prepayments)
Reinsurance assets (excluding 11 924,313 8% Reinsurance assets 494,779 9%
prepaid reinsurance) (excluding prepaid
reinsurance)
Statutory deposit 19 617,632 5% Statutory deposit 300,000 6%
11,738,790 100% 5,235,404 100%

The Group’s exposure to credit risk is low as fixed income securties (Government bonds and Treasury bills and blue-
chip corporate bonds) and money market investments accounted for 74% of total credit risk exposures as at 31 Decem-
ber 2017 (31 December 2016: 73%).

The Group further manages its exposure to credit risk through counterparty risk via established limits as approved
by the Board. These limits are determined based on credit ratings of the counterparty amongst other factors. All fixed
income investments are measured for performance on a quarterly basis and monitored by management on a monthly
basis.

The Company’s exposures to banks and finance houses as at 31 December 2017 is represented below:

Company portfolio
Counterparty Investment in money market %
National Banks 351,524 87%
Other Banks 51,236 13%
Total 402,760 100%

The Company’s exposures to banks and finance houses as at 31 December 2016 is represented below:

Company portfolio
Counterparty Investment in money market %
National Banks 191,916 93%
Other Banks 15,534 7%
Total 207,450 100%

Reinsurance contract is executed only with reinsurers The Group categorizes its exposure to this risk based on
with a minimum acceptable credit rating. The credit- business sources (namely Agents, Brokers and Insur-
worthiness of all reinsurers is monitored and reported ance
to management by the Risk Management function by Companies) and periodically reviews trade receivable to
reviewing their annual financial statements and quali- ensure credit worthiness.
tative observations through formal and informal com-
munication channels. Reinsurance treaties are reviewed
annually by management prior to renewal of the rein- Credit risk exposure to trade receivables arises from the
surance contract. 30 days’ window given by NAICOM in the “No Premi-
um No Cover” (NPNC) policy. This gives brokers the
latitude to withhold premiums collected from insured

for 30 days. However, they are expected to issue their
Aside credit risk exposure from our investment policies,
credit note and remit the premiums at the expiration of
the Group is also exposed to this risk from its core
the 30 days’ grace period. Brokers who fails to remit are
business – outstanding premiums from clients. Trade
reported on quarterly basis to NAICOM and are subject
receivables are short-term in nature consisting of a
to the downgrading process in the Group’s Credit Policy
large number of policyholders and are subject to mod-
Guide. The Group’s risk exposure to credit risk is low as
erate credit risk.
the receipt of insurance premium from the insured is a

pre- condition for the issuance of insurance cover.


The Group has no significant concentration of credit risk changes in the major market risk factors: interest rates,
and the carrying amounts of all the financial assets subject foreign exchange rates,non- availability of FX, rise in
to credit risk represents the maximum exposure of the inflation, equity prices, and increse in property prices. The
Group to credit risk. Group’s identification, management, control, measure-
ment and reporting of market risk is designed along the
following major risk factors;
Key improvements made in 2017 include the fol-
lowing:
• Wapic reviewed its counterparty’s ratings in line with the 1. Interest rate risk
liquidity issues which led to the downgrade of many banks
in 2. Foreign exchange risk
Nigeria.

• The Risk Management Team has developed an internal
3. Equity price risk
model in line with best practice to assess the credit worthi-

ness
of counterparties that are not rated. The model takes into
cognizance an interpolation methodology for counterpar- 1. Interest rate risk
ties
with external rating and a full assessment of counterpar- Interest rate risk is the exposure of the Group’s financial
ties without rating. The creditworthiness of these condition to adverse movements in interest rates, yield
counterparties are distributed into four tiers with an curves and credit spreads. The interest rste risk exposure
approved credit limit assigned to each tier. Reinsurance arises when a change in interste rate has a potential to
contract affect the value of the Group’s assets and liabilities. The
is executed only with reinsurers with a minimum accept- Group is exposed to interest rate risk through the floating
able credit rating and their performance are monitored interest rate bearing assets and liabilities and fixed inter-
over a est bearing financial instruments carried at fair value in
given period. the Group’s books.

• Group limit on individual exposure to the banks and The Group is significantly exposed to interest-rate risk as
other financial institutions were adjusted in line with the percentage of floating interest yielding assets to AUM
counterparty is 15.59% (2016 is 31.50%). Also, the Group is exposed to
policy document. Wapic through its governance process interest rate risk through its Life underwriting investment
increased its surveillance on the banking industry as it ob policies that have guaranteed interest rate. As a result,
served the developments in the industry with a view to the Group’s investment income move in the direction of
proactively mitigate any down risk that may emanate.
interest rate in the short and medium term. The plan of

Central Bank of Nigeria (CBN) to retain Monetary Policy
• The behavioral pattern in the company has improved to-
wards the implementation of the NAICOM NPNC directive Rate (MPR) at 14% through 2017 consolidating on its
as credit portfolio monitoring are cascaded down from tight monetary policies and regulatory supervision. This
counterparties to products, teams and Relationship officer. development presents a big opportunity for the Group
This interms of generting more revenue on its investment
resulted to the achievement of over 90% collection rate portfolio to surport the Group’s income aspiration for the
in 2017. year. However, the country saw a sharp drops in economic
growth, high inflation rate (though droped from 18.3%
• Counterparty credit policy document was reviewed in to 16.13%) and currency weaknesses. Owing to this, the
line with best practice. country adopted drastical steps of fiscal consolidation and
international borrowing. We expect interest rate to drop
• The automation of the company’s core insurance pro- in 2018 due to the plan of CBN to focuss more on reducing
cesses has improved the efficiency of credit monitoring. the impact of inflation on interest rate in 2018.

Market Risk Management
A summary of the Group’s interest rate gap position on
non-trading portfolios was as follows:

The financial markets of Nigeria and Ghana were adverse-
ly affected by volatility in the markets. The Group’s ability
to meet business objectives was affected by the adverse

Market Risk
Re-pricing period
Carrying No stated 1-3 3 -6 6 - 12 1 - 5 years
amount maturity months months months
Group
31 December 2017
Assets
In thousands of Naira
Cash and cash equivalents 1,745,342 - 1,745,342 - - -
Debt securities - Held to 5,461,742 - 3,183,452 - - 2,278,290
maturity
Debt securities - Available 2,304,336 - - 118,028 - 2,186,308
for sale
Statutory deposit 632,964 - - - - 632,964
10,144,384 - 4,928,794 118,028 - 5,097,562
Liabilities
Liabilities on investment 1,063,860 1,063,860 - - - -
contracts
1,063,860 1,063,860 - - - -
Total interest re-pricing 9,080,524 (1,063,860) 4,928,794 118,028 - 5,097,562

gap
Cumulative 9,080,524 (1,063,860) 3,864,934 3,982,962 3,982,962 9,080,524
Increase by 100bp 90,805 (10,639) 49,288 1,180 - 50,976
Increase by 500bp 454,026 (53,193) 246,440 5,901 - 254,878
Decrease by 100bp (90,805) 10,639 (49,288) (1,180) - (50,976)
Decrease by 500bp (454,026) 53,193 (246,440) (5,901) - (254,878)
Re-pricing period

Group
31 December 2016
Assets
Cash and cash equivalents 2,220,395 - 2,220,395 - - -
Debt securities - Held to 5,175,568 - 3,980,841 - - 1,194,727
maturity
Debt securities - Available 1,219,553 - - 490,083 - 729,470
for sale
9,233,148 - 6,201,236 490,083 - 2,541,829
Liabilities
Liabilities on investment 920,154 920,154 - - - -
contracts

920,154 920,154 - - - -
Total interest re-pricing 8,312,994 (920,154) 6,201,236 490,083 - 2,541,829

gap
Cumulative 8,312,994 (920,154) 5,281,082 5,771,165 5,771,165 8,312,994
Increase by 100bp 83,130 (9,202) 62,012 4,901 - 25,418
Increase by 500bp 415,650 (46,008) 310,062 24,504 - 127,091
Decrease by 100bp (83,130) 9,202 (62,012) (4,901) - (25,418)
Decrease by 500bp (415,650) 46,008 (310,062) (24,504) - (127,091)

Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. There-
fore, only a change in interest rates at the end of the reporting period would affect profit or loss.

The table below shows the impact on the Group’s profit before tax if interest rates on financial instruments had in-
creased 2000 basis points or decreased by 1000 basis points, with all other variables held constant.

Interest rate movements affect reported equity through impact of increase or decrease in net interest income on the
retained earnings.

A summary of the Company’s interest rate gap position on non-trading portfolios was as follows:

Market Risk
Re-pricing period
Company
31 December 2017
Assets
Cash and cash equivalents 911,023 - 911,023 - - -
Debt securities - Held to 1,004,463 - 21,284 - - 983,179
maturity
Debt securities - Available 1,701,600 - - 118,028 - 1,583,572
for sale
3,917,086 - 932,307 118,028 - 2,866,751
Liabilities
Liabilities on investment - - - - - -
contracts
- - - - - -
Total interest re-pricing 3,917,086 - 932,307 118,028 - 2,866,751
gap
Cumulative 3,917,086 - 932,307 1,050,335 1,050,335 3,917,086
Increase by 100bp 39,171 - 9,323 1,180 - 28,668
Increase by 500bp 195,854 - 46,615 5,901 - 143,338
Decrease by 100bp (39,171) - (9,323) (1,180) - (28,668)
Decrease by 500bp (195,854) - (46,615) (5,901) - (143,338)

Re-pricing period
Company
31 December 2016
Assets
Cash and cash equivalents 311,223 - 311,223 - - -
Debt securities - Held to 1,947,206 - 1,097,395 - - 849,811
maturity
Debt securities - Available 558,812 - - 245,608 - 313,204
for sale
3,117,241 - 1,408,618 245,608 - 1,463,015
Liabilities
Liabilities on investment - - - - - -
contracts
- - - - - -
Total interest re-pricing 3,117,241 - 1,408,618 245,608 - 1,463,015

gap
Cumulative 3,117,241 - 1,408,618 1,654,226 1,654,226 3,117,241
Increase by 100bp 31,172 - 14,086 2,456 - 14,630
Increase by 500bp 155,862 - 70,431 12,280 - 73,151
Decrease by 100bp (31,172) - (14,086) (2,456) - (14,630)
Decrease by 500bp (155,862) - (70,431) (12,280) - (73,151)

Fair value sensitivity analysis for fixed rate instruments

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore, only a change in interest rates at the end of the reporting period would not affect profit or loss.

The table below shows the impact on the Company’s profit before tax if interest rates on financial instruments had
increased by 2000 basis points or decreased by 1000 basis points, with all other variables held constant.

In thousands of Naira 31-Dec-2017 31-Dec-2016
Increase in interest rate by 2000 basis points 60,203 87,815

Decrease in interest rate by 1000 basis points (30,101) (43,907)
Interest rate movements affect reported equity through impact of increase or decrease in net interest income on
the retained earnings.

Foreign Exchange Risk expected to shore up Naira, infuse dollar liquidity into the
system, IEFX window introduced on April 22 and also

ensure easy accessibility of FX by Nigerians as against the
Foreign exchange risk is the risk that the fair value or past policy that restrict Nigerians from obtaining foreign
future cash flows of an exposure will fluctuate because of exchange at the interbank segment, and the restrictions
changes in foreign exchange rates. placed on foreign currency denominated cash deposits.
With the new CBN policy that has returned this into the
Foreign exchange risk exposure of the Group’s financial confines of the inter-bank market and that of the banks,
condition is due to adverse movements in exchange rates. we expect that this will take the demand off the parallel
The Group is exposed to foreign exchange currency risk market and strengthen the Naira in 2018 as time goes on.
primarily through transactions denominated in foreign
currency. The Group is also exposed to foreign currency
fluctuation in its investments in unquoted equity, dol- Foreign exchange risk is quantified using the net balance
lar-denominated bond instruments, fixed deposits and of assets and liabilities in each currency, and their total
bank balances in other foreign currencies. sum.

The Group is exposed to foreign exchange risk through
The Group’s foreign exchange risk is considered at a cash balances maintained in foreign currency.
Group level since an effective overview of such risk is a
critical element of the Group’s asset/liability risk man- The Group is not exposed to significant risk of adverse
agement. The Board of Directors defines its risk toler- movements in foreign exchange rates. The financial
ance levels and expectations for foreign exchange risk position of the company has no significant sensitivity to
management and ensures that the risk is maintained foreign exchange risk.
at prudent levels. Both the Central Bank of Nigeria and
Bank of Ghana continue to apply the foreign exchange
restriction policies adopted following the weakening of The table below summaries the Group’s financial instru-
the Naira and Cedi in 2017. Prominent of these policies ments at carrying amount, categorised by currency
is the newly introduced foreign exchange policy which is

60
31 December 2017
Total Naira Us Dollar Euro Pound Gh Cedi Others
Notes
Group
Assets
Cash and cash equivalents 8 1,745,342 365,611 1,033,943 3,762 10,656 331,370 -
Equity securities - Available-for-sale 9 4,032,813 2,230,022 1,724,384 - - 78,407 -
Debt securities - Held to maturity 9 5,461,742 2,563,113 1,940,904 - - 957,725 -
Non pledged trading assets 9 1,380 1,380 - - - - -
Trade receivables 10 707,489 707,489 - - - - -
Reinsurance assets (excluding prepaid reinsurance) 11 1,087,216 612,437 - - - 474,779 -

Other receivables (excluding prepayments) 13 924,102 284,468 504,691 - - 134,943 -
Statutory deposit 19 632,964 500,000 - - - 132,964 -
Total financial assets 14,593,047 7,264,520 5,203,922 3,762 10,656 2,110,188 -
Liabilities
Investment contract liabilities 21 1,063,860 1,063,860 - - - - -
Trade payables 22 516,371 432,248 - - - 84,123 -
Other payables (excluding non-financial liabilities) 23 1,354,731 1,049,233 - - - 305,498 -
Total financial liabilities 2,934,962 2,545,341 - - - 389,621 -
Net financial assets/liabilities 11,658,085 4,719,179 5,203,922 3,762 10,656 1,720,567 -
Insurance contract liabilities 20 7,141,465 7,141,465 - - - - -

Net policyholders’ assets/(liabilities) 4,516,620 (2,422,286) 5,203,922 3,762 10,656 1,720,567 -
31 December 2016
Total Naira Us Dollar Euro Pound Gh Cedi Others
Notes
Wapic Insurance Plc | Annual Report & Accounts 2017

Group
Assets
Cash and cash equivalents 8 2,220,395 352,951 753,453 9,341 729 1,103,921 -
Equity securities - Available-for-sale 9 2,225,816 1,712,073 430,793 - - 82,950 -
Debt securities - Held to maturity 9 5,175,568 4,066,155 849,811 - - 259,602 -
Non pledged trading assets 9 105 105 - - - - -
Trade receivables 10 553,575 553,575 - - - - -
Reinsurance assets (excluding prepaid reinsurance) 11 924,313 515,039 - - - 409,274 -
Other receivables (excluding prepayments) 13 1,027,649 94,544 849,974 - - 83,131 -
Statutory deposit 19 617,632 500,000 - - - 117,632 -
Total financial assets 12,745,052 7,794,442 2,884,031 9,341 729 2,056,510 -

Liabilities
Investment contract liabilities 21 920,154 920,154 - - - - -
Trade payables 22 235,800 176,423 - - - 59,377 -
Other payables (excluding non-financial liabilities) 23 1,205,200 1,002,295 - - - 202,905 -
Total financial liabilities 2,361,154 2,098,872 - - - 262,282 -
Net financial assets/liabilities 10,383,898 5,695,570 2,884,031 9,341 729 1,794,228 -
Insurance contract liabilities 20 6,373,682 5,348,153 - - - 1,025,529 -

Net policyholders’ assets/(liabilities) 4,010,216 347,417 2,884,031 9,341 729 768,699 -
The table below summaries the Company’s financial instruments at carrying amount, categorised by currency:

31 December 2017
Total Naira Us Dollar Euro Pound Others
Company Notes
Assets
Cash and cash equivalents 8 911,023 710,858 202,235 (2,215) 145 -
61
62
Equity securities - Available-for-sale 9 3,351,670 1,921,142 1,430,528 - - -
Debt securities - Held to maturity 9 1,004,463 21,284 983,179 - - -
Non pledged trading assets 9 796 796 - - - -
Trade receivables 10 486,997 486,997 - - - -
Reinsurance assets (excluding prepaid reinsurance) 11 403,620 403,620 - - - -
Other receivables (excluding prepayments) 13 834,520 329,829 504,691 - - -
Statutory deposit 19 300,000 300,000 - - - -
Total financial assets 7,293,088 4,174,525 3,120,633 (2,215) 145 -
Liabilities
Trade payables 22 415,414 415,414 - - - -

Other payables (excluding non-financial liabilities) 23 1,324,350 1,324,350 - - - -
Total financial liabilities 1,739,764 1,739,764 - - - -
Net financial assets/liabilities 5,553,324 2,434,761 3,120,633 (2,215) 145 -
Insurance contract liabilities 20 3,817,332 3,817,332 - - - -

Net policyholders’ assets/(liabilities) 1,735,992 (1,382,571) 3,120,633 (2,215) 145 -
31 December 2016
Total Naira Us Dollar Euro Pound Others
Company Notes
Assets
Cash and cash equivalents 8 311,223 358,111 (56,958) 9,341 729 -
Equity securities - Available-for-sale 9 1,482,125 1,271,498 210,627 - - -
Debt securities - Held to maturity 9 1,947,206 1,097,395 849,811 - - -
Non pledged trading assets 9 7 7 - - - -
Trade receivables 10 553,574 553,574 - - - -
Reinsurance assets (excluding prepaid reinsurance) 11 494,779 494,779 - - - -
Other receivables (excluding prepayments) 13 1,069,803 219,829 849,974 - - -
Statutory deposit 19 300,000 300,000 - - - -

Total financial assets 6,158,717 4,295,193 1,853,454 9,341 729 -
Liabilities
Trade payables 22 157,870 157,870 - - - -
Other payables (excluding non-financial liabilities) 23 1,052,514 1,052,514 - - - -
Total financial liabilities 1,210,384 1,210,384 - - - -
Net financial assets/liabilities 4,948,333 3,084,809 1,853,454 9,341 729 -
Insurance contract liabilities 20 3,763,964 3,763,964 - - - -

Net policyholders’ assets/(liabilities) 1,184,369 (679,155) 1,853,454 9,341 729 -

63
Equity price risk

The Group is exposed to equity price risks arising from equity investments. This exposure is managed through
the adherence to investment in good fundamentals equities approved by the Board and in line with NAICOM
investment guidelines.

Asset allocation to investment in equity is shown below

Group Company
31-Dec-2017 31-Dec-2017
Allocation Target Quoted Equities Unquoted Equities Quoted Equities Unquoted Equi-
ties
Insurance and investment 19% 2% 39% 5%
contract fund
Shareholders fund 0% 0% 0% 0%

Group Company
31-Dec-2016 31-Dec-2016
Allocation Target Quoted Unquoted Equities Quoted Equities Unquoted
Equities Equities
Insurance fund 12% 1% 22% 3%
Shareholders fund 0% 0% 0% 0%

The equity price changes are monitored by the investment committee and the holdings are adjusted when there
deviations from the investment policy. The Group manages its exposure to equity price risk using sensitivity
analysis to assess potential changes in the value of investment in equities and the impact of such changes on
the Group’s investment income. There have been no major changes from prior period in the exposure to risk or
policies, procedures and methods used to monitor and measure the Group equity price risk.

Below is the Group and Company equity price sensitivity:

Group Group Company
2017 2016 2017 2016
31-Dec 31-Dec 31-Dec 31-Dec
Increase/ De- Increase/ De- Increase/ De- Increase/ De-
crease by 200Bp crease by 200Bp crease by 200Bp crease by 200Bp
Listed Equities (HFT) 55 4 32 0

Listed Equities (AFS) 61,939 36,349 58,803 33,031
Unlisted Equities (AFS) 7,200 3,901 7,200 3,901
Impact on profit before tax 55 4 32 0
Tax charge of 30% (17) (1) (10) (0)
Impact on profit after tax 39 3 22 0
Impact on equity 69,178 40,253 66,025 36,933


Liquidity Risk Management

Liquidity risk is the risk that the Group may be unable to meet its obligations associated with financial liabilities
that are settled by delivering cash or another financial assets. This usually occurs due to the inability to convert a
security or hard asset to cash without a loss of capital and / or income in the process. The Group mitigates this risk
by monitoring cash activities and expected outflows. The Group’s current liabilities arise as claims are made and
clients request for termination of their investment-linked products. The Group has zero tolerance for liquidity risk
and is committed to meeting all liabilities as they fall due.

The Board approves the Group’s liquidity policy and contingency funding plan, including establishing liquidity risk
tolerance levels. The Board and its committees, monitors the liquidity position and reviews the impact of strategic
decisions on the Group’s liquidity. Liquidity positions are measured by calculating the Group’s net liquidity gap.

Below is a summary of the contractual re-pricing or maturity dates (whichever is earlier) of financial assets
matched with financial liabilities.

Quantifications
The Group adopts both qualitative and quantitative approaches to measuring liquidity risk. Specifically, the Com-
pany uses the following techniques;

a) Funding and Liquidity plan;
b) Gap Analysis; and
c) Ratio Analysis.

The Funding and Liquidity plan defines the Group’s sources and channels of utilization of funds. The funding
liquidity risk limit is quantified by calculating liquidity ratios and measuring/monitoring the cumulative gap
between our assets and liabilities. The Liquidity Gap Analysis quantifies the monthly and cumulative gap in a
business environment. The gap for any given tenor bucket represents the liabilities to, or placements made, the
market required to replace maturing liabilities or assets. The Group monitors the cumulative gap as a ±20% of the
total risk assets and the gap as a ±20% of total liabilities.

The following table shows the undiscounted cash flows on the Group’s financial assets and liabilities and insurance
liabilities, as well as on the basis of their earliest possible contractual maturity. The Gross nominal inflow /
(outflow) disclosed in the table is the contractual, undiscounted cash flow on the financial asset and liability and
insurance liability.

Residual contractual maturities of financial assets and liabilities
Carrying amount Gross nominal 1 - 3 months 3 -6 months 6 - 12 1-5
months years
inflow/ (outflow)
Group
31 December 2017
Assets
Cash and cash equivalents 1,745,342 1,745,342 1,745,342 - - -
Securities - Available for sale 4,032,813 4,032,813 4,032,813 - - -

Investment at fair value through profit or loss 1,380 1,380 1,380 - - -
Held to maturity 5,461,742 5,461,742 1,910,071 1,273,381 - 2,278,290
Trade receivables 707,489 707,489 707,489 - - -
Reinsurance assets (excluding prepaid 1,087,216 1,087,216 - - 1,087,216 -
reinsurance)
Other receivables (excluding prepayment) 924,102 924,102 419,411 - - 504,691
Statutory deposit 632,964 632,964 - - - 632,964
Total financial assets 14,593,047 14,593,047 8,816,505 1,273,381 1,087,216 3,415,945
Liabilities
Investment contracts 1,063,860 1,063,860 1,063,860 - - -
Trade payables 516,371 516,371 516,371 - - -
Other payables (excluding non-financial 1,354,731 1,354,731 1,354,731 - - -
liabilities)
Total financial liabilities 2,934,962 2,934,962 2,934,962 - - -
Gap - Net financial assets/liabilities 11,658,085 11,658,085 5,881,543 1,273,381 1,087,216 3,415,945
Insurance liabilities 7,141,465 7,141,465 7,141,465 - - -

Gap - Net policyholders’ assets/(liabilities) 4,516,620 4,516,620 (1,259,922) 1,273,381 1,087,216 3,415,945
Cumulative liquidity gap 4,516,620 4,516,620 (1,259,922) 13,459 1,100,675 4,516,620
67
68
Carrying amount Gross nominal 1 - 3 months 3 -6 months 6 - 12 1-5
months years
inflow/ (outflow)
Group
31 December 2016
Assets
Cash and cash equivalents 2,220,395 2,220,395 2,220,395 - - -
Investment at fair value through profit or loss 105 105 105 - - -
Held to maturity 5,175,568 5,175,568 2,388,505 1,592,336 - 1,194,727

Reinsurance assets (excluding prepaid 924,313 924,313 - - 924,313 -
reinsurance)
Other receivables (excluding prepayment) 1,027,649 1,027,649 177,675 - - 849,974
Total financial assets 12,745,053 12,745,053 7,566,071 1,592,336 924,313 2,662,333
Liabilities
Financial liabilities:
Investment contracts 920,154 920,154 920,154 - - -
Trade payables 235,800 235,800 235,800 - - -
Other payables (excluding non-financial 1,205,200 1,205,200 1,205,200 - - -
liabilities)
Gap - Net financial assets/liabilities 10,383,899 10,383,899 5,204,917 1,592,336 924,313 2,662,333

Gap - Net policyholders’ assets/(liabilities) 4,010,217 4,010,217 (1,168,765) 1,592,336 924,313 2,662,333
Cumulative liquidity gap 4,010,217 4,010,217 (1,168,765) 423,571 1,347,884 4,010,217

The following table shows the undiscounted cash flows on the Group’s financial assets and liabilities and insurance
liabilities, as well as on the basis of their earliest possible contractual maturity. The Gross nominal inflow / (outflow)
disclosed in the table is the contractual, undiscounted cash flow on the financial asset and liability and insurance
liability.


Carrying Gross 1-3 3 -6 6 - 12 1-5
amount nominal months months months years
inflow/
(outflow)
Company
31 December 2017
Assets
Cash and cash equivalents 911,023 911,023 911,023 - - -
Investment at fair value 796 796 796 - - -
through profit or loss
Held to maturity 1,004,463 1,004,463 12,770 8,514 - 983,179
Reinsurance assets (excluding 403,620 403,620 - - 403,620 -
prepaid reinsurance)
Other receivables (excluding 834,520 834,520 329,829 - - 504,691
prepayment)
Total financial assets 7,293,088 5,093,084 8,514 403,620
7,293,088 1,787,870
Liabilities
Trade payables 415,414 415,414 415,414 - - -
Other payables (excluding 1,324,350 1,324,350 1,324,350 - - -
non-financial liabilities)
Gap - Net financial assets/ 5,553,324 5,553,324 3,353,320 8,514 403,620 1,787,870
liabilities

Gap - Net policyholders’ 1,735,992 1,735,992 (464,012) 8,514 403,620 1,787,870
assets/(liabilities)
Cumulative liquidity gap 1,735,992 1,735,992 (464,012) (455,498) (51,878) 1,735,992


Carrying Gross 1-3 3 -6 6 - 12 1-5
amount nominal months months months years
inflow/
(outflow)
Company
31 December 2016
Assets
Cash and cash equivalents 311,223 311,223 311,223 - - -
Equity securities - Available 1,482,125 1,482,125 1,482,125 - - -
for sale
Investment at fair value 7 7 7 - - -
through profit or loss
Held to maturity 1,947,206 1,947,206 658,437 438,958 - 849,811
Reinsurance assets (excluding 494,779 494,779 - - 494,779 -
prepaid reinsurance)
Other receivables (excluding 1,069,803 1,069,803 219,829 - - 849,974
prepayment)
Total financial assets 6,158,717 6,158,717 3,225,195 438,958 494,779
1,999,785
Liabilities
Trade payables 157,870 157,870 157,870 - - -
Other payables (excluding 1,052,514 1,052,514 1,052,514 - - -
non-financial liabilities)
Gap - Net financial assets/ 4,948,333 2,014,811 438,958 494,779
liabilities 4,948,333 1,999,785

Gap - Net policyholders’ 1,184,369 1,184,369 438,958 494,779
assets/(liabilities) (1,749,153) 1,999,785
Cumulative liquidity gap 1,184,369 1,184,369 (1,749,153) (1,310,195) (815,416) 1,184,369

The following table shows amount expected to be recovered or settled after more than twelve months (non-current)
for each asset and liability line item and the amounts expected to be recovered or settled no more than twelve
months after the reporting period (current).
Group
31 December 2017 Current Non- Carrying Current Non- Carrying
current amount current amount
ASSETS
Cash and cash equivalents 1,745,342 - 1,745,342 2,220,395 - 2,220,395
Financial assets 7,217,645 2,278,290 9,495,935 6,206,762 1,194,727 7,401,489
Trade receivables 707,489 - 707,489 553,575 - 553,575

Reinsurance assets 1,586,301 - 1,586,301 1,572,830 - 1,572,830

Deferred acquisition cost 530,793 - 530,793 447,934 - 447,934
Other receivables and 556,840 504,691 1,061,531 295,045 849,974 1,145,019
prepayments
Investment property - 312,750 312,750 - 539,930 539,930
Investment in associates - 8,264,440 8,264,440 - 7,173,843 7,173,843
Investment in subsidiaries - - - - - -
Intangible assets - 479,685 479,685 - 203,896 203,896
Property and equipment - 3,787,381 3,787,381 - 4,025,510 4,025,510
Deferred tax asset - - - - - -
Statutory deposit - 632,964 632,964 - 617,632 617,632
TOTAL ASSETS 12,344,410 16,260,201 28,604,611 11,296,541 14,605,512 25,902,053
LIABILITIES
Insurance contract 7,005,744 135,721 7,141,465 6,217,474 156,208 6,373,682
liabilities
Investment contract 1,063,860 - 1,063,860 920,154 - 920,154
liabilities
Trade payables 516,371 - 516,371 235,800 - 235,800
Other payables 1,458,750 - 1,458,750 1,320,043 - 1,320,043
Current income tax 263,793 - 263,793 208,382 - 208,382
Deferred income tax - 202,547 202,547 - 277,657 277,657
liabilities
TOTAL LIABILITIES 10,308,518 338,268 10,646,786 8,901,853 433,865 9,335,718
GAP 2,035,892 15,921,933 17,957,825 2,394,688 14,171,647 16,566,335
The following table shows amount expected to be recovered or settled after more than twelve months (non-
current) for each asset and liability line item and the amounts expected to be recovered or settled no more than
twelve months after the reporting period (current).
Company
31 December 2017 31 December 2016
Current Non- Carrying Current Non- Carrying
current amount current amount
ASSETS
Cash and cash equivalents 911,023 - 911,023 311,223 - 311,223
Financial assets 3,373,750 983,179 4,356,929 2,579,527 849,811 3,429,338
Trade receivables 486,997 - 486,997 553,574 - 553,574
Reinsurance assets 838,139 - 838,139 1,094,415 - 1,094,415
Deferred acquisition cost 317,832 - 317,832 281,344 - 281,344
Other receivables and 366,547 504,691 871,238 287,073 849,974 1,137,047
prepayments
Investment property - 312,750 312,750 - 539,930 539,930
Investment in associates - 5,059,810 5,059,810 - 5,059,810 5,059,810

Investment in subsidiaries - 3,876,571 3,876,571 - 3,876,571 3,876,571

Intangible assets - 476,144 476,144 - 199,171 199,171
Property and equipment - 3,521,507 3,521,507 - 3,811,639 3,811,639
Deferred tax asset - - - - - -
Statutory deposit - 300,000 300,000 - 300,000 300,000
TOTAL ASSETS 6,294,288 15,034,652 21,328,940 5,107,156 15,486,906 20,594,062
LIABILITIES
Insurance contract 3,817,332 - 3,817,332 3,763,964 - 3,763,964
liabilities
Trade payables 415,414 - 415,414 157,870 - 157,870
Other payables 1,417,790 - 1,417,790 1,157,450 - 1,157,450
Current income tax 115,315 - 115,315 88,114 - 88,114
Deferred income tax - 202,548 202,548 - 393,175 393,175
liabilities
TOTAL LIABILITIES 5,765,851 202,548 5,968,399 5,167,398 393,175 5,560,573
GAP 528,437 14,832,104 15,360,541 (60,242) 15,093,731 15,033,489
Underwriting, Claims &
Reinsurance risk

Underwriting involves appraising risk exposure and The factors that the Company uses to classify risks is
determining the premium required to be charged to highly objective, clearly related to the likely cost of
insure the risk. The Insurer decides how much coverage providing coverage, practical to administer, consistent
the client should receive, how much they should pay for with applicable law, and designed to protect the long-
it, or whether to even accept the risk and insure them. term viability of the insurance program.
The information used to evaluate the risk of an applicant
for insurance will be obtained from the proposal form
filled by the proposer. Underwriting process risk – This is the risk from
exposure to financial losses related to the selection and
acceptance of risks to be insured.
Underwriting is the process in which an insurer
appraises a risk being presented by the proposer and
deciding whether or not to accept the risk and the Mispricing risk – Risk that insurance premium will
consideration (premium) to receive. Weaknesses in the be too low to cover the Company’s expenses related to
systems and controls surrounding the underwriting underwriting, claim handling and administration.
process can expose an insurer to the risk of unexpected
losses which may threaten the capital adequacy of the
insurer. The Company’s underwriting process is subject “Brokers’ underwriting risk – This is the risk that brokers
to internal audit. may:
“
i. Be inadequately trained to assess the risk and offer
In addition, there is a process for assessing brokers’ professional advice to the client.
procedures and systems to ensure that the quality of
information provided to the Company meet suitable ii. Fail to remit premium collected to the Insurer.
standard; and in the case of reinsurers, audits of ceding
companies to ensure that reinsurance assumed is in
accordance with treaties.


Underwriting risk appetite persistency and expenses about which assumptions are
made in order to place a value on the liabilities.
“The following factors constitute the basis for the
Company’s underwriting risk appetite: The Company assesses and monitors insurance risks
• Wapic does not underwrite risk not fully understood through thorough data analysis and stress-testing etc. It
• We will not underwrite unquantifiable risks. mainly evaluates the impacts of actuarial assumptions,
• Extreme caution is taken when underwriting risk with such as the discount rate, investment yield and expense
low safety standards or businesses with excessively high ratio, on our reserve, solvency and profit. We manage
risk profile; and monitor consistently within acceptable limits those
• We exercise caution when underwriting discrete exposures assumed in the course of providing insurance
(one-off) risks, particularly where there is no requisite cover to insured risks.
experience or know-how;
• The limits, standard and exposure are guided by
prudent underwriting procedure and reinsurance treaties. Managing pricing risk
• The Company adhere fully with all extant laws and
regulations, including NAICOM’s guideline on know your Pricing risk is effectively managed in the company
customer (KYC).” through efficient insurance premium rating controls
embedded in its process.

Underwriting Risk Management and Control:
Pricing risk is effectively managed in the company
For effective management of the underwriting exposures, through efficient insurance premium rating controls
Risk management and control function is responsible for embedded in its process. This amongst others include but
the following: not limited to:

• Ensure that underwriting standards are never (a) Individual life products – Term-assurance and savings
compromised due to pressure from various stakeholders. plan
The price for an individual life product is adjusted for the
• Analysis of insurance exposures, continuous analysis of following risk factors:
claims, product profitability analysis and other relevant
risk issues. · Age;
· Gender;
• Investigate unusual claims, large sums assured and
high variability in quotations submitted to the clients and · Smoker status;
make sure that unnecessary risks are not taken.
· Medical conditions;

• Ensure compliance with the regulatory requirements as · Financial condition; and
it relates to underwriting.
· Hazardous pursuits.
• Coordinate issues tracking activities and ensure action
plans are developed for all identified gaps.
The Group employs the following additional controls
• Collaborate with the underwriting risk committee to and measures to ensure that only acceptable risks are
develop appetite and tolerance limits. accepted and risks are appropriately priced:

• Identify and manage the Company’s underwriting risk. · Underwriting controls, with risk classification based on
the above risk factors;
• Review and approve reinsurance and retrocession
arrangements as mandated by NAICOM. · Regular review of premium rates; and

· Appropriate policy conditions, including any exclusion
Insurance risk on the cover of the subject matter of insurance.

Insurance risk is the inherent uncertainty regarding · Premium rates are guaranteed for the period up to the
the pricing, adverse selection, product design, net renewal of a policy, typically, after 1 year.
retention, reserving, occurrence, amount or timing of
insurance liabilities. It also covers the future risk claims
and expenses exceeding the value placed on insurance (b) Deposit administration
liabilities. The timing is specifically influenced by

Premium rating on deposit administration policies For contracts with fixed and guaranteed benefits (such
distinguishes between the ages and gender of as the minimum death benefits available on savings
prospective policyholders. Annual premiums, payable plan policies) and fixed future premiums, the Group
up front, are re-priced at renewal of the deposit employs additional underwriting controls and measures
administration policies. to manage its exposure to mortality risk. This includes
but not limited to:
(c) Group life products
• Ensure that only acceptable risks are accepted.
Underwriting of Group business is much less stringent
than for individual business, as there is typically less • Claims assessment processes to ensure only valid
scope for anti-selection. The main reason for this is claims are paid;
that participation in the Group schemes is normally
compulsory and members have limited choice in the • Purchased reinsurance to limit liability on particularly
level of the benefits. large claims or substandard risks; and

Group’s policies are priced using standard mortality • Concentration risk is reduced by diversification of
tables. The price for an individual scheme is adjusted business over a large number of independent lives, as
for the following risk factors: well as by taking out catastrophe reinsurance.

· Region; (b) Group life products

· Salary structure; Employee benefit products provide life cover to
members of a group, such as employees of companies or
· Gender structure; and members of trade unions.

· Industry.

For large schemes, a scheme’s past experience is a An aggregate stop-loss reinsurance agreement is
crucial input in setting rates for the scheme. Rates are in place to ensure that the Group’s exposure to the
guaranteed for one year and reviewable at the renewal aggregate mortality risk in its group life business is
of the policy. managed and limited to a specified limit.

(d) Short-term insurance (general insurance) products
In addition, there is a catastrophe reinsurance treaty in
Underwriting on short-term insurance products takes place for both group business and individual business.
the form of the insurance applicant completing a Such a treaty is particularly important for the group life
proposal form. The company uses identified risk factors business as there are considerably more concentrations
to classify the risk and charge the appropriate premium. of risks compared to individual business.

(c) Deposit administration
Where the value of the item(s) to be insured exceeds
a pre-specified limit, the underwriting consideration Deposit administration contracts provide a guaranteed
becomes more stringent. This is particularly the case life annuity conversion at the maturity of the contract.
for marine and aviation cover. In this case the Company The mortality risk in this case is that the policyholders
makes use of specialist to assess the risks and set an may live longer than assumed in the pricing of the
appropriate premium for cover. contract. This is known as the risk of longevity.

Mortality and morbidity risks The Group manages this risk by allowing
for improvements in mortality when pricing and
The risk that actual experience in respect of the rates of valuing the contracts. The Group also performs more
mortality and morbidity may vary from what is assumed detailed actuarial experience investigations and adjust
in pricing and valuation, depending on the terms of assumptions in pricing for new contracts and valuation
different products. The material classes of business of existing contracts when necessary.
most affected by these risks are discussed below.

Outstanding claims
(a) Individual life products – Term assurance and
Savings Plan This represents the estimated ultimate cost of settling
all claims arising from incidents occurring as at the date
Products are sold directly to individuals providing a of the statement of financial position.
benefit on death. The main insurance risk relates to
the possibility that rates of death may be higher than
expected.
Claims management risk which are appropriate to the risks under the insurance
contracts.
This is the risk that the insurer may be unable to manage
the settlement process by which insurers fulfil their Under the short-term insurance products, the Company
contractual obligation to policyholders. The Company has also holds a concentration risk, which is the risk of a large
in place a claims management policy and procedure for number of claims from a single event or in a particular
ensuring that claims are handled fairly and promptly. In geographical area. The Company reduced this risk by
establishing and maintaining effective claims handling diversification over a large number of uncorrelated risks,
systems and procedures, the Company considers the as well as arranged catastrophe reinsurance cover.
following factors:
Reinsurance risk
• Appropriate systems and controls to ensure that all
liabilities or potential liabilities notified to the insurer This is the risk of inadequate reinsurance cover which
are recorded promptly and accurately. Accordingly, the may be triggered by a situation such as the insolvency
systems and controls in place ensure that proper records of a reinsurer, omission to cede risk to the treaty, wrong
are established for each notified claim; cession to the treaty, assumption of risks without
reinsurance cover, acceptance of risks above automatic
capacity and there is already market saturation and
• Suitable controls are maintained to ensure that non-payment of reinsurance premium as at when due.
estimates for reported claims and additional estimates are The Company ensures that it manages reinsurance risk
appropriately made on a consistent basis and are properly by maintaining adequate reinsurance arrangements and
categorized; treaties in respect of the classes or category of insurance
business authorized to transact. The Company particularly
• Regular reviews of the actual outcome of the estimates put in place a documented policy stating:
made is carried out to check for inconsistencies and to
ensure that procedures remain appropriate. The reviews
include the use of statistical techniques to compare the • Systems for the selection of reinsurance brokers and
estimates with the eventual cost of settling the claims, other reinsurance advisers;
after deducting the amounts already paid at the time the
estimates were made; • Systems for selecting and monitoring reinsurance
programmes;

• A functional system is in place to ensure that claim files • Clearly defined managerial responsibilities and controls;
without activity are reviewed on a regular basis;
• Presence of a well-resourced reinsurance department
• Appropriate systems and procedures are in place to that prepares clear methodologies for determining all
assess the validity of notified claims by reference to the aspects of a reinsurance programme.
underlying contracts of insurance and reinsurance treaties;

• Senior management that review the Company’s
• Suitable systems are adopted to accommodate the use of reinsurance management systems on a regular basis.
suitable experts such as loss adjusters, lawyers, actuaries,
accountants etc. as and when appropriate, and to monitor • Reinsurers were profiled and categorized into tiers in
their use; and determining the company’s exposure limit to reinsurers.

• Appropriate procedures are in place to identify and Technical Reserving methods
handle large or unusual claims, including system to ensure
that senior management are involved from the outset in The provision for outstanding claims, including IBNR, was
the processing of claims that are significant because of determined for each line of business on both gross and
their size or nature. net of reinsurance basis. A yearly cohort from year 2007
has been adopted in building the historical claims. The
UPR was calculated using a time – apportionment basis,
Claims experience risk in particular, the 365ths method. The UPR is calculated
on the assumption that risk will occur evenly during the
In terms of the short-term insurance contracts held by duration of the policy.
the Company, the claims experience risk for these policies
is that the number of claims and/or the monetary claim Description of insurance reserves by segment:
amounts are worse than that assumed in the pricing basis.
The Company manages this risk by charging premiums

IBNR

Group Company
Gross IBNR Gross IBNR Gross IBNR Gross IBNR
In thousands of Naira 31-Dec-17 31-Dec-16 31-Dec-17 31-Dec-16
Class of business
Aviation 47,632 24,140 47,632 24,140
Bonds 340 18 340 18
Engineering 57,315 48,322 38,747 33,537
Fire 134,532 122,408 23,585 58,576
General Accident 334,594 318,328 298,236 291,685
Marine 42,980 56,691 36,457 52,763
Motor 370,020 247,578 137,581 85,268
Oil and Energy 394,862 384,506 394,862 384,506
Group Life 824,342 642,476 - -
Total 2,206,617 1,844,467 977,440 930,493

UPR and Life fund

G roup Company
Gross UPR Gross UPR Gross UPR Gross UPR
In thousands of Naira 31-Dec-17 31-Dec-16 31-Dec-17 31-Dec-16
Class of business
Aviation 36,324 55,065 36,324 55,065
Bonds 430 177 430 177
Engineering 659,113 756,609 659,113 756,609
Fire 144,571 197,102 136,321 185,957
Marine 156,563 140,985 155,759 140,617
Motor 603,470 615,812 329,031 321,073
Oil and Energy 125,630 145,024 123,339 137,988
Group Life 771,308 432,580 - -
Life Fund 135,721 156,208 - -
Total 3,090,334 2,904,669 1,890,526 1,996,868
Sensitivity analysis

Sensitivity analyses are performed to test the variability around the reserves that are calculated at a best estimate level.
The estimated claim amounts can never be an exact forecast of future claim amounts and therefore looking at how
these claim amounts vary provides valuable information for business planning and risk appetite considerations.

A sensitivity analysis was done to determine how the IBNR reserve amount would change if we were to consider the
75th percentile as opposed to our best estimate figures included in reserve reviews as at 31 December 2017. The 75th
percentile is a generally accepted level of prudency. The results based on fitting a Normal distribution to the best
estimate IBNR reserves as at 31 December 2017 are as follows:



Best Gross IBNR Best Estimate Net IBNR
Estimate
In thousands of Naira 75th percentile 75th percentile
Class of business
Aviation 47,632 60,104 46,655 58,871
Bonds 340 429 96 121
Engineering 38,747 48,893 19,019 23,999
Fire 23,585 29,761 5,912 7,460
Marine 36,457 46,003 15,681 19,787
Motor 137,581 173,608 118,104 149,030
Oil and Energy 394,862 498,258 345,208 435,602
Total 977,440 1,233,386 774,839 977,733
• Optimized the reinsurance arrangement to focus

Key Developments in the Group 2017 more on enhancing the existing placements and better
arrangement of new placement to make adequate profit
Key improvements made in 2017 include the following: in line with the Company’s strategy and risk tolerance
level.
• The critical technical processes such as underwriting,
claims processing, reinsurance posting and reserves • The facilitation of information flow was upgraded
creation was significantly improved following the launch through Microsoft Dynamics Nav, which enabled
of a new effective core insurance application. The new the Company to manage its finance, sales, project
application serves as a one-stop shop for all our Life & management and services.
General core processes.

• In order to ensure compliance with best practice and
• The competence skills of our Technical Team was an effective process system, all our core processes were
enhanced following the comprehensive training on the aligned to meet the requirements of Solvency II.
new application conducted for the Team. Furthermore,
an overseas training on the application was also attended
by some Team members. • Maximized cost savings and improved the claims
investigation process following the appointment an
internal loss adjuster

78
Claims Paid Triangulations as at December 2017

The claims paid triangulations is presented below for the five classes where triangulation methods were
used, i.e. for Engineering, Fire, General Accident, Marine and Motor. The triangulations is based on the
Company’s claims paid data as at 31 December 2017 which formed the basis of the results of the actuarial
valuation of the insurance contract claims liabilities carried-out by QED Actuaries. The triangulations
have excluded large claims.

Engineering

Accident 0 1 2 3 4 5 6 7 8 9
Year
2008 1,183,499 9,781,557 20,000,023 20,000,023 20,000,023 20,000,023 20,000,023 20,000,023 20,000,023 20,000,023
2009 2,360,909 43,629,952 43,836,452 43,836,452 43,836,452 43,904,984 43,904,984 43,904,984 43,904,984
2010 7,608,992 37,059,857 63,710,125 64,698,811 64,698,811 64,698,811 64,698,811 64,698,811
2011 16,696,398 24,873,634 40,152,598 40,154,377 40,154,377 40,154,377 40,154,377
2012 46,746,703 52,164,231 52,674,992 52,674,992 52,674,992 52,674,992
2013 19,127,818 20,836,534 25,786,648 25,786,648 25,786,648
2014 9,028,198 9,764,664 11,276,393 11,276,393
2015 2,142,843 5,511,960 5,565,341
2016 11,520,379 19,016,049
2017 10,311,579

Fire
Accident 0 1 2 3 4 5 6 7 8 9
Year
2008 64,227,677 127,911,623 139,232,653 139,232,653 139,232,653 139,232,653 139,232,653 139,232,653 139,232,653 139,232,653
2009 40,937,273 114,548,121 119,212,960 119,212,960 119,221,760 119,221,760 119,221,760 119,221,760 119,221,760
2010 14,058,843 25,577,128 27,677,117 28,222,647 28,222,647 28,222,647 28,222,647 28,222,647
2011 8,850,612 39,764,583 40,169,587 41,941,919 42,117,672 42,117,672 42,117,672
2012 6,956,337 46,860,967 47,200,550 47,200,550 47,200,550 47,200,550
2013 5,541,845 54,436,925 55,374,297 55,562,486 55,562,486
2014 3,417,765 11,581,843 14,140,656 14,140,656
2015 24,041,289 54,129,152 54,398,806
2016 57,529,892 86,090,669
2017 68,692,122
General Accident

Development
Year
Accident 0 1 2 3 4 5 6 7 8 9
Year
2008 95,246,249 231,689,063 287,336,184 294,342,361 299,209,041 300,485,824 300,519,001 300,943,829 300,943,829 300,943,829
2009 48,806,069 212,396,320 245,761,687 268,392,329 273,225,211 274,384,268 275,620,104 275,846,569 275,846,569
2010 72,051,700 243,040,104 267,087,136 289,460,687 295,997,513 296,140,581 296,851,193 297,189,903
2011 58,395,892 208,905,420 265,524,431 274,452,742 275,299,783 280,333,199 282,450,341
2012 37,324,821 193,808,821 220,670,585 229,483,213 237,666,709 237,666,709
2013 82,796,310 149,999,875 174,350,335 178,716,416 178,716,416
2014 28,862,114 124,631,290 143,357,380 143,804,629
2015 108,959,894 268,393,237 273,897,748
2016 117,719,787 160,358,285
2017 119,275,845
79
80
Marine
Development
Year
Accident 0 1 2 3 4 5 6 7 8 9
Year
2008 10,041,349 42,853,371 103,708,212 103,953,649 103,953,649 103,953,649 103,953,649 103,953,649 103,953,649 103,953,649
2009 31,537,216 64,874,539 100,050,600 100,554,119 100,554,119 100,554,119 100,615,612 100,615,612 100,615,612
2010 28,954,132 45,973,224 46,031,767 47,302,856 47,302,856 47,302,856 47,302,856 47,302,856
2011 50,333,949 99,423,651 114,853,221 119,373,293 119,373,293 157,367,366 157,367,366
2012 14,363,632 44,204,968 44,204,968 44,204,968 44,378,736 44,378,736
2013 41,397,922 44,075,404 44,075,404 44,138,904 44,138,904

2014 9,019,667 13,527,085 13,706,887 13,706,887
2015 20,647,833 37,559,314 39,267,348
2016 47,309,022 63,592,694
2017 45,342,989
Motor
Development
Year
Accident 0 1 2 3 4 5 6 7 8 9
Year
2008 442,931,617 656,874,254 672,336,910 673,417,360 674,312,064 674,312,064 674,312,064 674,312,064 674,312,064 674,312,064
2009 421,152,839 587,874,584 595,920,840 595,920,840 596,608,840 596,608,840 596,608,840 596,608,840 596,608,840
2010 256,770,668 387,863,521 396,260,808 397,537,546 398,039,789 398,093,921 398,131,921 398,137,423
2011 227,594,911 295,665,676 299,592,255 300,496,940 300,904,358 300,904,358 300,904,358
2012 120,160,436 172,810,134 172,818,234 172,818,234 172,818,234 172,818,234
2013 113,637,984 144,895,313 148,603,342 148,603,342 148,603,342
2014 118,670,920 188,724,175 197,407,441 199,647,459
2015 250,904,197 327,618,530 328,166,397
2016 400,498,448 415,630,356
2017 593,889,705

Claims Paid Triangulations as at December 2016
Engineering
Development
Year
Accident 0 1 2 3 4 5 6 7 8 9
Year
2007 3,061,915 18,730,090 20,837,895 20,837,895 20,837,895 20,837,895 20,837,895 20,837,895 20,837,895 20,837,895
2008 1,183,499 9,781,557 20,000,023 20,000,023 20,000,023 20,000,023 20,000,023 20,000,023 20,000,023
2009 2,360,909 43,629,952 43,836,452 43,836,452 43,836,452 43,904,984 43,904,984 43,904,984
2010 7,608,992 37,059,857 63,710,125 64,698,811 64,698,811 64,698,811 64,698,811
2011 16,696,398 24,873,634 40,152,598 40,154,377 40,154,377 40,154,377
2012 46,746,703 52,164,231 52,674,992 52,674,992 52,674,992
2013 19,127,818 20,836,534 25,786,648 25,786,648
2014 9,028,198 9,764,664 11,276,393

2015 2,142,843 5,511,960
2016 11,520,379
Fire
Development
Year
Accident 0 1 2 3 4 5 6 7 8 9
Year
2007 23,303,768 44,330,380 53,656,663 54,050,853 54,756,866 55,992,051 55,992,051 55,992,051 55,992,051 55,992,051
2008 64,227,677 127,911,623 139,232,653 139,232,653 139,232,653 139,232,653 139,232,653 139,232,653 139,232,653
2009 40,937,273 114,548,121 119,212,960 119,212,960 119,221,760 119,221,760 119,221,760 119,221,760
2010 14,058,843 25,577,128 27,677,117 28,222,647 28,222,647 28,222,647 28,222,647
2011 8,850,612 39,764,583 40,169,587 41,941,919 42,117,672 42,117,672
2012 6,956,337 46,860,967 47,200,550 47,200,550 47,200,550
2013 5,541,845 54,436,925 55,374,297 55,562,486
2014 3,417,765 11,581,843 14,140,656
2015 24,041,289 54,129,152
2016 57,529,892
81
82
General Accident
Development
Year
Accident 0 1 2 3 4 5 6 7 8 9
Year
2007 106,387,115 179,904,803 233,656,011 236,130,244 238,461,729 242,705,888 242,821,312 243,248,812 243,480,135 243,480,135
2008 95,246,249 231,689,063 287,336,184 294,342,361 299,209,041 300,485,824 300,519,001 300,943,829 300,943,829
2009 48,806,069 212,396,320 245,761,687 268,392,329 273,225,211 274,384,268 275,620,104 275,846,569
2010 72,051,700 243,040,104 267,087,136 289,460,687 295,997,513 296,140,581 296,851,193
2011 58,395,892 208,905,420 265,524,431 274,452,742 275,299,783 280,333,199
2012 37,324,821 193,808,821 220,670,585 229,483,213 237,666,709
2013 82,796,310 149,999,875 174,350,335 178,716,416
2014 28,862,114 124,631,290 143,357,380

2015 108,959,894 268,393,237
2016 117,719,787
Marine
Development
Year
Accident 0 1 2 3 4 5 6 7 8 9
Year
2007 28,873,155 43,428,239 47,096,323 47,286,882 48,242,886 48,242,886 48,242,886 48,242,886 48,242,886 48,242,886
2008 10,041,349 42,853,371 103,708,212 103,953,649 103,953,649 103,953,649 103,953,649 103,953,649 103,953,649
2009 31,537,216 64,874,539 100,050,600 100,554,119 100,554,119 100,554,119 100,615,612 100,615,612
2010 28,954,132 45,973,224 46,031,767 47,302,856 47,302,856 47,302,856 47,302,856
2011 50,333,949 99,423,651 114,853,221 119,373,293 119,373,293 157,367,366
2012 14,363,632 44,204,968 44,204,968 44,204,968 44,378,736
2013 41,397,922 44,075,404 44,075,404 44,138,904
2014 9,019,667 13,527,085 13,706,887
2015 20,647,833 37,559,314
2016 47,309,022


Motor
Development
Year
Accident 0 1 2 3 4 5 6 7 8 9
Year
2007 214,681,643 350,932,235 394,865,504 397,286,592 397,286,592 397,286,592 397,286,592 397,286,592 397,286,592 397,286,592
2008 442,931,617 656,874,254 672,336,910 673,417,360 674,312,064 674,312,064 674,312,064 674,312,064 674,312,064
2009 421,152,839 587,874,584 595,920,840 595,920,840 596,608,840 596,608,840 596,608,840
596,608,840
2010 256,770,668 387,863,521 396,260,808 397,537,546 398,039,789 398,093,921 398,131,921
2011 227,594,911 295,665,676 299,592,255 300,496,940 300,904,358
300,904,358
2012 120,160,436 172,810,134 172,818,234 172,818,234 172,818,234
2013 113,637,984 144,895,313 148,603,342 148,603,342
2014 118,670,920 188,724,175 197,407,441

2015 250,904,197 327,618,530
2016 400,498,448
83
84
Sensitivity Analysis

Sensitivity of liabilities to changes in long term valuation assumptions

31 December 2017
N’000 Base Interest Interest Expens- Ex- Expense Expense Lapses Lapses Mortali- Mortality
rate +1% rate -1% es +10% penses Inflation Inflation +10% -10% ty +5% -5%
-10% +2% -2%
Individual Traditional 135,721 129,889 141,909 139,247 130,236 135,721 135,151 n/a n/a 136,265 128,818
Individual Investment 1,007,273 1,007,273 1,007,273 1,007,273 1,007,273 1,007,273 n/a n/a 1,007,273 1,007,273
Linked 1,007,273
Group DA 54,472 54,472 54,472 54,472 54,472 54,472 54,472 n/a n/a 54,472 54,472
Group Life – UPR 581,310 581,310 581,310 581,310 581,310 581,310 581,310 n/a n/a 581,310 581,310
Group Life – AUR 824,342 824,342 824,342 824,342 824,342 824,342 824,342 n/a n/a 824,342 824,342
Group Life – IBNR 52,048 52,048 52,048 52,048 52,048 52,048 52,048 52,048 52,048
Additional reserves - - - - - - - n/a n/a - -
Reinsurance (137,178) (137,178) (137,178) (137,178) (137,178) (137,178) (137,178) n/a n/a (137,178) (137,178)
Net liability 2,517,987 2,512,155 2,524,175 2,521,513 2,517,987 2,517,417 n/a n/a 2,518,532 2,511,084
2,512,502
% change in liability - -0.2% 0.2% 0.1% -0.2% 0.0% 0.0% n/a n/a 0.0% -0.3%
Summary Base Interest Interest Expenses Expenses Expense Expense Lapses Lapses Mortality Mortality
rate +1% rate -1% +10% -10% Inflation Inflation +10% -10% +5% -5%
+2% -2%
Individual 1,142,994 1,137,162 1,149,182 1,146,520 1,137,509 1,142,994 1,142,424 n/a n/a 1,143,538 1,136,091
Group 1,374,993 1,374,993 1,374,993 1,374,993 1,374,993 1,374,993 1,374,993 n/a n/a 1,374,993 1,374,993
Net liability 2,517,987 2,512,155 2,524,175 2,521,513 2,517,987 2,517,417 n/a n/a 2,518,532 2,511,084
2,512,502
% change in liability - -0.2% 0.2% 0.1% -0.2% 0.0% 0.0% n/a n/a 0.0% -0.3%

Sensitivity Analysis
Sensitivity of liabilities to changes in long term valuation assumptions
31 December 2016
N’000m Base Interest Interest Expens- Ex- Expense Expense Lapses Lapses Mortali- Mortality
rate +1% rate -1% es +10% penses Inflation Inflation +10% -10% ty +5% -5%
-10% +2% -2%
Individual Traditional 153,863 150,432 154,223 160,086 147,644 154,314 153,416 n/a n/a 154,867 152,860
Individual Investment 865,681 865,681 865,681 865,681 865,681 865,681 865,681 n/a n/a 865,681 865,681
Linked
Group DA 54,472 54,472 54,472 54,472 54,472 54,472 54,472 n/a n/a 54,472 54,472

Group Life – AURR 399,085 399,085 399,085 399,085 399,085 399,085 399,085 n/a n/a 399,085 399,085
Group Life – UPR 33,495 33,495 33,495 33,495 33,495 33,495 33,495 n/a n/a 33,495 33,495
Group Life – IBNR 642,476 642,476 642,476 642,476 642,476 642,476 642,476 n/a n/a 642,476 642,476
Additional reserves 2,345 2,345 2,345 2,345 2,345 2,345 2,345 n/a n/a 2,345 2,345
Reinsurance (19,487) (19,487) (19,487) (19,487) (19,487) (19,487) (19,487) n/a n/a (19,487) (19,487)
Net liability 2,131,930 2,128,499 2,132,290 2,138,152 2,125,711 2,132,381 2,131,483 n/a n/a 2,132,933 2,130,927
% change in liability - -0.2% 0.0% 0.3% -0.3% 0.0% 0.0% n/a n/a 0.0% 0.0%
Summary Base Interest Interest Expenses Expenses Expense Expense Lapses Lapses Mortality Mortality
rate +1% rate -1% +10% -10% Inflation Inflation +10% -10% +5% -5%
+2% -2%
Individual 1,021,889 1,018,458 1,022,249 1,028,111 1,015,670 1,022,340 1,021,442 n/a n/a 1,022,892 1,020,886
Group 1,110,041 1,110,041 1,110,041 1,110,041 1,110,041 1,110,041 1,110,041 n/a n/a 1,110,041 1,110,041
Net liability 2,131,930 2,128,499 2,132,290 2,138,152 2,125,711 2,132,381 2,131,483 n/a n/a 2,132,933 2,130,927
% change in liability - -0.2% 0.0% 0.3% -0.3% 0.0% 0.0% n/a n/a 0.0% 0.0%

85
86
Claims Paid Triangulations as at December 2017 - Life business

Development Year
Accident Year 0 1 2 3 4 5 6 7 8
2009 281,424,502 464,592,107 464,592,107 471,323,561 471,568,305 472,098,371 477,109,263 477,141,815
468,586,368
2010 180,162,677 380,188,154 401,717,216 457,712,600 471,789,466 499,808,895 504,340,721 520,545,794 -
2011 153,644,033 321,915,739 349,462,441 370,136,520 373,537,409 382,400,353 - -
254,274,204
2012 53,378,309 283,111,111 314,908,488 325,067,235 337,508,527 350,022,591 - - -
2013 196,586,494 401,417,665 436,403,443 441,201,971 - - - -

440,646,782
2014 47,109,502 147,211,665 220,533,127 244,773,673 - - - - -
2015 165,537,238 412,614,454 500,383,514 - - - - - -
2016 312,958,358 722,029,575 - - - - - - -
2017 642,455,377 - - - - - - - -
Claims Paid Triangulations as at December 2016 - Life business

Development
Year
Accident Year 0 1 2 3 4 5 6 7
2009 281,424,502 464,592,107 464,592,107 471,323,561 471,568,305 472,098,371 477,036,463
468,586,368
2010 180,175,681 380,371,043 401,900,105 457,895,488 471,972,355 512,373,628 519,279,659 -
2011 153,644,033 321,915,739 349,462,441 370,168,967 376,821,827 - -
254,274,204
2012 53,378,309 283,111,111 314,908,488 325,199,583 339,180,001 - - -
2013 196,586,494 401,417,665 436,403,443 440,456,273 - - - -
2014 47,852,137 148,672,123 226,183,719 - - - - -
2015 166,816,221 - - - - - -
459,694,054
2016 445,659,176 - - - - - - -

Capital Management

capitalization under the Solvency II framework. This is
Capital risk is the risk of company’s capital diminishing
or attaining below the minimum capital requirement level
due to the occurrence of certain loss or risk event. The
supplemented by economic scenarios and sensitivities.
Group’s objectives with respect to capital management

are to maintain a capital base that is structured to exceed
The company steers its portfolio using a comprehensive
regulatory and to best utilize capital allocations.manage-
view of risk and return, i.e. results based on the internal
ment are to maintain a capital base that is structured to
risk model, including scenario-based analysis, are actively
exceed regulatory and to best utilize capital allocations.
used for decision making. On one hand, economic risk

and concentrations are actively restricted by means of
Insurance industry regulator measures the financial
limits. On the other hand, return on risk capital (RORC)
strength of Non-life insurers using a solvency margin
is a key input in the Company. The latter allows us to
model, NAICOM generally expect non-life insurers to
identify profitable lines of business on a sustainable basis,
comply with this capital adequacy requirement. This test
which provide reasonable profits on allocated risk capital.
compares insurers’ capital against the risk profile. Section
Therefore, it is a key criterion for Wapic’s capital alloca-
24 (1) of the Insurance Act, 2003 requires that an insurer
tion decisions.
shall in respect of its business other than its life insurance
As a Group holding company with presence in Ghana, we
business, maintain at all times a margin of solvency being
consider diversification across different business seg-
the excess of the value of its admissible assets in Nigeria
ments and geographic regions as a key element in manag-
over its liabilities in Nigeria. The solvency margin shall
ing our risks efficiently by limiting the economic impact
not be less than 15 per centum of the gross premium in-
of any single event and by contributing to relatively stable
come less reinsurance premiums paid out during the year
results and risk profile in general. Therefore, our aim is
under review or the minimum paid-up capital whichever
to maintain a balanced risk profile without bearing any
is greater. During the year, the Company has consistently
disproportionately large risk concentrations and accumu-
exceeded this minimum. The regulator has the authority
lations.
to request more extensive reporting and can place restric-
During the year, the company complied with the mini-
tions on the Company’s operations if the Company falls
mum capital requirements and the statutory regulatory
below this requirement as deemed necessary.
solvency margin requirement. The company continued to

maintain its established risk-based capitalization position
Wapic is exposed to a variety of risks through its holding
and a linked dividend policy. The company has com-
company and reinsurance activities. These include mar-
menced to link its risk management framework with its
ket, credit, underwriting, business, operational, strategic,
capital management in order to have an optimize capital
liquidity and reputational risks. With Solvency II being
allocation.
the binding regulatory regime approval of our internal

model, risk is measured and steered based on the risk
The solvency margin for the Company as at 31 December
profile underlying our regulatory capital requirement. By
2017 was as follows;
that we allow for a consistent view on risk steering and

N’000 N’000
Excess of Assets (Admissible assets) over Liabilities -Solvency Margin 11,543,390
Higher of:
Gross premium written 6,388,069
Less: Reinsurance paid during the year (2,742,273)
Net Premium 3,645,796
15% of Net premium 546,869
Minimum capital base- Non life 3,000,000

The higher thereof: 3,000,000
Surplus in Solvency Margin over minimum capital base 8,543,390
Solvency Ratio 285%

The solvency margin for the Company as at 31 December 2016 was as

follows;
N’000 N’000
Excess of Assets (Admissible assets) over Liabilities -Solvency Margin 10,970,810
Higher of:
Gross premium written 5,375,431
Less: Reinsurance paid during the year -2,576,266
Net Premium 2,799,165
15% of Net premium 419,875
Minimum capital base- Non life 3,000,000

The higher thereof: 3,000,000
Surplus in Solvency Margin over minimum capital base 7,970,810
Solvency Ratio 266%

The Company further developed an internal capital adequacy model that assesses the risk of assets, policy liabilities
and other exposures by applying various factors. The model calculates the capital required for each class of the broad
risks identified by the Company and aggregates through co-variance methodology that considers the relationship
among these risk categories.


03.
03. Governance
Wapic Insurance Plc’s Directors, their functions; implementing the best standards of corporate governance
• The Board
• Directors, Officers and Professional Advisors
• Management Team
• Directors’ Report
• Corporate Governance
• Directors’ Responsibilities
• Report of the Statutory Audit Committee
• Customer Complaints Feedback
• Independent Auditors’ Report
• Non-Dealing Period Policy
• Complaints Management Policy



The Board Mr. Aigboje Aig-Imoukhuede

is a lawyer, investment banker,
ca); and African Banker Magazine’s
“African Banker of the Year”.
entrepreneur and philanthropist.
He is the founder and Chairman His passion and commitment to the
of Coronation Capital Nigeria development of financial markets
Limited, an Africa-focused private
equity and proprietary investment has seen him take prominent roles
firm established in 2014. He is also within Nigeria’s financial and capital
founder of the Africa Initiative markets. He was elected President of
for Governance (“AIG”) a not-for- the National Council of the Nigerian
profit organization, established Stock Exchange in 2012 a position he
to be a catalyst for high public holds to date. He is the Co-Chairman
sector performance; bringing of the UK-Nigeria Capital Market
leadership, funding and private Task Force, and sits on the boards of
sector innovation in a private-public Africa Finance Corporation and TCX
partnership to attract, inspire and
support future leaders of the public Investment Management Company
sector. Netherlands. He is also Chairman
Board of Trustees of the Financial
Market Dealers Association.
Mr. Aigboje Aig-Imoukhuede’s ca-
reer in banking and finance spans Mr. Aigboje Aig-Imoukhuede holds a
three decades. He was the Chief Bachelors of Law (LLB) degree from
AIGBOJE AIG-IMOUKHUEDE Executive officer of a leading Afri- the University of Benin, was called
(Chairman) can Bank and was the head of the to the Nigerian Bar in 1987 and has a
team responsible for placing the Trium MBA, awarded jointly by the
Bank on an unprecedented growth London School of Economics, New
trajectory, transforming the Bank York University, and HEC Paris. He
into top-5 leadership position in Ni- is passionate about sustainability,
geria. His activities in banking and leadership, global health and the
finance earned him national as well economic advancement of Africa.
as international recognition includ- Mr. Aigboje Aig-Imoukhuede was
ing; Commander of the Order of appointed to the Board of Wapic In-
the Niger “CON”, conferred by the surance Plc. in November 2011 and
Federal Republic of Nigeria, for his is the Chairman of the Board of Di-
contributions to the development of rectors.
banking and finance; Ernst & Young
Entrepreneur of the Year (West Afri-
Mr. Adamu Atta is the Chairman Degree in International Relations/

and Chief Executive of Matad Group International Economics from the
Nigeria Ltd, an investment company United States International Univer-
with operations across Africa. His sity (USIU). He also has Masters De-
business interests cut across various grees in International Development
sectors such as oil and gas, energy, Economics and Political Science
transport and logistics, tourism, from the University of California
textiles, agriculture, construction, (UCLA and Ahmadu Bello Universi-
communication and manufacturing. ty Zaria respectively.
With over two decades experience in
financial management and consult- Mr. Adamu Atta was appointed
ing, Mr. Atta has developed an envi- to the Board in January 2013
able portfolio of clients. and is the Chairman of the Board
Establishment and Remuneration
Mr. Adamu Atta holds a Bachelor Committee.
ADAMU ATTA
(Non-Executive Director)

Mr. Bababode Osunkoya is a Senior of Chartered Accountants of Nigeria

Partner at the chartered accounting (ICAN), the Chartered Institute of
firm of Abax-OOSA Professionals. Taxation of Nigeria (CITN), and an
With over two decades post-qualifi- Associate Member of the Institute of
cation experience in banking, audit, Directors (IoD).
accountancy, taxation, business and
financial advisory, Mr. Osunkoya Mr. Bababode Osunkoya joined the
is an accounting graduate from the Board of Wapic Insurance Plc in
University of Lagos and is one of January 2013. He is the Chairman
the first Certified Forensic Auditors of the Board Audit and Compliance
of the Chartered Institute of Ac- Committee.
countants of Nigeria. Mr. Bababode
Osunkoya is a Fellow of the Institute
BABABODE OSUNKOYA
(Independent Non-Executive Director)
Mr. Barnabas Olise is the Managing nental Bank (Now Access Bank Plc)
Director/CEO of Enterprise Value where he facilitated the Ghanaian
Matrix Consult Limited, which is a subsidiary’s branch expansion to 28
multidisciplinary consultancy firm. outlets. He also had responsibility
for Group Executive Management
Mr. Barnabas Olise’s work expe- Services and Franchise Expansion
rience spans nearly two decades before resigning from the Bank. Mr.
and covers auditing, consulting Barnabas Olise was appointed to the
and banking. He began his career Board in November 2011. He is the
in Deloitte, an international firm of Chairman of The Board Information
chartered accountants as an audit Technology Committee.
trainee, and later joined Interconti-
BARNABAS OLISE
Ms. Chizoba Ufoeze is the Manag- School London. She also has a Mas-
ing Director/CEO of United Alliance ters of Science Degree in Investment
Company of Nigeria Limited, with Management from the City Univer-
over two decades experience as an sity Business School, London.
investment analyst in the financial
services industry. She joined the Board of Wapic Insur-
Ms. Chizoba Ufoeze has a Bachelor ance Plc. in January 2014 and was
of Science Degree in Urban & Re- approved by NAICOM in May 2014.
gional Planning from the University She is the Chairperson of the Board
of Nigeria, Nsuka and an MBA from Finance, Investment and General
the Middlesex University Business Purpose Committee.
CHIZOBA UFOEZE

Mrs. Ifeyinwa Osime is a partner mercial and Corporate Law from the
at McPherson Legal Practitioners. University of Benin and the London
She has served on various boards, School of Economics respectively.
and was at one time the Company She was called to the Nigerian Bar
Secretary of African Development in 1987 and is an Alumnus of the
Insurance Company Limited where Executive Business Programs of the
she had oversight over the compa- Harvard Business School and Insead
ny’s claims settlement process. She Graduate Business School.
is also the founder of a special needs
program which offers support, ther- Mrs. Ifeyinwa Osime joined the
apy and counseling to people with Board of Wapic Insurance Plc in
special needs (developmental de- April 2014 and was approved by NA-
lays) and their families. ICOM in September 2014. She is the
Chairperson of the Board Enterprise
Mrs. Ifeyinwa Osime holds a Bache- Risk Management and Governance
lors of Law Degree (LLB) and a Mas- Committee.
IFEYINWA OSIME
ters of Laws Degree (LLM) in Com-
(Independent Non-Executive Director)
Mr. Olusegun Ogbonnewo is a Mr. Olusegun Ogbonnewo has a BA

Director in TenGen Holdings Lim- (Ed) and Master of Public Admin-
ited with over 27 years professional istration (MPA) from the Universi-
experience in the financial service ty of Ilorin and Master of Business
industry cutting across banking, Administration (MBA) from Lagos
human capital development, oper- Business School/IESE Barcelona.
ations, payment systems and finan- He is an alumnus of the Harvard
cial technology. Until his retirement Business School, and has also at-
in March 2017 he was a General tended management development
Manager and Group Head Channels programs in IDI Dublin, INSEAD
Services (E-Banking) of Access Bank and IMD amongst others.
Plc where he worked meritoriously
for over 10years. While in the Bank, Mr. Olusegun Ogbonnewo was ap-
he played a vital role in the success- pointed to the Board of Directors of
ful implementation of Access Bank Wapic Insurance Plc on October 25,
Plc’s operations transformation pro- 2017. This appointment has been
gram which was key to the seamless communicated to NAICOM and the
OLUSEGUN OGBONNEOWO
absorption of Intercontinental Bank formal approval of the Commission
(Non- Executive Director)
Plc into the Bank’s operations. is being awaited.
Mrs. Adekoya started her profes- vember 1, 2015.

sional career with Lambert Willis
& Associate (Insurance Brokers). Mrs. Adekoya has a Bachelor of Sci-
She spent 23 years at Law Union ence and Maters of Business Admin-
and Rock where she rose through istration both from the University of
the ranks gathering experience in Lagos. She is a Fellow of the Char-
the technical department. Prior to tered Insurance Institute of Nigeria
joining Wapic, Mrs. Adekoya was and an Associate of the Chartered
the Head Institutional Business De- Insurance Institute, London.
velopment Division at Cornerstone
Insurance. She was appointed Man-
aging Director with effect from No-
ADEYINKA ADEKOYA
(Managing Director)

Mr. Ojeniyi was appointed Executive He holds a Bachelor of Science De-

Director in January 2014. He has gree and a Masters of Science De-
over two decades experience in the gree in Agricultural Economics from
financial services industry and prin- the University of Ibadan. He also has
cipally in banking. Prior to joining a Masters in Business Administra-
Wapic Insurance Plc., he was a Dep- tion from Ogun State University. Mr.
uty General Manager at Access Bank Ojeniyi is a Fellow of the Institute
Plc. where he was the Group Head of of Credit Administration of Nigeria
Financial Institutions. His responsi- and the Institute of Strategic Man-
bilities included business develop- agement of Nigeria. He is a Member
ment in quasi-financial institutions of the Chartered Insurance Institute
which included insurance compa- (UK) and an Honorary Senior Mem-
nies, pension fund administrators ber of the Chartered Institute of
and capital market operators. Bankers of Nigeria.
OYEBODE OJENIYI
(Executive Director)
Mr. Obaleke was appointed Exec- He holds a Bachelor of Education

utive Director in January 2014. He Degree in Management Economics
has over two decades experience in from the University of Ibadan and a
the financial services industry and Masters in Business Administration
has worked in a number of banks, from Abubakar Tafawa Balewa Uni-
one of which was Access Bank Plc, versity. He is a Member of the Char-
where he was a General Manager, tered Institute of Bankers and has
Business Banking. His banking ex- attended Executive Management
perience covers sales, business de- Programmes in leading business
velopment, international operations schools locally and internationally.
and branch expansion.
OLUFEMI OBALEKE
(Executive Director)
Mr. Peter Ehimhen joined Wapic In- ment, from the Glasgow Caledoni-
surance Plc in September 2012 and an University, UK, and has over 24
until this appointment as Executive years post-qualification experience,
Director Technical Operations, was of which over 12 years has been in
the Chief Risk Officer of the Com- the insurance industry.
pany. He has a Bachelor of Science
(B.Sc.) in Insurance from Enugu Mr. Peter Ehimhen is an Associate
State University of Science and of the Chartered Insurance Insti-
Technology, and a Master’s in Busi- tute of Nigeria and a Member of the
ness Administration (MBA) from Institute of Risk Management. His
the University of Nigeria, Nsukka. appointment was approved by NA-
Mr. Ehimhen also has a Masters’ ICOM on December 5, 2017.
of Science (M.Sc.) in Risk Manage-
PETER EHIMHEN
(Executive Director,
Technical Operations)

W apic attained another milestone on March 14, 2018, as the organisation celebrated 60
years of excellent insurance services to Nigeria. The company, which was listed on the
Nigerian Stock Exchange since 1978, has undergone a number of transformational initiatives
to become the insurance company of choice.

As one of Nigeria’s oldest insurance

companies, Wapic has made significant
contributions to the development of
insurance sector in Nigeria and the entire
West African sub-region through its
numerous pioneering and defining roles.
On the commemorative anniversary,

Managing Director, Adeyinka Adekoya
expressed gratitude to clients, regulators,
employees and other stakeholder groups
for giving Wapic Insurance an opportunity
to evolve into a model for service delivery
and product development in the industry.
According to her “For 60 consecutive years,

we have served Nigeria, delivering excellent
insurance services, through our diverse
range of products and services covering
life, general and special risk businesses.
This is no mean feat, but it would not have
been possible without your patronage,
support and recommendations”.
“As an organisation, we are proud to

say that our success story is incomplete
without you. We thank you for your
encouragement which inspired us to
become best in our industry and look
forward to exploring new heights with you
in the years ahead”, added Adekoya.
In celebration of the company’s remarka-

ble feats, the Board and Management had
outlined activities for commemorating the
company’s 60th anniversary. These com-
memorative events were heralded by a
special visit to the Nigeria Stock Exchange
for the “closing of the gong” and culmi-
nated in a special anniversary dinner for
stakeholders that evening.
With the quest for improved efficiency and

operational excellence, Wapic Insurance
has repositioned firmly to champion an
industry-wide transformation in the areas
of corporate governance, risk management,
technology, product development, service
culture and strategic engagements.


Directors, Officers and Professional Advisors

Directors
Mr. Aigboje Aig-Imoukhuede, CON Chairman
Mr. Bababode Osunkoya Independent Non Executive Director
Mr. Adamu Mahmoud Atta Non Executive Director
Mr. Barnabas Olise Non Executive Director
Mrs. Ifeyinwa Osime** Independent Non Executive Director
Ms. Chizoba Ufoeze** Non Executive Director
Mr. Olusegun Ogbonnewo* Non Executive Director
Mrs. Adeyinka Adekoya Managing Director/Chief Executive Officer
Mr. Oyebode Ojeniyi Executive Director
Mr. Olufemi Obaleke Executive Director
Mr Peter Ehimhen*** Executive Director Technical Operations
* Appointed during the year effective 25 October 2017

** Reappointed during the year effective 24 May 2017
***Approved by NAICOM effective December 5, 2017
Company Secretary
Mary Agha Actuaries
EY Nigeria
Corporate Head Office FRC/2012/NAS/00000000738
Wapic Insurance Plc QED Actuaries
119 Awolowo Road, FRC/2016/NAS/00000013781
Ikoyi, Lagos
Bankers
+234 1 277 4500/555 Access Bank Plc
+234 709 982 1284/85 Guaranty Trust Bank Plc
info@wapic.com First Bank of Nigeria Limited
www.wapic.com Fidelity Bank Plc
Coronation Merchant Bank Limited
Company Registration No: Sterling Bank Plc
RC 1647 Union Bank Plc
United Bank for Africa Plc
Authorised and Regulated by the
National Insurance Commission:
RIC No.046 Re-insurers
African Reinsurance Corporation
FRC No: Continental Reinsurance Plc
Munich Reinsurance Company Limited
FRC/2013/70262
Swiss Reinsurance Group
Independent Auditor Waica Reinsurance Corporation
PricewaterhouseCoopers
Landmark Towers
5b Water Corporation Way, Oniru Estate Surveyor and Valuer
Victoria Island, Lagos Azuka Iheabunike and Partners
FRC/2012/NIESV/00000002206
(01) 271 1700
www.ng.pwc.com

Registrar
United Securities Limited
09, Amodu Ojikutu Street
Victoria Island, Lagos
+234 01 730898
+234 01 730891
www.unitedsecuritieslimited.com


Management Team
Adeyinka Adekoya Managing Director
Oyebode Ojeniyi Executive Director, Sales and Distribution
Olufemi Obaleke Executive Director, International Subsidiaries
Peter Ehimhen Executive Director, Technical Operations
Zina Giwa-Amu Divisional Head, Digital and Technological Services Division
Aina Akintonde Group Head, Service and Fulfilment
Patrick Osadebe Group Head, Retail Sales and Distribution Division
Mary Agha Company Secretary/Legal Adviser
Tobechukwu Nnadozie Chief Information Officer
Sunny Ogbemudia Chief Internal Auditor
Oluseyi Taiwo Group Head, Financial Control
Muyiwa Oke Chief Compliance Officer
Motilayo Solape-Somolu Group Head, Human Resources
Susidiaries
Mr. Rantimi Ogunleye* Managing Director, Wapic Life Assurance Ltd
Mr. Adewale Koko** Executive Director, Technical Operations, Wapic Life Assurance Ltd
Mr. Adedayo Arowojolu Managing Director, Wapic Insurance (Ghana) Ltd
*Resigned effective March 31, 2018

**Approved by NAICOM effective December 18, 2017

Directors’ Report
The directors are pleased to submit their report together by the Bank with the Central Bank of Nigeria (CBN) Regula-
with the audited financial statements of Wapic Insurance Plc tion on the Scope of Banking Activities and other Ancilliary
(“the Company”) and its subsidiaries (together “the Group”) Matters on the permitted activities of Commercial Banks
for the year ended 31 December 2017. with International Authorization.

Legal form and principal activity The Company’s principal activities include underwriting the
various classes of insurance such as general accident, fire,
“The Company was incorporated on 14 March 1958 as a motor, engineering, marine insurance aviation, oil and gas
private limited liability Company under the name of West and other special risks.
African Provincial Insurance Company Limited and was
converted to a public limited liability company on the 31st In addition to its Life Subsidiary - Wapic Life Assurance
day of August 1990 when the Company’s shares were listed Limited, the Company also has an International Subsidiary
on the Nigerian Stock Exchange. The Company was issued - Wapic Insurance (Ghana) Limited which was established
a life insurance license by the National Insurance Commis- on 21 Januaary 2008, and an associate company - Corona-
sion (NAICOM) in the year 2000 and became a composite tion Merchant Bank Limited.
insurance business offering general and life insurance until
March 1st 2007 when, in furtherance of the objective of The financial results of the subsidiaries have been consoli-
complying with the requirements of the National Insru- dated in these financial statements.
ance Commission, the Company established Wapic Life
Assurance Limited as a wholly owned Subsidiary to which it
transferred the related life assets and liabilities. Operating results

Highlights of the Group’s operating results for the year are
The Company became a Subsidiary of Access Bank Plc in as follows:
2011 and was subsequently divested to enable compliance

Group Group Company Company
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Gross premium written 9,807,616 8,005,308 6,388,069 5,375,431
Profit before tax 1,622,691 1,193,446 230,625 514,554
Income tax (91,881) (607,423) 85,019 (422,581)
Profit after tax for the year 1,530,810 586,023 315,644 91,972
Transfer to contingency reserve (253,204) (182,438) (191,642) (161,263)
Basic earnings per share (kobo) 11 4 2 1

Directors and their interests
The Directors who served during the year together with their direct and indirect interests in the issued share capital of the

Company as recorded in the Register of Directors’ Shareholding and as notified by the Directors for the purposes
of Sections 275 and 276 of the Companies and Allied Matters Act and listing requirements of the Nigerian Stock
Exchange are noted below:

31 December 2017 31 December 2016
Name of Director Direct Indirect Direct Indirect
Mr. Aigboje Aig-Imoukhuede (Chairman) + 5,495,785 6,378,300,514 5,495,785 4,884,759,600
Mr. Adamu Mahmound Atta 16 - 16 -
Mr. Bababode Osunkoya - - 1,411 -
Mr. Barnabas Olise 5,002,061 - 5,002,061 -
Ms. Chizoba Ufoeze 33,789,000 - 18,000,000 -
Mrs. Ifeyinwa Osime 656,693 - 656,693 -
Mr. Olusegun Ogbonnewo 1,551,031 - - -
Mrs. Adeyinka Adekoya 412,367 - 412,367 -
Mr. Oyebode Ojeniyi 387,758 - 387,758 -
Mr. Olufemi Obaleke 1,876 - 1,876 -
Mr. Peter Ehimhen - - - -

+ Indirect holdings by directors are broken down as follows
2017 Beneficial Percentage 2016 Beneficial Percentage
Ownership Ownership
31-Dec 31-Dec
Director/Indirect Interest
Mr. Aigboje Aig-Imoukhuede (Chairman):-
- United Alliance Company of Nigeria Limited 130,008,200 50% 130,082,000 50%
- Trust and Capital Limited 365,324,106 50% 248,920,958 50%
- Reunion Energy Limited 2,313,142,646 50% - 50%
- Strategic Alliance Investment Limited - 50% - 50%
- Stanbic Nominees Nigeria Limited - 50% 2,313,142,646 50%
- Coronation Capital Maurutius Limited 3,569,825,562 50% 2,192,613,996 50%
6,378,300,514 4,884,759,600

Directors’ interest in contracts
In accordance with section 277 (1) and (3) of the Companies and Allied Matters Act of Nigeria, the Board has re-
ceived declaration of interest from the under-listed Director in respect of the company (vendors to the Company) set
against the Director’s name:

Related Director Interest in Entity Name of Company Services
Mr. Aigboje Aig-Imoukhuede Equity Investor Coronation Capital Advisory
Limited services

Analysis of shareholders
The shareholding pattern of the Company as at December 31st 2017 is as stated below:

31 December 2017
Range Number of No. of shares % of number of % of number of
Shareholders held shareholders shares held
1-1,000 657,055 129,403,227 79 1
1,001-5,000 127,062 272,208,764 15 2
5,001-10,000 22,268 161,815,033 3 1
10,001-50,000 20,945 430,291,658 3 3
50,001-100,000 2,714 186,806,199 0 1
100,001-500,000 2,228 449,126,160 0 3
500,0001-1,000,000 313 221,614,417 0 2
1,000,001-5,000,000 422 750,007,605 0 6
5,000,001-10,000,000 52 363,035,887 0 3
10,000,001-1,000,000,000 62 10,418,429,298 0 78
833,121 13,382,738,248 100 100

31 December 2016
Range Number of No. of shares % of number of % of number of
Shareholders held shareholders shares held
1-1,000 660,487 130,098,478 79 1
1,001-5,000 128,602 275,816,816 15 2
5,001-10,000 22,703 165,030,997 3 1
10,001-50,000 21,563 444,334,033 3 3
50,001-100,000 2,839 195,459,967 0 1
10,001-500,000 2,366 480,237,548 0 4
500,0001-1,000,000 359 258,875,741 0 2
1,000,001-5,000,000 465 858,284,433 0 6
5,000,001-10,000,000 66 449,531,060 0 3
10,000,001-100,000,000 58 1,504,149,872 0 11
100,000,001- 18 8,620,919,307 0 64
1,000,000,000
839,526 13,382,738,252 100 100

Substantial Interest in Shares
According to the register of members as at December 31st 2017 the underlisted shareholders held more than 5%
of the issued share capital of the Company as follows:

Number of shares Percentage holding Number of shares Percentage holding
2017 2017 2016 2016
Reunion Energy Limited 2,313,142,646 17 - 0
Stanbic Nominees Nig. Limited - 0 2,313,142,646 17
Strategic Alliance Investment - 0 - 0
Limited
Blakeney GPIII Limited - 0 2,192,613,996 16
Coronation Capital (Mauritius) 3,569,825,562 27 1,950,644,844 15
Limited
Other Nigerian entities, citizens 7,499,770,040 56 6,926,336,762 52
and associations
Total 13,382,738,248 100 13,382,738,248 100

* Blakeney Nominees held the shares as custodian for various investors and does not exercise any right over the

underlying shares. All the rights reside with the various investors on whose behalf Blakeney Nominees carries out the
custodian service.

Acquisition of own shares
TThe Company did not purchase any of its own shares during the year (2016: Nil).

Donations
The Company identifies with the aspirations of the community and the environment in which it operates. The
Company made contributions to charitable and non-charitable organisations amounting to N63,936,927.52
(December 2016:61,644,152.37) during the period, as listed below:

Beneficiary Purpose Amount (N)
Orphanage Donation towards the construction of an 10,000,000.00
orphanage and school in Borno
Henshaw Foundation Donation towards the support of Autism 10,000,000.00
Spectrum Disorder
Nigerian Insurers Association (NIA) Donation to the Nigerian Insurers Associa- 17,361,927.52
tion
Lagos Polo Club Donation towards to the Lagos Polo 7,500,000.00
Tournament
Nigerian Bar Association Donation to the Nigeian Bar Association 5,000,000.00
Fifth Chukker Donation to Fifth Chukker Access Bank 2,000,000.00
Charity Shiled Tournament
Finance Africa Contribution towards NHF Conference 2,000,000.00
Dreamland Foundation Donation towards the Dreamland 1,200,000.00
foundation’s empowerment center
Temple Productions Contibution towards the private screening of 1,000,000.00
the movie - “A Hotel Called Memory”
The Boy’s Brigade Nigeria Donation to the Boy’s Brigade Nigeria 1,000,000.00
Nigerian Red cross Society Donation towards the support of the 200,000.00
organization’s infrastructural programs
Imperial Gate School Donation to Imperial Gate School 200,000.00
Professional Insurance Ladies Association Donation to the Professional Insurance La- 100,000.00
dies Association
Red ConnectNg Donations towards a workshop on Sickle Cell 100,000.00
National Association of Microfinance Banks Donation to the National Association of 100,000.00
Microfinance Banks
St. George’s Boys Primary School Donation to St. George’s Boys Primary School 100,000.00
Chartered Insurance Institute of Nigeria Donation towards the 2017 Annual Fitness 75,000.00
(CIIN) Work
Access Women Network Donation for Fitness walk for cervical cancer 1,000,000.00
Zebra Living Limited 2017 Annual film festival 5,000,000.00
Total 63,936,927.52

Property and Equipment
Information relating to changes in property and equipment is given in Note 18 to the financial statements. In the Di-
rectors’ opinion the fair value of the Group’s property and equipment is not less than the carrying value in the finan-
cial statements.


Human Resources
1. Report on Diversity in Employment

The Company operates a non-discriminatory policy in the consideration of applications for employment. The Com-
pany’s policy is that the most qualified and experienced persons are recruited for appropriate job levels, irrespective
of an applicant’s state of origin, ethnicity, religion, gender or physical condition.

We believe diversity and inclusiveness are powerful drivers of competitive advantage in understanding the needs of
our customers and creatively developing solutions to address them.

2017 2017 2016 2016
Composition of Employees Number Percentage Number Percentage
Female 42 43% 55 52%
Male 56 57% 50 48%
Total 98 105
Board Composition by Gender

Female 3 30% 3 30%
Male 7 70% 7 70%
Total 10 10
Top Management (Executive Director to

CEO)
Female 1 33% 1 33%
Male 2 67% 2 67%
Total 3 3
Top Management (AGM to Divisional Head)
Female 3 43% 3 43%

Male 4 57% 4 57%
Total 7 7

2. Employment of disabled persons
In the event of any employee becoming disabled in the course of employment, the Company will
endeavour to arrange appropriate training to ensure the continuous employment of such a person without
subjecting the employee to any disadvantage in career development.

3. Health, safety and welfare of employees
The Company maintains business premises designed to guarantee the safety and healthy living
conditions of both its employees and customers. Employees are adquately insured against
occupational and other hazards.

The Company has fire prevention and fire fighting equipment installed in strategic locations within it’s
premises.
The Company operates a Group Personal Accident, Third Party Liability Insurance and Professional
Indemnity for the benefit of its employees.

The Company also operates a contributory pension plan in line with the Pension Reform Act 2004
as amended and the Nigeria Social Insurance Trust Fund in line with the Employees Compensation
Act 2010 and other benefit schemes for its employees.


4. Employee involvement and training

The Company encourages participation of employees in arriving at decisions in respect of matters
affecting their wellbeing. Consquently, the Company provides opportunities where employees
deliberate on issues affecting the Company and employee interests to enable the employees make inputs on
those decisions. The Company places a high premium on the development of its manpower and sponsors its
employees for training courses.

5. Statement of Commitment to Maintain Positive Work Environment
The Company shall strive to maintain a positive work environment that is consistent with best practice to ensure
that business is conducted in a positive and professional manner and to ensure that equal opportunity is given to all
qualified members of the Company’s operating environment.

Credit Ratings
Long term financial strength rating Long Term Date
C++ (Stable Outlook) 2017
Long term issuer credit rating Long Term Date

b+ (Stable Outlook) 2017

Audit Committee
Pursuant to Section 359(3) of the Companies and Allied Matters Act of Nigeria, the Company has a Statutory Audit
Committee comprising three shareholders and three Directors as follows:

Mr. Bode Osunkoya Director Chairman
Mr. Chinwendu Achara Shareholder Member
Mr. Adeniyi Adebisi Shareholder Member
Mrs. Mary Joke Shofolahan Shareholder Member
Ms. Chizoba Ufoeze Director Member
Mr. Barnabas Olise Director Member

The functions of the Audit Committee are as provided in Section 359(6) of the Companies and Allied Matters Act of
Nigeria.

Auditors
PricewaterhouseCoopers were appointed as the External Auditor for the Company by the ordinary resolution of
shareholders passed during the 56th Annual General Meeting held on April 29th 2015.

The auditors, PricewaterhouseCoopers have indicated their interest to continue in office and will do so pursuant to
section 357(2) of the Companies and Allied Matters Act.

By order of the Board
119, Awolowo Road, Ikoyi, Lagos

__________________________
Mary Agha
FRC/2013/NBA/00000002817
Company Secretary
29 January 2018


Corporate Governance
Our corporate governance report documents the corporate al Meeting (AGM), held on May 24, 2017, the shareholders
governance practices that were in place during the Finan- of the Company approved the engagement of an external
cial Year Ended December 31, 2017. This report affords consultant to conduct the Annual Board Performance Ap-
us the opportunity to explain to our stakeholders how our praisal. In this regard Accenture Limited was engaged to
Company has been governed during the year. It reports on conduct the Board performance evaluation for the Finan-
how the Board has functioned and the workings of our sys-
tems and structures of governance. cial Year ended December 31st 2017. The Board is comfort-
able that Accenture Limited provides value-adding and ob-
jective evaluation notwithstanding its provision of strategy
Wapic Insurance Plc (“Wapic” or “the Company”) remains consulting assistance to the Wapic Group. The evaluation
committed to implementing the best practice standards of takes the form of a 360 degree confidential on-line survey
corporate governance. The Company and its subsidiaries covering director’s self-assessment, peer assessment and
(‘the Group’) function under a governance frame work that evaluation of the Board and the Committees.
enables the Board to discharge its role of providing over-
sight and strategic direction in balance with its responsi- In compliance with the NAICOM Code of Corporate Gov-
bility to ensure the Company’s compliance with regulatory ernance the Annual Board Performance Report for the 2016
requirements and acceptable risk. Financial Year was presented to the shareholders at the
Annual General Meeting of the Company held on May 24,
The Company is mindful of its obligations under the rel- 2017.
evant codes of corporate governance such as the National
Insurance Commission (NAICOM) Code of Corporate Gov- The result of the Board performance evaluation is present-
ernance for the Insurance Industry in Nigeria, the Securi- ed to the Board and the individual director’s assessment
ties and Exchange Commission’s Code of Corporate Gov- is communicated and discussed with the Chairman. The
ernance (‘the SEC Code’) and the Post Listing Requirements evaluation was a 360 degree on-line survey covering direc-
of the Nigerian Stock Exchange (NSE). These, in addition to tors’s self assessment, peer assessment adn evaluation of
its Board Charter collectively provide the basis for promot- the Board and the Board Committees. The effectiveness of
ing sound corporate governance in the Company. Our core the Independent Directors was evauated and the result con-
values of excellence, professionalism, innovation, sustaina- firmed that the individual directors and teh Board continue
bility, teamwork, leadership, and empathy are the bedrock to operate as a very high level of efficiency.
upon which we continue to build our corporate behavior.

Performance Monitoring and Evaluation Appointment, Retirement and Re-election of
Directors
The Board, in the discharge of its oversight function con-
tinuously engages management in the planning, definition The Board has put in place a formal process for the
and execution of the Company’s strategy. Management’s selection of new directors to ensure the transparency of
report on the execution of defined strategic objectives the nomination process. The process is documented in
is a regular feature of the Board’s meeting agenda, thus the Fit and Proper Person Policy and is led by the Board
providing the Board with the opporunity to evaluate Establishment and Remuneration Committee. The
and critique Management’s execution of the strategy. Committe identifies candidates for appointment as director
in consultation with the Chairman, Managing Director and/
The Company’s performance on Corporate Governance is or any other director, or through the use of search firms or
continuously being monitored and reported. Regular re- such other methods as the Committee deems helpful to
views are carried out on the Company’s compliance status identify candidates. Once candidates have been identified
with the NAICOM Code of Corporate Governance for the the Committee shall confirm that the candidates meet the
Insurance Industry in Nigeria, the SEC Code of Corpo- minimum qualifications for director nominees set forth
rate Governance, and the NSE Post Listing Requirements in the policy and relevant statutes and regulations. The
as well as on the Company’s compliance status with the Committee may gather information about the candidates
various regulatory circulars and guidelines and regulatory through interviews, questionnaires, enhanced due diligence
returns are filed thereon. checks or any other means that the Committee deems helpful
in the evaluation process. The Committee meets to discuss
As part of its commitment to uphold sound Corporate Gov- and evaluate the qualities and skills of each candidate,
ernance practices and in compliance with the requirement taking into consideration the overall composition and
of the NAICOM Code of Corporate Governance, the Board needs of the Board. Based on the results of the evaluation
has established a system of independent annual evaluation process, the Committee recommends candidates to the
carried out by an independent consulting firm engaged to Board for appointment as director subject to the approval
carry out an assessment of its own performance, that of its of shareholders and the National Insurance Commission.
Committees and individual Directors. At its Annual Gener-

In accordance with the Company’s Articles of Associa- ings at such meetings are usually monitored by members
tion, Ms. Chizoba Ufoeze and Mrs. Ifeyinwa Osime re- of the press, representatives of the Nigerian Stock Ex-
tired at the Company’s 58th Annual General Meeting held change, the National Insurance Commission and the Se-
on May 24, 2017 and being eligible were duly re-elected curities and Exchange Commission. The Board ensures
by shareholders. The Board confirms that following a for- that shareholders are provided with adequate notice of
mal evaluation, these two Directors continued in 2017 to meetings. An Extraordinary General Meeting may also
demonstrate commitment to their role as Non-Executive be convened at the request of the Board or Shareholders
Directors. holding not less than 10% of the Company’s paid-up cap-
ital.
In the 2017 Financial Year, the Board, upon the rec-
ommendation of the Governance and Remuneration The Company has a dedicated Investor Relations Unit
Committee appointed Mr. Olusegun Ogbonnewo as a which focuses on facilitating communication with share-
Non-Executive Director on October 25, 2017. Mr. Segun holders and analysts on a regular basis and addressing
Ogbonnewo holds a BA (Ed) and Master of Business Ad- their enquiries and concerns. Investors and stakeholders
ministration (MPA) from the University of Ilorin, and are frequently provided with information abou the Com-
Master of Business Administration (MBA) from Lagos pany through various channels such as quarterly Investor
Business School/IESE Barcelona and has also attended Conference Calls, the General Meetings, the Company’s
management development programs in IDI Dublin, Har- website, as well as the Annual Report and Accounts.
vard Business School, INSEAD and IMD amongst others.
Mr. Olusegun Ogbonnewo’s work experience spans over
28-years and includes, People’s Bank of Nigeria, Guaran- Shareholders Rights Protection
ty Trust Bank Plc and Access Bank Plc where Mr. Ogbon-
newo worked for 10-years ahead of his retirement from The Company’s reports and communication to share-
the Bank in March 2017. This appointment is however holders and other stakeholders are in plain, readable and
subject to requisite regulatory approvals. understandable format. The Company’s website - www.
wapic.com is regularly updated with both financial and
In accordance with the Company’s Memorandum and non-financial information. The Board ensures that share-
Articles of Association as well as Section 259 of the Com- holders statutory and general rights are protected at all
panies and Allied Matters Act Cap C20, Laws of the Fed- times, particularly their right to vote at general meetings.
eration of Nigeria 1990, one-third of all Non-executive Di- The Board also ensures that all shareholders are treated
rectors (rounded down) are offered for re-election every equally regardless of the size of their shareholding and
year (depending on their tenure on the Board) together social conditions. Our shareholders are encouraged to
with Directors appointed by the Board since the last An- share in the responsibility of sustaining the Company’s
nual General Meeting. In keeping with this requirement, corporate values by exercising their rights as protected by
Mr. Bababode Osunkoya and Mr. Adamu Atta will retire law.
during this Annual General Meeting and being eligible,
will submit themselves for re-election. The Board con- Access to Information and Resources
firms that following a formal evaluation these two Direc-
tors continue to demonstrate commitment to their role as
Non-Executive Directors. The Board confirms its convic- Executive Management recognises the importance of
tion that the Directors standing for re-election will con- ensuring the flow of complete, adequate and timely in-
tinue to add value to the Company and recommends that formation to the Directors on an ongoing basis to enable
they should be elected to maintain the needed balance of them make informed decisions in the discharge of their
skill, knowledge and experience on the Board. responsibilities. There is ongoing engagement between
Executive Management and the Board, and the Heads of
Shareholder Engagement relevant Strategic Business Units attend Board meetings
to make presentations. The Company’s External Auditors
The Board recognises the importance of ensuring the flow attend the Board, the Board Audit and Compliance Com-
of complete, adequate and timely information to share- mittee and the Statutory Audit Committee Meetings to
holders to enable them make informed decisions. The make presentations on the audit of the Company’s Finan-
Company is committed to maintaining highr standards cial Statements. The Directors have unrestricted access to
of corporate disclosure. Shareholders meetings are duly the Group Management and Company information in ad-
convened and held in an open manner in line with the dition to the resources to carry out their roles and respon-
Company’s Articles of Association and existing statutory sibilities. This includes access to external professional ad-
and regulatory regimes, for the purpose of deliberating vice at the Company’s expense as provided by the Board
on issues affecting the Company’s strategic direction. The and Board Committtee Charters.
Company’s General Meetings serve as a medium for pro-
moting interaction between the Board, Management and The Board
Shareholders. Attendance at the Annual General Meeting
is open to shareholders or their proxies, while proceed- The primary function of the Board of Directors is to ad-

vance the prosperity of the Company by collectively directing the Company’s affairs, whilst meeting the appropriate
interests of shareholders and stakeholders. The Board has the overall responsibility for reviewing the strategic plans
and performance objective, financial performance review and corporate governance practices of the Company. The
Board is the Company’s highest decision making body responsible for governance. It operates on the understanding
that sound governance practices are fundamental to earning the trust of stakeholders which is critical to sustainable
growth.
Composition and Role

The Company has a unitary Board structure. As at December 31, 2017, the Board was comprised of eleven (11) mem-
bers made up of seven (7) Non-Executive Directors and four (4) Executive Directors, in line with the provisions of
S.5.04 (ii) of the NAICOM Code of Corporate Governance for Insurance Companies in Nigeria. Two of the Non-Ex-
ecutive Directors are Independents and meet the criteria set by the SEC and NAICOM Codes of Corporate Govern-
ance on Independent Directors. The full details of the Board Composition and their roles are as set out below:

S/N Name Gender Designation
1 Mr. Aigboje Aig-Imoukhuede Male Chairman
2 Mr. Adamu Mahmoud Atta Male Non-Executive Director
3 Mr. Bababode Osunkoya Male Independent Non-Executive Director
4 Mr. Barnabas Olise Male Non-Executive Director
5 Ms. Chizoba Ufoeze Female Non-Executive Director
6 Mrs. Ifeyinwa Osime Female Independent Non-Executive Director
7 Mr. Olusegun Ogbonnewo* Male Managing Director
8 Mrs. Adeyinka Adekoya Female Executive Director
9 Mr. Bode Ojeniyi Male Executive Director
10 Mr. Femi Obaleke Male Executive Director
11 Mr. Peter Ehimhen** Male Executive Director Technical/Operations

* Appointed by the Board October 25, 2017
** Approved by NAICOM December 5, 2017

In line with best practice and in accordance with the Duties of the Board
provisions of all the Codes of Corporate Governance by
which the Company is governed, the roles of the Chair- The duties of the Board include but are not limited to:
man and Managing Director are assumed by different
individuals and there is a separation of powers and func- “• Defining the Company’s business strategy and objec-
tions between the Chairman and the Managing Director. tives,
This ensures the balance of power and authority. The • Formulating risk policies
Board is able to reach impartial decisions as its Non-Ex- • Approval of quarterly, half yearly and full year financial
ecutive Directors are a blend of Independent and Non-In- statements
dependent directors with no shadow or alternate Direc- • Approval of significant changes in accounting policies
tors, which ensures that independent thought, is brought and practices
to bear on decisions of the Board. The effectiveness of the • Appointment or removal of Directors and Company
Board derives from the diverse range of skills and com- Secretary
petences of the Executive and Non-Executive directors • Approval of major acquisitions, divestments of operat-
who have exceptional degrees of insurance, financial and ing companies, disposal of capital assets or capital
broader entrepreneurial experiences. expenditure
• Approval of charter and membership of Board Commit-
The Board is responsible for ensuring the creation and tee
delivery of sustainable value to the Company’s stakehold- • Setting of annual board objectives and goals
ers through its management of the Company’s business. • Approval of allotment of shares
The Board is accountable to the shareholders and is • Approval of remuneration of auditors and recommenda-
responsible for the management of the Company’s relation for appointment or removal of auditors
tionship with its various stakeholders. The Board ensures • Succession Planning for key positions
that the activities of the Company are at all times execut- • Approval of the corporate strategy, medium term and
ed within the relevant regulatory framework. The Board short term plans
Charter is comprised of a set of principles that have been • Monitoring delivery of the strategy and performance
adopted by the Board as a definitive statement of Corpo- against plan
rate Governance. • Approval of the framework for determining the policy

and specific remuneration of executive directors Delegation of Authority

• Review and monitoring of the performance of the
Managing Director and the executive team The ultimate responsibility for the Company’s
• Ensuring the maintenance of ethical standards and operations rests with the Board. The Board retains
compliance with relevant laws. effective control through a well-developed Committee
• Performance appraisal and compensation of Board governance structure that provides in-depth focus
members and senior executives on Board responsibilities. Each Board Committee
• Ensuring effective communication with has a written charter and presents quarterly reports
shareholders to the Board on its activities. The Board delegates
• Ensuring the integrity of financial reports “ authority to the Managing Director and the Executive
Management to manage the affairs of the Company
Appointment Process and Induction of Board within the parameters established by the Board from
Members time to time.

The Company’s Fit and Proper Person Policy is Board Meetings
designed to ensure that the Company and it’s
Subsidiaries are managed and overseen by competent, The Board meets quarterly and emergency meetings
capable and trustworthy individuals. In making Board are convened as may be required. The Annual Calendar
appointments, the Board takes into cognisance the of Board and Board Committee meetings are approved
knowledge, skill and experience of a potential director in advance during the last quarter of the preceding
as well as other attributes considered necessary for the financial year and all Directors are expected to attend
role. The Board also considers the need for appropriate each meeting. Material decisions may be taken between
demographic and gender representation. Candidates meetings through written resolutions as provided for
are subjected to enhanced due diligence enquiries as by the Company’s Articles of Association. The Annual
required by extant regulations. Calendar of Board activities include a Board Retreat
at an offsite location, to consider strategic matters and
The Board Establishment and Remuneration review the opportunities and challenges facing the
Committee is responsible for recommending new institution. All Directors are provided with Notices,
appointments to the Board of both Executive and Non- Agenda and meeting papers in advance of each meeting
Executive Directors as well as for succession planning and where a Director is unable to attend a meeting he/
of the Board. When making Board appointment she is still provided with the relevant papers for the
recommendations, the Committee takes cognizance of meeting. Such Director reserves the right to discuss
the existing range of skills, experience, background and with the Chairman any matter he/she may wish to
diversity on the Board in the context of the Company’s raise at the meeting. The Directors are also provided
strategic direction before articulating the specification with regular updates on developments in the regulatory
for the candidate sought. We are comfortable that and business environment. The Board met 4 times in
our Board is sufficiently diversified to optimize its the 2017 financial year and also held its Annual Board
performance. Retreat. The Board also uses a secure electronic portal
for the circulation of Board papers to members. This
The Board believes that a robust induction as well as underscores the commitment of the Board to embrace
regular training and education of Board members environment sustainability by reducing paper usage.
on issues pertaining to their oversight functions will
improve Director’s performance. Regarding new Board Committees
Directors, there is a personalised induction programme
which includes one-on-one meetings with Executive The Board carries out its oversight function through its
Directors and Senior Management responsible for the standing committees each of which has a charter that
Company’s key business areas. Such sessions focus clearly defines its purpose, composition, and structure,
on the challenges, opportunities and risks facing the frequency of meetings, duties, tenure and reporting lines
business areas. The induction programme covers an to the Board. In line with best practice, the Chairman
overview of the Strategic Business Units as well as the of the Board does not sit on any of the committees.
Board processes and policies. A new Director receives In line with the 2015 NAICOM Corprate Governance
an induction pack which includes charters of the various Guidelines, the Board’s standing committees are; the
Board Committees, significant reports, important Board Enterprise Risk Management and Governance
legislation and policies, minutes of previous Board Committee, the Board Audit and Compliance
Meetings and a Calendar of Board Activities. Directors Committee, the Board Establishment and Remuneration
are also required to participate in periodic, relevant Committee, the Board Finance, Investment and General
continuing professional development programmes to Purpose Committee. The Company having determined
update their knowledge. the importance of technology to its business has also
set up a Board Information Technology Committee
whose function is to primarily monitor the Company’s
information technology systems and ensure the

successful implementation of all the various information technology initiatives. The committee is to also recommend
to the Board of Director’s, the information technology strategy of the Company and its implementation, together with
relevant policies. The Board accepts that while the various Board Committees have the authority to examine a particular
issue and report back to the Board with their decisions and/or recommendations, the ultimate responsibilities on all
matters lies with the Board. The composition and responsibilities of the Committees are set out below:

S/N Director BACC BERMC BFIC BERC BITC

1 Mr. Aigboje Aig-Imoukhuede1 - - - - -
2 Mr. Adamu Mahmoud Atta1 - M M C -
3 Mr. Bababode Osunkoya1 C M M M M

4 Mr. Barnabas Olise1 M M M - C
5 Ms. Chizoba Ufoeze1 M M C M -
6 Mrs. Ifeyinwa Osime1 - C M M M
7 Mr. Olusegun Ogbonnewo1 - M M M M
8 Mrs. Adeyinka Adekoya2 - M M - M
9 Mr. Oyebode Ojeniyi2 - M M - -
10 Mr. Olufemi Obaleke2 - - M - -
11 Mr. Peter Ehimhen2 - M M - -
*Key
C Chairman of Committee
M Member
- Not a member
1 Non-Executive
2 Executive
3 Independent
BACC Board Audit and Compliance Committee
BERMC Board Enterprise Risk Management and Governance Committee

BFIC Board Finance, Investment and General Purpose Committee

BERC Board Establishment and Remuniration Committee

BITC Board Information Technology Committee Key issues considered by the Committee during the pe-
riod included the review of the status of compliance with
Board Audit and Compliance Committee internal policies and regulatory requirements, review and
recommendation of Full Year Audited Financial State-
The Committee supports the Board in fulfilling its ments, review of reports of the Chief Internal Auditor
oversight responsibility relating to the integrity of the and Internal Audit Consultants, the review of the whis-
Company’s financial statements and the financial re- tle-blowing reports as well as the approval of the Internal
porting process; the independence and performance of Audit and Internal Control and Compliance Plans. The
the Company’s internal and external auditors; and the Committee met four (4) times in the 2017 financial year.
Company’s system of internal control and mechanism for
receiving complaints regarding the Company’s account- The Committee is chaired by Mr. Bababode Osunkoya.
ing and operating procedures. The Committee also mon- Mr. Osunkoya is an accounting graduate from the Uni-
itors the status of the Company’s internal and regulatory versity of Lagos. He is a Fellow of the Institute of Char-
compliance. The Company’s Chief Internal Auditor and tered Accountants of Nigeria and the Chartered Institute
Chief Compliance Officer have access to the Committee of Taxation of Nigeria. He is also an associate member
and make quarterly presentations to the Committee. The of the Institute of Directors. Mr. Osunkoya is a Certified
Company’s External Auditors also priodically meet with Forensic Accountant of the Institute of Chartered Ac-
the Committee. countants of Nigeria. He is also a member of Public Prac-

tice Monitoring Committee of the Institute of Chartered the Board for approval. The Committee is also responsible
Accountants of Nigeria. for reviewing the performance and effectiveness of the
Board of the Company’s subsidiaries on an annual basis.
The Committee ensures that the Company’s human
Board Enterprise Risk Management and resources are maximized to support the long term
Governance Committee success of the enterprise and to protect the welfare of all
employees.
The Committee supports the Board in fulfilling its
oversight responsibility relating to establishment of The key decision and initiatives of the Committee in 2017
policies, standards and guidelines for risk management, include review of the Succession Plan Policy, review of
and compliance with legal and regulatory requirements. Executive Management Performance as well as review
In addition, it oversees the establishment of a formal and recommendation to the Board of 2016 Full Year and
written policy on the overall risk management system. 2017 Half Year Collegiate Appraisal Report, providing
The Committee also ensures compliance with established strategic oversight over the human resources transforma-
policies through periodic reviews of reports provided by tion plan for the Company, review of the Board assess-
management and ensures the appointment of qualified ment report for the Company and its subsidiaries. The
officers to manage the risk function. The Committee Committee met four (4) times during the period.
evaluates the Company’s risk policies on a periodic basis
to accommodate major changes in the internal or external The Committee is chaired by Mr. Adamu Atta. Mr. Atta
environment. holds a B.A in International Relations and Economics
and an MA in Development Economics from the United
The key issues considered by the Committee during the States International University and the University of
period included consideration of the Solvency II, Enter- California respectively. He also has a Masters in Political
prise Risk and Capital Management Project, A.M. Best Economics from Ahmadu Bello University, Zaria. Mr.
Report on the risk rating for the Company and implemen- Atta has over two decades experience in financial man-
tation of relevant internal policies. The Committee also agement and consulting.
monitored the status of the Company’s compliance with
relevant regulatory policies, review of the impact of audit
findings on the risk profile of the Company, evaluation of Board Finance, Investment and General Purpose
the nature and effectiveness of action plans implemented Committee
to address identified compliance weaknesses. The Com-
mittee met four (4) times in the 2016 financial year. The Committee advises the Board on its oversight
responsibilities in relation to the Company’s general
The Committee is chaired by Mrs. Ifeyinwa Osime. Mrs. investments and provides strategic guidance for the
Osime holds a Law Degree (L.L.B), and Masters (LL.M) development and achievement of the Company’s
in Commercial & Corporate Law from the University of investment objectives. The Committee therefore works
Benin and London School of Economics, University of with Management to review the quality of the Company’s
London respectively. She is also a Barrister at Law (BL) investment portfolio and the trends affecting the
of the Supreme Court of Nigeria. She has over 25 years portfolio, overseeing the effectiveness and administration
professional experience in law and insurance and was the of investment related policies including compliance
Company Secretary of African Development Insurance with legal investment limits and the Company’s in-
Company Limited from 1989 to 1997 with oversight over house investment restrictions, reviewing the process
claims settlement. She is an alumnus of the Harvard for determining provision for investment losses and the
Business School. adequacy of the provisions made as well as providing
oversight and guidance to the Company regarding all
aspects of implementing the NAICOM Guidelines and
Board Establishment and Remuneration compliance with other regulatory Risk based supervision
Committee framework.

The Committee advises the Board on its oversight
responsibilities in relation to governance, remuneration, Key issues considered by the Committee included review
other human resource matters affecting the Directors of the financial control report and investment report,
and employees of the Company and all other general approval of the annual budget as well as the capital and
matters. Specifically, the Committee is responsible for operating expenses of the company, quarterly review
determining and executing the processes for board of budget utilization against the actual plan, quarterly
appointments, recommending appropriate remuneration review of rights issue utilisation, review of the unaudited
for directors (both executive and non-executive) and financial statement, approval of the investment portfolio
approving remuneration for all other members of and risk appetite, oversight of the Company’s investment
staff. The Committee is responsible for reviewing and portfolio and related risk management processes, con-
recommending the Company’s organizational structure to tinued monitoring of the Company’s compliance with

relevant regulatory and internal investment policies with Company’s overall corporate strategy and performing
respect to the Company’s investment portfolio, approval such other related functions as may be assigned to the
of investment limits as well as investment exceptions Committee by the Board of Directors.
where necessary. The Committee met four (4) times in Key issues considered by the Committee included
the 2017 financial year. monitoring and ensuring the successful implementation of
Ms. Chizoba the Company’s new core insurance application, quarterly
Ufoeze chaired the Committee. Ms. Chizoba Ufoeze is review of the information technology report, review of
a graduate of University of Nigeria Nsukka and has an the technical functionality and system report, quarterly
MSc in Investment Management from the City University review of the IT budget utilization against the actual
Business School London, and an MBA from the Middle- plan, quarterly review of the internal audit and control
sex University Business School, London. Ms. Ufoeze is an report and consideration of status report on the StarIns
Investment Analyst with over 23 years’ experience in the Application Implementation. The Committee met four (4)
financial services industry. times during the 2017 financial year.

The Committee is chaired by Mr. Barnabas Olise. Mr.Ol-
Board Information Technology Committee ise studied and graduated with Bachelors (B.SC Hons)
in Mathematics from the University of Ibadan. He is a
The Committee assists the Board in fulfilling its Fellow of the Institute of Charted Accountants of Nigeria
governance and oversight responsibilities relating to (ICAN) and has over 20years professional experience in
development, periodic review and implementation of the Auditing and Consulting. He is currently the Managing
Company’s Information Technology strategy, monitoring Partner/CEO Of Enterprise Value Matrix Consult (EVMC)
the Company’s investments and operations in relation to Limited, a multidisciplinary consultancy firm established
technology and information systems, ensuring that the in 2010.
Company’s technology initiatives are consistent with the

Attendance at Board and Board Committee Meetings
Directors’ attendance at meetings during the 2017 financial year was as shown below:

NAME OF DIRECTORS MEETING
S/N Director BoD BACC BERMC BFIC BERC BITC
Number of Meetings Held 4 4 4 4 4 4
Attendance:
1 Mr. Aigboje Aig-Imoukhuede 4 N/A N/A N/A N/A N/A
2 Mr. Adamu Mahmoud Atta 4 N/A 4 4 4 N/A
3 Mr. Bababode Osunkoya 4 4 4 4 4 4
4 Mr. Barnabas Olise 4 4 4 4 N/A 4
5 Ms. Chizoba Ufoeze 4 4 4 4 4 N/A
6 Mrs. Ifeyinwa Osime 4 N/A 4 4 4 4
7 Mr. Olusegun Ogbonnewo - - - - - -
8 Mrs. Adeyinka Adekoya 4 N/A 4 4 N/A 4
9 Mr. Oyebode Ojeniyi 4 N/A 4 4 N/A N/A
10 Mr. Olufemi Obaleke 4 N/A N/A 4 N/A 4
11 Mr. Peter Ehimhen** - - - - - -

* Mr. Olusegun Ogbonnewo was appointed to the Board on October 25, 2017
** Mr. Peter Ehimhen’s appointment was approved by NAICOM on December 5, 2017
Executive Committee
Management Committees
The Executive Committee (EXCO) is made up of the
Managing Director as Chairman, and all the Executive These are standing committees made up of the Company’s
Directors as members. The Committee is primarily Executive and Senior Management staff. The Committees
responsible for the implementation of strategies approved are set up to idnetify, analyse and make recommendations
by the Board and ensuring the efficient deployment of the on risks pertaining to the Company’s day to day activities.
Company’s resources. They ensure that risk limits set by the Board and the reg-
ulatory bodies are complied with and also provide input
into the various Board Committees in addition to ensuring

the effective implementation of risk polices. These Com- Steering Committee.

mittees meet as frequently as risk issues occur and take
actions and decisions within the ambit of their respective Statutory Audit Committee
powers.
In compliance with Section 359 of the Companies and Al-
The management committees include: Finance and lied Matters Act 1990, Wapic constituted a standing Statu-
Investment Management Committee, Underwriting and tory Audit Committee made up of three (3) non-executive
Claims Management Committee, Enterprise Risk Man- directors and three (3) shareholders. The composition of
agement Committee, Criticized Assets Committee and IT the Committee is as set out below:

“1. Mr. Bode Osunkoya (Director) Chairman
2. Mr. Chinwendu Achara (Shareholder) Member
3. Mr. Adeniyi Adebisi (Shareholder) Member
4. Mrs. Mary Joke Shofolahan (Shareholder) Member
5. Ms. Chizoba Ufoeze (Director) Member
6. Mr. Barnabas Olise (Director) Member “

The Committee is constituted to ensure its independ- formal succession planning. The Company’s policy pro-
ence which is fundamental to upholding stakeholders’ vides that potential candidates for the other positions
confidence in the reliabiilty of the Committee’s report shall be identified at the beginning of each financial
and the Company’s Financial Statements. There is year based on performance and competencies.
no Executive Director sitting on the Committee. The
appointment of the Committee Chairman was to ensure
compliance with the requirement that the Commit- Code of Ethics
tee Chairman should be a professional member of an
accounting body established by Act of the National Wapic Insurance has in place, a Code of Conduct which
Assembly in Nigeria who shall be required to attest to specifies expected behaviour of its employees and
the Company’s annual report, financial statements, Directors. The code is designed to empower employees
accounts, financial report, returns and other documents and Directors and enable effective decision making at
of a financial nature. all levels of the business according to defined ethical
principles. The Code requires that each Company
employee shall read the Code and sign a confirmation
The duties of the Committee are as enshrined in the that he has understood the content. In addition, there
Section 359(3) and (4) of CAMA. The Committee is is an annual re-affirmation exercise for all employees.
responsible for ensuring that the Company’s financials The Company also has a Compliance Manual which
comply with applicable financial reporting standards. provides guidelines for addressing violations/breaches
and ensuring enforcement of discipline with respect
to staff conduct. The Company also has a Disciplinary
The Committee met 2 times during the 2016 Guide which provides sample offences/violations and
financial year. prescribes disciplinary measures to be adopted in various
cases. The Head of Human Resources is responsible for
Going Concern the design and implementation of the “Code of Conduct”
while the Chief Compliance Officer is responsible for
The Directors confirm that after making appropriate en- monitoring and ensuring compliance.
quiries they have reasonable expectations tha the Com-
pany has adequate resources to continue in operational The Chief Compliance Officer issues at the commence-
existence for the foreseeable future. Accordingly they ment of each financial year, an Ethics & Compliance
continue to adopt going concern basis in preparing the message to all staff within the Group. The Ethics &
financial statements. Compliance message reiterates the Company’s policy of
total compliance with all applicable laws, regulations,
Succession planning corporate ethical standards and policies in the conduct
of the Company’s business. The message admonishes
The Company has a robust policy which is aligned with employees to safeguard the franchise and advance its
the Company’s performance management process. The growth in a sustainable manner while ensuring compli-
policy identifies key positions, for all Wapic Insurance ance with relevant policies, laws and regulations.
Plc operating entities in respect of which there will be

Dealing in Company Securities blowers and extends to the conduct of the stakeholders
including employees, vendors, and customers. It provides
The Group implements a Non-Dealing Period Policy that the framework for reporting suspected breaches of
prohibits Directors, members of the Audit Committee, the Company’s internal policies as well as extant laws
employees, financial consultants and all other insiders and regulations. The Company has retained KPMG
from abusing, or placing themselves under the suspicion Professional Services to provide consulting assistance in
of abusing price sensitive information in relation to the the implementation of the policy. The policy provides that
Company’s securities. In line with the policy affected suspected wrongdoing by an employee, vendor, supplier
persons are prohibited from trading on the company’s or consultant may be reported through the KPMG Ethics
security during closed period which is usually announced lines or email, details of which are provided below:
by the Company Secretary. The Company has put in place
a mechanism for monitoring on-going compliance with
the policy. A copy of the policy is contained within this Toll Free numbers for calls from MTN numbers only:
report.
0703-000-0026

Remuneration Statement 0703-000-0027

The Report on Directors’ remuneration is as set out in Toll Free numbers for calls from Airtel numbers only:
the Audited Financial Statements. The Group has estab-
lished clear policy guideline for the determination and 0808-822-8888
administration of compensation. In line with the policy
guidelines, the Company seeks to attract and retain the 0708-060-1222
best talent in countries that it operates. To achieve this,
the Company seeks to position itself among the best Toll Free numbers for calls from Etisalat numbers only:
performing and best employee rewarding companies in 0809-933-6366
its industry. This principle will act as a general guide for
the determination of compensation. The objective of the
policy is to ensure that salary structure including short E-mail
and long term incentives motivate sustained high perfor-
mance and are linked to corporate performance. It is also kpmgethicsline@ng.kpmg.com
designed to ensure that stakeholders are able to make
reasonable assessment of the Company’s reward prac-
tices. It is the Company’s policy to comply in full with all The Company’s Chief Compliance and Internal Control
local tax policies while seeking to take opportunities of Officer is responsible for monitoring and reporting on
legal tax avoidance. whistleblowing. Quarterly reports are rendered to the
Board Audit and Compliance Committee.
Total compensation provided to employees will typically
include guaranteed and variable portions. Guaranteed The Company Secretary
pay will include base pay and other guaranteed portions
while variable pay may be both performance based and Directors have separate and independent access to the
discretionary. The Company has put in place a perfor- Company Secretary. The Company Secretary is respon-
mance bonus scheme which seeks to attract and retain sible for among other things ensuring that Board proce-
high performing employees. Awards to individuals are dures are observed and that the Company’s Memorandum
based on the job level, business unit performance and and Articles Association and other rules and regulations
individual performance. Other determinants of the size of are complied with. She also assits the Chairman and the
individual award amount include pay level for each skill Board in implementing and strengthening corporate gov-
sets which may be influenced by relative dearth of skill in ernance practices and processes with a view to enhancing
a particular area. long-term shareholder value.

The Company complies with the Pension Reform Act on The Company Secretary assists the Chairman in ensuring
the provision of retirement benefit to employees at all good information flow within the Board and its Commit-
levels. tees and between Management and Non-Executive Direc-
tors. The Company Secretary also facilitates the orienta-
Whistle Blowing Procedure tion of new Directors and coordinates the professional
development of Directors.
The Company expects all its employees and Directorss to
observe the highest level of probity in their dealings with As primary compliance officer for the Company’s compli-
the Company and its stakeholders. The Company’s Whistle- ance with the listing rules of the Nigerian Stock Exchange,
Blowing Policy covers internal and external whistle- the Company Secretary is responsible for designing and

implementing a framework for the Company’s compliance Capital Market and applies to all complaints about Wapic
with the listing rules, including advising Management on Insurance Plc, made by members of the public or external
prompt disclosure of material information. organisations arising out of issues contained in the Invest-
ment and Securities Act. The Complaint Management is
The Company Secretary attends and prepares the min- hosted on the Company’s website www.wapic.com and is
utes for all Board meetings. As secretary of all board com- also contained within this Annual Report.
mittees she assists in ensuring coordination and liaison
between the Board, the Board Committees and Manage-
ment. The Company Secretary also assists in the devel- Statement of Compliance
opment of the agendas for the various Board and Board
Commtitee meetings. The Company is a public limited liability company and
therefore subject to the relevant provisions of the SEC
The appointment and removal of the Company Secretary as well as the NAICOM Codes of Corporate Governance.
are subject to the Board’s approval. In the event of any conflict between the provisions of the
two codes regarding any matter, the Company will defer
Complaints Resolution to the provisions of the NAICOM Code as its primary
regulator.
The Company has a Complaint Management Policy which
has been put in place in line with the SEC Rules Relating
to the Complaint Management Framework of the Nigerian


Wapic Management’s

Wapic Insurance Plc’s major business activity is insurance.
However, the Group is developing capacity for expansion
into the asset management and property business.
Commentary and

Analysis Business objective and strategy

Wapic Insurance Plc is registered, incorporated and list-
for the year ended 31 December 2017 ed in Nigeria. The Company is principally engaged in pro-
viding insurance and investment services to cater for the
In order to foster deeper understanding of our strategy, needs of corporate and retail sectors of the Nigerian econ-
operating risk and performance and also in compliance omy.
with regulatory requirements, we have outlined a Man-
agement’s Commentary and Analysis (“MC&A”) report as The Company aims to evolve into a truly diversified finan-
contained hereunder. cial services institution that provides protection against
Reference in this MC&A to the “Company” or to “Group” is all forms of insurable risks to all customer segments. By
with respect to, as the context may require, WAPIC Insur- this, the Company’s objective is to emerge as one of the top
ance Plc and all or some of its subsidiaries. Unless other- twenty financial services institutions in Nigeria by 2019.
wise indicated, all financial information presented in this
MC&A, including tabular amounts, is in Nigerian Naira To ensure this goal is achieved, Wapic Group’s strategy is to
and is prepared in accordance with International Financial broaden and align service delivery channels along custom-
Reporting Standards (“IFRS”). er segments taking cognizance of the difference between
To facilitate wholesome understanding of the Company’s policy administration, product support and customer care
position, it is advised that the content in this MC&A be to adequately cater for peculiar needs for each segment.
read in conjunction with the full audited annual consoli-
dated financial statements as well as the accompanying
notes. Wapic is set to provide excellent service in a sustainable
manner and thereby redefine the business of insurance
Nature of business within the West Africa region.

Wapic Insurance Group operates three Companies name-
ly: Wapic Insurance Plc (the parent company), Wapic Life
Assurance Limited and Wapic Insurance (Ghana) Limited.

Performance indicators

Operating results and financial condition

GROUP COMPANY
31 Dec 2017 31 Dec 2016 Change 31 Dec 2017 31 Dec 2016 Change
N’000 N’000 % N’000 N’000 %
Gross premium written 9,807,616 8,005,308 23% 6,388,069 5,375,431 19%
Net premium income 5,652,039 4,291,340 32% 3,752,138 2,672,942 40%
Net claims expenses 3,061,710 2,868,625 7% 1,682,351 1,233,309 36%
Underwriting profit 1,536,136 380,677 304% 1,198,406 577,962 107%
Investment and other income 3,130,472 3,737,135 (16)% 2,214,804 2,804,526 (21)%
Operating expenses (4,432,115) (4,150,240) 7% (3,182,585) (2,867,934) 11%
Profit before tax 1,622,691 1,193,446 36% 230,625 514,554 (55)%
Profit after tax for the year 1,530,810 586,023 161% 315,644 91,973 243%
Basic earnings per share (kobo) 11 4 175% 2 1 100%

The business contiuned to experience gains resulting from the business model restructuring and transformation of the
service channels embarked upon to reposition the group. These contributed to a 23% (Company: 19% increase) increase
in the Group’s gross written premium when compared to prior year’s result.

The transformation in the business model also im- the year was underpinned by a focus on highly liquid
pacted on the net premium income of N5.65 billion financial instruments such as term deposit, equity and
which represents an increase of N1.80 billion over debt instruments. At the end of December 2017, the
December 2016 results. Group had approximately N7.8 billion invested in fixed
income, N1.7 billion in equity instruments and N812
million on money market placements as against N6.4
The Group reported net insurance claims expenses billion, N1.01 billion and N1.05 billion respectively for
of N3.06billion in 2017, an increase of N193 million the comparative prior year period as at 31 December
over December 2016. The Company also recorded 2016.
an increase of N449 million in net claim expenses
between 2016 and 2017. The underwriting result at the Forward looking statements
end of the year amounted to an underwriting profit of
N1.54 billion (Company: underwriting profit of N1.20 Some aspects of the statement above relate to the
billion) compared to an underwriting profit of N381 Company’s future outlook. Reference to the Company’s
million (Company: N578 billion) reported during or Management’s budget, estimates, expectations,
the year ended 31 December 2016. The underwriting forecasts, predictions or projections constitute aspect
performance was impacted by the improved net of the “forward-looking statements”. Such statements
underwriting income in spite of the claims experience may also be deduced from the use of conditional or
within the period. forward‑looking terminologies including but not
limited to words such as “anticipates”, “believes”,
“estimates”, “expects”, “may”, “plans”, “projects”,
Investment and other income decreased by 16% “should”, “will”, or the adverse variants of such which
(Company: 21%). The group’s strategic objective is appear within the body of this document.
to leveraged on investment income as a key revenue
source to agument the uncertainties from fluctuations
in underwriting margins. The decline from N3.74 “Many factors and assumptions may affect the mani-
billion (Company: N2.81 billion) in 2016 to N3.13 festation of the Company’s projections, including, but
billion (Company: N2.22 billion) in 2017 is a mainly as not limited to, production rate, claims rate, employee
result of the impact foreign exchange translation gains turnover, relationships with brokers, agents and sup-
on the group’s foreign currency assets in 2016 which pliers, economic and political conditions, non-compli-
was not available in the current period; if this impact is ance with laws or regulations by the Company’s em-
adjusted for, the performance reflected the Company’s ployees, brokers, agents, suppliers, and/or partners,
contiuned efforts at growing investment portfolio with and other factors that are beyond its control.“
maximum yields through taking advantage of strategic
investment opportunities.
Without prejudice to the Company, such forward look-
ing statements reflect Management’s current belief
Operating expenses for the year totaled N4.43 billion and are based on available information which are sub-
(Company: N3.18 billion), representing a 7% increase ject to risks and uncertainties as identified. Therefore,
(Company: 11%) compared to prior the year expens- the eventual action and/or outcome could differ ma-
es. terially from those expressed or implied in such for-
ward-looking statements, or could affect the extent to
which a particular projection materializes.
As at 31st December 2017, the Group had N1.75 bil-
lion in the cash and cash equivalents (Company: N911
million), including money market placements of N812 The forward-looking statements in this document re-
million (Company: N403 million) with maturity of not flect the Company’s expectations at the time the Com-
more than three months. pany’s Board of Directors approved this document,
and are subject to change after this date. The Company
Liquidity, capital resources and risk factors does not undertake any obligation to update publicly
or to revise any such forward-looking statements, un-
less required by applicable legislation or regulation.
The Group’s cash investment is in accordance with its
investments policy which is compliant with regulatory
requirements. The Group’s investment strategy during

Statement of Directors’ Responsibilities

For the year ended 31st December,2017

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 com-
prehensive income as required by the Companies and Allied Matters Act of Nigeria and the Insurance Act of Nigeria.
The responsibilities include ensuring that the Group:

(a) 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;

(b) establishes adequate internal controls to safeguard its assets and to prevent and detect fraud and other
irregularities;
(c) prepares its financial statements using suitable accounting policies supported by reasonable
and pru dent judgements and estimates, which are all 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 conformity with; “

- International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board (IASB);

- the requirements of the Insurance Act;

- relevant guidelines and circulars issued by the National Insurance Commission (NAICOM);
- the requirements of the Companies and Allied Matters Act.

- Financial Reporting Council Act of NigeriaThe 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. Nothing has come to the attention of the
directors to indicate that the company will not remain a going concern for at least twelve months from
the date of this statement.

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:

Adeyinka Adekoya Bode Ojeniyi
FRC/2016/CIIN/00000013893 FRC/2016/CIBN/00000013894
Managing Director Executive Director
29 January 2018 29 January 2018

Report of the Audit Committee

In accordance with the provisions of Section 359 (6) of the Companies and Allied Matters Act of Nigeria, the mem-
bers of the Audit Committee of Wapic Insurance Plc hereby, report on the financial statements for the year ended 31
December 2016 as follows:

- We have exercised our statutory functions under Section 359 (6) of the Companies and Allied Matters
Act of Nigeria and acknowledge the co-operation of management and staff in the conduct of these respon
sibilities.
- We are of the opinion that the accounting and reporting policies of the Group and Company are in
accordance with legal requirements and agreed ethical practices and that the scope and planning of both
the external and internal audits for the year ended 31 December 2016 were satisfactory and reinforce the
Group’s internal control systems.

- We have deliberated with the External Auditors, who have confirmed that necessary cooperation was
received from management in the course of their statutory audit and we are satisfied with management’s
responses to the External Auditor’s recommendations on accounting and internal control matters and the
effectiveness of the Company’s system of accounting and internal control.

Mr. Bababode Osunkoya
FRC/2013/ICAN/00000002054
Chairman, Audit Committee
29 January 2018

Members of the committee as at 31 December 2017:

Mr. Bode Osunkoya - Non - Executive Director (chairman)
Mr. Chinwendu Achara - Shareholder (member)
Mr. Adeniyi Adebisi - Shareholder (member)
Mrs. Mary Joke Shofolahan - Shareholder (member)
Ms. Chizoba Ufoeze - Non - Executive Director (member)
Mr. Barnabas Olise - Non - Executive Director (member)

Customer Complaints Feedback

Wapic Insurance Plc is fully committed to providing • The Ombudsman desk
excellent customer service at all times. Given the number
and complexity of financial transactions that occur daily, Complaints Handling
particularly with respect to claims payments, the Compa- We handle customer complaints with sensitivity and in due
ny recognizes that there will inevitably be occasions when regard for the needs and understanding of each complain-
mistakes and misunderstandings occur. In these situa- ant. Efforts are made to resolve customer’s complaints at
tions, Wapic Insurance Plc encourages customers to bring first level. Where this cannot be achieved, they are imme-
their concerns to the attention of the Company for prompt diately referred to the appropriate persons for resolution.
resolution. In addition, deliberate efforts are made to so- All complaints are logged and tracked for resolution and
licit customers’ feedback on our products and services. feedback is provided to the customer.
Complaints Channels Complaints Tracking And Reporting

In order to facilitate seamless complaint and feedback We diligently track complaint information for continuous
process, the Company has provided various channels for improvement of our processes and services. An independ-
customers. These include: ent review of the root cause of complaints made is carried
• Our contact center with feedback through emails, out and lessons learnt are fed back to the relevant business
telephone, SMS. units to avoid future repetition.
• Correspondence from customers

Whistleblowing
Wapic has established a Code of Ethics that stipulates the • Proactively prevent and deter misconduct that could
minimum standards of conduct expected of our staff, man- damage the Company’s reputation.
agement and directors as well as vendors, and customers
in their interaction with the Company. All our stakehold-
ers are expected to observe the Code of Ethics in their 2. Scope of the Policy
dealings with the Company. We have implemented a whis- The Policy applies to employees, management, directors
tleblowing policy to support the detection, reporting and and other stakeholders such as contractors, shareholders,
investigation of unethical behaviours within the Company. job applicants and the general public in all locations where
All stakeholders are expected to comply with the standards the Company operates. The reportable concerns include
described in the policy in the reporting of suspected or ac- but are not limited to the following:
tual unethical conduct or wrongdoing within the Compa- • Any type of fraud or misconduct
ny. • Purchase of inferior goods
The whistleblowing programme is designed to encour- • Purchase of goods at inflated prices
age stakeholders to anonymously report any malpractice • Forgery (use of fake certificates, false declaration of
or misconduct which they observe or suspect within the age, etc.)
Company. The policy assures the whistleblower that his re- • Leakage of confidential information
port will be treated with utmost confidentiality and seeks • Concealment of any malpractice
to encourage the reporting of concerns where the inter- • Commission of offence by Company’s employee
est of the Company and its stakeholders is at stake. The • Conversion of the Company’s assets
implementation of the policy is therefore fundamental to • Collusion with suppliers and customers to defraud the
strengthening stakeholders’ confidence in Company’s pro- Company
fessional integrity and reinforces its ethical values. It pro- • Bribery and corruption
vides an avenue to address bona fide concerns that stake- • Conflicts of interest and non-disclosure of interest in a
holders may have about the Company while also offering transaction involving the Company
whistleblowers protection from victimization, harassment • Sexual harassment
or disciplinary proceedings. Stakeholders are encouraged • Abuse of authority
to raise genuine concerns about misconduct, malpractices • Other breaches of the Company’s Code of Ethics or
and unethical behavior at the earliest opportunity and in business principles
an appropriate way. It provides the framework for report- • Connected transactions not disclosed or reported in
ing suspected breaches of the Company’s internal policies, line with regulations.
laws and regulations. • Insider abuse.
Wapic has retained KPMG Professional Services to pro- • Attempt to conceal any of the aforementioned acts.
vide consulting assistance in the implementation of the
policy. The policy provides that suspected wrong doing by However, judgement and discretion are required to
an employee, director, vendor or consultant should be re- determine misconduct that should be reported under
ported through the KPMG’s toll free Ethic Lines, e-mail or this Policy. The general guide in identifying reportable
web-portal details which are provided in the Policy. misconduct is to report concerns that would be in the
interest of the Company and the general public and for
OUR WHISTLEBLOWING POLICY appropriate sanctions to be applied.
1. Objectives of the Policy
The objectives of this Whistleblowing Policy (‘The Policy’) 3. The Culture of Whistleblowing
are as follows: In the drive to entrench the culture of whistleblowing
• To support the Company’s corporate philosophy. among members of staff, new hires are trained on the
• To encourage stakeholders to confidentially raise con- benefits of whistleblowing and the channels through
cerns about unethical violation of the Company’s poli- which whistleblowers can report their concerns during
cies and Code of Conduct their induction programme, while existing staff are
• To reassure the whistleblower of protection from pos- trained periodically. The identity of the whistleblower
sible reprisals or victimization if a disclosure has been is strictly kept confidential by KPMG, our whistleblow-
made in good faith. ing consulting partner.
• To inform stakeholder of the avenues open to them to
report concerns. 4. Channels and Procedures of Whistleblowing
• To encourage stakeholders to identify and challenge
all improper, unethical or inappropriate behavior at A stakeholder can report misconduct via the use of the
all levels of the organization. KPMG Ethics Lines and facilities. The KPMG Ethics
• To provide clear procedures for investigation and han- line facilities are telephone lines, email address and
dling of such concerns. web-portal. The telephone lines are open between

8:00 a.m and 5:00 p.m on work days only. While the to the call sheet memos
e-mail and web-portal are always available except • Through the KPMG Ethics Line E-mail: kpmgeth-
during periods of maintenance. Whether the whis- icsline@ng.kpmg.com
tleblower discloses his/her identity, KPMG will not • Web portal address: https://apps.ng.kpmg.com/
provide any indication of the whistleblower’s identity ethics
to the Company except KPMG has a written consent • Toll free numbers for calls from MTN numbers
from the whistleblower to provide his/her identity to only: 0703-000-0026; 0703-000-0027
Wapic Insurance Plc. Telephone calls generally are • Toll free number for calls from Airtel numbers
recorded and information is transcribed into a call only: 0708 060 1222; 0808-822-8888
sheet memo by KPMG for transmission to designat- • Toll free number for calls from 9MOBILE num-
ed representatives of the Company. Wapic Insurance bers only: 0809 993 6366
Plc, its officers, staff, representatives or agents shall
not be entitled to have access to such tape recordings,
fax messages or email messages received from whis-
tleblowers. These measures are necessary in order to
maintain confidentiality and anonymity of the whis-
tleblowers. Wapic Insurance Plc will only have access

Non-Dealing Period Policy

Introduction ny Secretary of Wapic Insurance Plc;
This document shall be read in conjunction with the Com-
pany’s Code of Conduct Policy, the Guidelines for com- “Company” Wapic Insurance Plc;
pliance with Rule 110 & 111 of the Securities & Exchange
Commission Rules and Regulations, and all other policies “Dealing” means any change whatsoever to the holding of
of Wapic Insurance Plc. securities of which the holder is an affected person includ-
ing:
Aim a. Any sale or purchase of, or agreement to sell or
The purpose of this document is to ensure that Directors, purchase, any securities of the Company;
members of the Shareholders Audit committee, employees, b. The grant to, or acceptance by such a person,
a related company and all insiders (hereafter called “affect- of any option relating to such securities or of any
ed persons”) do not abuse, or place themselves under the right or obligation, present or future, conditional
suspicion of abusing, price-sensitive information that they or unconditional, to acquire or dispose of any
may have or be thought to have, especially at periods lead- such securities;
ing up to an announcement of the Company’s financial re- c. The acquisition, disposal, exercise or discharge
sults. Ultimately, it is the responsibility of affected persons, of, or any dealing with, any such option, right or
to ensure that none of their dealings constitute insider obligation in respect of such securities;
trading. If an affected person is in doubt about any provi- d. Dealings between directors and/or applicable em
sion of this guide, the person is duty bound to consult the ployees of the Company;
Company Secretary prior to undertaking any transaction e. Off market dealings;
on the Company’s securities or encouraging or procuring f. Transfers of no consideration;
someone else to so deal. “Holding”any legal or beneficial interest, direct or indirect
in the Company’s securities;
Definitions
The following terms have the following meanings unless “Securities” any securities of Wapic Insurance Plc
the context otherwise requires: admitted to trading on a stock exchange
“Director” any person who occupies the position of a Direc-
tor in Wapic Insurance Plc, or any of its Subsidiaries; “Unpublished price sensitive information” means informa-
tion which:
“Audit Committee”the Shareholders’ Audit Committee; a. Relates to particular securities of the Company,
or the Company rather than its securities (and,
“Employee”any person engaged under a contract of em- for these purposes, information shall be treated
ployment with the Company or any of its subsidiaries, and as relating to the Company not only where it is
any other persons engaged by a third party service provider about the Company but also where it may affect
or outsourcing agency, to provide support services to Wap- the Company’s business prospects);
ic Insurance Plc or any of its subsidiaries; b. Is specific or precise;
c. Has not been made public; and
“A related Company” a subsidiary of Wapic Insurance Plc d. If it were made public would likely have a signifi
cant effect on the price or value of any security.
“An insider”shall include a Director or employee of Wapic
Insurance Plc and any of its subsidiaries, a related compa- Dealings By Affected Pesons
ny and its employees, a company or firm engaged in a pro- Transactions during Non-Dealing periods
fessional or business capacity with the Company or any of An affected person shall not deal in any securities of the
its subsidiaries and their employees, including any share- Company during a “Non-Dealing Period”. For the avoid-
holder who holds 5% or more of any class of Wapic Insur- ance of doubt, affected person(s) shall be deemed to be
ance Plc securities, or a similar holding of its subsidiaries; in constructive possession of unpublished price sensitive
information where;
“Non-Dealing Period” any period when an affected person (a) Such information is in possession of a class or a
is in possession or deemed to be in possession (actual or group of persons to which the affected person is a
constructive), of unpublished price sensitive information member; or
in relation to the Company or its securities, and any oth- (b) By virtue of the affected person’s duties, job de
er period declared as a Non-Dealing Period by a notice in scription, sphere of services or business
writing (electronic or otherwise) published by the Compa- relationship with the Company or any of its

subsidiaries, he would reasonably be expected of the Company’s Quarterly Unaudited

to be possessed of such price Accounts, or its submission to regulatory
sensitive information authorities
whichever occurs first;
Compliance with SEC Rule 110 & 111 iii. A period of not less than 30 days prior to the
All securities transactions by affected persons shall be Board Audit and Compliance Committee’s
conducted in compliance with SEC Rule 110 & 111 and consideration of the Company’s Audited
the Company’s Guide on compliance with same Accounts;

Non-Dealing Period iv. Any period after Board approval of the
Except as otherwise communicated in writing by the Company’s Audited Accounts but prior to the
Company Secretary, the following periods shall be publication of the Accounts or the submission
deemed to be non-dealing periods. to regulatory authorities whichever occurs subse
i. A period of 30 days prior to the publication of quently;
the Company’s Quarterly Profit Forecast or v. Any other period as may be designated by the
its submission to regulatory authorities Group Managing Director as a Non-Dealing
whichever occurs first; Period.
ii. A period of 30 days prior to the publication

04.
04. Financial Statements

• Independent Auditor’s Report
• General Information
• Statement of Significant Accounting Policies
• Consolidated Statement of Financial Position
• Consolidated Statement of Profit or Loss and Other
• Comprehensive income
• Consolidated Statement of Changes in Equity
• Consolidated Statement of Cash Flows
• Notes to the Financial Statements

Independent Auditors’ Report






General Information
1. Reporting entity
Wapic Insurance Plc (“Wapic” or ‘‘the Company”) together These financial statements were authorised for issue by the
with its subsidiaries (collectively “the Group”) is a public Company’s Board of Directors on 29 January 2018.
liability company domiciled in Nigeria with operations in
Nigeria and Ghana. Wapic Insurance Plc was incorporated
on 14 March 1958 as a private limited liability Company (b) Functional and presentation currency
under the name of West African Provincial Insurance
Company Limited. It became a public limited liability The financial statements are presented in Nigerian cur-
company in 1990 when the Company’s shares were listed rency (Naira) which is the Company’s functional currency.
on the Nigerian Stock Exchange. The Company secured a Except otherwise indicated, financial information present-
life insurance business license from National Insurance ed in Naira have been rounded to the nearest thousand.
Commission (NAICOM) in 2000, and became a composite
insurance business. The Company separated the life busi-
ness and transferred the related assets and liabilities to its(c) Basis of measurement
subsidiary, Intercontinental Life Assurance Limited (now
Wapic Life Assurance Limited), on 1 March 2007 through “The consolidated financial statements have been prepared
which it continues to provide life assurance services. Wa- on a historical cost basis except for the following:“
pic Insurance Ghana Limited, a wholly owned subsidiary
of Wapic Insurance Plc, was incorporated on 21 January • financial instruments at fair value through profit or loss
2008 to carry on general insurance business in Ghana are measured at fair value;
from 19 February 2008. The address of the Company’s • available-for-sale financial assets are measured at fair
corporate office is 119, Awolowo Road, Ikoyi. The Group value;
is principally engaged in the business of underwriting life • investment properties are measured at fair value;
and non-life insurance risks and also issues a diversified
portfolio of investment contracts products to provide its • land and building are carried at revalued amount; and
customers with asset management solutions for their sav-
ings and target investment plans. • Insurance liabilities are measured at present value of
future cashflows.
• Loans and advances are at amortised cost
Going concern

These financial statements have being prepared on the go-
(d) Use of estimates and judgments
ing concern basis. The Group and Company has no inten-
tion or need to reduce substantially its business operations.
The management believes that the going concern assump- The preparation of financial statements in conformity with
tion is appropriate for the Group and Company due to suf- IFRS requires management to make judgements, estimates
ficient capital adequacy ratio and projected liquidity, based and assumptions that affect the application of accounting
on historical experience that short-term obligations will be policies and the reported amounts of assets and liabilities
refinanced in the normal course of business. Liquidity ratio and income and expenses. Actual results may differ from
and continuous evaluation of current ratio of the Group and these estimates under different assumptions and condi-
Company is carried out to ensure that there are no going tions.
concern threats to the operation of the Group and Compa-

ny.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
2. Basis of preparation recognised in the period in which the estimates are revised
and in any future periods affected.
Information about significant areas of estimation uncer-
(a) Statement of compliance with International tainty and critical judgements in applying accounting pol-
Financial Reporting Standards icies that have the most significant effect on the amounts
The financial statements have been prepared in accordance recognised in the consolidated financial statements is
with, and comply with, International Financial Reporting included in note 4 to the financial statements.
Standards (IFRS) and IFRS Interpretations Committee
(IFRIC) Interpretations applicable to companies reporting
under IFRS and in the manner required by Companies and (e) Regulation
Allied Matters Act of Nigeria, the Insurance Act of Nigeria, The Company is regulated by the NAICOM under the
the Financial Reporting Council of Nigeria Act (FRC Act) National Insurance Act of Nigeria. The Act specifies certain
and Nigerian Insurance Commission (NAICOM) guide- provisions which have impact on financial reporting as
lines and circulars. follows:


i) section 20 (1a) provides that provisions for Insurance Act, which conflict with the provisions of IFRS
unexpired risks shall be calculated on a time have not been adopted:
apportionment basis of the risks accepted in the
year; i) the requirement to provide 10 per cent for
outstanding claims in respect of claims
ii) section 20 (1b) requires provision for incurred but not reported (IBNR) at the end
outstanding claims to be credited with an of the year under review under section 20 (1b);
amount equal to the total estimated amount
of all outstanding claims with a further amount
representing 10 per centum of the estimated ii) the requirement for additional provision of
figure for outstanding claims in respect of 25 per cent of net premium to general
claims incurred but not reported at the end reserve fund under section 22 (1a).
of the year under review. Under IFRS the
Incurred but not Reported (IBNR) claims
are included in the reserves is as determined (f) Reporting period
by the Actuary; The statement of financial position has been prepared for
a 12 month period.
iii) sections 21 (1a) and 22 (1b) require maintenance
of contingency reserves for general and life (g) Changes in accounting policies
businesses respectively at specified rates as set
out under note 3.24 to cover fluctuations in Except for the changes below, the Group and Company
securities and variation in statistical estimates; has consistently applied the accounting policies as set out
in Note 3 to all periods presented in these financial state-
ments.
iv) section 22 (1a) requires that the maintenance of
a general reserve fund (insurance contract fund) New and amended standards and interpretations
which shall be credited with an amount equal
to the net liabilities on policies in force at the
time of the actuarial valuation and an The accounting policies adopted are consistent with those
additional 25 percent of net premium for every of the previous financial period. No new and amended
year between valuation date; standards and interpretations were adopted during the
financial year.
v) section 24 requires the maintenenance of a
margin of solvency to be calculated in
accordance with the Act. New and amended standards and interpretations yet to
be adopted by the Group

The FRC Act provides that in the matters of financial re- As at year end, a number of standards and interpre-
porting if there is any inconsistency between the FRC Act tations, and amendments thereto, had been issued by
and of other Act or law, the FRC Act shall supercede the the IASB which are not yet effective for these financial
other Act or law. The FRC Act provides that IFRS shall statements. Set-out below are standards relevant to the
be the national financial reporting framework in Nigeria. Company, with a date of initial application after 1 January
Consequently, the following provision of the National 2018:


Title of standard IFRS 9 Financial Instruments
Nature of change IFRS 9 addresses the classification, measurement and derecognition of financial assets
and financial liabilities, introduces new rules for hedge accounting and a new impairment
model for financial assets.
Impact The new classification and measurement and impairment requirements will be applied by
adjusting our opening balance sheet of 01 Jan 2018 (31 December, 2017) the date of initial
application, with no restatement of comparative period financial information. The Group
will recognise any difference between the previous carrying amount and the carrying
amount in the opening retained earnings (or other component of equity, as appropriate).
Based on current estimates, the adoption of IFRS 9 is expected to result in a reduction to
retained earnings as at 31 Dec 2017. The impact is primarily attributable to increases in the
allowance for credit losses under the new impairment requirements. We continue to moni-
tor and refine certain elements of our impairment process in advance of Q1 2018 reporting.
Classification and measurement
IFRS 9 introduces a principles-based approach to the classification of financial assets. Debt
instruments, including hybrid contracts, are measured at fair value through profit or loss
(FVTPL), FVOCI or amortized cost based on the nature of the cash flows of the assets and
an entity’s business model. These categories replace the existing IAS 39 classifications of
FVTPL, AFS, loans and receivables, and held-to-maturity. Equity instruments are mea-
sured at FVTPL, unless they are not held for trading purposes, in which case an irrevocable
election can be made on initial recognition to measure them at FVOCI with no subsequent
reclassification to profit or loss.

For financial liabilities, most of the pre-existing requirements for classification and measurement previously
included in IAS 39 were carried forward unchanged into IFRS 9. The requirements related to the fair value option
for financial liabilities, which were adopted in 2014, were changed to address the treatment of own credit risk.
The combined application of the contractual cash flow characteristics and business model tests as at 31 December
2017 is expected to result in certain differences in the classification of financial assets when compared to our clas-
sification under IAS 39. The most significant changes in classification include the following:

Financial Statement Financial instrument Amount IAS 39 classification Classifications
Line (N’000)
Cash and cash equivalents Cash at bank 933,582 Loans and receivables Amortised cost
Money market placements 811,760 Loans and receivables Amortised cost
Investment securities - Equity securities with read- 1,548,487 Available for sale FVTOCI
Available for sale invest- ily determinable fair values
ment securities
Unquoted equity securities 179,990 Available for sale FVTOCI
Fixed income securities 2,304,336 Available for sale FVTOCI
with readily determinable
fair values
Other assets Trade receivables 707,489 Loans and receivables Amortised cost
Other receivables (exclud- 924,102 Loans and receivables Amortised cost
ing prepayments)
Reinsurance assets (exclud- 1,087,216 Loans and receivables Amortised cost
ing prepaid reinsurance)
Statutory deposit Restricted deposit with 632,964 Loans and receivables Amortised cost
central bank


There were no significant changes in the Group’s classifi- expected credit losses will be recognized. Interest revenue
cation of financial liabilities. is calculated based on the carrying amount of the asset,
net of the loss allowance, rather than on its gross carrying
Decisions points amount.”

The implementation of IFRS 9 requires certain decisions Under IFRS 9, the population of financial assets and
to be taken by the managment. and approved in line the corresponding allowances disclosed as Stage 3 will not
relevant governance framework. Management will within necessarily correspond to the amounts of financial assets
the intervening period identify and assess the complexity currently disclosed as impaired in accordance with IAS
of implementation decision point and the range of policy 39. Consistent with IAS 39, loans and receivables are
options available for each. Management will also consid- written off when there is no realistic probability of re-
er conceptual suitability, implementation feasibility and covery. Accordingly, our policy, when financial assets are
regulatory directives on each option to guide the range written-off will not significantly change on adoption of
of key decision points, policy options for each decision IFRS 9.
point and the policy that will be chosen by management Because all financial assets within the scope of the IFRS 9
at implementation date. impairment model will be assessed for at least 12-months
of expected credit losses, and the population of financial
Impairment assets to which full lifetime expected credit losses applies
IFRS 9 introduces an expected credit loss impairment is larger than the population for which there is objective
model that differs significantly from the incurred loss evidence of impairment in accordance with IAS 39, loss
model under IAS 39 and is expected to result in earlier allowances are generally expected to be higher under
recognition of credit losses. Additional details on the IFRS 9 relative to IAS 39.
key elements of the new expected credit loss model are
described below. Changes in the required credit loss allowance, including
the impact of movements between Stage 1 (12 month ex-
pected credit losses) and Stage 2 (lifetime expected credit
losses), will be recorded in profit or loss. Because of the
Scope impact of moving between 12 month and lifetime expect-
ed credit losses and the application of forward looking
Under IFRS 9, the same impairment model is applied to
information, provisions are expected to be more volatile
all financial assets, except for financial assets classified or
under IFRS 9 than IAS 39.
designated as at FVTPL and equity securities designated

as at FVOCI, which are not subject to impairment assess-
Measurement
ment. The scope of the IFRS 9 expected credit loss im-
pairment model includes amortized cost financial assets, The measurement of expected credit losses will primarily
debt securities classified as at FVOCI, and off balance be based on the product of the instrument’s probability
sheet loan commitments and financial guarantees which of default (PD), loss given default (LGD), and exposure at
were previously provided for under IAS 37 Provisions, default (EAD), discounted to the reporting date. The main
Contingent Liabilities and Contingent Assets. The im- difference between Stage 1 and Stage 2 expected credit
plemntation is expected to consider the above-mentioned losses is the respective PD horizon. Stage 1 estimates will
reclassifications into or out of these categories for both use a maximum of a 12-month PD while Stage 2 estimates
on and off-balance sheet exposures in line with IFRS 9. will use a lifetime PD.
Stage 3 estimates will continue to leverage existing pro-
Expected credit loss impairment model cesses for estimating losses on impaired loans, however,
these processes will be updated to reflect the require-
ments of IFRS 9, including the requirement to consider
“Under IFRS 9, credit loss allowances will be measured
multiple forward-looking scenarios. The Group will
on each reporting date according to a three-stage expect-
combine the regulatory prudential guidelines with other
ed credit loss impairment model:
relevant qualitative factors in the “definition of default”.
• Stage 1 – From initial recognition of a financial asset to

the date on which the asset has experienced a significant
Movement across stages
increase in credit risk relative to its initial recognition,
a loss allowance is recognized equal to the credit losses Movements between Stage 1 and Stage 2 are based on
expected to result from defaults occurring over the next whether an instrument’s credit risk as at the reporting
12 months. date has increased significantly relative to the date it was
• Stage 2 – Following a significant increase in credit risk initially recognized. For the purposes of this assessment,
relative to the initial recognition of the financial asset, credit risk is based on an instrument’s lifetime PD, not
a loss allowance is recognized equal to the credit losses the losses expected to be incur.
expected over the remaining lifetime of the asset. Movements between Stage 2 and Stage 3 are based on
• Stage 3 – When a financial asset is considered to be whether financial assets are credit-impaired as at the
credit-impaired, a loss allowance equal to full lifetime reporting date. The determination of credit-impairment

under IFRS 9 will be similar to the individual assessment credit losses to the contractual notice period.
of financial assets for objective evidence of impairment
under IAS 39. Definition of default
IFRS 9 does not define default, but contains a rebuttable

Expected life presumption that default has occurred when an exposure
is greater than 90 days past due. The Group will adopt
For instruments in Stage 2 or Stage 3, loss allowanc-
a definition of default based on the best practice. In
es will cover expected credit losses over the expected
addition, qualitative factors will also be considered. This
remaining lifetime of the instrument. For most instru-
will be applied consistently from one reporting period to
ments, the expected life is limited to the remaining con-
another.
tractual life, adjusted as applicable for expected prepay-
Governance
ments. However, an exemption from this limit is granted
for instruments that include both a loan and undrawn The implementation of IFRS 9 will be designed and im-
commitment component and where the contractual plemented in-line with the existing governance structure
ability allows demand of repayment and cancellation of around the finance and investment management frame-
the undrawn commitment does not limit the exposure to work of the Group.
Mandatory application
date/ Date of adoption by “IFRS 9 must be applied for financial years commencing on or after 1 January
the Group” 2018.“
“During the intervening period, we will carry-out initial assessments of the scope
of IFRS 9, gap assessments from IAS 39, classification of financial assets, financial
and economic impacts, system and resource requirements, and key accounting
interpretations. We will also design and commencing the building of systems, mod-
els, controls and processes required to implement IFRS 9.“

Title of standard IFRS 16 Leases
Nature of change IFRS 16 was issued in January 2016. It will result in almost all leases being rec-
ognised on the balance sheet, as the distinction between operating and finance leases
is removed. Under the new standard, an asset (the right to use the leased item) and a
financial liability to pay rentals are recognised. The only exceptions are shortterm and
low-value leases. The accounting for lessors will not significantly change.
Impact “The standard will affect primarily the accounting for the Group’s operating leases. As
at the reporting date, the Group has no operating lease commitments.“
“Mandatory application
date/ Date of adoption by IFRS 16 must be applied for financial years commencing on or after 1 January 2019.
the Group” The Group does not intend to adopt IFRS 16 before its mandatory date. Expected date
of adoption by the Group is 1 January 2019.

There are no other standards that are not yet effective and that would be expected to have a material impact on the
entity in the current or future reporting periods and on foreseeable future transactions.


3. Significant accounting Financial assets at fair value through profit or loss include
financial assets held for trading and financial assets desig-
policies niated at initial recognition at fair value through profit or
loss.
Except for the changes explained above, the significant
accounting policies set out below have been consistently Financial assets classified as held for trading are acquired
applied by the Group and Company to all periods present- principally for the purpose of selling in the short term for
ed in these financial statements. profit purposes.

3.1. Cash and cash equivalents Subsequent to initial recognition, financial assets as fair
value through profit or loss investments are re-measured
at fair value, with gains and losses arising from changes
“Cash and cash equivalents include cash in hand and at in this value recognized in the profit or loss in the period
bank, call deposits and short term highly liquid financial in which they arise. The fair values of quoted instruments
assets with original maturities of three months or less in active markets are based on current bid prices, while
from the acquisition date, which are subject to insignif- those of unquoted instruments are determined by refer-
icant risk of changes in their fair value and are used by ence to an active markets or valuation techniques.
the Group in the management of its short-term commit-
ments.
Interest earned and dividends received while hold-
ing trading assets at fair value through profit or
Cash and cash equivalents are carried at amortised cost in loss are recognised in the profit or loss. The Group
the statement of financial position.” holds financial assets designated at initial recog-
nition at fair value through profit or loss in ad-
“3.2. Financial instruments“ dition to those financial assets held for trading.

(i) Financial assets
(a)Classification Held-to-maturity
“The Group’s financial assets include cash and short term “Held-to-maturity investments are non-derivative finan-
deposits, trade and other receivables, staff loans, quoted cial assets with fixed determinable payments and fixed
and unquoted equity instruments, treasury bills, bonds maturities that management has both the positive inten-
and debt notes. tion and ability to hold to maturity other than:
The classification of financial assets depends on the pur- • those that the Group designates as available for sale;
pose for which the investments were acquired or originat- • those that upon initial recognition has been
ed. designated as at fair value through profit or loss;
The Group classifies its financial assets into the following and‘
categories: • those that meet the definition of loans and
• financial assets at fair value through profit or loss; receivables.
• held-to-maturity; Such instruments as government bonds, corporate bonds
• loans and receivables, and and treasury bills are carried at amortised cost using the
• available-for-sale. effective interest method, less impairment allowance, if
“ any.

(b) Initial recognition Held to maturity investments are measured subsequent
to initial recognition at amortised cost
All financial instruments are initially recognized at fair using the effective interest rate.
value plus directly attributable transaction costs for finan-
cial instruments not classified as at fair value through The Group consider tainted any financial assets classified
profit and loss. Financial instruments are recognized as held to maturity, if during the current financial year
when the Group has a contractual right to receive cash or the two preceding financial years, it has sold or
flows from the financial instruments or where the Group reclassified more than an insignificant amount of the
has assumed substantially all risks and rewards of owner- held-to-maturity investments before maturity (more than
ship. insignificant in relation to the total amount of held-to-
maturity investments) other than sales or reclassifications
( c) Subsequent measurement that:
• are so close to maturity or the financial asset’s call
Subsequent to intial recognition, financial assets are mea- date (for example, less than three months before
sured either at fair value, amortised cost or cost, depend- maturity) that changes in the market rate of interest
ing on their categorization. would not have a significant effect on the financial
asset’s fair value;
Financial assets at fair value through profit or loss • occur after substantially all of the financial asset’s

original principal has been collected through scheduled cal cost and fair value is accounted for as employee benefits
payments or prepayments; or under staff costs where these are considered material. “
• are attributable to an isolated event that is beyond the
Group’s control, is non-recurring and could not have
been reasonably anticipated by the Group.“ (d) Impairment of financial assets
Available for sale financial investments include equity and
debt securities. The Group classifies as available-for-sale The carrying amounts of financial assets subsequently
those financial assets that are generally not designated as measured at amortised cost are reviewed at each reporting
another category of financial assets and strategic capital date to determine whether there is any objective evidence of
investments held for an indefinite period of time, which impairment. A financial asset is considered to be impaired
may be sold in response to needs for liquidity or changes in if objective evidence indicates that one or more events that
interest rates, exchange rates or equity prices. have occurred since the initial recognition of the asset have
had a negative effect on the estimated future cash flows of
that asset and can be reliably estimated.
Available-for-sale financial assets are carried at fair value.
Fair values for quoted instruments are determined in the
same manner as those of instruments at fair value through Observable data or evidence that the group uses to deter-
profit or loss. The fair values of unquoted equities and mine if an impairment allowance is required on a financial
other instruments for which there is no active market, are asset include:
established using appropriate valuation techniques. These - significant financial difficulty of a counter party;
inputs may include reference to the current fair value of
other instruments that are substantially similar in terms of - a breach of contract such as default of contractual terms
underlying cash flows and risk characteristics. or delinquency in interest or principal payment;

Available for sale equity instruments for which fair value - it is probable that the counterparty will enter bankruptcy
cannot be reliably determined are carried at cost less im- or other financial reorganisation; and
pairment allowance, if any.“
- observable data which indicates that there is a measurable
Unrealised gains and losses arising from changes in the fair decrease in the estimated future cash flows from a group of
value of available-for-sale financial assets are recognised assets since the initial recognition of those assets although
in other comprehensive income while the investment is the decrease cannot yet be identified with the individu-
held and are subsequently transferred to profit or loss upon al financial assets. In addition, for an available-for-sale
sale or de-recognition of the instrument. When available financial asset, a significant or prolonged decline in the fair
for sale instruments are impaired, the impairment loss is value below its cost is also considered objective evidence of
recognised immediately in profit or loss.“ impairment. While the determination of what is significant
or prolonged is a matter of judgement. In respect of equity
Dividends received on available-for-sale instruments are securities that are quoted, the group is guided by the follow-
recognised in profit or loss when the Group’s right to re- ing:
ceive payment has been established. (i) a decline is generally regarded as significant if it repre-
sent substantial fall in value below cost and
Interest income on available for sale debt instruments are
recognised in the profit or loss for the related period using (ii) a decline in quoted price is considered to be pro-
the effective interest rate method. longed if decline persists for more one financial year.
Loans and receivables and held-to-maturity finan-
cial instruments
Loans and receivables For financial assets measured at amortised cost, the Group
first assesses whether objective evidence of impairment ex-
“Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted in ists individually for financial assets that are individually sig-
an active market, other than those classified by the Group as nificant and or collectively for the entire portfolio or class of
at fair value through profit or loss or available-for-sale. financial assets. Individually significant financial assets are
tested for impairment on an individual basis. The remain-
ing financial assets are assessed collectively in groups that
Loans and receivables consist primarily of staff loans, pre- share similar credit risk characteristics.
mium debtors, due from reinsurers, other debtors.
Loans and receivables are measured at amortised cost using “When there is objective evidence of impairment, the
the effective interest rate method, less any impairment amount of the impairment loss determined is measured
losses. Loans granted to staff at below market rates are fair as the difference between the asset’s carrying amount and
valued by reference to expected future cash flows and cur- the present value of estimated future cash flows (excluding
rent market interest rates for instruments in a comparable future credit losses that have not been incurred) discounted
or similar risk class and the difference between the histori- at the financial asset’s original effective interest rate (i.e.

the effective interest rate computed at initial recognition).acquisition cost and in the case of equity instruments or
The carrying amount of the asset is reduced through an amortised cost in the case of debt instruments the current
allowance account. The impairment loss is recognised in fair value, less any previously recognized impairment loss
profit or loss. in the profit or loss.

Impairment reversals in a subsequent period arising as a When an available-for-sale financial instrument is car-
result of decreases in the amount of the impairment loss is ried at cost because fair value is not reliably measured, an
recognised where the decrease can be related objectively to impairment loss is measured as the difference between the
an event occurring after the impairment was recognised, carrying amount and the present value of estimated future
the previously recognised impairment loss is reversed cash flows discounted at current market rate of return for
by adjusting the allowance account. The reversal is rein- similar instruments.
stated as far it does not result in the carrying amount of
the financial asset that exceeds what the amortised cost (ii) Financial liabilities
would have been had the initial impairment not been rec-
ognised.” The Group’s financial liabilities are classified as other fi-
nancial liabilities at amortised cost. They include: invest-
Available-for-sale financial assets ment contract liabilities, trade and other payables.

Available-for-sale financial assets are impaired if there is Subsequent to initial recognition, financial liabilities at
objective evidence of impairment, resulting from one or fair value through profit or loss are measured at fair value
more loss events that occurred after initial recognition but while other financial liabilities are measured at amortised
before the statement of financial position date, that have cost.
an impact on the future cash flows of the asset.
In accordance with IAS 39, all financial assets and liabil-
All impairment losses are recognized through profit or ities (including derivative financial instruments) have to
loss. If any loss on the financial asset was previously rec- be recognized in the financial statements and measured in
ognized directly in equity as a reduction in fair value, the accordance with their assigned categories. The table below
cumulative net loss that had been recognized in equity is represents the Company’s classification of all its financial
transferred to the income statement and is recognized as assets and liabilities:
part of the impairment loss. The amount of the loss rec-
ognized in the profit or loss is the difference between the

Category Classes as determined by Subclasses

the Company
Financial assets Financial assets at Financial assets at fair value Unlisted equity Shares
fair value through through profit or loss securities
profit or loss
Loans and Cash and cash equivalents Cash at bank and
receivables in hand
Money market
placements
Trade receivables Due from agents
Due from policy
holders/brokers
Due from insur-
ance companies
Bancassurance
receivables
Reinsurance assets Claim recoverables
Other receivables and prepayment Staff loans
Intercompany
receivables
Sundry receivables
Available for sale Investment securities Listed equity Shares
Unlisted equity Shares
Held to maturity Investment securities Listed debt Treasury Bills
securities
Corporate Bonds
Government
Bonds
Financial liabil- Financial liabilities Nil Nil Nil
ities at fair value through
profit or loss
Financial liabilities at Trade payables Reinsurance pay-
amortized cost able
Other payables Customer deposits
Accounts payable
Due to contractors
Accrued expenses
Investment contract liabilities Individual deposit
adminstration
Group deposit
adminsitration

(iii) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or in its absence, the most advantageous
market to which the Group has access at that date. The fair value of a liability reflects its non performance risk.

When available, the Group measures the fair value of an instrument using the quoted price in an active market for that
instrument. A market is regarded as active if transactions for the asset or liability take place with sufficient
frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, then the Group uses valuation techniques that maximize the use of rele-

vant observable inputs and minimise the use of unobserv- certain criteria. Any interest in transferred financial assets
able inputs. The chosen valuation technique incorporates that is created or retained by the Group is recognized as a
all of the factors that market participants would take into separate asset or liability.
account in pricing a transaction. Valuation techniques
include using recent arm’s length market transactions
between knowledgeable, willing parties, if available, refer- The Group derecognises a financial liability when its
ence to the current fair value of another instrument that is contractual obligations are discharged, cancelled or has
substantially the same, discounted cash flow analysis and expired.
option pricing models. Where an appropriate and reliable
valuation technique can not be achieved the instrument is (vi) Write-off policy
carried at cost. The Group writes off a financial asset (and any related
allowances for impairment losses) when it determines
The best evidence of the fair value of a financial instru- that the assets are uncollectible. This is determined after
ment at initial recognition is normally the transaction consideration of information such as significant changes
price, i.e. the fair value of the consideration paid or in the issuer’s financial position such that the issuer can
received. If the Group determines that the fair value at no longer pay the obligation or charge off decisions gener-
initial recognition differs from the transaction price and ally based on specific past due status considerations.
the fair value is evidenced neither by a quoted price in an
active market for an identical asset or liability nor based
on a valuation technique that uses only data from observ- (vii) Trade receivables
able markets, then the financial instrument is initially
measured at fair value, adjusted to defer the difference Trade receivables are loans and receivables financial
between the fair value at initial recognition and the trans- instruments specifically arising from insurance contracts
action price. Subsequently, that difference is recognised and constitutes premium debtors with determinable
in profit or loss on an appropriate basis over the life of the payments that are not quoted in an active market and
instrument but no later than when the valuation is wholly the Group has no intention to sell. Trade receivables on
supported by observable market data or the transaction is insurance contracts are initially recognised at fair value
closed out. If an asset or a liability measured at fair value and subsequently measured at amortised cost less im-
has a bid price and an ask price, then the Group measures pairment. Trade receivables are recognised for insurance
assets and long positions at a bid price and liabilities and cover for which payments have been received indirectly
short positions at an ask price or at the price that best through duly licensed insurance brokers or lead insurers
present the financial instrument. in co-insurance arrangements. Premium collected on
behalf of the Group are expected to be received within
30 days from insurance brokers and lead insurers. Trade
The fair value of a demand deposit is not less than the receivables that are individually identified as impaired are
amount payable on demand, discounted from the first assessed for specific impairment. All other trade receiv-
date on which the amount could be required to be paid. ables are assessed for collective impairment.
The Group recognises transfers between levels of the
fair value hierarchy as of the end of the reporting period
during which the change has occurred. 3.3. Reinsurance assets and liabilities

(iv) Offsetting financial assets and liabilities Contracts entered into by the Group with reinsurers under
which the Group is compensated for losses on one or more
“Financial assets and liabilities are set off and the net contracts issued by the Group that meets the classification
amount presented in the statement of financial position requirements for insurance contracts are classified as re-
when, and only when, the group has a legally enforceable insurance contracts held by the Group. Contracts that do
right to set off the recognized amounts and intends either not meet these classification requirements are classified as
to settle on a net basis or to realise the asset and settle the financial assets.
liability simultaneously.“
Reinsurance assets represent balances due from reinsur-
ance companies. Amounts recoverable from reinsurers on
(v) De-recognition of financial assets and liabilities settled or outstanding claims are estimated in a man-
ner consistent with the outstanding claims provision or
A financial asset is derecognized when the contractual settled claims associated with the reinsurer’s obligations
rights of the Group to the cash flows from the asset expire, according to the reinsurance policies and are in accor-
or its rights to receive the contractual cash flows on the dance with the related reinsurance contract.
financial asset in a transaction that transfers substantial-
ly all the risks and rewards of ownership of the financial
asset are transferred, or when it assumes an obligation to Reinsurance premiums paid and payable on the Group’s
pay those cash flows to one or more recipients, subject to reinsurance contracts are amortised over the life of the

underlying insurance contracts covered by the reinsurance and receivables other than investment securities, insur-
policies. The unexpired portion of the amortised reinsurance trade receivables and reinsurance assets. When a
ance premiums are recognised as prepaid reinsurance. debt is deemed not collectible, it is written-off against the
related provision or directly to profit or loss account to the
extent not previously provided for. Any subsequent recov-
The Group’s reinsurance assets are measured at their ery of written-off debts is credited to profit or loss.
carrying amount less impairment charges. Amounts
recoverable under reinsurance contracts are assessed for
impairment at each reporting date. If there is objective Prepayments represent prepaid expenses and are carried
evidence of impairment, the Group reduces the carrying at cost less amortisation expensed in profit or loss.
amount of its reinsurance assets to its recoverable amount
and recognizes the impairment loss in the profit or loss.
An objective evidence exists if an event has occurred by 3.6. Basis of consolidation
which the Group may determine that it may not recover all
amounts due and that the event has a reliably measurable
impact on the amounts that the Group will receive from (a) Subsidiaries
the reinsurer. Investment in subsidiaries are carried in the Company’s
separate financial statements at cost less allowance for
“Reinsurance liabilities are premiums payable for the impairment.
Group’s reinsurance contracts and are recognised as an
expense when due. “ Subsidiaries are entities controlled by the Group. The
Group controls an entity if it is exposed to, or has rights
3.4 Deferred acquisition costs (DAC) to, variable returns from its involvement with the investee
and has the ability to affect those returns through its pow-
er over the investee. The consolidated financial statements
Acquisition costs comprise insurance commissions, include the assets, liabilities and results of the Group
brokerage and other related underwriting expenses aris- and subsidiary undertakings. The financial statements
ing from the generation and underwriting of insurance of subsidiaries are included in the consolidated financial
contracts. Deferred acquisition costs represent a propor- statements from the date that control commences until
tion of commission and underwriting expenses which are the date that control ceases. The financial statements have
incurred during a financial period and are deferred to the been prepared using uniform accounting policies for like
extent that they are recoverable out of future revenue mar- transactions and other events in similar circumstances.
gins.
“Investment in subsidiary are carried at cost in the
The proportion of these acquisition costs that correspond Group’s separate financial statements and are reviewed for
to the unearned premiums are deferred as an asset and impairment annually. An impairment loss is recognised
amortised over the life of the associated insurance con- for the amount by which the asset’s carrying amount
tracts on a basis consistent with the related unearned exceeds its recoverable amount. The recoverable amount
portion of the premiums. is the higher of an asset’s fair value less costs to sell and
value in use.
“
For non life business and short-duration life insurance
contracts, the Group amortises the deferred acquisition “The results and financial position of all the Group entities
costs over the terms of the policies as premium is earned (none of which has the currency of a hyper-inflationary
on the underlying insurance contracts by applying to the economy) that have a functional currency different from
acquisition expenses the ratio of unearned premium to the presentation currency are translated into the presenta-
written premium. tion currency as follows:
• assets and liabilities for statement of financial position
For long-term life insurance contracts no assets are estab- presented are translated at the closing rate at the re
lished in respect of deferred acquisition cost. However, porting date;
an allowance for acquisition cost loading is provided for • income and expenses for each statement of profit or loss
in the valuation of the insurance contract liabilities using and other comprehensive income are translated at
assumptions consistent with those used in calculating average exchange rates (unless this average is not a rea-
future policy benefit liabilities as well as historical and sonable approximation of the cumulative effect of the
anticipated future experience and is updated at the end of rates prevailing on the transaction dates, in which case
each accounting period. income and expenses are translated at the rate on the
dates of the transactions); and
3.5. Other receivables and prepayments • all resulting exchange differences are recognised in oth-
er comprehensive income and transferred to equity.”
Other receivables are stated after deductions of amount
considered bad or doubtful of recovery. These are loans

On the disposal of a foreign operation, the Group recog- amount of the associate and its carrying value. This
nises in profit or loss the cumulative amount of exchange amount is recognised against the share of profit or loss of
differences relating to that foreign operation. When a associates in the income statement.
subsidiary that includes a foreign operation is partially
disposed of or sold, the Group re-attributes the propor-
tionate share of the cumulative amount of the exchange On disposal of ownership interest in an associate
differences recognised in other comprehensive income to which reduces holding but where significant influence
the non controlling interests in that foreign operation. In in retained, only a proportionate share of the amount
the case of any other partial disposal of a foreign opera- previously recognised in other comprehensive income
tion, the Group reclassifies to profit or loss only the pro- is reclassified to profit or loss where appropriate, where
portionate share of the cumulative amount of exchange significant influenced is lost, the investment is reclas-
differences recognised in other comprehensive income. sified as equity investment and the amount previously
recognised in other comprehensive income is reclassified
to profit or loss.
(b) Transactions eliminated on consolidation
(d) Elimination of upstream and downstream transac-
Intra-Group balances and transactions and any unreal- tions
ized gains or losses arising from intra-Group transactions Profits and losses resulting from upstream and down-
are eliminated in preparing the consolidated financial stream transactions between the Group and its associ-
statements. Unrealised losses are eliminated in the same ate are recognised in the Group’s financial statements
way as unrealised gains, but only to the extent that there only to the extent of unrelated investor’s interests in the
is no evidence of impairment. associate. Unrealised losses are eliminated unless the
transaction present evidence of an impairment of the
asset transferred. Accounting policies of the associate
(c) Associates are reviewed and aligned to ensure consistency with the
Investment in associates are carried in the Company’s policies adopted by the Group. Dilution gains and losses
separate financial statements at cost less allowance for arising in investments in associates are recognised in
impairment and consolidated in the Group’s consolidated income statement.
financial statements under the equity accounting meth-
od.
3.7. Investment property
Associates are entities over which the Group has signif-
icant influence but not control, generally accompanying
a shareholding of between 20% and 50% of the voting Investment property comprises investment in land or
rights. Investment in associates are accounted for using buildings held primarily to earn rentals or capital appre-
the equity accounting method. Under the equity account- ciation or both.
ing the method, the investment is initially recognised at
cost, and the carrying amount is increased or decreased Investment property is initially recognized at cost
to recognise the investor’s share of the post-acquisition including transaction costs. The carrying amount
profit or loss and other comprehensive income of the includes the cost of replacing part of an existing
investee. The Group’s investment in associates includes investment property at the time that cost is incurred if
goodwill identified on acquisition while gains realised on the recognition criteria are met; and excludes cost of day
purchase below fair value are recognised in profit or loss. to day servicing of an investment property. Investment
property is subsequently measured at fair value with any
change therein recognised in profit or loss. Fair values
The Group’s share of post-acquisition profit or loss is are determined individually, on a basis appropriate
recognised in the income statement, and its share of to the purpose for which the property is intended and
the post-acquisition movement in other comprehensive with regard to recent market transactions for similar
income is recognised in other comprehensive income properties in the same location.
with corresponding adjustment to the carrying amount
of the investment. When the Group’s share of losses in an
associate equals or exceeds its interest in the associates, “Fair values are reviewed annually by independent
including any unsecured receivables, the Group does not valuer, registered with the Financial Reporting Council
recognise further losses, unless it has incurred con- of Nigeria and holding a recognized and relevant
structive obligations or made payments on behalf of the professional qualification and with relevant experience
associate. in the location and category of investment property being
valued.“
The Group determine at each reporting date whether
there is any objective evidence that the investment in Subsequent expenditure on investment property is
the associate is impaired. The amount of impairment is capitalized only if future economic benefit will flow to
determined as the difference between the recoverable the Group; otherwise they are expensed as incurred.

Investment properties are disclosed separate from the directly attributable to the acquisition of the asset.
property and equipment used for the purposes of the
business. The Group separately accounts for a dual
purpose property as investment property if it occupies Land and buildings are initially recognised at cost and
only an insignificant portion and the related value can be subsequently carried at revalued amounts, being fair val-
separately identifiable and measured reliably. Otherwise, ue at the date of revaluation less subsequent accumulated
the portion occupied by the Group is treated as property depreciation and impairment losses, if any.
and equipment.
When parts of an item of property or equipment have
3.8. Intangible assets different useful lives, they are accounted for as separate
items (major components) of property and equipment.

Software
“Recognition of software acquired is only allowed if The gain or loss on disposal of an item of property and
it is probable that future economic benefits attribut- equipment is determined by comparing the proceeds
able to this intangible asset will flow to the Group. from disposal with the carrying amount of property and
equipment and are recognised net within other income in
Software acquired is initially measured at cost. The cost profit or loss.
of acquired software comprises its purchase price, includ-
ing any import duties and non-refundable purchase taxes Subsequent Costs
and any directly attributable expenditure on preparing
the asset for its intended use. After initial recognition, “Subsequent costs are included in the asset’s carrying
software acquired is carried at its cost less any accumu- amount or recognized as a separate asset, as appropriate,
lated amortisation and any accumulated impairment only when it is probable that future economic benefits
losses. Maintenance costs are expensed to profit or loss. associated with the item will flow to the group and the
cost of the item can be measured reliably. All other re-
pairs and maintenance costs are charged to the profit or
Internally developed software is capitalized when the loss account during the financial period in which they are
Group has the intention and demonstrates the ability to incurred.
complete the development, has the technical feasibility of Subsequent costs on replacement parts on an item of
completing the intangible asset so that it will be available property and equipment are recognized in the carrying
for use and it has adequate technical, financial and other amount of the asset and the carrying amount of the re-
resources to complete the development and use of the placed or renewed component is derecognized.”
software in a manner that will generate future economic
benefits, and can reliably measure the costs to complete Depreciation
the development. The capitalised costs include all costs
directly attributable to the development of the software. Depreciation is calculated on property and equipment on
Internally developed software is stated at capitalised cost the straight line basis to write down the cost of each asset
less accumulated amortisation and impairment. to its residual value over its estimated useful life. Depre-
ciation methods, useful lives and residual values are reas-
sessed at each reporting date. No depreciation is charged
Subsequent expenditure on software assets is capitalised on property and equipment until they are available for
only when it increases the future economic benefits use.
embodied in the specific asset to which it relates. All
other expenditure is expensed as incurred. Amortisation “Depreciation reduces an asset’s carrying value to its
is recognised in profit or loss on a straight-line basis over residual value at the end of its useful life and is allocated
the estimated useful life of the software, from the date on a straight line basis over the estimated useful lives, as
that it is available for use. The estimated useful life of follows:
software is five years subject to annual reassessment.”
Land - Over the
lease period (99 years)
3.9. Property and equipment Buildings - Over 50
years
Office equipment - Over 5 years
Recognition and measurement Computer hardware - Over 3 years
Furniture and fittings - Over 5 years
All items of property and equipment except land and Motor vehicles - Over 4 years”
buildings are initially recognised at cost and subsequent-
ly measured at cost less accumulated depreciation and
impairment losses .Cost includes expenditures that are Revaluation of land and building

the outstanding balance of the liability.

Land and building is accessed for impairment at each re-
porting date but valued on an open market basis by quali- The corresponding lease obligations, net of finance
fied property valuers at the reporting date at minimum of charges, are included in liabilities. The finance cost is
once within three financial years. charged to profit or loss over the lease period according
to the effective interest method. The equipment acquired
under the finance lease is depreciated over the shorter of
When an individual property is revalued, any increase in the useful life of the asset and the lease term, if ownership
its carrying amount (as a result of revaluation) is trans- does not pass at the end of the lease term. Leased assets
ferred to a revaluation reserve, except to the extent that under finance leases where ownership is expected to pass
it reverses a revaluation decrease of the same property to the Group at the end of the lease term are treated in the
previously recognised as an expense in the statement of same manner as property and equipment.”
profit or loss.

When the value of an individual property is decreased as a 3.11. Impairment of non-financial assets
result of a revaluation, the decrease is charged against any
related credit balance in the revaluation reserve in respect
of that property. However, to the extent that it exceeds any “The carrying amounts of the Group’s non-financial
surplus, it is recognised as an expense in the statement of assets are considered to be impaired when there exist
profit and loss. any indication that the asset’s recoverable amount is less
Work-in-progress property and equipment than the carrying amount and are at a minimum assessed
for impairment annually. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in
This represent property and equipment under construc- use. For the purposes of assessing impairment, assets are
tion and are carried at the cost incurred until completion. grouped at the lowest levels for which they are separately
Work-in-progress property and equipment are transferred identifiable cashflows (cash generating units). Impairment
to the appropriate class of property and equipment upon losses are recognised in profit or loss.
completion when they are ready for use and are depreci-
ated from the date of transfer when they are brought into Impairment losses recognised in prior periods are as-
use. sessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss
Derecognition is reversed if there has been a change in the estimates used
to determine the recoverable amount since the impair-
An item of property and equipment is derecognised when ment loss was recognised. An impairment loss is reversed
it is disposed of or where no future economic benefits are only to the extent that the asset’s carrying amount does
expected from its use or disposal. Gains and losses arising not exceed the carrying amount that would have been
on derecognition are calculated as the difference between determined, net of depreciation or amortisation, if no
the net disposal proceeds and the carrying amount of the impairment loss had been recognised. Reversals of impair-
asset and are recognised in profit or loss as other income. ment losses are recognised in profit or loss.”
Where a revalued asset is disposed or scrapped, the re-
valuation reserve balance in respect of that asset is trans-
ferred as a reserve reclassification from other reserves to 3.12. Deferred tax
retained earnings.
Deferred tax is recognised, using the liability method, on
3.10. Leases temporary differences arising between the tax bases of as-
sets and liabilities and their carrying amounts in the con-
Operating leases solidated financial statements. However, if the deferred
Leases where the lessor retains the risks and rewards of tax arises from initial recognition of the asset or liability
ownership of the underlying asset are classified as oper- in a transaction other than a business combination that
ating leases. Payments made under operating leases are at the time of the transaction affects neither accounting
charged against income on a straight-line basis over the nor taxable profit or loss, it is not accounted for. Deferred
period of the lease. tax is determined using the tax rates (and laws) that have
been enacted or substantively enacted by the end of the re-
Finance leases porting period and are expected to apply when the related
“Leases of equipment where the group has substantially deferred asset tax is realisable or the deferred tax liability
all the risks and rewards of ownership are classified as is payable.
finance leases. Finance leases are capitalised at the incep- “Deferred tax assets are recognised to the extent that
tion of the lease at the lower of the fair value of the leased it is possible that future profit will be available against
asset or the present value of the minimum lease payments. which the temporary differences can be utilised.
Each lease payment is allocated between the liability and
finance charges so as to achieve a constant interest rate on Deferred tax is provided on temporary differences arising

on investments in subsidiaries and associates, except provided in the case of a non-financial variable that the
where the Group controls the timing of the reversal variable is not specific to a party to the contract.
of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable Once a contract has been classified as an insurance con-
future. tract, it remains an insurance contract for the remainder
of its lifetime, even if the insurance risk reduces signifi-
Deferred tax assets and liabilities are offset when there cantly during this period, unless all rights and obliga-
is legally enforceable right to offset current tax assets tions are extinguished or expired. Investment contracts
against current tax liabilities and when deferred income can, however, be reclassified as insurance contracts after
tax assets and liabilities relate to income taxes levied by inception if the terms are amended to include significant
the same taxation authority on either the taxable entity insurance risk.
or different entities where there is an intention to settle
the balances on a net basis.” Receipts and payments under investment contracts are
not classified as insurance transactions in the income
statement, but instead are accounted for in the state-
The tax effects of carry-forwards of unused loss- ment of financial position in accordance with IAS 39.
es or unused tax credits are recognised as an asset The liability recognised in the statement of financial
when it is probable that future taxable profits will be position represents the expected amounts payable to the
available against which these losses can be utilised. holders of the investment contracts inclusive of allo-
cated investment income.
Deferred tax related to fair value re-measurement of
available-for-sale investments, which are charged or
credited directly in other comprehensive income, is also Insurance contract liabilities are determined in line with
credited or charged to other comprehensive income and the provisions of Section 20, 21 and 22 of the Insurance
subsequently recognised in the consolidated income Act of Nigeria to the extent that they do not conflict with
statement together with the deferred gain or loss. the requirements of IFRS as follows:

(a) General insurance contracts: Measurement
3.13. Insurance contract liabilities of insurance contracts liabilities

“(i) Reserve for unearned premium and unexpired risk
The Group issues contracts that transfer insurance risk
The reserve for unearned premium is calculated on a
or financial risk or both. Insurance contracts are when
time apportionment basis in respect of risk accepted
the Group (the insurer) has accepted significant insur-
during the year. A provision for additional unexpired
ance risk from another party (the policyholder) by agree-
risk reserve is recognised for an underwriting year where
ing to compensate the policyholder if a specified uncer-
it is envisaged that the estimated cost of claims and
tain future event (the insured event) adversely affects the
expenses would exceed the unearned premium reserve.”
policyholder. As a general guideline, the Group defines

as significant insurance risk the possibility of having to

pay benefits on the occurrence of the insured event that
“(ii) Reserve for outstanding claims
are at least 10% more than the benefit payable if the
The reserve for outstanding claims is maintained at the
insured event did not occur.
total amount of outstanding claims incurred and report-

ed plus claims incurred but not reported (IBNR) at the
Non-life insurance contracts are issued to indemnity
reporting date.”
against property and liability insurance risk and are gen-

erally annual in tenor although some contracts can be
Reserving methodology and assumptions
beyond one year. These are short term insurance risks.

“Data segmentation

The data used for reserving is segmented into the 8
Life insurance contracts are issued to indemnify the
classes as per the Insurance Act 2003 of Nigeria:
insured life, the dependent or other third-party of the
- Motor vehicle insurance business
insured life in the even of death, permanent disability,
- Fire insurance business
loss of job or on survival to maturity of the contract with
- General accident insurance business
the sums assured.
- Marine, aviation and transport insurance business

- Oil and gas insurance business
Investment contracts are those contracts that transfer
- Engineering
financial risk and no significant insurance risk. Financial
- Bonds, credit and suretyship
risk is the risk of possible future change in one or more
- Miscellaneous”
of a specified interest rate, financial instrument price,

commodity price, foreign exchange rate, index of price

or rates, credit rating or credit index or other variable,

Valuation methods and assumptions Sensitivity analysis

Sensitivity analyses are performed to test the variability
The following valuation methods are used as appropriate around the reserves that are calculated at the best esti-
in calculating the reserves: mate level. The sensitivity analysis is done to determine
how the IBNR reserve amount would change if a 75th
(i) The basic chain ladder method percentile is considered as opposed to the best estimate
figures included in reserve reviews as at 31 December
“This model assumes that past experience is indicative 2017. The 75th percentile is a generally accepted level of
of future experience, i.e. that claims reported to date will prudency.
continue to develop in a similar manner in the future.
An implicit assumption is that, for an immature accident (b) Life insurance contracts: Measurement of
year, the claims observed thus far tells something about insurance contracts liabilities
the claims yet to be observed. A further assumption is
that it assumes consistent claim processing, a stable mix “(i) Life fund
of types of claims, stable inflation and stable policy limits. This is made up of net liabilities on policies in force as
This method is used for cases where there are extremely determined by qualified actuaries at the reporting date.
large losses that have been reported but not paid, and Surplus or deficit arising from the periodic valuation of
therefore will not influence the development patterns. the life insurance contracts are recognised in the income
The IBNR was calculated as follows; The reserving was statement.”
determined as ultimate claim amount (excluding extreme “This is made up of liabilities on life policies in force as
large losses) minus claims paid to date (excluding ex- determined by qualified actuaries at the reporting date.
tremely large losses) minus claims outstanding (exclud- Surplus or deficit arising from the periodic valuation of
ing extreme large losses). This method was used for the the life insurance contracts are recognised in profit and
following classes of business; motor vehicle, fire, general loss.
accident, marine, engineering and miscellaneous.” The reserves include Incurred But Not Reported (IBNR)
and Unearned Premium Reserve (UPR).”
(ii) Loss ratio method, adjusted for assumed ex-
perience to date. The Group does not have contracts with discretionary
This model assumes that the average delay in the pay- participating features.
ment of claims will continue into the future. If it is
expected that these delay assumptions no longer hold, an Data segmentation
adjustment needs to be made to allow for this change in
payment delay. If the delay period in payment is expect- “The data used for reserving is segmented into the 2
ed to have increased from previous years, the results classes as follows:
shown in this report will be understated. Additionally, an - Individual business
estimate of the average ultimate loss ratio was assumed. - Group business”
The assumption for the ultimate loss ratio was based on
estimated average loss ratio on claims experience to date Methodologies and assumptions
for accident years covering ten years history. The Loss
ratio method is been used for three classes namely oil and The valuation for both the individual business and Group
gas, bonds and aviation which had very limited data, and business utilises various assumptions which include:
where use of the basic chain ladder method was inap-
propriate. The model allowed for expected experience to “- the valuation age is taken as Age Last Birthday at the
date within the assumed delay period and the assumed valuation date;
average ultimate loss ratios in carrying out the calcula- - the period to maturity is taken as the full term of the
tion. The average delay is the average number of months policy less the expired term.
that it takes for a claim to be paid after the loss incident - full credit is given to premiums due between valuation
occurred. The IBNR was calculated as follows; Expected date and the end of the premium paying term.”
average ultimate loss ratio for the assumed average delay
period x Earned premium for the assumed delay peri- For all individual risk business, the gross premium meth-
od- Current experience to date relating to the accident od of valuation was used. Reserves were calculated via a
months that the delay implies. cashflow projection approach, taking into account future
office premiums, expenses and benefit payments. Future
cashflows were discounted back to the valuation date at
Discounting the valuation rate of interest.
No allowance has been made for discounting as these
reserves are for short term contracts, the effect of dis-
counting is not expected to have a significant impact on An unexpired premium reserve (UPR) was included for
the reserves. Group life business after allowing for acquisition ex-
penses at a ratio of 20% of premium. The UPR is tested

against an Additional Unexpired Risk Reserve (AURR) the unearned premiums; the prepaid reinsurance cost.
for adequacy and an AURR may also be held to allow Reinsurance arrangements do not relieve the Group
for any inadequacies in the UPR for meeting claims in from its direct obligations to its policyholders. Subse-
respect of the unexpired period. The claim rates under- quently, premium ceded, claims reimbursed and com-
lying the AURR were based on pooled historical scheme mission recovered are presented in profit or loss and the
claims experience. Allowance was made for IBNR (In- statement of financial position separately from the gross
curred But Not Reported) claims in Group Life to take amounts. Reinsurance recoverable are recognized when
care of the delay in reporting claims. This was based on a the Group records the liability for the claims and are not
loss ratio approach, which uses historical claims expe- netted off claims expense but are presented separately in
rience to estimate the expected claims, from which the profit or loss as part of claims expenses recoverable. “
IBNR portion is determined.

(iv) Fees and commission
(c) General insurance: Insurance contracts reve-
nue recognition Fee and commissions are recognized on ceding busi-
ness to reinsurance. Commissions are amortised and
The recognition and measurement of the insurance credited to the profit or loss account over the period of
contracts in the group’s general business are set out as the reinsurance contract.
follows:
(i) Premiums income
(iv) Claims incurred
“Gross premium relates to premium written in a year to
cover assumed insurance risk. Gross premiums com- “Claims incurred consist of claims and claims handling
prise the premiums on insurance contracts entered into expenses paid during the financial year together with the
during the year, irrespective of whether they relate in movement in the provision for outstanding claims and
whole or in part to a later accounting period. these are recognised in the profit or loss. The provision
for outstanding claims represent the Group’s estimate of
Premiums on reinsurance inward from facultative the ultimate cost of settling all claims incurred but un-
reinsurance arrangement are included in gross written paid at the reporting date whether reported or not. The
premiums and accounted for as if ceded business was provision includes an allowance for claims management
direct business, taking into account the product classifi- and handling expenses.
cation of the reinsured business.
The provision for outstanding claims is estimated based
Outward reinsurance premiums are accounted for in the on current information and the ultimate liability may
same accounting period as the premiums for the related vary as a result of subsequent information and events
direct insurance or reinsurance business assumed. and may result in significant adjustments to the amounts
provided. Adjustments to the amounts of claims provi-
The earned portion of premiums written is recognized as sion for prior years are reflected in the profit or loss in
revenue. Premiums are earned from the date of attach- the financial period in which adjustments are made, and
ment of risk, over the indemnity period, based on the disclosed separately if material.”
pattern of risk underwritten. Outward reinsurance pre-
miums are recognized as an expense in accordance with
the pattern of the indemnity.” Claims on general insurance contracts are payable on a
claims-occurrence basis. The Group recognise liability
for all insured events that occurred during the term of
(ii) Unearned premiums the contract. There are several variables that affect the
amount and timing of cash flows from these contracts.
Unearned premiums are those proportions of premiums These mainly relate to the inherent risks of the business
written in the year that relate to periods of risks after activities carried out by individual contract holders and
the reporting date. It is computed separately for each the risk management procedures they adopted.
insurance contract using a time proportionate basis, or
another suitable basis for uneven risk contracts.
The estimated cost of claims includes direct expenses
to be incurred in settling claims, net of the expected
(iii) Reinsurance cost subrogation value and other recoveries. The Group takes
all reasonable steps to ensure that it has appropriate
“The Group cedes insurance risks in the normal course information regarding its claims exposures. However,
of business for the purpose of limiting its potential given the uncertainty in establishing claims provisions, it
net loss on policies written. Premium ceded comprise is likely that the final outcome will prove to be different
written premiums ceded to reinsurers, adjusted for the from the original liability established.
reinsurers’ share of the movement in the provision for The reserves held for these contracts comprises a

provision for IBNR, a provision for reported claims not (ii) Claims on life assurance
yet paid and a provision for unearned premiums at the
end of the reporting period. Claims recognised include maturities, surrenders, death
and disability payments. Claims arising on maturities
are recorded as they fall due for payments. Death,
(v) Salvage and Subrogation Reimbursement disability and surrenders are accounted for on notifica-
tion. Reinsurance recoveries are accounted for when the
Some insurance contracts permit the Group to sell (usu- Group records the liability for the claims.
ally damaged) property acquired in settling a claim for
example and make salvage recovery on them. The Group
may also have the right to pursue third parties for pay- (iii) Insurance contract provisions on life assur-
ment of some or all costs for example in a subrogation. ance
A subrogation represent the portion of claims incurred Insurance contract provisions are determined using
expected to be recovered from negligent third-party or valuation basis adopted in accordance with the gen-
the third-party insurance Group. erally accepted actuarial practices and methodologies
as set out in note 3.16 (b).

Salvaged property is recognized in profit or loss when The gross insurance contract provisions and related
the amount that can reasonably be recovered from reinsurance recoveries are estimated on the basis of
the disposal of the property has been established and the information currently available to the Group. The
are included as part of claims recoveries. Subrogation ultimate liability may vary as a result of subsequent
reimbursements are recognized in claim recoveries information and events and may result in significant
when the amount to be recovered from the liable third adjustments to the amount provided.
party has been established.
(d) Classification of insurance contracts of the
(vi) Deferred income Group
(i) Short term insurance contracts
Deferred income represents a portion of commissions
received on reinsurance contracts during the financial Short term insurance contracts are annual insurance
year but are deferred based on the tenor of the underly- contracts. This comprised mainly of the Group’s gen-
ing contracts. It is calculated by applying the reinsurance eral insurance business and the life insurance business
commission income ratio of prepaid reinsurance to rein- group life products; for which the gross premium relates
surance cost. to premium written to cover assumed annual insurance
risk liability.
(vii) Deferred acquisition cost
For all these contracts, premiums are recognized as
Acquisition costs comprise all direct and indirect costs revenue proportionally over the period of coverage. The
arising from the origination of insurance contracts; portion of premium received on in-force contracts that
commission and maintenance expenses. Deferred acqui- relates to unexpired risk at the end of reporting date is
sition costs represent portion of commissions which are reported as the unearned premium liability.
incurred during a financial year and are deferred to the
extent that they are recoverable out of future revenue
margins. It is calculated by applying the ratio of un- (i) Long term insurance contracts
earned premium to written premium.
Long term insurance contracts are insurance contracts
which provide insurance cover over a long duration,
(c) Life insurance: Insurance contracts revenue generally more than one annual insurance period. This
recognition comprises mainly of the Group’s life insurance business
The recognition and measurement of the insurance con- individual life products; for which the gross premium
tracts in the Group’s life business are set out as follows: relates to premium written to cover assumed insurance
risk liability covering more than one insurance period.
(i) Risk premiums on life assurance These contracts insure events associated with human life
(for example, death or survival) over a long duration.
Premiums and annuity considerations written and/or
receivable under insurance contracts are stated gross of
commission and recognised when due. Outward reinsur- 3.14. Liability adequacy test of insurance con-
ance premiums are recognised when due for payment. tracts liabilities and related assets
Premium written relates to risks assumed during the The liability for insurance contracts is tested for adequacy
period. by discounting current estimates of all future contractual
cash flows and comparing this amount to the carrying val-

ue of the liability net of deferred acquisition costs. Where recognized as a liability in the financial statements in
a shortfall is identified, an additional provision is made the period in which the dividends are approved by the
and the Group recognizes the deficiency in the profit or Group’s shareholders. Dividends that are proposed but
loss. Insurance contract liabilities are subject to liability not yet declared are disclosed in the notes to the financial
adequacy testing on an annual basis. The method of val- statements. Dividends on the Group’s ordinary shares
uation and assumptions used, the cashflows considered
and the discounting and aggregation practices adopted are recognised in equity in the period in which they are
have been set out as part of note 3.16(a) and 3.16(b). paid or, if earlier, approved by the Group’s shareholders.

3.20. Share capital and premium

3.15. Investment contract liabilities
The Company classifies ordinary shares and share premi-

um as equity when there is no obligation to transfer cash
Contracts under which the transfer of insurance risk to or other assets. Incremental costs directly attributable to
the Group from the policy holder is not significant are issue of shares are recognized as deductions from equity
classified as investment contracts. Such contracts include net of any tax effects.
savings and /or investment contracts sold with insignifi-
cant or without life assurance protection. These contracts 3.21. Share premium
transfer financial risk but insignificant insurance risk.
Share premiums are classified as equity when there is

no obligation to transfer cash or other assets. Incre-

mental costs directly attributable to the issue of equity
Amounts received under investment contracts are rec-
instruments are shown in equity as a deduction from the
ognised directly as investment contract liabilities.
proceeds, net of tax.

3.22. Contingency reserve

Investment contract liabilities are reported at amortised
cost and are assessed for adequacy at each reporting The Group maintains contingency reserves in accordance
date. with the provisions of the Insurance Act 2003 to cover
fluctuations in securities and variations in statistical
3.16. Trade and other payables estimates. For general business, the reserve is calculated
at the rate equal to the higher of 3% of total premium or
20% of net profit until the reserve reaches the greater
Trade and other payables are recognised initially at fair of minimum paid up capital or 50% of net premium for
value and subsequently measured at amortised cost general business. Contingency reserve for life business
using the effective interest method. The fair value of a is credited with the higher of 1% of gross premiums and
non-interest bearing liability is its discounted repayment 10% of net profit.
amount. If the due date is less than one year, discounting
is omitted as the impact is not expected to be significant. 3.23. Other reserve

Other reserves are made up of the following:
3.17. Provisions
Revaluation reserve
“A provision is recognized if, as a result of a past event, Revaluation reserve represents the fair value differences
the Group has a present legal or constructive obligation on the revaluation of items of property and equipment as
that can be estimated reliably, and it is probable that an at the statement of financial position date. If an asset’s
outflow of economic benefits will be required to settle the carrying amount is increased as a result of a revalua-
obligation. tion, the increase is recognised in other comprehensive
Provisions are determined by discounting the expected income and accumulated in revaluation reserve. The
future cash flows at a rate that reflects current market increase is recognised in profit or loss to the extent that it
assessments of the time value of money and the risks reverses a revaluation decrease of the same asset previ-
specific to the obligation.” ously recognised in profit or loss. If an assets carrying
amount is decreased as a result of a revaluation, the
3.18. Income tax decrease is recognised in profit or loss, however, the
decrease shall be recognised in other comprehensive
“Income tax comprises current and deferred tax. Income income to the extent of any credit balance existing in the
tax expense or credit is recognised in the profit or loss revaluation surplus in respect of that asset.
except to the extent that it relates to items recognised di-
rectly in equity, in which case it is recognised in equity.“
The revaluation surplus in respect of an item of property
3.19. Dividends and equipment is transferred to retained earnings when
Dividend distribution to the Group’s shareholders is

the asset is derecognised. This involves transferring the dinary shares. Basic earnings per share are calculated by
whole of the surplus when the asset is retired or dis- dividing the profit attributable to ordinary shareholders
posed and some of the surplus are transferred to retained of the Group by the number of shares outstanding during
earnings to correspond to the asset use by the entity. the year.
The amount of the surplus transferred is the difference “
between depreciation based on the revalued carrying Adjusted earnings per share is determined by dividing the
amount of the asset and the depreciation based on the profit or loss attributable to ordinary shareholders by the
asset’s original cost. Transfers from revaluation reserve to weighted average number of ordinary shares adjusted for
retained earnings are not made through profit or loss. the bonus shares issued.

(b) Diluted earnings per share
Foreign currency translation reserve
The Group presents diluted earnings per share where
appropriate. Diluted earnings per share is determined by
The Nigerian Naira is the Group’s functional and reporting
adjusting the profit or loss that is attributable to ordi-
currency. The assets and liabilities of foreign operations
are translated to Naira at spot exchange rates at the re- nary shareholders and the weighted-average number of
porting date. The income and expenses of foreign opera- ordinary shares outstanding for the effects of all dilutive
tions are translated to Naira at spot exchange rates at the potential ordinary shares, which comprise share options
dates of the transactions or at average rates of exchange granted to employees.
where these approximate to actual rates. Foreign curren-
cy differences on the translation of foreign operations are 3.25. Underwriting expenses
recognised in other comprehensive income and present-
ed in the foreign currency translation reserve in equity.
However, if the foreign operation is not wholly owned the “Underwriting expenses are made up of acquisition and
relevant proportion of the translation difference is allocat- maintenance expenses comprising commission and policy
ed to non-controlling interests. When a foreign operation expenses, other direct costs and insurance supervision
is disposed of, such that controls is lost, the cumulative levy. “
amount in the foreign currency translation reserve related
to that foreign operation is transferred to profit or loss as
part of the gain or loss in disposal. Underwriting expenses for insurance contracts are rec-
ognized as expense when incurred, with the exception of
acquisition costs which are recognized on a time appor-
tionment basis in respect of risk.
Fair value reserve
3.26. Income recognition
The fair value reserve comprises the net cumulative
change in the fair value of available-for-sale investments
until the investment is derecognised or impaired. (i) Gross premium income

Gross written premiums recognised for assumed insur-
Merger reserve ance risks during the year are amortised over the period
of the insurance contract. The gross premiums written
Merger reserve warehouses the difference between the are recognised as gross premiums income by adjusting
consideration paid and the capital of the acquiree under a for the movement in the unearned premiums reserves
common control transaction using the book value ac- for insurance risks brought forward from the last year
counting method. This was accounted for by the merger at the beginning of the year and the required unearned
of the Company business with it subsidiary Interconten- premiums reserves for the outstanding insurance risks at
tial Properties Limited (IPL). the end of the year. Recognised gross premiums income
represent the earned portion of all insurance contracts in
3.24. Retained earnings and Earnings per share force during the year both from preceding years and the
current year.
(i) Retained earnings
(ii) Fees and commission income
The net profits or losses from operations in current and
prior periods are accumulated in retained earnings less Fees and commission income are recognised on the
distributions to equity holders. commission and policy admin fees received in respect of
businesses ceded out to reinsurance companies and other
insurance companies as set out in note 3.16 (c) (iv), and
(ii) Earnings per share fees earned from other related financial services during
the period.
(a) Basic earnings per share
“The Group presents basic earnings per share for its or- “(iii) Investment income

Investment income comprises interest income earned on or loss for financial asset held for trading or designated
short-term deposits, rental income and income earned at fair value through profit or loss, or directly in equity
on trading of securities including all realised and unre- through other comprehensive income until the asset is
alised fair value changes, interest, dividends and foreign sold or becomes impaired for available-for-sale financial
exchange differences. Investment income, other than assets.
interest income, is recognised at fair value and on an
accrual basis. “ 3.28. Employee benefits

Interest income is recognised in the profit or loss as it
accrues and is calculated using the effective interest rate Short-term benefits
method. Fees and commissions that form an integral Short-term employee benefit obligations include wages,
part of the effective yield of a financial instrument are salaries and other benefits which the Group has a pres-
recognised as an adjustment to the effective interest rate ent obligation to pay, as a result of employees’ services
of the instrument. provided up to the reporting sheet date. The accrual is
Net realised gain/ (loss) from financial assets: calculated on an undiscounted basis, using current salary
rates and recognised in the profit or loss.
Net realised gain/ (loss) is the gain/(loss) arising from
the disposal of financial assets held at fair value through
other comprehensive income and are reclassified from A provision is recognised for the amount expected to be
other comprehensive income and recognised in the profit paid under short-term cash bonus or profit-sharing plans
or loss. if the Group has a present legal or constructive obliga-
tion to pay this amount as a result of past service provid-
Net fair value gain/ (loss) from assets at fair value ed by the employee and the obligation can be estimated
through profit or loss (FVTPL): reliably.

Net fair value changes arising from the changes in the Post employment benefits
fair value of financial assets held at fair value through
profit or loss are recognised in the profit or loss. These
are mainly fair value changes from financial assets held The Group operates a defined contributory retirement
for trading or designated at fair value through profit or scheme as stipulated in the Pension Reform Act 2014.
loss and investment properties. Under the defined contribution scheme, the Group pays
fixed contributions of 10% to a separate entity – Pension
(iv) Other operating income Fund Administrators; employees also pay a minimum
fixed percentage contribution of 8% to the same enti-
Other operating income comprises of profit from sale of ty. Once the contributions have been paid, the Group
property and equipment, interest income earned on staff retains no legal or constructive obligation to pay further
loans and net foreign exchange gain. Interest income is contributions if the Fund does not hold enough assets to
recognised in the profit or loss as it accrues and is calcu- finance benefits accruing under the retirement benefit
lated using the effective interest rate method. plan. The Group’s obligations are recognized in the profit
or loss.

(v) Dividend income
Dividend is recognized when the Group’s right to receive Termination benefits
the dividend has been established. The right to receive Termination benefits are payable whenever an
dividend is established when the dividend has been duly employee’s employment is terminated before the
declared. normal retirement date or whenever an employee
accepts voluntary redundancy in exchange for these
3.27. Foreign currency transactions benefits. The Group recognizes termination benefits
when it is demonstrably committed either to terminate
the employment of current employees according to a
“Foreign currency transactions are translated at the for- detailed formal plan without possibility of withdrawal,
eign exchange rate ruling at the date of the transaction. or to provide termination benefits as a result of an
Monetary assets and liabilities denominated in foreign offer made to encourage voluntarily redundancy if it is
currencies are translated using the exchange rate ruling probable that the offer will be accepted and the number
at the reporting date; the resulting foreign exchange gain of acceptances can be estimated. Benefits falling due
or loss is recognized in the profit or loss. more than 12 months after reporting sheet date are
“ discounted to present value.

Unrealized exchange differences are recognized in profit

3.29. Management expenses 3.32. Statutory deposit

These deposits represent balances statutorily required by
Management expenses are expenses other than claims and
the insurance regulator of the Group to be held with the
underwriting expenses. They include depreciation expens-
Central Bank of Nigeria. These deposits are not available
es and other operating expenses and are accounted for on
for day to day use and are stated at amortised cost.
an accrual basis.

3.30. Operating segment
3.33. Contingent liabilities and contingent assets

An operating segment is a component of the group
The Group disclose as contingent liabilities possible
engaged in business activities, whose operating results
obligations whose existence will be confirmed only by the
are reviewed regularly by management in order to make
occurrence or non-occurrence of one or more uncertain
decisions about resources to be allocated to segments and
future events not wholly within the entity’s control; or a
assessing segment performance. The group’s identification
present obligation that arises from past events but is not
of segments and the measurement of segment results is
recognised because, it is not probable that an outflow of
based on the group’s internal reporting to management.
economic benefits will be required to settle the obligation;
Transactions between segments are priced at
or the amount of the obligation cannot be measured reli-
market-related rates.
ably.

3.31. Business Combination
The Group classify as contingent assets, possible assets

whose existence will be confirmed only by the occurrence
Business Combinations are accounted for using the or non-occurrence of one or more uncertain future events
acquisition method as at the acquisition date i.e.. when not wholly within the Group’s control. Where the assets
control is transferred to the Group. The Consideration are not probable – no asset is recognised or disclosed,
transferred in the acquisition is generally measured at where the assets are probable, but not virtually certain
fair value as are the identifiable net assets acquired . Any – no asset is recognised, but disclosure is included; and
goodwill that arises is tested annually for impairment. where the assets are virtually certain – the asset is rec-
Any gain on a bargain purchase is recognised in profit ognised in the statement of financial position.
or loss immediately. Transaction costs are expensed as
incurred except if they are related to the issue of debt or
equity securities. The consideration transferred does not Contingent liabilities and contingent assets are grouped
include amounts related to the settlement of pre-existing by class with brief description of the nature of the contin-
relationships. Such amounts are generally recognised in gency and, where practicable, an estimate of the financial
accordance with the relevant IFRS in profit or loss. Any effect, the uncertainties relating to the amount and timing
contingent consideration payable is measured at fair value of the probable liabilities and assets. These normally com-
at the acquisition date. If the contingent consideration prise of legal claims under arbitration or court process in
is classified as equity, then it is not remeasured and respect of which a liability or asset is not likely to crystal-
settlement is accounted for within equity. Otherwise, lise.
subsequent changes in the fair value of the contingent
consideration are recognised in profit or loss.


Consolidated

Statements of Financial Position
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Notes
ASSETS
Cash and cash equivalents 8 1,745,342 2,220,395 911,023 311,223
Financial assets 9 9,495,935 7,401,489 4,356,929 3,429,338
Trade receivables 10 707,489 553,575 486,997 553,574
Reinsurance assets 11 1,586,301 1,572,830 838,139 1,094,415
Deferred acquisition cost 12 530,793 447,934 317,832 281,344
Other receivables and prepayments 13 1,061,531 1,145,019 871,238 1,137,047
Investment property 14 312,750 539,930 312,750 539,930
Investment in associates 15 8,264,440 7,173,843 5,059,810 5,059,810
Investment in subsidiaries 16 - - 3,876,571 3,876,571
Intangible assets 17 479,685 203,896 476,144 199,171
Property and equipment 18 3,787,381 4,025,510 3,521,507 3,811,639
Deferred tax asset 24 - - - -
Statutory deposit 19 632,964 617,632 300,000 300,000
TOTAL ASSETS 28,604,611 25,902,053 21,328,940 20,594,062
LIABILITIES
Insurance contract liabilities 20 7,141,465 6,373,682 3,817,332 3,763,964
Investment contract liabilities 21 1,063,860 920,154 - -
Trade payables 22 516,371 235,800 415,414 157,870
Other payables 23 1,458,750 1,320,043 1,417,790 1,157,450
Current income tax 25 263,793 208,382 115,315 88,114
Deferred tax liabilities 24 202,547 277,657 202,548 393,175
TOTAL LIABILITIES 10,646,786 9,335,718 5,968,399 5,560,573
EQUITY and LIABILITIES

Equity attributable to owners
Share capital 26 6,691,369 6,691,369 6,691,369 6,691,369
Share premium 27 6,194,983 6,194,983 6,194,983 6,194,983
Contingency reserves 28 2,061,153 1,807,949 1,742,067 1,550,425
Other reserves 29 941,704 1,209,743 671,027 788,338
Retained earnings 30 2,068,6156 662,291 61,095 (191,626)
TOTAL EQUITY 17,957,8245 16,566,335 15,360,541 15,033,489
TOTAL LIABILITIES AND 28,604,611 25,902,053 21,328,940 20,594,062

EQUITY

These financial statements were approved by the board of directors (BOD) on 29 January 2018 and signed on behalf of
the board of directors by the directors listed below:


Adeyinka Adekoya
FRC/2016/CIIN/00000013893
Managing Director/ CEO

Bode Ojeniyi
FRC/2016/CIBN/00000013894
Executive Director

Oluseyi Taiwo
FRC/2013/ICAN/00000004011
Chief Finance Officer

Consolidated Statements of Profit or Loss and

Other Comprehensive Income

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Notes
Gross premium written 31 9,807,616 8,005,308 6,388,069 5,375,431
Gross premium income 31 9,589,128 7,586,131 6,494,411 5,249,208

Reinsurance expenses 31 (3,937,089) (3,294,791) (2,742,273) (2,576,266)
Net premium income 31 5,652,039 4,291,340 3,752,138 2,672,942
Fee and commission income 32 682,888 651,992 471,328 497,408
Net underwriting income 6,334,927 4,943,332 4,223,466 3,170,350
Claims expenses 33 3,820,558 3,843,297 1,764,096 1,785,827

Claims expenses recoverable 33 (758,848) (974,672) (81,745) (552,518)
Net claims expenses 3,061,710 2,868,625 1,682,351 1,233,309
Underwriting expenses 34 1,757,567 1,680,773 1,342,708 1,359,079

Increase in individual life fund 20(d) (20,487) 13,257 - -
Total underwriting expenses 4,798,790 4,562,655 3,025,059 2,592,388

Underwriting profit 1,536,136 380,677 1,198,406 577,962
Investment income 35(a) 1,255,961 1,018,308 621,263 741,965

Profit on investment contracts 35(b) 96,108 351,495 - -
Net realised gain on financial assets 36 614,534 33,713 614,534 33,713
Net fair value loss on assets at fair value 37 (663) (254) (1,549) (254)
through profit or loss
Other operating income 38 1,164,532 2,333,873 980,556 2,029,102
3,130,472 3,737,135 2,214,804 2,804,526
Net income 4,666,608 4,117,812 3,413,210 3,382,488

Impairment (reversal)/charge on trade 10(b) - (12,782) - 7,370
receivables
Impairment charge/(reversal) on other 13(b) 38,333 154,630 54,028 (3,095)
receivables
Employee benefit expense 39 1,481,332 1,309,821 923,382 825,209
Other operating expenses 40 2,912,450 2,698,571 2,205,175 2,038,451

Expenses 4,432,115 4,150,240 3,182,585 2,867,934
Operating profit/(loss) 234,493 (32,428) 230,625 514,554

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Share of profit of associate 15(c) 1,388,198 1,225,874 - -
Profit before tax 1,622,691 1,193,446 230,625 514,554
Income tax 25 (91,881) (607,423) 85,019 (422,581)
Profit after tax for the year 1,530,810 586,023 315,644 91,973
Other comprehensive income,

net of tax
Items that are or may be reclassified to

profit or loss:
Foreign currency translation difference 29(b) (27,610) 459,766 - -
of foreign operations
Net changes in fair value of AFS financial
instruments:
- Unrealised net (losses)/gains arising 29(c) (7,292) 50,879 11,408 104,722
during the period
- Net reclassification adjustments for (128,719) - (128,719) -
realised net gains
Share of other comprehensive income of 15(c) (104,418) 244,258 - -
associates
Items that will not be reclassified to

profit or loss:
Revaluation gain on property and equip- - 949,415 - 949,415
ment
Deferred tax on revaluation gain on - (284,824) - (284,824)
property and equipment
Other comprehensive (loss)/in- (268,039) 1,419,494 (117,311) 769,313

come for the year, net of tax
Total comprehensive income for 1,262,771 2,005,517 198,333 861,286

the year
Profit atributable to the owners of the 1,530,810 586,023 315,644 91,973

Company
Total comprehensive income attributta- 1,262,771 2,005,517 198,333 861,286
ble to the owners of the Company
Basic earnings per share (kobo) 41 11 4 2 1


Consolidated Statements of Changes in

Equity - Group
For the period ended 31 December 2017
(All amounts in Naira thousands unless otherwise stated)

Share Share Contin- Other Retained Total eq-
capital premi- gency reserves earnings uity
um reserves
Notes
Balance at 1 January 2017 6,691,369 6,194,983 1,807,949 1,209,743 662,291 16,566,335
Total comprehensive income

for the year
Profit for the year - - - - 1,530,810 1,530,810

Transfer to contingency 28 - - 253,204 - (253,204) -
reserves
- - 253,204 - 1,277,606 1,530,810
Other comprehensive in-
come
Net changes in fair value of 29(c) - - - (7,292) - (7,292)
AFS financial instruments
Net reclassification adjust- 29(c) - - - (128,719) 128,719 -
ments for realised net gains
Foreign currency translation 29(b) - - - (27,610) - (27,610)
difference
Revaluation gain on proper- 29(a) - - - - - -
ty and equipment, net of tax
Share of other comprehen- 15(c) - - - (104,418) - (104,418)
sive income of associates
Total other comprehensive - - - (268,039) 128,719 (139,320)

income/(loss) for the year
Total comprehensive in- - - 253,204 (268,039) 1,406,325 1,391,490
come/(loss) for year
Transactions with equity

holders, recorded directly in
equity:
Dividend paid during the - - - - - -

year
Total transactions with - - - - - -

owners
Balance at 31 December 2017 6,691,369 6,194,983 2,061,153 941,704 2,068,616 17,957,825

Statement of Changes in Equity - Company


Share Share Contin- Other Retained Total
Capital premi- gency reserves earnings equity
um reserves
Notes
Balance at 1 January 2017 6,691,369 6,194,983 1,550,425 788,338 (191,626) 15,033,489

for the year
Profit for the year - - - - 315,644 315,644

reserves
- - 191,642 - 124,002 315,644
come
Net changes in fair value of 29(c) - - - 11,408 - 11,408
Net reclassification adjust- 29(c) - - - (128,719) 128,719 -
ments for realised net gains/
(loses)
Revaluation gain on proper- 29(a) - - - - - -
Total other comprehensive - - - (117,311) 128,719 11,408

income/(loss) for the year
Total comprehensive in- - - 191,642 (117,311) 252,721 327,052

equity:
Dividend paid during the - - - - - -

year
Total transactions with - - - - - -

owners
Balance at 31 December 2017 6,691,369 6,194,983 1,742,067 671,027 61,095 15,360,541

Consolidated Statements of Changes in

Equity - Group

capital premi- gency reserves earnings equity
um reserves
Notes
Balance at 1 January 2016 6,691,369 6,194,983 1,625,511 (209,751) 660,185 14,962,297

for the year
Profit for the year - - - - 586,023 586,023

reserves
- - 182,438 - 403,585 586,023
come
Net reclassification adjust- 29(c) - - - - - -
ments for realised net gains
Foreign currency translation 29(b) - - - 459,766 - 459,766
difference
Revaluation gain on proper- 29(a) - - - 664,591 - 664,591
Share of other comprehen- 15(c) - - - 244,258 - 244,258
sive income of associates
Total other comprehensive - - - 1,419,494 - 1,419,494

income for the year
Total comprehensive income - - 182,438 1,419,494 403,585 2,005,517
for year

equity:
Dividend paid during the - - - - (401,479) (401,479)

year
Total transactions with - - - - (401,479) (401,479)

owners
Balance at 31 December
2016 6,691,369 6,194,983 1,807,949 1,209,743 662,291 16,566,335

Statement of Changes in Equity -Company


Capital premi- gency reserves earnings equity
um reserves
Notes
Balance at 1 January 2016 6,691,369 6,194,983 1,389,162 19,025 279,143 14,573,682

for the year
Loss for the year - - - - 91,973 91,973

reserves
- - 161,263 - (69,290) 91,973
come
Net reclassification adjust- 29(c) - - - - - -
ments for realised net gains/
(loses)
Revaluation gain on proper- 29(a) - - - 664,591 - 664,591
Reclassification - Excess 29(a) - - - - - -
depreciation transfer
Total other comprehensive - - - 769,313 - 769,313

income for the year
Total comprehensive in- - - 161,263 769,313 (69,290) 861,286

equity:
Dividend paid during the - - - - (401,479) (401,479)

year
Total transactions with - - - - (401,479) (401,479)

owners
Balance at 31 December
2016 6,691,369 6,194,983 1,550,425 788,338 (191,626) 15,033,489


Consolidated

Statement of Cash Flows

2017 2016 2017 2016
N'000 N'000 N'000 N'000
Cash flows from operating activities

Premiums received 9,853,408 8,047,607 6,654,352 5,351,829
Fees and commission received 672,064 678,098 459,832 526,804
Fees and commission paid (2,144,355) (1,680,824) (1,476,844) (1,300,892)
Reinsurance premiums paid (3,732,839) (3,386,767) (2,539,796) (2,635,838)
Gross claims paid to policy holders (3,230,058) (2,850,434) (1,638,237) (1,407,234)
Reinsurance recoveries on claims 631,176 441,624 208,135 296,026
Payments to employees (1,481,332) (1,309,821) (923,382) (825,209)
Other operating cash payments (2,653,410) (2,184,229) (1,636,721) (1,534,471)
Other operating cash receipts 861,382 2,284,927 745,159 2,211,786
Receipts from Investment contract 326,029 117,624 - -
Payments to Investment contract (167,672) (162,265) - -
Tax paid (319,961) (188,705) (78,407) (152,073)
Net cashflow from operations (1,385,568) (193,165) (225,909) 530,728
Cash flows from investing activities

Purchases of property and equipment (328,657) (845,012) (146,160) (684,228)
Purchases of intangible assets (311,096) (183,693) (310,624) (182,787)
Proceeds from sale of property and equip- 19,445 57,104 14,803 52,660
ment
Purchases of investment in associates and - - - (2,060,896)
subsidiaries
Purchases of investment securities (7,190,453) (4,287,568) (3,623,992) (1,655,103)
Proceeds from redemption of investment 5,718,053 2,289,128 2,783,315 1,335,605
securities
Purchases to investment properties (108) (280,480) (108) (315,980)
Proceeds from sale of investment properties 214,670 335,601 214,670 336,101
Rental income received 2,000 1,333 2,000 1,333
Dividend income received 135,346 158,665 328,529 381,206
Interest income received 1,481,871 1,107,217 359,585 509,985
Net cash (used in) / from investing activities (258,929) (1,647,705) (377,982) (2,282,104)
Cash flows from financing activities

Dividend paid - (401,479) - (401,479)
Net cash from financing activities - (401,479) - (401,479)
Changes in cash and cash equivalents (1,644,497) (2,242,349) (603,891) (2,152,854)

Cash and cash equivalent at beginning of year 6,691,319 8,933,668 1,654,226 3,807,080
Net increase/(decrease) in cash and cash (1,644,497) (2,242,349) (603,891) (2,152,854)
equivalent
Cash and cash equivalent at end of year 5,046,822 6,691,319 1,050,335 1,654,226
Summary of Cash and cash equivalents

For the purposes of the statement of cash flow, cash and cash equivalents is as follows:
2017 2016 2017 2016
N'000 N'000 N'000 N'000
Cash at bank and in hand 933,582 1,172,179 508,263 103,773
Money market placements 811,760 1,048,216 402,760 207,450
Treasury bills less than 90 days maturity 3,301,480 4,470,924 139,312 1,343,003
Balance, end of year 5,046,822 6,691,319 1,050,335 1,654,226

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

Notes to the Financial Statements

4 Critical accounting ance contracts. Assumptions such as expenses inflation,
valuation interest rate, mortality and claims experience
estimates and are considered in estimating the required reserves for
judgments
individual life contracts fund and the incurred but not re-
ported claims under the Group life and non-life insurance
Management makes estimates and assumptions that af- contracts. The sensitivities to various valuation index
fect the reported amounts of assets and liabilities. The un- for the life business is included under note 5 (Sensitivity
derlying judgments of the selection and disclosure of the Analysis).
Group’s critical accounting policies and estimates, and the (iv) Recoverability of deferred tax assets
application of these policies and estimates are continually
evaluated based on historical experience and other factors, Deferred tax assets are recognised for unused tax losses,
including expectations of future events that are believed unused tax credits and deductible temporary differences
to be reasonable under the circumstances. to the extent that in management’s judgements it is prob-
able that future taxable profits will be available against
Key sources of estimation uncertainty which they can be used. Deferred tax assets are reviewed
at each reporting date and adjusted to the extent that it
is no longer probable that the related tax benefit will be
(i) Determination of fair values realised.

The determination of fair value for financial assets and (v) Impairment of available-for-sale financial
liabilities for which there is no observable market price assets
requires the use of techniques as described in account- At the balance sheet date, the fair values of equity and
ing policy 3.2(d). Further disclosures on the Group’s tradeable fixed income securities classified as available-
valuation methodology have been made on note 5 (Fair for-sale financial assets with a carrying amount of N3.773
value hierarchy) . For financial instruments that trade billion have certain items that have declined below cost by
infrequently and have little price transparency, fair value N25 million. The Group has made a judgement that this
is less objective, and requires varying degrees of judge- depreciation in value is not significant or prolonged. In
ment depending on liquidity, concentration, uncertainty making this judgement, the Group has considered, among
of market factors, pricing assumptions and other risks other factors, the short-term duration of the decline, the
affecting the specific instrument. small magnitude by which the fair value of the investment
is below cost; and the positive financial health and short-
term business outlook of the investees and investment
(ii) Depreciation and carrying value of instruments.
property and equipment
The estimation of the useful lives of assets is based on If the decline in fair value below cost was considered sig-
management’s judgement. Adjustment to the estimated nificant or prolonged, the Group would have recognised
useful lives of items of property and equipment will have an additional loss of N25 million in its 2017 financial
an impact on the carrying value of these items. There were statements.
no significant sensitivities of the carrying value of proper-
ty and equipment and the depreciation charge for the year (vi) Impairment of fair value through profit or
to increase or decrease in the useful life of property and loss financial assets
equipment in the books of the Group and Company as at At the balance sheet date, the fair values of certain finan-
31 December 2017 (31 December 2016: Nil). cial assets classified as at fair value through profit or loss
(FVTPL) with a carrying amount of N458 million have
have appreciated above book value by N47 million.
(iii) Actuarial valution of insurance contracts
liabilities If the appreciation in fair value above cost were not con-
The liabilities for life insurance contracts are estimated sidered, the Group would have recognised an additional
using appropriate and acceptable base tables of standard loss of N47 million in its 2017 financial statements.
mortality according to the type and nature of the insur-

Fair Value Hierarchy

The Group’s accounting policy and basis of fair value
measurements are disclosed under notes 3.2 (d) and 4.

Level 3: This includes financial instruments and other
The determination of fair value for financial and other assets and liabilities, the valuation of which incorporates
assets as well as financial and other liabilities for which significant inputs that is not based on observable market
there is no observable market price requires the use of data (unobservable inputs). Unobservable inputs are
certain valuation techniques. those not readily available in an active market due to
market illiquidity or complexity of the product. These
inputs are generally determined based on inputs of a
For financial instruments and other assets and similar nature, historic observations on the level of the
liabilities that trades infrequently and have little price input or analytical techniques.
transparency, fair value is less objective, and requires
varying degrees of judgment depending on liquidity,
concentration, uncertainty of market factors, pricing Determination of fair value of financial instruments:
assumptions and other risks affecting the specific
instrument. (i) Valuation techniques used to derive Level 3 fair
values
The Group measures fair value using the following Level 2 and level 3 fair values of investments have
fair value hierarchy that reflects the significance of the been generally derived using the adjusted fair value
inputs used in making the measurement. comparison approach. Quoted price per earning or price
Level 1: The fair value of financial instruments traded per book value, enterprise value to EBITDA ratios of
in active markets is based on quoted market price in an comparable entities in a similar industry were obtained
active market for an identical instrument at the balance and adjusted for key factors to reflect estimated ratios
sheet date. of the investment being valued. Adjusting factors
used are the Illiquidity Discount which assumes a
Level 2: The fair value of financial instruments that are reduced earning on a private entity in comparison to
not traded in an active market are determined by using a publicly quoted entity and the Haircut adjustment
valuation techniques based on observable inputs. This which assumes a reduced earning for an entity located
category includes instruments valued using quoted in Nigeria contributed by lower transaction levels in
market prices in active markets for similar instruments; comparison to an entity in a developed or emerging
quoted prices for similar instruments in markets that market. Below is a table showing sensitivity analysis of
are considered less than active; or other valuation material unquoted investments categorised as Level
techniques where all significant inputs are directly or 2 fair values.
indirectly observable from market data.
- African Reinsurance Corporation

Relationship of unobservable Fair value at 31 Valuation Unobservable FV if P/B FV if P/B
inputs to fair value December 2017 Technique Inputs multiples is multiples is
increased to decreased to
1.01x 0.91x
The higher the P/B ratio of 46,827,320 Adjusted fair Average P/B 49,369,271 44,481,223
similar trading entities, the value comparison multiples of
higher the fair value approach comparable
entities

- Nigerian Liability Insurance Pool
Relationship of unobservable Fair value at 31 Valuation Unobservable FV if P/B FV if P/B
inputs to fair value December 2017 Technique Inputs multiples is multiples is
increased to decreased to
0.95x 0.89x
entities


- Nigerian Liability Insurance Pool

Relationship of Fair value at Valuation Unobservable FV if P/B FV if P/B
unobservable inputs to 31 December Technique Inputs multiples is multiples is
fair value 2017 increased to decreased
1.01x to 0.91x
entities

(ii) Determination of fair value of investment property
Management employed the services of estate surveyors and property valuation expert to value its investment
properties. The estimated open market value is deemed to be the fair value based on the assumptions that there will be
willing buyers and sellers. Recent market prices of neighborhood properties were also considered in deriving the open
market values. A variation of -/+5% will result in N16 million in the Group and Company results (2016: N27 million).

The table below analyses financial instruments and other assets and liabilities measured at fair value at the end of the
year, by the level in the fair value hierarchy into which the fair value measurement is categorised:

31 December 2017
Level 1 Level 2 Level 3 Total balance
Group Notes
Assets
Equity securities - Available for sale 9 1,548,487 73,203 106,787 1,728,477
Fixed income securities - Available for sale 9 2,304,336 - - 2,304,336
Equity securities - Held for trading 9 1,380 - - 1,380
Investment properties 14 - 312,750 - 312,750
Total financial and other assets measured at fair value 3,854,203 385,953 106,787 4,346,943

31 December 2016
Group Notes
Assets
Equity securities - Available for sale 9 908,728 61,000 36,535 1,006,263
Equity securities - Held for trading 9 105 - - 105
Total financial and other assets measured at fair value 2,128,386 600,930 36,535 2,765,85

31 December 2017
Company Notes
Assets
Equity securities - Available for sale 9 1,470,080 120,812 59,178 1,650,070


Total financial and other assets measured at fair 3,172,476

value 433,562 59,178 3,665,216
31 December 2016
Company Notes
Assets
Equity securities - Available for sale 9 825,778 61,000 36,535 923,313
Fixed income securities - Available for sale 9 558,812 - - 558,812
Total financial and other assets measured at fair 1,384,597

value 600,930 36,535 2,022,062
The following tables set out the fair values of financial instruments not measured at fair value and analyses them by the
level in the fair value hierarchy into which each fair value measurement is categorised:
31 December 2017
Carrying Level 1 Level 2 Level 3 Total balance
amount
Group
Assets
Cash and cash equivalents 1,745,342 - 1,745,342 - 1,745,342
Financial assets 5,461,742 5,529,284 - - 5,529,284
Trade receivables 707,489 - 707,489 - 707,489
Reinsurance assets (excluding prepaid reinsurance) 1,087,216 - - 1,087,216 1,087,216
Deferred acquisition cost 530,793 - - 530,793 530,793
Other receivables (excluding prepayment) 924,102 - - 924,102 924,102
Statutory Deposit 632,964 - 632,964 - 632,964
Total financial assets not measured at fair value 11,089,648 5,529,284 2,542,111 11,157,190
3,085,795
Liabilities
Investment contract liabilities 1,063,860 1,063,860
1,063,860
Trade payables 516,371 516,371 516,371
Other payables (excluding non-financial liabilities) 1,354,731 1,354,731 1,354,731
Total financial liabilities not measured at fair value 2,934,962 - - 2,934,962 2,934,962

31 December 2017
amount
Company
Assets
Cash and cash equivalents 911,023 - 911,023 - 911,023
Reinsurance assets (excluding prepaid reinsurance) 403,620 - - 403,620 403,620
Other receivables (excluding prepayment) 834,520 - - 834,520 834,520
Total financial assets not measured at fair value 4,258,455 1,065,148 1,555,972 4,319,140
1,698,020
Liabilities
Trade payables 415,414 - - 415,414 415,414
Other payables (excluding non-financial liabilities) 1,324,350 - - 1,324,350 1,324,350
31 December 2016
amount
Group
Assets
Cash and cash equivalents 2,220,395 - - 2,220,395
2,220,395
Other receivables (excluding prepayment) 1,027,649 - - 1,027,649 1,027,649
Total financial assets not measured at fair value 10,967,066 5,106,851 10,898,349
3,391,602 2,399,896
Liabilities
Investment contract liabilities 920,154 920,154 920,154
Trade payables 235,800 235,800 235,800
Other payables (excluding non-financial liabilities) 1,205,200 1,205,200
1,205,200


amount
Company
Assets
Cash and cash equivalents 311,223 - 311,223 - 311,223
Other receivables (excluding prepayment) 1,069,803 - - 1,069,803
1,069,803
Total financial assets not measured at fair value 4,957,929 1,885,900 1,164,797 1,845,926 4,896,623
Liabilities
Trade payables 157,870 - - 157,870 157,870
Other payables (excluding non-financial liabilities) 1,052,514 - - 1,052,514 1,052,514
6 Financial assets and liabilities

Accounting classification, measurement basis and fair values

Measurement basis
The fair value for financial assets and liabilities that are not carried at fair value were determined
respectively as follows:
(i) Financial assets:
The fair value for these financial assets is based on market prices from financial market dealer price
quotations. Where this information is not available, fair value is estimated using quoted market prices
for securities with similar credit, maturity and yield characteristics.

(ii) Cash and cash equivalents, trade receivables, other receivables, reinsurance assets and statutory deposits:

The carrying amount of cash and cash equivalents, trade receivables, other receivables, reinsurance assets
and statutory deposits are a reasonable approximation of their fair value as they are all short term in na-
ture.

(iii) Investment contract liabilities, trade payables and other payables:

The carrying amount of investment contract liabilities, trade payables and other payables are a reasonable
ap proximation of their fair value as they are all short term in nature.

Accounting classification and fair values
The table below sets out the Group’s classification of each class of financial assets and liabilities, and their fair val-
ues.

174

FVTPL Held-to-Ma- Loans and Available- Other financial Total Fair value
turity receiv- for-sale liabilities at am- carrying
ables ortised cost amount
Group Notes
31 December 2017
Cash and cash equivalents 8 - - 1,745,342 - - 1,745,342 1,745,342
Financial assets 9 1,380 5,461,742 - 4,032,813 - 9,495,935 9,563,477
Trade receivables 10 - - 707,489 - - 707,489 707,489
Reinsurance assets (excluding prepaid 11 - - 1,087,216 - - 1,087,216 1,087,216
reinsurance)
Other receivables (excluding prepay- 13 - - 924,102 - - 924,102 924,102
ment)
Statutory deposit 19 - - 632,964 - - 632,964 632,964
Total financial assets 1,380 5,461,742 5,097,113 4,032,813 - 14,593,048 14,660,590
Investment contract liabilities 21 - - - - 1,063,860 1,063,860 1,063,860

Trade payables 22 - - - - 516,371 516,371 516,371
Other payables (excluding non-financial 23 - - - - 1,081,335 1,081,335 1,081,335
liabilities)
Total financial liabilities - - - - 2,661,566 2,661,566 2,661,566

FVTPL Held-to-Ma- Loans and Available- Other financial Total Fair value
turity receiv- for-sale liabilities at am- carrying
ables ortised cost amount
Group Notes
31 December 2016
Cash and cash equivalents 8 - - 2,220,395 - - 2,220,395 2,220,395
Financial assets 9 105 5,175,568 - 2,225,816 - 7,401,489 7,332,772
Reinsurance assets (excluding prepaid 11 - - 924,313 - - 924,313 924,313
reinsurance)
Other receivables (excluding prepay- 13 - - 1,027,649 - - 1,027,649 1,027,649
ment)

Total financial assets 105 5,175,568 5,343,564 2,225,816 - 12,745,053 12,676,336
Investment contract liabilities 21 - - - - 920,154 920,154 920,154

Trade payables 22 - - - - 235,800 235,800 235,800
Other payables (excluding non-financial 23 - - - - 948,581 948,581 948,581
liabilities)

175
176
Financial assets and liabilities
Accounting classification, measurement basis and fair values
The table below sets out the Company’s classification of each class of financial assets and liabilities, and their fair values.

Held-to-Ma- FVTPL Loans Avail- Other finan- Total Fair value
turity and able-for- cial liabilities carrying
receiv- sale at amortised amount
ables cost
Company Notes
31 December 2017
Cash and cash equivalents 8 - - 911,023 - - 911,023 911,023

Financial assets 9 796 1,004,463 - 3,351,670 - 4,417,614
4,356,929
Reinsurance assets (excluding prepaid rein- 11 - - 403,620 - - 403,620 403,620
surance)
Other receivables (excluding prepayment) 13 - - 834,520 - - 834,520 834,520
Total financial assets 796 1,004,463 3,351,670 - 7,353,774

2,936,160 7,293,089
Trade payables 22 - - - - 415,414 415,414 415,414

Other payables (excluding non-financial 23 1,139,318 1,139,318 1,139,318
liabilities)

FVTPL Held-to-Ma- Loans Avail- Other finan- Total Fair value
turity and able-for- cial liabilities carrying
receiv- sale at amortised amount
ables cost
Company Notes
31 December 2016
Cash and cash equivalents 8 - - 311,223 - - 311,223 311,223
Financial assets 9 7 1,947,206 - 1,482,125 - 3,368,032
3,429,338
Reinsurance assets (excluding prepaid rein- 11 - - 494,779 - - 494,779 494,779
surance)
Other receivables (excluding prepayment) 13 - - - - 1,069,803

1,069,803 1,069,803
Total financial assets 7 1,947,206 1,482,125 - 6,158,717 6,097,411

2,729,379
Trade payables 22 - - - - 157,870 157,870 157,870

Other payables (excluding non-financial 23 - - - - 876,326 876,326 876,326
liabilities)

177
Operating Segments
The Group is organized into two operating segments as described below, which are the Group’s strategic business units.
These segments distribute their products through various forms of brokers, agencies and direct marketing programs.
Management identifies its reportable operating segments by product line consistent with the reports used by the
management. These segments and their respective operations are as follows:

“General business: This segment covers the protection of customers’ assets (particularly their properties, both for personal
and commercial business) and indemnification of other parties that have suffered damage as a result of customers’
accidents. All contracts in this segment are short-term in nature. Revenue in this segment is derived primarily from
insurance premium, investment income, net realized gains on financial assets, and net fair value gains on financial assets
at fair value through profit or loss.“

Life business: This segment covers the protection of the Group’s customers against the risk of premature death, disability,
critical illness and other accidents. Revenue from this segment is derived primarily from insurance premium, investment
income and net fair value gains on financial assets at fair value through profit and loss.

“Expenses for corporate units that render services for all business segments are initially paid by the general business
segment and transferred to other business units at cost price. The expenses are allocated based on service man hours
rendered by the corporate units to the various business segments.“

The corporate expenses for the following centrally shared services are being apportioned to all business segments in the
group:

- Internal controls and audits
- Financial control
- Human resources
- Information technology
Business segments

The Group operates the following main business segments:

General

Wapic Insurance Plc - Includes general business insurance transactions with individual and
corporate customers
Wapic Insurance Ghana Limited - Includes general business insurance transactions with individual and
corporate customers
Life

Wapic Life Assurance Limited - Includes life insurance policies with individual and corporate custom-
ers.
The segment information is based on internal reporting to the Chief Operating Decision Maker in line with IFRS.


General Business Life Business General Business
Wapic Insurance Plc Wapic Life Assurance Wapic Insurance Elimina- Elimina- Group
Ltd Ghana Ltd tion Ad- tion Ad-
justments justments
31/12/17 31/12/16 31/12/17 31/12/16 31/12/17 31/12/16 31/12/17 31/12/16 31/12/17 31/12/16
Revenue:
Derived from external
customers:
- Gross premium 6,494,411 5,249,208 1,712,521 1,239,949 1,382,196 1,096,974 - - 9,589,128 7,586,131
income
- Reinsurance expens- (2,742,273) (2,576,266) (615,792) (312,372) (579,024) (406,153) - - (3,937,089) (3,294,791)
es

Net insurance premi- 3,752,138 2,672,942 1,096,729 927,577 803,172 690,821 - - 5,652,039 4,291,340
um income
- Commission received 471,328 497,408 85,279 49,213 126,281 105,371 - - 682,888 651,992
- Investment income 621,263 741,965 682,392 346,964 160,552 165,441 (193,183) (236,062) 1,271,024 1,018,308
- Profit on investment - - 96,108 351,495 - - - - 96,108 351,495
contracts
- Net realised gain/ 614,534 33,713 - - - - - - 614,534 33,713
(loss) on financial
assets
- Net fair value loss on (1,549) (254) 886 - - - - - (663) (254)
financial assets at fair
value through profit
or loss
- Other operating 980,556 2,029,102 89,517 125,299 110,133 179,472 (15,674) - 1,164,532 2,333,873
income
6,438,270 5,974,876 2,050,911 1,800,548 1,200,138 1,141,105 (208,857) (236,062) 9,480,462 8,680,467
Expenses:
Underwriting expenses (1,342,708) (1,359,079) (193,761) (144,885) (221,098) (176,809) - - (1,757,567) (1,680,773)
Increase in individual - - 20,487 (13,257) - - - - 20,487 (13,257)
life fund
Employee benefit (923,382) (825,208) (202,378) (183,192) (280,075) (251,539) (75,497) - (1,481,332) (1,259,939)
expense
179
180
Other operating ex- (2,259,202) (2,042,726) (376,883) (440,776) (421,041) (406,798) 91,281 - (2,965,845) (2,890,301)
pense
Claims incurred (1,682,352) (1,233,309) (938,554) (1,076,858) (440,804) (558,458) - - (3,061,710) (2,868,625)
Total underwriting and (6,207,644) (5,460,322) (1,691,089) (1,858,968) (1,363,018) (1,393,604) 15,784 - (9,245,967) (8,712,895)
operating expenses
Share of profit of asso- 1,388,198 1,225,874
ciate
Profit/(loss) before tax 230,626 514,554 359,822 (58,420) (162,880) (252,499) (193,073) (236,062) 1,622,693 1,193,446
Income tax 85,019 (422,581) (176,900) (156,532) - (28,309) - - (91,881) (607,423)
Profit/(loss) after tax 315,645 91,973 182,922 (214,952) (162,880) (280,808) (193,073) (236,062) 1,530,812 586,023
Assets and Liabilities:
Total assets 21,328,940 20,594,062 6,098,309 5,055,269 2,293,288 2,247,483 (1,115,926) (1,994,761) 28,604,611 25,902,053
Total liabilities 5,968,399 5,560,573 3,659,498 2,781,745 1,462,878 1,287,811 (443,989) (294,413) 10,646,786 9,335,718
Net assets/(liabilities) 15,360,541 15,033,489 2,438,811 2,273,524 830,410 959,672 (671,938) (1,700,348) 17,957,825 16,566,335

Revenue Account - Company

Revenue account for the period ended 31 December 2017

MOTOR FIRE GEN ACC MARINE AVIA- ENGI- OIL AND BOND TOTAL
TION NEER- ENERGY
ING
DETAILS N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Income
Direct Premium 1,117,114 364,751 1,926,887 302,029 177,404 309,431 2,013,466 2,310 6,213,392
Reinsurance In- 33,910 16,318 38,519 67,381 5,092 12,656 799 - 174,675
wards
Gross written pre- 1,151,024 381,069 1,965,406 369,410 182,496 322,087 2,014,265 2,310
mium 6,388,067
Movement in provi- (7,960) 49,636 (50,827) (15,141) 18,741 14,651 97,496 (254) 106,342
sion for
unexpired risks
Gross premium 1,143,064 430,705 1,914,579 354,269 201,237 336,738 2,111,761 2,056
income 6,494,409
Deduction from
income
- Facultative out- 78,868 7,730 376,838 4,093 26,086 127,569 850,756 1,824 1,473,764
ward
- Liability pool 58,224 - 17,050 - - - - - 75,274
- Surplus Treaty 76,516 170,208 412,674 137,473 - 105,392 - - 902,263
- Minimum and - 16,425 - - 100,367 - - - 116,792
deposit premium
Outward reinsur- 213,608 194,363 806,562 141,566 126,453 232,961 850,756 1,824
ance Premium 2,568,093
Movement in pre- (32,897) 33,570 (15,384) 25,537 18,886 67,038 78,049 (619) 174,180
paid reinsurance
Reinsurance Cost 180,711 227,933 791,178 167,103 145,339 299,999 928,805 1,205 2,742,273
Net premium in- 962,353 202,772 1,123,401 187,166 55,898 36,739 1,182,956 851 3,752,136
come
Commission re- 47,586 65,129 222,301 45,073 8,843 55,941 9,366 575 454,814
ceived
Movement in de- 675 2,547 (318) 3,500 1,157 11,741 (2,679) (109) 16,514
ferred commission
income
Underwriting 1,010,614 270,448 1,345,384 235,739 65,898 104,421 1,189,643 1,317 4,223,464
income
Expenses
Gross claims paid 713,131 140,096 366,241 84,325 5,795 36,905 277,629 14,115 1,638,237
Movement in provi- 63,987 116,967 (190,881) (1,683) 14,512 56,254 34,371 (14,615) 78,912
sion for outstanding
claims
Movement in provi- 52,313 (34,991) 6,551 (16,306) 23,492 5,211 10,356 322 46,948
sion for IBNR

829,431 222,072 181,911 66,336 43,799 98,370 322,356 (178) 1,764,097

Claims recoveries (152,765) (98,475) (78,349) (64,722) (2,246) (21,347) - - (417,904)
Movement in claims 21,708 (53,494) 282,151 65,148 41,770 5,893 (41,344) (3,960) 317,872
recoverable
Movement in IBNR (11,774) 2,243 42,603 9,923 (778) (947) (22,739) (244) 18,287
claims recoverable
Net claims incurred 686,600 72,346 428,316 76,685 82,545 81,969 258,273 (4,382) 1,682,352
Underwriting ex-
penses
Acquisition expens- 115,649 71,143 310,477 65,621 42,237 54,655 405,801 (2) 1,065,581
es
Movement in de- 3,317 13,759 (4,371) 4,372 3,003 3,696 (60,283) 18 (36,489)
ferred acquisition
cost
Maintenance ex- 37,618 67,142 100,371 17,242 7,986 16,997 66,114 143 313,613
penses
Total underwriting 156,584 152,044 406,477 87,235 53,226 75,348 411,632 159 1,342,705
expenses
Underwriting profit 167,430 46,058 510,591 71,819 (69,873) (52,896) 519,738 5,540 1,198,407
Revenue Account - Company

Revenue account for the period ended 31 December 2016
MOTOR FIRE GEN ACC MARINE AVIA- ENGI- OIL AND BOND TOTAL
TION NEER- ENERGY
ING
DETAILS N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Income
Direct Premium 797,006 408,913 1,762,078 170,549 226,661 140,423 1,621,394 300 5,127,324
Reinsurance In- 46,457 8,459 30,620 150,852 3,162 3,699 4,856 - 248,105
wards
Gross written pre- 843,463 417,372 1,792,698 321,401 229,823 144,122 1,626,250 300 5,375,429
mium
Movement in provi- (19,097) (42,838) (140,791) (683) (40,983) 17,579 100,767 (177) (126,223)
sion for unexpired
risks
Gross premium 824,366 374,534 1,651,907 320,718 188,840 161,701 1,727,017 123 5,249,206
income
Deduction from
income
- Facultative out- 51,237 28,627 517,515 23,005 55,906 26,119 1,054,802 - 1,757,211
ward
- Liability pool 31,441 - 12,974 - - - - - 44,415
- Surplus Treaty - 287,169 112,394 152,089 - 225,656 - - 777,308
- Minimum and - 20,925 13,500 8,100 74,767 - - - 117,292
deposit premium
Outward reinsur- 82,678 336,721 656,383 183,194 130,673 251,775 1,054,802 - 2,696,226
ance Premium

Movement in pre- (8,294) 13,870 (48,290) (45,225) (17,973) (37,684) 23,636 - (119,960)
paid reinsurance
Reinsurance Cost 74,384 350,591 608,093 137,969 112,700 214,091 1,078,438 - 2,576,266
Net premium in- 749,982 23,943 1,043,814 182,749 76,140 (52,390) 648,579 123 2,672,940
come
Commission re- 14,021 92,271 180,473 59,324 17,686 73,909 89,120 - 526,804
ceived
Movement in de- 4,119 (155) (20,836) (8,093) (6,959) (6,901) 9,429 - (29,396)
ferred commission
income
Underwriting 768,122 116,059 1,203,451 233,980 86,867 14,618 747,128 123 3,170,348
income
Expenses
Gross claims paid 483,588 156,122 499,173 102,992 31,009 16,396 117,954 - 1,407,234
Movement in provi- 6,893 16,321 224,865 8,191 2,700 795 62,018 4,615 326,398
sion for outstanding
claims
Movement in provi- 37,141 21,032 (8,381) 19,459 10,120 15,197 (42,391) 18 52,195
sion for IBNR
527,622 193,475 715,657 130,642 43,829 32,388 137,581 4,633 1,785,827
Claims recoveries (52,083) (164,288) (5,154) (65,708) - (8,795) - - (296,028)
Movement in claims 1,701 (12,090) (230,099) (16,028) (41,243) (534) 41,243 - (257,050)
recoverable
Movement in IBNR (2,107) (7,888) 16,707 (13,465) 316 (11,643) 18,640 - 560
claims recoverable
Net claims incurred 475,133 9,209 497,111 35,441 2,902 11,416 197,464 4,633 1,233,309
Underwriting ex-
penses
Acquisition expens- 86,403 82,851 357,690 64,297 43,362 28,318 239,379 28 902,328
es
Movement in de- 1,246 (8,972) (32,936) (1,335) (7,267) 3,493 103,976 (18) 58,187
ferred acquisition
cost
Maintenance ex- 54,898 51,782 127,944 22,096 15,742 10,073 116,009 19 398,562
penses
Total underwriting 142,547 125,661 452,698 85,058 51,837 41,884 459,364 29 1,359,077
expenses
Underwriting profit 150,442 (18,811) 253,642 113,481 32,128 (38,682) 90,300 (4,539) 577,962

8 Cash and cash equivalents

Cash and cash equivalent includes cash in hand, balances at bank and short term instruments with less
than 3 months maturity from the date of acquisition.

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Cash at bank and in hand 933,582 1,172,179 508,263 103,773

Money market placements 811,760 1,048,216 402,760 207,450
Balance, end of year 1,745,342 2,220,395 911,023 311,223
9 Financial assets
These financial assets represent the Group’s and the Company’s holdings in investment securities and
are summarised by classification category below:
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Available-for-sale (see note 9(a) below) 4,032,813 2,225,816 3,351,670 1,482,125

Held for trading (see note 9(b) below) 1,380 105 796 7
Held-to-maturity (see note 9(c) below) 5,461,742 5,175,568 1,004,463 1,947,206

(a) Available-for-sale financial assets
These securities represent the Group and the Company’s interest in entities:
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Equity securities:
– Listed (see note (i) below) 1,548,487 908,728 1,470,080 825,778
– Unlisted (see note (ii) below) 179,990 97,535 179,990 97,535
Fixed income securities (see note (iv) below) 2,304,336 1,219,553 1,701,600 558,812
Carrying amount 4,032,813 2,225,816 3,351,670 1,482,125

Movement in Available-for-sale financial assets

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Equity securities:
(i) Listed
Balance, beginning of year 908,728 668,219 825,778 668,219
Acquisitions during the year 1,495,018 82,950 1,495,018 -
Fair value changes during the year (29,481) 157,559 (24,938) 157,559
Disposal during the year (825,778) - (825,778) -
Balance, end of year 1,548,487 908,728 1,470,080 825,778
(ii) Unlisted
Acquisitions during the year 53,275 61,000 52,590 61,000
Fair value changes during the year 29,180 1,280 29,865 1,280
Disposal during the year (see note (iv) below) - (40,499) - -
Balance, end of year 179,990 97,535 179,990 97,535

- - - -
(iii) The breakdown of available-for-sale unlisted equity securities are shown below;
2017 2016 2017 2016
N’000 N’000 N’000 N’000
African Reinsurance Corporation 46,827 32,013 46,827 32,013

Nigerian Liability Insurance Pool 12,351 4,522 12,351 4,522
Energy and Allied Insurance Pool 47,609 61,000 47,609 61,000
Access Bank (Ghana) Limited - - - -
FBS Reinsurance - - - -
Coronation Merchant Bank Money Market Fund 73,203 - 73,203 -
Carrying amount 179,990 97,535 179,990 97,535

2017 2016 2017 2016
(iv) Fixed income securities: N’000 N’000 N’000 N’000
Movement in available for sale fixed income
securities
Balance, beginning of year 1,219,553 - 558,812 -
Acquisitions during the year 1,233,480 2,170,740 1,105,066 1,477,141

Disposals/maturities/redemption during the (490,083) (915,400) (245,608) (915,400)

year
Accrued interest receivables 86,883 73,139 11,205 40,929
Foreign exchange gain - 10,258 - 10,258
Fair value adjustment 254,503 (119,184) 272,125 (54,116)
Balance, end of year 2,304,336 1,219,553 1,701,600 558,812
- - - -
The breakdown of available for sale fixed income
financial assets are shown below;
Debt securities:
– Corporate bonds 601,969 220,166 308,113 -
– Government bonds 1,584,339 509,304 1,275,459 313,204
– Treasury bills 118,028 490,083 118,028 245,608
Carrying amount at fair value 2,304,336 1,219,553 1,701,600 558,812

Available for sale fixed income financial assets are carried at fair value. At the reporting date, no available for sale
fixed income financial asset was either past due or impaired.
(b) Held for trading financial assets

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Equity securities:
(i) Listed
Balance, beginning of year 105 109 7 11
Acquisitions during the year 5 - 5 -
Fair value changes during the year 1,270 (4) 784 (4)
Disposal during the year - - - -
Carrying amount at fair value 1,380 105 796 7
Held to maturity financial assets

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Movement in Held to maturity financial assets
Balance, beginning of year 5,175,568 3,568,739 1,947,206 1,627,496
Acquisitions during the year 4,413,452 1,665,820 182,333 116,962
Disposals/maturities/redemption during the year (3,980,841) (1,097,168) (1,097,395) (420,205)
Foreign exchange gain - 296,800 - 296,800
Accrued interest receivables (146,437) 46,082 (27,681) 1,166
Interest received during the year - 695,295 - 324,987

- - - -
The breakdown of Held to maturity financial assets are
shown below;
Debt securities:
– Corporate bonds 641,470 539,456 641,470 539,456
– Government bonds 1,636,820 655,271 341,709 310,355
– Treasury bills 3,183,452 3,980,841 21,284 1,097,395
Carrying amount at amortised cost 5,461,742 5,175,568 1,004,463 1,947,206
Held to maturity financial assets are carried at amortised

cost. At the reporting date, no held to maturity financial
asset was either past due or impaired.
10 Trade receivables

(a) Trade receivables

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Gross receivables 1,366,389 1,412,181 657,655 923,938
Less: impairment allowance (see note (b) below) (658,900) (858,606) (170,658) (370,364)
(b) The movements in impairment allowance on trade receivables is analyzed below;

2017 2016 2016 2016
N’000 N’000 N’000 N’000
Reclassification of impairment allowance - (28,394) - -
Exchange difference - - - -
Impairment charge/(reversal) during the year - (12,782) - 7,370
Bad debt written off (199,706) (2,619) (199,706) (2,619)

Subsequent to year end, the Group and Company received N708 million and N487 million respective for receivables less
than 30 days as at 31 December 2017 (December 2016: N553.5 million). There was not impairment allowance against
the amount because it has been received.
There are no trade receivables which are past due, but not impaired as at year end (2016: Nil)


11 Reinsurance assets
2016 2017 2017 2016
N’000 N’000 N’000 N’000
(a) Claim recoverables (see note (b)) 1,087,216 959,544 403,620 530,010
Prepaid reinsurance (see note (d)) 499,085 648,517 434,519 599,636
1,586,301 1,608,061 838,139 1,129,646
Less impairment (see note (e) below) - (35,231) - (35,231)
Balance, end of year 1,586,301 1,572,830 838,139 1,094,415
(b) Claims recoverables are analysed as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Recoverable on claims - Incurred but not reported 469,828 240,373 202,601 220,886
claims
Recoverable on outstanding claims 617,388 719,171 201,019 309,124
Balance, end of year 1,087,216 959,544 403,620 530,010
(c) The movement in claims recoverable is analysed as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Recoveries during the year (631,176) (441,624) (208,135) (296,026)
Increase in recoverable during the year 758,848 974,672 81,745 552,518
Balance, end of year 1,087,216 959,544 403,620 530,010
(d) The movement in prepaid reinsurance cost is anal-

ysed as follows:
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Cost incurred during the year 3,787,657 3,411,991 2,577,156 2,689,642
Amortised during the year (3,937,089) (3,294,791) (2,742,273) (2,576,266)

- - - -
(e) The movements in impairment allowance for rein-

surance assets is analyzed below;

2017 2016 2017 2016
N’000 N’000 N’000 N’000
(Recovery)/allowance made during the year for - - - -
doubtful recoverables
Write-off during the year (35,231) - (35,231) -
Balance, end of year - 35,231 - 35,231
12 Deferred acquisition cost

This represents commission on unearned premium relating to the unexpired tenure of risk.
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Exchange difference (2,930) 13,286 - -
Addition during the year 1,843,356 1,700,876 1,379,196 1,300,894
Amortised during the year (1,757,567) (1,680,773) (1,342,708) (1,359,079)
13 Other receivables and prepayment

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Staff loans 32,226 8,407 32,226 8,407
Prepayment 137,429 117,370 36,718 67,244
Deposit for shares (see note (i) below) 235,328 - 117,664 -
Intercompany and related party receivables (see note 40,879 23,606 128,560 114,483
(iii) below)
Sundry receivables (see note (ii) below) 2,261,777 2,603,411 1,722,773 2,059,588
2,707,639 2,752,794 2,037,941 2,249,722
– Less: Impairment allowance (see note (b) below):
- Sundry receivables (1,646,108) (1,607,775) (1,166,703) (1,112,675)
1,061,531 1,145,019 871,238 1,137,047

(i) Deposit for shares relate to deposit for investment in FBS Reinsurance Limited subject to allotment.
The company is seeking to obtain a reinsurance licence to operate within the Nigerain insurance
industry and has by way of private placement offer equity stake to willing investors. The company has
an Authorised capital of 10,000,000,000 ordinary shares at N1 each, issued and fully paid share
capital of 1,000,000,000 ordinary shares at N1 each and has placed on offer 9,000,000,000 ordinary
shares of N1 each at a placement price of N1.12 per share.
ii) Sundry receivables:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Due from Summit Finance Limited 1,011,631 1,011,631 728,106 728,106
Due from Tropics Finance Limited 228,115 228,115 228,115 228,115
Due from Petralon Energy Limited 504,691 849,974 504,691 849,974
Due from Oceanview property - - - -
Due from Victoria Estate - - - -
Due from Etuna and other closed Property development 86,882 86,882 86,882 86,882
I-Val Investment Receivable 168,254 186,550 - -
Due from Oilview Estate 27,000 27,000 27,000 27,000
Due from Profund Securities Limited 21,785 21,785 21,785 21,785
Withholding Tax Receivable 51,713 40,812 42,698 33,857
Due from ex-staff loan 6,892 3,327 3,586 -
Due from Stanbic IBTC on Disposal of Property 30,000 30,000 30,000 30,000
Interest Receivable on Statutory Deposit 27,786 23,293 11,287 11,293
Expense Recoverable 11,690 40,314 11,690 21,853
Others 85,338 53,728 26,933 20,723
2,261,777 2,603,411 1,722,773 2,059,588

(iii) This relates to expenses recoverable by the Company from related entities for cost incurred on their
behalf and shared premium for Life and General received on behalf of the Company by Wapic Life
Assurance. Breakdown of due from related parties is analysed below:
Company Company
2017 2016
31-Dec 31-Dec
N’000 N’000
Due from Wapic Ghana - expense recoverable 51,496 70,366
Due from Wapic Ghana - management services fees 36,185 20,511
Due from Coronation Merchant Bank - Dividend reciev- 40,879 23,606
able
128,560 114,483
- -

(b) The movements in impairment allowance for other receivables and prepayments is analyzed below;
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Reclassification of provision for impairment allowance - 28,394 - -
Allowance/(recoveries) made during the year 38,333 154,630 54,028 (3,095)
There are no other receivables which are past due, but not impaired as at year end (2016: Nil
(c) The breakdown of impairment allowance on other receivables is analyzed below:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Profund securities 21,785 21,785 21,785 21,785
Sunmmit finance limited 1,011,631 1,011,630 728,106 728,106
Tropics finance limited 228,115 228,115 228,115 228,115
Triumph bank 10,078 10,078 10,078 10,078
Societe generale bank 43 43 43 43
Fortune int’l bank 1,456 1,456 386 386
I-Val Property Receivable 168,254 186,550 - -
Coronation Merchant Bank 40,879 - 40,879
Olushola Oyinloye 4,000 4,000 4,000 4,000
Okorafor Ebenzer 23,000 23,000 23,000 23,000
Receivable from Etuna and other closed property devel- 86,882 86,882 86,882 86,882
opment
Withholding tax receivable 23,885 13,005 18,027 9,169
Marina securities stock trading account 1,111 1,111 1,111 1,111
Expense Recoverable 17,392 17,475 - -
Ex-Staff loans 6,892 - 3,586
Others 705 2,643 705 -

14 Investment properties
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Investment properties (see (a) below) 312,750 539,930 312,750 539,930
Investment properties are analysed by location as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000

Hexagon Court, Ikeja Lagos (see (c) below) 110,000 106,000 110,000 106,000
Ocean Garden, Lekki, Lagos (see (c) below) 72,000 80,000 72,000 80,000
PalmView Estate, Magodo, Lagos (see (c) below) - 54,500 - 54,500
Ocean View Estate, Lekki, Lagos (see (c) and (b) 58,000 227,480 58,000 227,480
below)
Happy People Estate, Magboro, Ogun State (see (c) 22,750 18,000 22,750 18,000
below)
Victoria Garden Estate Abuja 50,000 53,950 50,000 53,950
(b) During the year, the Company disposed its investment property located at Ocean view estate, Lekki
Lagos. A total proceeds of N214.7 million was realised from the disposal.
(c) The Company’s investment properties were valued by independent professional Estate Surveyors
and Valuers as at 31 December 2017. The determination of fair value of the investment properties were sup
ported by market evidence. The modalities and process of valuation utilised extensive analysis of market
data and other sector specific peculiarities corroborated with available database derived from previous
experiences. The Company used the following Estate Surveyors and Valuers who have recent experience in
the location and category of the investment properties being valued:
Estate Surveyors and Valuers FRC Registration Number
Azuka Iheabunike and Partners FRC/2012/NIESV/00000002206
(d) The Group applied fair value model in determining the carrying value of its investment properties.
The fair value measurement for the investment properties has been categorised as a Level 2 fair value basis.
Level 2 fair values of investment properties have been derived using the comparative method valuation ap
proach. Sales prices of recent comparable properties within the same or similar neighbourhood are adjusted
for considerations of the peculiar attributes of the property which includes specific location, internal layout
plans as well as other relevant qualities.

(e) The movement in investment properties during the year was as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Acquisition during the year 108 315,980 108 315,980
Disposal during the year (224,950) (450,750) (224,950) (415,750)
Fair value loss recognised in profit or loss (2,338) (250) (2,338) (250)
At end of year 312,750 539,930 312,750 539,930
(f) The Group and the Company earned total rental income N2 million (2016: N1.333 million) from its i
nvestment properties during the year (see note 35). Rental income is analysed below:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Ocean Garden, Lekki, Lagos 2,000 1,333 2,000 1,333
2,000 1,333 2,000 1,333

(g) Investment properties disposed during the year was as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Sales proceeds 214,670 371,101 214,670 336,101
Transfer from investment property account (224,950) (450,750) (224,950) (415,750)
(Loss)/gain on disposal of investment property (10,280) (79,649) (10,280) (79,649)
15 Investment in associates

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Coronation Merchant Bank Limited 8,264,440 7,173,843 5,059,810 5,059,810

(a) Nature of investment in associates

Place of
business/ % of Nature
country of ownership of the Measurement
Name of entity incorporation interest relationship method
Investment in Coronation Merchant Bank Limited Nigeria 25.50% Investee Equity method
This represents 25.50% holding in the ordinary share capital of Coronation Merchant Bank Limited, a Company incor-
porated and operating in Nigeria (2016: 25.50%). The holding became an associate as a result of additional acquisition
of shareholding in the Company in January 2015. During the year the Company made no additional acquisition in the
equity stake in the associate (2016: 2.78%). Coronation Merchant Bank Limited (Formerly; Associated Discount House
Limited (ADH)) is involved in trading in, holding and provision of discount and rediscount facilities for Federal Gov-
ernment Securities, Commercial Bills and other eligible financial instruments, as prescribed by the CBN to corporate
and individual customers.
There are no contingent liabilities relating to the group’s interest in the associates.
(b) Summarised financial information for associates
Below are the summarised financial information for investment in associate accounted for using the equity method
(i) Summarised balance sheet

2017 2016
31-Dec 31-Dec
N’000 N’000
Assets
Cash and cash equivalents 8,264,667 5,655,892
Due from financial institution 29,509,041 16,246,877
Non pledge trading assets 1,137,667 3,443,570
Derivatives financial assets 116,520 -
Investment securities 28,617,585 33,751,332
Pledged assets 18,840,555 14,232,448
Loans and advances to customers 32,254,859 22,706,561
Other assets 6,449,200 355,915
Investment properties 1,657,108 686,865
Intangible assets 1,237,513 1,150,989
Property, plant and equipment 3,430,110 3,046,591
Deferred tax 5,203,887 5,265,490
136,718,711 106,542,530
Asset classified as held for sale - 29,575
Total assets 136,718,711 106,572,105
Liabilities
Financial liabiliites (excluding trade payables) 87,600,612 72,114,875
Other liabiliites 18,963,541 8,579,523
Total liabilities 106,564,153 80,694,398
Total equity 30,154,558 25,877,707

(ii) Summarised statement of profit or loss and other comprehensive income

2017 2016
31-Dec 31-Dec
N’000 N’000
Interest income 22,373,522 13,422,704
Interest expense (14,369,179) (5,420,070)
Net Impairment / (writeback) on financial assets 3,662 (70,119)
Fees and commission income 1,658,062 1,187,193
Net gains on investment securities 898,266 308,257
Net foreign exchange income 216,243 220,716
Other income 10,438 55,355
operating expenses (4,968,930) (4,386,837)
Profit before tax 5,822,084 5,317,199
Income tax (378,166) (183,909)
Profit for the year 5,443,918 5,133,290
Other comprehenive income (409,485) 468,038
Total comprehensive income 5,034,433 5,601,328
(c) Movement in investment in associate

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Additions during the year - 695,471 - 695,471
Dividend received during the year (193,183) (236,061)
Share of current year profit 1,388,198 1,225,874 - -
Share of current year other comprehensive income (104,418) 244,258 - -

(i) There are no significant restrictions on the Group’s ability to access or use the assets and settle the
liabilities of the associate to the extent that regulatory framework within which the associate operate does
not inhibit the Group.
(ii) Reconciliation of summarised financial information

Group Group
2017 2016
31-Dec 31-Dec
N’000 N’000
Opening net assets/net assets on date on acquisition 25,877,707 20,236,741
Profit/(loss) for the year 5,443,918 5,133,290
Other comprehensive income for the year (377,258) 947,329

Net (loss)/gains on AFS instruments recycled to profit or loss (32,227) (479,291)

Additional capital through share issuance - 1,075,000
Dividend paid to shareholders (757,582) (1,035,362)
Closing net assets 30,154,558 25,877,707
Interest in associate (25.5%) 7,689,413 6,598,816
Impact of changes in net assets 147,085 147,085
Notional goodwill 427,942 427,942
Carrying value 8,264,440 7,173,843
16 Investment in subsidiaries

Company Company
2017 2016
31-Dec 31-Dec
N’000 N’000
Wapic Life Assurance Limited (see note (a) below) 2,700,000 2,700,000
Wapic Insurance Ghana Limited (see note (b) below) 1,176,571 1,176,571
Balance, end of year 3,876,571 3,876,571
(a) This represents 100% holding in the ordinary share capital of Wapic Life Assurance Limited, a wholly
owned subsidiary incorporated and operating in Nigeria. There was no additional capital injected into the
subsidiary during the year (2016: Nil).
(b) This represents 100% holding in the ordinary share capital of Wapic Insurance Ghana Limited;
a wholly owned subsidiary incorporated and conducting general insurance business in Ghana. There was
no additional capital injected into the subsidiary during the year (2016: Nil).
( c) The Group does not have significant restrictions on its ability to access or use its assets and settle its
liabilities other than those resulting from the supervisory framework within which subsidiaries operate.
The supervisory framework require the insurance subsidiaries to keep certain levels of regulatory
capital and liquid assets.
(d) The movement in investment in subsidiaries during the year was as follows:
Company Company
2017 2016
31-Dec 31-Dec
N’000 N’000
Balance, beginning of the year 3,876,571 3,876,571
Additions during the year - -
Balance, end of the year 3,876,571 3,876,571

17 Intangible assets - Computer software

Group Company
N’000 N’000
Cost:
31 December 2017
Balance at 1 January 2017 351,532 312,477
Additions 311,097 310,624
Write-off from intangible asset - -
Exchange difference (301) -
Balance at 31 December 2017 662,327 623,101
31 December 2016
Additions 183,693 182,787
Exchange difference 1,740 -
Amortization:
31 December 2017
Charge for the year 35,218 33,651
Exchange difference (212) -
31 December 2016
Charge for the year 16,099 15,461
Exchange difference 504 -
Net book value:

The Group and Company’s intangible assets relates to purchased computer software.
18 (a) Property and equipment - Group

As at 31 December 2017
Leasehold Building Motor Comput- Office Work in Total

land vehicles er equip- progress
equipment
ment
Cost N‘ 000 N‘ 000 N‘ 000 N‘ 000 N‘ 000 N‘ 000 N‘ 000
Balance, beginning of year 424,597 2,330,711 804,358 298,332 895,417 220,890 4,974,306
Transfer from PPE (see note - - - - - (64,573) (64,573)
(v) below)
Revaluation surplus (see - - - - - - -
note (i) below)
Additions - 2,866 139,625 59,985 43,437 41,798 287,710
Reclassifications - - - - 153,635 (153,635) -
Disposals - - (68,306) (16,140) (119,177) - (203,622)
Exchange difference - - (6,432) (2,379) (1,082) (2,682) (12,574)
Balance, end of year 424,597 2,333,577 869,246 339,799 972,231 41,798 4,981,247
Accumulated depreciation
Balance, beginning of year 12,997 24,711 530,917 144,930 235,241 - 948,796
Transfer to retained earn-
ings (See note 29)
Charge for the year 7,277 47,187 138,548 84,051 173,973 - 451,036
Disposals - - (67,710) (15,579) (112,762) - (196,052)
Exchange difference - - (6,835) (4,568) 1,489 - (9,914)
Balance, end of year 20,274 71,898 594,920 208,834 297,941 - 1,193,866
Net book value

Balance at 31 December 404,323 2,261,679 274,326 130,965 674,290 41,798 3,787,381
2017

2016

i. The latest independently valuation of the Interest in leasehold land and building to ascertain the open
market value of the lease hold land and building was carried by Bode Adedeji Partnership, professional
estate surveyors and valuers, as at 31 December 2016. No valuation was carried out in the current financial
year; it is the Group’s policy to carry-out valuations of its leasehold land and building at least once within
three financial year. The Group’s assessment is that there has not been significant risk of impairment in
the open market value of the land and building, and they are currently carried at the revalued amount
plus the additions less amortisation of the lease charge/depreciation during the period for leasehold
land: N404,323,000.00 (31 December 2016: N411,600,000.00) and building: N2,261,679,000.00
(31 December 2016: N2,306,000,000.00).

ii. The carrying amount of the Group’s leasehold land would have been N16,860,000.00 (31 December 2016:
N17,186,000.00) based on the cost model if it had not been restated at the revalued amount.

iii. There are no other leased assets included in the Group’s property and equipment apart from leasehold land
(31 December 2016: Nil)

iv. The Group had no capital commitments as at the Statement of Financial Position date

v. The transfer from PPE work-in-progress related to cost incurred for leasehold improvement which have
been subsequently converted to lease payment based in-line the final contract with the landlord in respect
of the upgrade of the Wapic Insurance Ghana Limited Head office

vi. The Company has no legal obligation relating to dismantling/restoration cost in the locations it is situtated.

18 (b) Property and equipment - Company

Lease- Building Motor Computer Office Work in Total
hold land vehicles equip- equip- progress
ment ment
Cost N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000
Balance, beginning of 424,597 2,330,711 577,555 243,313 817,154 158,641 4,551,971

year
Reclassification from - - - - - (5,009) (5,009)
PPE
Revaluation surplus - - - - - - -
(see note (i) below)
Additions - 2,866 - 55,372 6,647 40,328 105,213
Reclassifications - - - 153,635 (153,635) -
Disposals - - (61,328) (16,140) - (157,493)
(80,026)
Accumulated depre-
ciation
Balance, beginning of 12,997 24,711 415,950 113,424 173,250 - 740,332

year
Transfer to retained - - - - - -
earnings (See note 29)
Charge for the year 7,277 47,187 93,981 73,859 163,753 386,057
Disposals - - (60,733) (15,579) (76,902) (153,214)
Balance, end of year 20,274 71,898 449,198 171,704 260,101 - 973,175
Net book value

Balance at 31 Decem- 404,323 2,261,680 67,029 110,841 637,310 40,326 3,521,507
ber 2017
Balance at 31 Decem- 411,600 2,306,000 161,605 129,889 643,904 158,641 3,811,639
ber 2016

i. The latest independently valuation of the Interest in leasehold land and building to ascertain the open market value of
the leasehold land and building was carried by Bode Adedeji Partnership, professional estate surveyors and valuers, as
at 31 December 2016. No valuation was carried out in the current financial year; it is the Company’s policy to carry-out
valuations of its leasehold land and building at least once within three financial year. The Company’s assessment is that
there has not been significant risk of impairment in the open market value of the land and building and they are currently
carried at the latest revalued amount plus the additions less amortisation of the lease charge/depreciation during the pe-
riod for leasehold land: N404,323,000.00 (31 December 2016: N411,600,000.00) and building: N2,261,680,000.00 (31
December 2016: N2,306,000,000.00).

ii. The carrying amount of the Company’s leasehold land would have been N16,860,000.00 (31 December 2016:

iii. There are no other leased assets included in the Company’s property and equipment apart from leasehold land (31
December 2016: Nil)

iv. The Company had no capital commitments as at the Statement of Financial Position date (31 December 2016: Nil)

v. The Company has no legal obligation relating to dismantling/restoration cost in the locations it is situtated. (31 De-
cember 2016: Nil)

18 (a) Property and equipment - Group


Lease- Building Motor Vehi- Comput- Office Work in Total
hold cles er equip- progress
land equipment
ment
Cost N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000
Balance, beginning of 188,763 - 717,085 159,135 237,383 1,760,148 3,062,514

year
Revaluation surplus 235,834 713,581 - - - - 949,415
Additions - 191,076 151,519 97,399 129,889 476,086 1,045,969
Reclassifications - 1,426,054 - 30,092 559,197 (2,015,343) -
Disposals - - (90,181) (130) (37,874) - (128,185)
Exchange difference - - 25,935 11,836 6,822 - 44,593
Accumulated depreci-
ation
Balance, beginning of 9,754 - 410,606 83,746 183,885 - 687,991
year
Transfer to retained - - - - - -
Charge for the year 3,243 24,711 158,100 55,282 77,124 - 318,460
Disposals - - (52,012) (130) (29,795) - (81,937)
Exchange difference - - 14,223 6,033 4,027 - 24,283

Net book value

Balance at 31 Decem- 411,600 273,441 153,402 660,176 220,890 4,025,510
ber 2016 2,306,000
Balance at 31 Decem- 179,009 - 306,479 75,389 53,498 1,760,148 2,374,523

ber 2015
i. The latest independently valuation of the Interest in leasehold land and building to ascertain the open market value
of the leasehold land and building was carried by Bode Adedeji Partnership, professional estate surveyors and valuers,
as at 31 December 2016. The valuation was carried out in the current financial year in-line with the Group’s policy
which is to carry-out valuations of its leasehold land and building at least once within three financial year. The valua-
tion outcome in-line with the Group’s assessment is that there has been appreciation in the open market value of the
leasehold land and building, and it is currently carried at the revalued amount of leasehold land N411,600,000.00 (31
December 2015: N185,000,000.00) and building N2,306,000,000.00 (31 December 2015: Nil) plus the additions less
amortisation of the lease charge/depreciation during the period.

ii. The carrying amount of the Group’s leasehold land would have been N17,186,000.00 (31 December 2015:

iii. There are no other leased assets included in the Group’s property and equipment apart from leasehold land (31
December 2015: Nil)

iv. The Group had no capital commitments as at the Statement of Financial Position date (31 December 2015: Nil)

v. The Company has no legal obligation relating to dismantling/restoration cost in the locations it is situtated. (31
December 2016: Nil)

18 (b) Property and equipment - Company

Lease- Building Motor Com- Work in Total
hold land Vehicles puter Office progress
Equip- Equip-
ment ment
Cost N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000 N’ 000
Balance, beginning of 188,763 - 588,888 128,442 157,150 1,760,149 2,823,392

year
Revaluation surplus 235,834 713,581 - - - - 949,415
Additions - 191,076 67,625 84,909 127,740 413,835 885,185
Reclassifications - 1,426,054 - 30,092 559,197 (2,015,343) -
Disposals - - (78,958) (130) (26,933) - (106,021)
Accumulated depreci-
ation
Balance, beginning of 9,754 - 340,361 66,498 122,268 - 538,881
year
Transfer to retained - - - - - - -
Charge for the year 3,243 24,711 117,294 47,056 70,056 262,360
Disposals - - (41,705) (130) (19,074) - (60,909)
Net book value

2016
Balance at 31 December 179,009 - 248,527 61,944 34,882 1,760,149 2,284,511
2015

i. The latest independently valuation of the Interest in leasehold land and building to ascertain the open market
value of the leasehold land and building was carried by Bode Adedeji Partnership, professional estate surveyors
and valuers, as at 31 December 2016. The valuation was carried out in the current financial year in-line with the
Company’s policy which is to carry-out valuations of its leasehold land and building at least once within three
financial year. The valuation outcome in-line with the Company’s assessment is that there has been appreciation
in the open market value of the leasehold land and building, and it is currently carried at the revalued amount of
leasehold land N411,600,000.00 (31 December 2015: N185,000,000.00) and building N2,306,000,000.00 (31
December 2015: Nil) plus the additions less amortisation of the lease charge/depreciation during the period.

ii. The carrying amount of the Company’s leasehold land would have been N17,186,000.00 (31 December 2015:

iii. There are no other leased assets included in the Company’s property and equipment apart from leasehold
land (31 December 2015: Nil)

iv. The Company had no capital commitments as at the Statement of Financial Position date (31 December
2015: Nil)

v. The Company has no legal obligation relating to dismantling/restoration cost in the locations it is situtated.
19 Statutory Deposit
This represents amounts deposited with the Central Bank of Nigeria (CBN) pursuant to Section 10(3) of the
Insurance Act, 2003. The deposits are not available for use by the Group on a normal course of day to day busi-
ness.

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Additions 20,401 87,826 - -


20 Insurance contract liabilities

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Outstanding claims (See note (a) below):
– Claims reported and loss adjustment expens- 1,619,805 1,433,688 724,657 645,745
es
– Claims incurred but not reported 2,206,617 1,844,467 977,440 930,493
Total outstanding claims 3,826,422 3,278,155 1,702,097 1,576,238
– Claims payable 224,709 190,858 224,709 190,858
Unearned premiums (See note (b) below) 2,954,613 2,748,461 1,890,526 1,996,868
Life insurance contract liabilities (See note (d) 135,721 156,208 - -
below)
Total insurance contract liabilities 7,141,465 6,373,682 3,817,332 3,763,964

Age Analysis of Outstanding Claims Number
0-90 days 404 209,313 186,520
91 -180 days 310 195,514 174,224
181-270 days 176 80,473 71,710
271- 365 day 197 97,434 86,824
Above 365 day 720 141,923 126,468
1,807 724,657 645,745
(a) Outstanding claims

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Group life 1,343,845 995,399 - -
Individual life - - - -
Fire 447,151 261,636 168,744 86,768
General accident 571,603 740,699 514,776 699,106
Motor 645,429 561,829 237,069 120,769
Marine 74,278 87,445 57,581 75,570
Oil and Energy 556,345 511,618 556,345 511,618
Engineering 117,967 73,436 97,778 36,314
Aviation 64,964 26,960 64,964 26,960
Bond 4,840 19,133 4,840 19,133
Total outstanding claims 3,826,422 3,278,155 1,702,097 1,576,238

Outstanding Claims relates to reserves held against claims reported to have occurred but necessary supported documenta-
tion yet to be provided.

Also included in Oustanding Claim is Incurred but not reported (IBNR) reserve which is actuary determined.
The movement in outstanding claims reserve during the year was as follows:
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Increase/(decrease) in outstanding claims reserve 590,500 992,863 125,859 378,593

(b) Unearned premiums
Group Company Company
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Group life 771,308 432,580 - -
Fire 144,571 197,102 136,321 185,957
General accident 457,204 405,107 450,209 399,382
Motor 603,470 615,812 329,031 321,073
Marine 156,563 140,985 155,759 140,617
Engineering 659,113 756,609 659,113 756,609
Oil and Energy 125,630 145,024 123,339 137,988
Aviation 36,324 55,065 36,324 55,065
Bond 430 177 430 177
Total unearned premium 2,954,613 2,748,461 1,890,526 1,996,868

(c) The movement in unearned premium account during the year was as follows:

Group Group Company Compa-
ny
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Exchange difference (12,336) (38,772) - -
Increase/(decrease) in unearned premium 218,488 419,177 (106,342) 126,223


(d) Life insurance contract liabilities

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Balance, beginning of year 156,208 142,951 - -
(Release)/addition during the year (20,487) 13,257 - -
Balance, end of year 135,721 156,208 - -
21 Investment contract liabilities:

(a) At amortised cost
ny
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Group deposit administration -Interest linked 54,472 54,473 - -
Individual deposit administration -Interest linked 1,009,388 865,681 - -
1,063,860 920,154 - -

(b) The movement in deposit administration funds during the year was as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Balance, beginning of year 920,154 1,196,180 - -
Additions 326,029 117,624 - -
Withdrawals (167,672) (162,265) - -
Guaranteed interest on deposit administration 57,988 78,100 - -
Reversal of surplus reserves (72,639) (309,485) - -
Balance, end of year 1,063,860 920,154 - -
22 Trade payables

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Due to reinsurance 290,618 200,430 195,230 134,190

Commissions payable 225,753 35,370 220,184 23,681

23 Other payables
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Accrued expenses (see (a) below) 273,396 256,619 185,032 176,188
Accounts payable (see (b) below) 839,195 650,079 617,360 543,212
Due to related parties (see note (c) below) - - 328,446 68,455
Due to contractors 89,493 42,118 89,493 42,118
Other taxes 106,439 80,219 90,260 68,007
Deferred commission income 104,019 114,843 93,440 104,936
Customers deposits (see (d) below) 46,208 176,165 13,759 154,534
(a) Breakdown of accrued expenses is analysed below:

NAICOM annual levy 60,384 80,000 40,384 60,000
Audit fee and related expenses 20,682 27,158 15,729 20,955
Staff expense payable 47,172 31,312 25,427 17,957
Directors’ and board expenses 22,484 16,072 8,555 10,717
Accrued training cost 38,046 26,742 37,146 16,466
Accrued advert and publicity expense - 19,000 - 5,000
Consultancy and professional fees 83,759 41,405 56,922 30,163
Office rent 869 809 869 809
Business promotion - 3,067 - 3,067
Investment property - 11,054 - 11,054
(b) Breakdown of accounts payable is analysed below:

Pension payable 76 738 - 725
Expense payable 257,177 265,286 241,624 252,106
Fixed asset payable 160,010 200,957 160,010 200,957
Investment payable 36,590 60,701 36,590 60,701
Unclaimed bank items 23,850 - - -
Provision for legal expenses - 1,210 - -
Deposit administered products payable 24,599 - - -
Unclaimed dividend 94,390 28,723 94,390 28,723
Bank Cheques Payable 84,746 84,746
Others 157,757 92,464 - -

This relates to recoverable from the Company by related entities - for premium on Life businesses received on-behalf
of Wapic Life Assurance by the Company and reimbursement of cost incurred on-behalf of the Company. Breakdown
of due to related parties is analysed below:
Company Company
2017 2016
31-Dec 31-Dec
N’000 N’000
Due from Wapic Life - Net shared premium reciepts for Life 328,446 328,446 68,455 68,455
business

24 Deferred taxation
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax as
sets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income
taxes levied by the same taxation authority on either the taxable entity or different taxable entities where
there is an intention to settle the balances on a net basis.

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Deferred - - - -
tax assets
Deferred tax liabilities 202,547 277,657 202,548 393,175

Net deferred tax 202,547 277,657 202,548 393,175

(a) Net deferred tax is attributable to the following:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Property and equipment 20,477 206,461 20,477 230,683
Trade receivable (54,611) - (54,611) -
Tax losses 252 (213,629) 252 (122,332)
Fair value gains on revaluation of property and equipment 236,429 284,825 236,429 284,824
Total 202,548 277,657 202,548 393,175

(b) The movement in deferred tax account during the year was as follows:
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Balance, beginning of year (277,657) 363,353 (393,175) 131,679
Exchange difference - 6,179 - -
Movement during the year 75,110 (362,365) 190,627 (240,030)

Movement affecting items in OCI - (284,824) - (284,824)
Balance, end of year (202,547) (277,657) (202,548) (393,175)
25 Current income tax liabilities

(a) The movement in this account during the year was as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Exchange difference 208,381 - - -
Charge for the year (see note (b) below): 166,991 245,058 105,608 182,551
Payments during the year (319,961) (188,705) (78,407) (152,073)

(b) The tax charge for the year comprises:

2017 2016 2017 2016

N’000 N’000 N’000 N’000
Corporate income tax charge 145,885 138,036 88,281 81,009
Education levy 14,905 14,667 14,905 14,667
Information technology development levy 6,202 5,302 2,423 5,302
Prior year under provision - 87,053 - 81,573
166,991 245,058 105,608 182,551

Deferred tax (credit)/charge (75,110) 362,365 (190,627) 240,030
Total tax charge for the year 91,881 607,423 (85,019) 422,581

( c) Reconciliation of effective tax rate

ny
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Tax Tax Tax Tax
rate rate rate rate
Profit before Tax 1,622,691 1,193,446 230,625 514,554
Income tax using the domes- 30% 486,807 30% 358,034 30% 30% 69,188 30%
tic corporation tax rate
Effect of tax rate in foreign 0% - (2)% (28,309) 0% - 0% -
jurisdictions

Non deductible expense 36% 588,640 132% 1,575,875 246% 566,615 303% 1,558,965
Tax exempt income (51)% (827,605) (90)% (1,076,858) (153)% (353,042) (119)% (614,563)
Corporate income tax charge (9)% (145,885) (12)% (138,036) (38)% (88,281) (16)% (81,009)
Temporary difference (26)% (420,671) 19% 232,577 54% 124,194 45% 230,683
Prior year over provision 0% - (7)% (87,053) 0% - (16)% (81,573)
Deferred tax (5)% (75,110) 30% 362,365 (83)% (190,627) 47% 240,030
Information technology tax (0)% (6,202) (0)% (5,302) (1)% (2,423) (1)% (5,302)
levy
Tertiary education tax (1)% (14,905) (1)% (14,667) (6)% (14,905) (3)% (14,667)
Exempted permanent differ- 31% 510,914 (48)% (571,203) (83)% (191,634) (187)% (964,349)
ences
6% 95,984 51% 607,423 (35)% (80,915) 82% 422,581
26 Share capital

2017 2016 2016 2017
N’000 N’000 N’000 N’000
Authorized: 8,500,000 8,500,000 8,500,000 8,500,000
17,000,000,000 units ordinary shares of 50k each
Issued and fully paid: 6,691,369 6,691,369 6,691,369 6,691,369
13,382,738,248 units of ordinary shares of 50k each (2015:
13,382,738,248 ordinary shares of 50k each)
27 Share premium
Share premium comprises additional paid-in capital in excess of the par value. This reserve is not ordinarily available
for distribution.
28 (a) Contingency reserves

In accordance with Section 21 (1) of Insurance Act 2003, the contingency reserve is credited with the greater of 3% of
total premiums, or 20% of the profits. This shall accumulate until the reserve reaches the amount of greater of mini-
mum paid-up capital or 50 percent of net premium.
(b) The movement in this account during the year is as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Transfer from profit and loss 253,204 182,438 191,642 161,263

29 Other reserves
(a) Revaluation reserve

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Revaluation surplus on property,plant and equip- - 949,415 - 949,415
ment
Deferred tax on revaluation - (284,824) - (284,824)
(i) This represent the reclassification of the recycled deprecation of revaluation surplus on items of property
and equipment during the year from revalaution reserve to retained earnings reserve.
(b) Foreign currency translation reserve

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Balance, beginning of year 115,465 (344,301) - -
Changes during the year (27,610) 459,766 - -
(c) Fair value reserve

Balance, beginning of year (216,879) (267,758) (163,036) (267,758)
Changes during the year (see note 9 (a)(i)) (7,292) 50,879 11,408 104,722
Net reclassification adjustments for realised net (128,719) - (128,719) -
gains/(losses)
(d) Merger reserves

Balance, beginning of year (19,367) (19,367) (19,367) (19,367)

Changes during the year - - - -
(e) Share of other comprehensive income of associates

Balance, beginning of year 359,783 115,525 - -
Changes during the year (104,418) 244,258 - -
Total 941,704 1,209,743 671,027 788,338

30 Retained earnings
The movement in this account during the year was as follows;

2017 2016 2017 2016
N’000 N’000 N’000 N’000
At beginning of year 662,291 660,185 (191,626) 279,143
Transfer from profit or loss 1,530,809 586,023 315,643 91,973
Transfer to contingency reserve (see note 28(b) above) (253,204) (182,438) (191,642) (161,263)
Transfer from revaluation reserve (see note 29(a) above) 128,719 - 128,719 -
Dividend paid during the year - (401,479) - (401,479)
Balance, end of the year 2,068,615 662,291 61,094 (191,626)
31 Net premium income

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Short-term insurance contracts:
– Gross premium 9,701,299 7,871,055 6,388,069 5,375,431
– Movement in unearned premium (218,488) (419,177) 106,342 (126,223)
Long-term insurance contracts:
– Gross premium 106,317 134,253 - -
Premium revenue arising from insurance con- 9,589,128 7,586,131 6,494,411 5,249,208
tracts issued
Short-term reinsurance contract:
– Reinsurance expense (3,939,804) (3,255,462) (2,742,273) (2,576,266)
Long-term reinsurance contract:
– Reinsurance expense 2,715 (39,329) - -

Reinsurance expenses (3,937,089) (3,294,791) (2,742,273) (2,576,266)
Net premium income 5,652,039 4,291,340 3,752,138 2,672,942

32 Fee and commission income

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Policy administration
– Insurance contracts 682,888 651,992 471,328 497,408
Total 682,888 651,992 471,328 497,408

33 Claims expenses

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Insurance claims and loss adjustment expenses
– Claims paid 3,230,058 2,850,434 1,638,237 1,407,234
– Changes in outstanding claims 590,500 992,863 125,859 378,593
Total claims and loss adjustment expense 3,820,558 3,843,297 1,764,096 1,785,827
Recoverable from reinsurance (758,848) (974,672) (81,745) (552,518)
Net claims and loss adjustment expense 3,061,710 2,868,625 1,682,351 1,233,309
34 Underwriting expenses

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Commission paid 1,498,255 1,261,833 1,065,583 902,330
Other acquisition cost 341,060 418,991 313,613 398,562
Chnages in deferred acquisition cost (81,748) (51) (36,488) 58,187

Total 1,757,567 1,680,773 1,342,708 1,359,079

35 Net investment income

(a) Investment income

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Dividend income 135,346 158,665 328,529 381,206
Interest income on held-to-maturity financial assets 974,019 741,377 233,744 326,153
Interest income on cash and cash equivalents 68,205 143,026 15,267 80,788
Interest income on statutory deposits 86,671 53,556 52,003 32,134
Loss from sale of investment property (10,280) (79,649) (10,280) (79,649)
Rental income 2,000 1,333 2,000 1,333
Total 1,255,961 1,018,308 621,263 741,965

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Interest income 160,457 124,684 - -
Other Income (Reversal of surplus reserves (see note 21(b))) 72,639 309,485 - -
Guaranteed interest (57,988) (78,100) - -
Other expenses (79,000) (4,574) - -
96,108 351,495 - -
36 Net realised gains on financial assets

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Sale of available for sale financial assets:
– Securities 614,534 33,713 614,534 33,713
Sale of other financial assets - trading assets:
– Securities - - - -
Total 614,534 33,713 614,534 33,713

(a) This represent the gains arising upon reclassification of the realised gains from the disposal of the
Available for sale investment in Access Bank Plc securites (Note 15(c)).
37 Net fair value gain/(loss) on assets

(a) Fair value gain/(loss) through profit or loss

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Fair value loss on equity securities 1,675 (4) 789 (4)
Fair value loss on investment property (see note 14(e)) (2,338) (250) (2,338) (250)
Total (663) (254) (1,549) (254)

Net fair value gains on assets relate to financial assets categorised upon initial recognition at fair value through profit
or loss and other assets recognised at fair value through profit or loss such as held for trading financial assets, finan-
cial assets through profit or loss and investment properties.
(b) Fair value (loss)/gain through other comprehensive income

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Fair value gain on equity securities (16,762) 170,064 (15,685) 158,839
Fair value (loss) on fixed income securities 9,470 (119,185) 27,093 (54,117)
Fair value gain on revaluation of property and equipment - 949,415 - 949,415
Fair value loss recycled to profit or loss on disposal of avail- (128,719) - (128,719) -
able for sale securties
Total (136,011) 1,000,294 (117,311) 1,054,137
38 Other operating income

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Profit from sale of property and equipment 11,875 12,477 10,524 7,548
Interest income on staff loans 4,445 1,756 4,445 1,590
Other income received (see note 38(a) below) 556,395 247,466 441,795 68,289
Net foreign exchange gain (see note 38(b) below) 591,817 2,072,174 523,792 1,951,675
Total 1,164,532 2,333,873 980,556 2,029,102

(a) Other Income received included income from recovery of impaired receivables previously written-off of
N393 million.
(b) Included in other income net foreign exchange gain is N409 million (Group) and N341 million (Company)
unrealised foreign exchange translation gains from foreign currency fixed income securities.
Also included is the sum of N183 million (Group) and N182 million (Company) of gains from other foreign
currency assets. This represent gains on translation and disposal of foreign currency investment securities
acquired during the year, and the translation of domicillary bank account balance at the year end.
39 Employee benefit expense

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Staff cost 1,228,190 1,109,307 785,747 670,387
Pension cost 44,972 41,736 26,302 26,361
Staff training 106,968 39,783 27,048 31,656
Other staff cost 101,202 118,995 84,285 96,805
Total 1,481,332 1,309,821 923,382 825,209

40 Other operating expenses

Expense by Nature; Group Group Company Company
2017 2016 2017 2016
N’000 N’000 N’000 N’000
Depreciation (see note 18) 451,036 318,460 386,057 262,360
Amortization of intangible assets (see note 17) 35,218 16,099 33,651 15,461
Directors emoluments 33,700 33,700 33,700 33,700
Auditors remuneration 61,674 57,031 32,500 32,500
Professional fees:
- Legal services fees 16,195 17,255 11,631 14,794
- Professional fee on actuarial services and tax advisory 91,249 49,037 32,647 18,925
services
- Professional fees on advisory services 268,704 492,964 257,455 480,538
- Professional fees on consumer research 5,828 12,600 - -
- Professional fees on corporate strategy development 12,316 53,341 12,316 36,534
Corporate branding and advert 99,306 148,385 52,006 101,408
Board expenses 70,970 40,570 58,889 21,124
Rent and rate 316,232 173,392 139,634 81,398
Insurance cost 22,627 19,584 16,926 11,091
Printing and stationaries 83,264 41,659 66,205 19,264
Newspapers and periodicals 587 2,959 284 396
Transport and tour 202,080 250,403 85,108 133,245

Support staff cost 209,051 232,132 161,237 191,359

Business marketing expenses 217,335 136,769 202,905 100,126
Subscription 46,148 13,397 33,020 11,215
Recruitment expense 1,608 1,591 782 1,546
Write off of assets - 726 - -
Repairs and maintenance 318,098 205,302 288,928 137,589
Annual general meeting expense 26,894 24,664 26,894 24,664
Registrar maintenance expense 159,629 147,142 156,447 147,142
Statutory dues and levies 50,322 102,355 20,560 67,139
Audit and performance review expense 6,413 8,090 5,813 6,882
Bank charges 19,348 12,277 12,681 7,647
Loss on disposal of property and equipment - 1,621 - -
Investment management and custodian fees 10,044 21,523 7,659 18,718
Donations and corporate philanthropy 76,574 63,542 69,240 61,685
Total 2,912,450 2,698,571 2,205,175 2,038,451
41 Earning per share

Basic earnings per share is calculated by dividing the profit/(loss) attributable to equity holders of the group by the
weighted average number of ordinary shares in issue during the year, excluding own ordinary shares purchased by
the Company. Diluted earnings per share is computed by dividing the profit/(loss) attributable to equity holders of
the Company by the weighted average number of ordinary shares outstanding after adjusting the effects of all dilutive
ordinary shares.

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Profit/(loss) attributable to the Company’s equity hold- 1,530,810 586,023 315,644 91,973
ers
Weighted average number of ordinary shares in issue
(thousands)
Issued ordinary shares at 1 January/31 December 13,382,738 13,382,738 13,382,738 13,382,738
Basic earnings/(loss) per share (Kobo per share) 11 4 2 1

The calculation of basic earnings per share as at 31 December 2017 was based on the profit attributable to ordinary
shareholders of N1.45 billion and N238 million for the Group and Company respectively and weghted average num-
ber of ordinary shares outstanding of 13,382,738,000. The Group and Company had no dilutive instruments as at 31
December 2017 (2016: Nil). Hence the basic and diluted earnings per share are equal.
42 Staff information:
(a) Staff analysis:

i. Employees earning more than 1,000,000 per annum, other than the executive directors, whose duties were wholly
or mainly discharged in Nigeria, received emoluments (excluding pension contribution and other allowances) in the
following ranges:


2017 2016 2017 2016
N1,000,001– N2,000,000 39 57 - 17
N2,000,001– N3,000,000 42 43 21 27
N3,000,000– N4,000,000 31 4 21 -
N4,000,001– N5,000,000 20 34 11 26
N5,000,001– N10,000,000 44 29 27 23
Above N10,000,000 23 14 18 8
Total 199 181 98 101

ii. The average number of full time persons employed by the Company during the year was as follows:

2017 2016 2017 2016
Number Number Number Number
Management staff 14 16 10 9
Non management staff 185 165 88 92
Total 199 181 98 101
(b) Directors’ remuneration:
i. Remuneration paid to the directors of the Company was as follows:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Directors’ fees and sitting allowances 33,700 53,782 33,700 33,700
Other directors’ expenses 129,810 119,898 129,810 119,898
Total 163,510 173,680 163,510 153,598
ii. The directors’ remuneration shown above includes:

2017 2016 2017 2016
N’000 N’000 N’000 N’000
Chairman 2,700 2,700 2,700 2,700

Highest paid director 36,043 45,091 36,043 45,091
iii. The emoluments of all other directors fell within the

following range:
Group Group Company

2017 2016 2017 2016
Number Number Number Number
N200,001 - N500,000 - - -
N500,001 - N5,000,000 - - -
N5,000,001 - N10,000,000 - - - -
N10,000,001 - N20,000,000 11 9 11 9
Total 11 9 11 9

43 Contravention of laws and regulations

The Company compiled with all subsisting laws and regulations during the year and suffered no penalties for contra-
ventions. (31 December 2016 : Nil).
44 Litigations and claims

The Group in the ordinary course of business is presently involved in 15 (2016: 16) litigation cases while the Company
is involved in 14 (2016: 14) litigation
cases. There was no other contingent liabilities against the Group and Company at the reporting date. (2016: Nil).
Based on the advice of the solicitors, the Directors of the Company are of the opinion that none of the cases is likely to
have material adverse effect on the Company and they are not aware of any other pending and or threatened claims or
litigation which may be material to the financial statements.
45 Events after the end of the reporting period

No significant event that requires special disclosure occurred between the date of authorisation of the financial state-
ments and the date when the financial statements were issued.
46 Dividend
There was no proposal for dividend in respect of the year ended 31 December 2017 by the directors at the annual
general meeting to strengthen and consolidate the Group performance by the reinvestment of the surplus reserve. (31
December 2016: Nil total dividend). Where dividends are proposed they are not included as liability in the financial
statements.
47 Comparatives

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current
period.
48 Related parties

a) Parent
Wapic Insurance Plc is the parent Company of the Wapic Group.

b) Subsidiaries
The Company has two wholly owned subsidiaries as at 31 December 2017. These are Wapic Life Assurance
Limited, domiciled in Nigeria and Wapic Insurance (Ghana) Limited incorporated in Ghana. Transactions
between Wapic Insurance Plc and the subsidiaries also meet the definition of related party transactions.
Where these are eliminated on consolidation, they are not disclosed in the consolidated financial statements.

c) Associate
The Company has one associate company as at 31 December 2017, Coronation Merchant Bank Limited where
it has 25.5% (2016: 25.5%) holding. Transactions between Wapic Insurance Plc and the associate also meet the
definition of related party transactions. Where these are eliminated on consolidation, they are not disclosed in
the consolidated financial statements.

d) Transactions with key management personnel

The Group’s key management personnel and persons connected with them, are also considered to be related
parties for disclosure purposes. Key management personnel is defined as members of the board of directors
of the Company, including their close members of family and any entity over which they exercise control.
Close members of family are those who may be expected to influence, or be influenced by that individual in d
ealings with Wapic Plc. and its subsidiaries.

e) Key management personnel compensation

The compensation of key management personnel comprised the following:

2017 2016 2017 2016
3 July 1905 N’000

Short term employees benefits - 207,166 - 172,424
Total - 207,166 - 172,424

f) Key management personnel and director transactions

Key management personnel engaged in the following transactions with the Company during the year:

Transaction Transaction Balance Balance
values for values for out- outstand-
the year the year standing ing as at
ended ended as at
Directors Transactions 2017 2016 2017 2016

(i) Income received/receivable

from key management person-
nel:
Mr. Aigboje Aig-Imoukhuede Insurance pre- 1,214 1,675 - -
mium
Mr. Bababode Osunkoya Insurance pre- 499 1,129 - -
mium
Mr. Adamu Mahmoud Atta Insurance pre- - 225 - -
mium
Mr. Barnabas Olise Insurance pre- 5 10 - -
mium
Mrs. Ifeyinwa Osime Insurance pre- - 5 - -
mium
Ms. Chizoba Ufoeze Insurance pre- 46 126 - -
mium
Mr. Olusegun Ogbonnewo Insurance pre- - - - -
mium
Mrs. Adeyinka Adekoya Insurance pre- 195 350 - -
mium
Mr. Bode Ojeniyi Insurance pre- - - - -
mium
Mr. Femi Obaleke Insurance pre- - 10
mium
Mr Peter Ehimhen Insurance pre- - -
mium
Total 1,959 3,530
- -

ii) Loans and advances
to key management
personnel:
Mr. Bode Ojeniyi Loans and - - 4,415 9,443
advances
Total - - 4,415 9,443

Loans and Advances
to staff are valued at
market rate in line with
IFRS
g) Other related party transactions
Transactions with key management personnel’s related persons and entities as at end of year:
Trans- Trans- Balance Bal-
action action outstand- ance
values values ing as at out-
for the for the 31-Dec, stand-
year year 2017 ing as
ended ended at 31-
31-Dec, 31-Dec, Dec,
Relation- Transac- 2017 2016 2016
Entities ship tions

(i) Income received/

receivable related
entities:
Coronation Merchant Associate Insurance 48,445 27,982 - -
Bank Limited company premium
Coronation Securities Associate Insurance 1,265 1,923 5,972 - -
Limited company premium
Petralon Energy Common Insurance 1,732 773 5,972 - -
director premium
Cornation Capital Common Insurance 13,611 13,671 - -
Limited director premium
Coronation Merchant Associate Interest 1,447 24,443 - -
Bank Limited company income
Coronation Asset Man- Associate Insurance 934 653 - -
agement company premium
Coronation Nomiees Associate Insurance 1,469 509 - -
and Trustee Limited company premium
Wapic Insurance (Gha- Subsidiary Expense - - 87,681 90,877
na) Limited recover-
able
Total 68,904 69,954 87,681 90,877
(ii) Expense paid/payable

to related entities:
Coronation Merchant Common Claims 1,680 3,764 - -
Bank Limited director expense
Coronation Securities Common Brokerage - 11,865 - -
Limited director service
and pro-
fessional
fee
Cornation Capital Common Consul- 137,313
Limited director tancy Fee 105,000
Coronation Merchant Common Consul- 10,500 94,750
Bank Limited director tancy Fee
Coronation Nomiees Common Claims 884 369 - -
and Trustee Limited director expense
Wapic Life Assurance Subsidiary Collec- - - 328,446 68,455
Limited tions to be
remitted
Total 328,446 118,064 68,455

248,061

(iii) Cash and cash equivalents

Coronation Mer- Common Money - - 109,270 36,983
chant Bank Limited director market
placement
Total - - 109,270 36,983

222
49 Hypothecation

The Group is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance assets and insurance liabilities. In particular, the key
financial risk is that the in the long- term its investment proceeds will not be sufficient to fund the obligations arising from its insurance and investment con-
tracts. In response to the risk, the Group’s assets and liabilities are allocated as follows:

Group- 31 December 2017
Insurance Investment Shareholders Total
contract contract funds
Non life Life Non life Life Non life Life
ASSETS
Cash and cash equivalents 322,585 205,219 - - - 919,808 297,730 1,745,342
Financial assets 3,650,204 1,826,986 - - 1,178,387 1,742,857 1,097,501 9,495,935
Trade receivables - - - - - 486,998 220,491 707,489
Reinsurance assets 838,139 273,383 - - - 474,779 - 1,586,301
Deferred acquisition cost - - 0 January - - 386,941 143,852 530,793
1900
Other receivables and prepayments - - - - - 562,191 499,340 1,061,531
Investment property 186,000 - - - - 126,750 - 312,750
Investment in associates - - - - - 8,264,440 - 8,264,440
Investment in subsidiaries - - - - - - - -
Intangible assets - - - - - 479,639 46 479,685
Property and equipment - - - - - 3,632,007 155,374 3,787,381
Deferred tax asset - - - - - - -
Statutory deposit - - - - - 432,964 200,000 632,964
TOTAL ASSETS 4,996,928 2,305,588 - 1,178,387 17,509,374 2,614,334
28,604,611

LIABILITIES
Insurance contract liabilities 3,817,332 2,250,874 - - 1,073,259 - 7,141,465
Investment contract liabilities - - - 1,063,860 - - 1,063,860
Trade payables - - - - 499,537 16,834 516,371
Provisions and other payables - - - - 1,279,298 179,452 1,458,750
Current income tax - - - - 115,315 148,478 263,793
Deferred tax liabilities - - - - 202,547 - 202,547
TOTAL LIABILITIES 3,817,332 2,250,874 - 1,063,860 3,169,956 344,764
10,646,786
GAP 1,179,596 54,714 - 114,527 14,339,416 2,269,570 17,957,825

223
49 Hypothecation

The Group is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance assets
and insurance liabilities. In particular, the key financial risk is that the in the long- term its investment proceeds will
not be sufficient to fund the obligations arising from its insurance and investment contracts. In response to the risk,
the Group’s assets and liabilities are allocated as follows:

Group- 31 December 2016
Insurance contract Investment Shareholders funds Total
contract
Non life Life Non life Life Non life Life
ASSETS
Cash and cash equivalents 220,900 445,978 - 231,319 1,194,244 127,954 2,220,395
Financial assets 3,337,936 - 741,069 433,954 1,336,300 7,401,489
1,552,230
Trade receivables - - - - 553,575 - 553,575
Reinsurance assets 1,094,415 69,143 - - 409,272 - 1,572,830
Deferred acquisition cost - - - - 349,342 98,592 447,934
Other receivables and - - - - 1,041,171 103,848 1,145,019
prepayments
Investment property 240,749 - - - 299,181 - 539,930
Investment in associates - - - - 7,173,843 - 7,173,843
Investment in subsidiar- - - - - - - -
ies
Intangible assets - - - - 203,826 70 203,896
Property and equipment - - - - 3,992,267 33,243 4,025,510
Deferred tax asset - - - - - 115,519 115,519
Statutory deposit - - - - 417,632 200,000 617,632
TOTAL ASSETS 4,894,000 - 972,388 16,068,307 2,015,526 26,017,572
2,067,351
LIABILITIES
Insurance contract liabil- 4,789,495 1,584,187 - - - - 6,373,682
ities
Investment contract - - - 920,154 - - 920,154
liabilities
Trade payables - - - - 217,247 18,553 235,800
Other payables - - - - 1,181,459 138,584 1,320,043
Current income tax - - - - 88,114 120,268 208,382
Deferred tax liabilities - - - - 393,176 - 393,176
TOTAL LIABILITIES 4,789,495 1,584,187 - 920,154 1,879,996 277,405 9,451,237
GAP

49 Hypothecation
The Company is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance
assets and insurance liabilities. In particular, the key financial risk is that the in the long- term its investment pro-
ceeds will not be sufficient to fund the obligations arising from its insurance and investment contracts. In response
to the risk, the Company’s assets and liabilities are allocated as follows:

Company- 31 December 2017
Insurance con- Shareholders Total
tract funds
ASSETS
Cash and cash equivalents 322,585 588,438 911,023
Financial assets 3,650,204 706,725 4,356,929
Trade receivables - 486,997 486,997
Reinsurance assets 838,139 - 838,139
Deferred acquisition cost - 317,832 317,832
Other receivables and prepayments - 871,238 871,238
Investment properties 186,000 126,750 312,750
Investment in associates - 5,059,810 5,059,810
Investment in subsidiaries - 3,876,571 3,876,571
Intangible assets 476,144 476,144
Property, plant and equipment - 3,521,507 3,521,507
Deferred tax asset - - -
Statutory deposit - 300,000 300,000
TOTAL ASSETS 4,996,928 16,332,012 21,328,940
LIABILITIES
Insurance contract liabilities 3,817,332 - 3,817,332
Investment contract liabilities - - -
Trade payables - 415,414 415,414
Provisions and other payables - 1,417,790 1,417,790
Current income tax liabilities - 115,315 115,315
Deferred tax liabilities - 202,548 202,548
TOTAL LIABILITIES 3,817,332 2,151,067 5,968,399
GAP 1,179,596 14,180,945 15,360,541

49 Hypothecation

The Company is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance
assets and insurance liabilities. In particular, the key financial risk is that in the long- term its investment pro-
ceeds will not be sufficient to fund the obligations arising from its insurance and investment contracts. In re-
sponse to the risk, the Company’s assets and liabilities are allocated as follows:

Company- 31 December 2016
Insurance contract Shareholders Total
funds
ASSETS
Cash and cash equivalents 220,900 90,323 311,223
Financial assets 3,337,936 91,402 3,429,338
Trade receivables - 553,574 553,574
Reinsurance assets 1,094,415 - 1,094,415
Deferred acquisition cost - 281,344 281,344
Other receivables and prepayments - 1,137,047 1,137,047
Investment properties 240,749 299,181 539,930
Investment in associates - 5,059,810 5,059,810
Investment in subsidiaries - 3,876,571 3,876,571
Intangible assets - 199,171 199,171
Property, plant and equipment - 3,811,639 3,811,639
Deferred tax asset - - -
Statutory deposit - 300,000 300,000
TOTAL ASSETS 4,894,000 15,700,062 20,594,062
LIABILITIES
Insurance contract liabilities 3,763,964 - 3,763,964
Trade payables - 157,870 157,870
Provisions and other payables - 1,157,450 1,157,450
Current income tax liabilities - 88,114 88,114
Deferred tax liabilities - 393,175 393,175
TOTAL LIABILITIES 3,763,964 1,796,609 5,560,573
GAP 1,130,036 13,903,453 15,033,489

Other national disclosures

Value Added Statement

2017 2016 2017 2016
N’000 % N’000 % N’000 % N’000 %
Net premium in- 4,848,867 3,600,519 3,752,138 2,672,942
come - Nigeria
- 803,172 690,821 - -
Foreign
Investment Income 3,193,586 2,463,695 1,234,248 775,424
- Nigeria
- 160,552 165,441 - -
Foreign
Other income 1,054,399 2,154,401 980,556 2,029,102
- Nigeria
- 110,133 179,472 - -
Foreign
Claims incurred, net
commissions and
operating expenses
- (5,217,412) (5,022,916) (4,393,226) (3,859,884)
Nigeria
- (1,363,018) (1,393,606) - -
Foreign
Value added 3,590,279 100 2,837,827 100 1,573,716 100 1,617,584 100
Applied to pay
Employee benefit 1,481,332 41 1,309,821 46 923,382 59 825,209 51
expense
Government taxes 91,881 3 607,423 21 (85,019) (5) 422,581 26
Retained in the
business:
Depreciation of 451,036 13 318,460 11 386,057 25 262,360 16
property and equip-
ment
Amortisation of 35,218 1 16,099 1 33,651 2 15,461 1
intangible assets
To augment contin- 253,204 7 182,438 6 191,642 12 161,263 10
gency reserve
(Depletion)/aug- 1,277,605 36 403,586 14 124,001 8 (69,290) (4)
mentation of re-
serves
Value added 3,590,277 100 2,837,827 100 1,573,714 100 1,617,584 100

228
Financial Summary
Statement of financial position

Group Group Group Group Group Company Company Company Company Company
2017 2016 2015 2014 2013 2017 2016 2015 2014 2013
31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Assets
Cash and cash equivalents 1,745,342 2,220,395 7,053,721 5,173,243 5,853,022 911,023 311,223 3,320,235 3,190,253 3,651,476
Financial assets 9,495,935 7,401,489 4,312,821 8,786,496 7,606,904 4,356,929 3,429,338 2,330,981 6,030,939 5,794,406
Trade receivables 707,489 553,575 552,079 2,699 186,223 486,997 553,574 534,723 - 34,430
Reinsurance assets 1,586,301 1,572,830 922,583 667,928 727,612 838,139 1,094,415 724,547 618,021 536,666
Deferred acquisition cost 530,793 447,934 414,545 253,508 194,916 317,832 281,344 339,529 214,138 148,165
Other receivables and prepay- 1,061,531 1,145,019 1,225,121 314,624 1,423,543 871,238 1,137,047 1,284,950 203,031 1,319,670
ments
Investment in associates 8,264,440 7,173,843 5,244,301 - - 5,059,810 5,059,810 4,364,339 - -
Investment in subsidiaries - - - - - 3,876,571 3,876,571 3,876,571 3,231,976 2,705,576
Investment property 312,750 539,930 674,950 4,056,314 4,358,495 312,750 539,930 639,950 4,021,314 4,308,161
Deferred tax asset - - 363,353 664,759 330,580 - - 131,679 479,583 133,073
Property, plant and equip- 3,787,381 4,025,510 2,374,523 1,570,978 1,036,305 3,521,507 3,811,639 2,284,511 1,480,074 688,142
ment
Intangible assets 479,685 203,896 35,065 49,814 70,212 476,144 199,171 31,844 45,835 60,127
Statutory deposit 632,964 617,632 521,547 518,508 516,234 300,000 300,000 300,000 300,000 300,000
Total assets 28,604,611 25,902,053 23,694,609 22,058,871 22,304,046 21,328,940 20,594,062 20,163,859 19,815,164 19,679,892
Equity and Liabilities:

Liabilities
Insurance contract liabilities 7,141,465 6,373,682 4,676,611 3,070,797 2,951,635 3,817,332 3,763,964 3,200,391 2,201,313 1,923,813
Investment contract liabilities 1,063,860 920,154 1,196,180 1,176,266 1,455,087 - - - - -
Trade payables 516,371 235,800 210,576 417,655 462,248 415,414 157,870 104,066 328,885 203,607
Provisions and other payables 1,458,750 1,320,043 2,496,916 2,893,034 2,904,378 1,417,790 1,157,450 2,228,084 2,731,208 2,764,257

Deferred income tax 202,547 277,657 - - - 202,548 393,175 - -
liabilities
Current income tax liabilities 263,793 208,382 152,029 300,498 351,171 115,315 88,114 57,636 162,681 240,603
Total liabilities 10,646,786 9,335,718 8,732,312 7,858,250 8,124,519 5,968,399 5,560,573 5,590,177 5,424,087 5,132,280
Equity attributable to
parent company
Share capital 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369 6,691,369
Share premium 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983 6,194,983
Contingency reserves 2,061,153 1,807,949 1,625,511 1,436,917 1,289,685 1,742,067 1,550,425 1,389,162 1,232,784 1,112,313
Other reserves 941,704 1,209,743 (209,751) 325,958 577,169 671,027 788,338 19,025 460,605 611,926
Retained earnings 2,068,615 662,291 660,185 (448,606) (573,679) 61,094 (191,626) 279,143 (188,664) (62,979)

Total Equity 17,957,824 16,566,335 14,962,297 14,200,621 14,179,527 15,360,540 15,033,489 14,573,682 14,391,077 14,547,612
Total Liabilities and 28,604,610 25,902,053 23,694,609 22,058,871 22,304,046 21,328,939 20,594,062 20,163,859 19,815,164 19,679,892
Equity
229
230
Statement of profit or loss and other comprehensive income
Gross premium written 9,807,616 8,005,308 7,100,713 5,203,960 3,760,515 6,388,069 5,375,431 5,212,600 4,015,687 2,380,024
Net underwriting income 6,334,927 4,943,332 4,370,306 3,160,425 2,843,023 4,223,466 3,170,350 3,067,264 2,155,678 1,566,602
Total underwriting expenses 4,798,790 4,562,655 2,892,613 1,844,587 2,942,261 3,025,059 2,592,388 1,873,087 1,317,237 1,638,150
Underwriting profit 1,536,136 380,677 1,477,693 1,315,838 (99,238) 1,198,406 577,962 1,194,177 838,441 (71,548)
Total investment income 3,130,472 3,737,135 2,893,778 1,817,085 2,274,227 2,214,804 2,804,526 2,207,035 1,122,716 1,766,104
Net income 4,666,608 4,117,812 4,371,471 3,132,923 2,174,989 3,413,210 3,382,488 3,401,212 1,961,157 1,694,554
Expenses 4,432,115 4,150,240 3,468,246 3,074,352 2,804,118 3,182,585 2,867,934 2,364,884 2,235,984 1,904,404
Profit before tax 1,622,691 1,193,446 1,667,662 58,572 (629,129) 230,625 514,554 1,036,327 (274,827) (209,850)
Income tax expense (91,881) (607,423) (370,277) 178,261 421,002 85,019 (422,581) (412,142) 269,613 241,326
Profit after tax 1,530,810 586,023 1,297,385 236,833 (208,127) 315,644 91,973 624,185 (5,214) 31,476
Other comprehensive income:
Items that are or may be reclas-

sified to profit or loss:
Foreign currency translation
difference of foreign operations (27,610) 459,766 (209,654) (64,419) (30,579)

Net changes in fair value of AFS
financial instruments:
- Unrealised net gains/(losses)
arising
during the period (7,292) 50,879 (116,437) (151,321) 325,143
- Net reclassification adjust-
ments for
realised net gains/(loses) (128,719) - (325,143) -
Share of other comprehensive
income of
associates (104,418) 244,258 115,525 -

Items will not be reclassified to
profit or loss:
Revaluation gain on property
and
equipment, net of tax - 949,415 - - 255,903
Deferred tax on revaluation gain
on
property and equipment - (284,824) - - (36,836)
Total comprehensive income for
the
year 1,262,771 2,005,517 761,676 21,093 305,504
Earnings per share (basic) 11 4 10 2 (2)
Earnings per share (adjusted) 11 4 10 2 (2)

- - - - -
11,408 104,722 (116,437) (151,321) 325,143
(128,719) - (325,143) -
- - - -
- 949,415 - - 243,898
- (284,824) - - (33,235)
198,333 861,286 182,605 (156,535) 567,282
2 1 5 (0) 0
2 1 5 (0) 0

231

05.
05. Shareholder Information

Wapic Insurance Plc is committed to ensuring effective communication with its shareholders.
• Shareholder Engagement
• Notice of Annual General Meeting
• Explanatory Notes to the Proposed Resolutions
• Share Capital History
• E-Dividend Mandate Form
• Shareholder Information Update Form
• Proxy Form

Shareholder Engagement
The Board and Management of Wapic Insurance Plc are committed to ensuring transparency in their dealings with
stakeholders. Accordingly, we provide Shareholders with a continuous and timely flow of financial and non- financial
information in order to ensure that their expectations are aligned with the Company’s corporate objectives. Wapic In-
surance Plc continues to carry out several enhancements of its Investors Relations program to effectively communicate
with Shareholders. The Company, in keeping with best practice, employs various channels of
CHANNEL DESCRIPTION
Annual Report and Accounts The Annual Report & Accounts is a comprehensive report of the Company’s activities
throughout the preceding year. They are produced in paper and electronic formats and posted to Shareholders and
other stakeholders at least 21 days before the AGM as required by law.
Website The Company’s website- www.wapic.com serves as a go-to resource and is continuously updated with relevant
information for our Shareholders.
Result Announcement The Company ensures complete access to financial performance information through the pub-
lication of quarterly and annual results in the papers and online media.
Conference Calls Following the publication of the Company’s results is the conference call with Shareholders, investors
and analysts. This allows for the investment community to gain a better understanding of the Company’s performance
and future plans.
Annual General Meeting (AGM) The AGM is an annual event during which the Company’s Management and senior
team meet with Shareholders to discuss the Company’s performance, strategy and other concerns of benefit to share-
holders. Resolutions are voted upon by the Shareholders with the majority of votes as a determinant.
Shareholder Associations Meetings* In addition to the AGM, the Company considers it important to hear from
representatives of various shareholder associations in order to address shareholders’ concerns and receive advice from
them. This is held annually.
communication to provide information to its Shareholders:

* Contact your local Shareholders’ Association for details on how you can be represented at the meetings
Rights and Responsibilities of Shareholders
Our Shareholders are encouraged to share in the responsibility of sustaining the Company’s corporate values by exer-
cising their rights which include:
• Voting at the Shareholders’ meeting
• Sharing in the property of the company upon dissolution
• Participating in Shareholders’ meetings
• Electing and removing Directors
• Approving bylaws and changes thereto
• Appointing the auditor of the company
• Examining corporate records, financial statements and Directors’ reports, and
• Approving major or fundamental changes (such as those affecting a company’s structure or business
activities).
Investor Relations and Financial Information

• Individual Shareholder Enquiry
United Securities Ltd
Telephone: 234(1) 2714566-7
Email: info@unitedsecuritieslimited.com
• Financial analysts and Institutional Investors
Wapic Insurance Plc

Telephone: +234 (1) 271 4500 Ext.4920
Email: investorrelations@wapic.com

WAPIC INSURANCE PLC

RC 1647
NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the 59th Annual General Meeting of members of WAPIC INSURANCE PLC will hold at Lagoon Restaurant,
1c, Ozumba Mbadiwe Street, Victoria Island, Lagos, on Wednesday, May 30, 2018 at 10:00a.m.to transact the following business:
A. ORDINARY BUSINESS
To consider and if thought fit, pass the following resolutions as Ordinary Resolutions:
1. To receive the Audited Financial Statements for the year ended December 31, 2017 and the Reports of the Directors, Auditors and Audit
Committee thereon.
2. To re-elect Mr. Adamu Atta as a Non-Executive Director.
3. To re-elect Mr. Bababode Osunkoya as an Independent Non-Executive Director.
4. To elect Mr. Olusegun Ogbonnewo who was appointed as a Non-Executive Director by the Board since the last Annual General Meeting.
5. To elect Mr. Peter Ehimhen who was appointed as the Executive Director Technical Operations since the last Annual General Meeting.
6. To authorize the Directors to fix the remuneration of the Auditors.
7. To elect/re-elect shareholder representatives of the Statutory Audit Committee.
B. SPECIAL BUSINESS
To consider and if thought fit, pass the following resolutions as Ordinary Resolutions:
8. That the Directors’ Fees for the financial year ending December 31, 2018 be and is hereby fixed at N6,500,000.00 (Six Million Five Hundred
Thousand Naira only).
9. That in compliance with Article 5.07 (iv) of the National Insurance Commission Code of Good Corporate Governance for the Insurance Industry
in Nigeria, the Directors are hereby authorized to appoint an external consultant to conduct the Annual Board Performance Appraisal for the
financial year ending December 31, 2018.
PROXY
A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote in his/her stead. A proxy
need not be a member. A proxy form is attached to the Notice and it is valid for the purpose of the meeting. All instruments of proxy should be duly
stamped at the Stamp Duties Office and deposited at the office of the Registrars, United Securities Limited, No. 9, Amodu Ojikutu Street, Victoria
Island, Lagos, not later than 48 hours prior to the time of the meeting.
Dated this 4th day of May, 2018.
BY ORDER OF THE BOARD
MARY AGHA
Company Secretary
FRC/2013/NBA/00000002817
NOTES
CLOSURE OF REGISTER OF MEMBERS
The Register of Members and Transfer Books of the Company will be closed on the 15th day of May 2018 to enable the Registrar prepare the register of shareholders eligible to attend and vote at the meeting.
STATUTORY AUDIT COMMITTEE

The Statutory Audit Committee consists of 3 shareholders and 3 Directors. In accordance with S.359(5) of the Companies and Allied Matters Act, 2004, any member may nominate a shareholder for election as a
member of the Audit Committee by giving notice in writing of such nomination to the Company Secretary at least 21 days before the Annual General Meeting.
S.30.2 of the Securities and Exchange Commission Code of Corporate Governance for Public Companies in Nigeria requires that members of the committee should have basic financial literacy and should be able to
read financial statements. The Code also requires that at least one member should be knowledgeable in accounting or financial matters. We therefore request that all nominations to the Audit Committee should be
accompanied by a detailed resume of the nominees.
UNCLAIMED DIVIDEND WARRANTS AND SHARE CERTIFICATES

Some dividend warrants and share certificates have remained unclaimed or are yet to be presented for payment or returned to the Company for revalidation. Affected shareholders are advised to contact the Regis-
trars, United Securities Limited, No. 9, Amodu Ojikutu Street, Victoria Island, Lagos.
E-DIVIDEND/BONUS
Following the decisions reached at the Capital Market Committee Meeting held on August 9, 2016, the Securities and Exchange Commission has directed all Capital Market Registrars to discontinue the issuance of
dividend warrants to investors after July 31, 2017.
In view of this directive, shareholders are advised to complete the e-dividend mandate forms with the Registrar or their bankers, as dividend not claimed before July 31, 2017 will only be paid electronically to
shareholders bank account details as directed by the Securities and Exchange Commission.
RE-ELECTION OF DIRECTORS
Mr. Adamu Atta and Mr. Bababode Osunkoya are being proposed for re-election as Non-Executive Director and Independent Non-Executive Director respectively.
The biographical details of the above named directors standing for re-election are provided in the Annual Report and Accounts.
COMPLAINTS MANAGEMENT
Further to the Securities and Exchange Commission (SEC) Complaints Management Framework which became effective on February 16, 2015 all Capital Market Operators are required to develop and maintain an
internal policy on complaints management which should be made available to shareholders at the general meeting. Shareholders are advised to obtain a copy at the venue of the Annual General Meeting. A copy of
the policy can also be found on the Company’s website.
WEBSITE
A copy of this Notice and other information relating to the meeting can be found at www.wapic.com.
QUESTIONS FROM SHAREHOLDERS

Shareholders and other holders of the Company’s securities reserve the right to ask questions not only at the meeting but also in writing prior to the meeting on any item contained in the Annual Report and Accounts.
Please send questions, comments or observations to The Company Secretariat, Wapic Insurance Plc, 119, Awolowo Road, Ikoyi, Lagos or by email to legal@wapic.com not later than May 8, 2017. Questions and
answers will be presented at the Annual General Meeting.

Explanatory Notes To The Proposed Resolutions

The Notes below provide explanations to the proposed of skill, knowledge and experience.
resolutions.
All the Resolutions are being proposed as Ordinary Adamu Atta
Resolutions. This means that for each resolution to be Non-Executive Director
passed, a simple majority of votes in its favor is required.
Please note that if you abstain from voting you will not be Mr. Adamu Atta is the Chairman and Chief Executive of
counted in the calculation of the proportion of votes “for” Matad Group Nigeria Ltd, an investment company with
or “against” a resolution. operations across Africa. His business interests cut across
various sectors such as oil and gas, energy, transport and
Resolution 1: Annual Report and Accounts logistics, tourism, textiles, agriculture, construction, com-
munication and manufacturing. With over two decades
The Directors are required under Section 345 (1) of the experience in financial management and consulting, Mr.
Companies and Allied Matters Act 1990 to lay before the Atta has developed an enviable portfolio of clients.
Company in the General Meeting for each financial year, Mr. Adamu Atta holds a Bachelor Degree in International
copies of the financial statements of the Company made Relations/International Economics from the United States
up to a date not exceeding nine months prior to the date of International University (USIU). He also has Masters
the meeting. This provides the shareholders the opportu- Degrees in International Development Economics and
nity to ask questions on the content of the Annual Report Political Science from the University of California (UCLA
and Financial Statements. and Ahmadu Bello University Zaria respectively.
Mr. Adamu Atta joined the Board in January 2013 and
Resolutions 2 - 5: Re-election and Approval of chairs the Board Establishment and Remuneration Com-
Directors mittee and a member of the following other Board Com-
mittees:
Your Company’s Articles of Association requires one-third
of all Non-Executive Directors (rounded down) to stand • Board Enterprise Risk Management and
for re-election every year (depending on their tenure on Governance Committee
the Board) together with Directors appointed by the Board • Board Finance, Investment and General Purpose
since the last Annual General Meeting. In keeping with Committee
this requirement, Mr. Adamu Atta and Mr. Bababode
Osunkoya, will retire at this Annual General Meeting, and Mr. Adamu Atta is 51years old as at the date of this
being eligible, will submit themselves for re-election. It is meeting.
hereby confirmed that following a formal evaluation, the
Directors continue to demonstrate commitment to their Bababode Osunkoya
role as Independent Non-Executive Director
Non-Executive Directors. Mr. Bababode Osunkoya is a Senior Partner at the char-

tered accounting firm of Abax-OOSA Professionals. With
The Board pursuant to the powers vested on it by the Arti- over two decades post-qualification experience in bank-
cles of Association has appointed Mr. Olusegun Ogbonne- ing, audit, accountancy, taxation, business and financial
wo as a Non-Executive Director subject to regulatory and advisory, Mr. Osunkoya is an accounting graduate from
shareholders approvals. the University of Lagos and is one of the first Certified
Forensic Auditors of the Chartered Institute of Accoun-
The Board pursuant to the powers vested on it by the tants of Nigeria. Mr. Bababode Osunkoya is a Fellow of the
Articles of Association and in compliance with the Nation- Institute of Chartered Accountants of Nigeria (ICAN), the
al Insurance Commission (NAICOM) Code of Corporate Chartered Institute of Taxation of Nigeria (CITN), and an
Governance for Insurance Companies in Nigeria also Associate Member of the Institute of Directors (IoD).
appointed Mr. Peter Ehimhen as the Executive Director Mr. Bababode Osunkoya joined the Board of Wapic Insur-
Technical Operations subject to regulatory and sharehold- ance Plc in January 2013. He chairs the Board Audit and
ers approvals. The appointment of Mr. Peter Ehimhen has Compliance Committee and is a member of the following
been approved by the National Insurance Commission. other Board Committees:
• Board Establishment and Remuneration
As required by the Articles of Association, the appoint- Committee
ments will be tabled before the shareholders for approval. • Board Enterprise Risk Management and
The Board considers all the Directors standing for re-elec- Governance Committee
tion or approval as highly experienced and capable of • Board Finance, Investment and General Purpose
adding value to the Board. Committee.
The biographical details of the four Directors are set out • Board Information Technology Committee
below. The Board recommends the re-election/approval of Mr. Bababode Osunkoya is 55years old as at the date of
these Directors to enable it maintain the needed balance this meeting.

Resolution 6: Approval of Auditor’s Remuneration

Mr. Olusegun Ogbonnewo
Non-Executive Director PricewaterhouseCoopers was appointed as the statutory
auditor of the Company by the ordinary resolution of the
Mr. Olusegun Ogbonnewo is a Director in TenGen Holdings shareholders passed at the 56th Annual General Meeting
Limited with over 27years professional experience in the held on April 29, 2015. Section 361 (1)(b) of the Compa-
financial service industry cutting across banking, human cap- nies and Allied Matters Act 1990 provides that the re-
ital development, operations, payment systems and financial muneration of the auditors of a company shall subject to
technology. Mr. Olusegun Ogbonnewo has a BA (Ed) and Section 361(1)(a) be fixed by the company in general meet-
Master of Public Administration (MPA) from the University ing or in such manner as the company in general meeting
of Ilorin and Master of Business Administration (MBA) from may determine. Pursuant to this provision, the sharehold-
Lagos Business School/IESE Barcelona. He is an alumnus of ers will be required to authorize the directors to fix the
the Harvard Business School, and has also attended man- remuneration of the statutory auditor for the financial year
agement development programs in IDI Dublin, INSEAD and ending December 31, 2018.
IMD amongst others.
Resolution 7: Election/Re-election of Members of
Mr. Olusegun Ogbonnewo was appointed to the Board of Audit Committee
Directors of Wapic Insurance Plc on October 25, 2017 and is
a member of the following Board Committees: In accordance with S.359(5) of the Companies and Allied
• Board Establishment and Remuneration Matters Act, 1990, any member may nominate a Share-
Committee holder for election as a member of the Statutory Audit
• Board Enterprise Risk Management and Committee by giving notice in writing of such nomination
Governance Committee to the Company Secretary at least 21 days before the An-
• Board Finance, Investment and General Purpose nual General Meeting.
Committee. The Shareholders will be required to vote at the Annual
• Board Information Technology Committee General Meeting to elect or re-elect members of the Com-
Mr. Olusegun Ogbonnewo is 57years old as at the date of this pany’s Statutory Audit Committee.
meeting.
Resolution 8: Approval of Directors’ Fees
Mr. Peter Ehimhen
Executive Director Technical Operations Your Company is required by law to seek the approval for
the annual fees payable to the Non-Executive Directors.
Mr. Peter Ehimhen’s appointment as Executive Director Shareholders will therefore be required to approve annual
Technical Operations was approved by the National In- fees of N6,500,000.00 (Six Million Five Hundred Thou-
surance Commission (NAICOM) on December 5, 2017. He sand Naira Only) for the Non-Executive Directors for the
has a Bachelor of Science (B.Sc.) in Insurance from Enugu 2018 financial year. Despite the continuously expanding
State University of Science and Technology, and a Master’s commitments and responsibilities of the Non-Executive
in Business Administration (MBA) from the University of Directors as regulatory requirements for insurance compa-
Nigeria, Nsukka. Mr. Ehimhen also has a Masters’ of Science nies and other financial institutions continue to grow, the
(M.Sc.) in Risk Management, from the Glasgow Caledonian proposed remuneration is maintained at the 2017 level.
University, UK and is an Associate of the Chartered Insur- Resolution 9: Appointment of External Consultant to
ance Institute of Nigeria as well as a Member of the Institute conduct the Annual Board Performance Appraisal of the
of Risk Management. Board and Directors
With over 24 years post-qualification experience, of which The National Insurance Commission (NAICOM) Code
over 12 years has been in the insurance industry Mr. Peter of Good Corporate Governance for the Insurance Indus-
Ehimhen joined Wapic Insurance Plc in September 2012 and try in Nigeria provides that annual Board performance
until this appointment as Executive Director Technical Oper- appraisals should be carried out by an external consultant
ations, was the Chief Risk Officer of the Company. appointed by the Shareholders. The approval of Share-
Mr. Peter Ehimhen is 49years old as at the date of this holder’s is therefore required for the Board to appoint
meeting. The interest of Directors standing for re-election or an external consultant to carry out a Board performance
being submitted for approval in the ordinary shares of the appraisal for the 2018 financial year.
Company as at December 31, 2017 is as shown below:
NAME OF DIRECTOR DIRECT INDIRECT TOTAL

HOLDING HOLDING
Mr. Adamu Atta 16 - 16

Mr. Bababode Osunkoya - - -
Mr. Olusegun Ogbonnewo 1,551,031 - 1,551,031

Share Capital History

S/N YEAR AUTHORIZED ISSUED & FULLY BONUS ISSUES DIVIDEND DE-
SHARE CAPI- PAID SHARE CAPI- CLARED (KOBO)
TAL TAL
1 1958 200 80 - -
2 1974 200 200 - -
3 1977 300 300 - -
4 1987 1,000 1,000 - -
5 1990 1,000 1,000 - 4
6 1991 5,000 1,500 1 for 2 4
7 1992 5,000 2,000 1 for 3 7
8 1993 10,000 5,000 3 for 7 -
9 1994 10,000 5,000 - -
10 1995 20,000 7,500 1 for 2 5
11 1996 50,000 8,250 1 for 10 1.2
12 1997 100,000 70,000 - -
13 1998 100,000 84,000 1 for 5 4
14 1999 100,000 90,000 1 for 14 -
15 2000 100,000 100,000 1 for 9 10
16 2001 100,000 100,000 - 10
17 2002 500,000 250,000 - 15
18 2003 500,000 416,667 2 for 3 17.5
19 2004/2005 500,000 416,667 - 22.5
20 2005/2006 3,500,000 416,667 - 17.5
21 2006/2007 3,500,000 500,000 1 for 5 12.5
22 2007 3,500,000 2,109,085 - 10
23 2008 3,500,000 2,530,902 1 for 5 -
24 2013 17,000,000,000 13,382,738,248 - -
25 2014 17,000,000,000 13,382,738,248 - -
26 2015 17,000,000,000 13,382,738,248 - 3
27 2016 17,000,000,000 13,382,738,248 - -
28 2017 17,000,000,000 13,382,738,248 - -

E-Dividend Mandate Form

Affix
Current
Passport
(To be stamped by bankers)
E-DIVIDEND MANDATE ACTIVATION FORM
Please write your name at the
E-MANDATE ACTIVATION FORM
back of your passport
photograph
Kindly quote your shareholder account no in the box below

Instruction Only Clearing Banks are acceptable
Please complete all sections of this form to make it eligible for processing Name of Company Shareholder Number
and return to the address below
The Registrar,
UNITED SECURITIES LIMITED RC 126257 WAPIC INSURANCE PLC
9, Amodu Ojikutu Street, Off Bishop Oluwole Street,
Victoria Island, P.M.B 12753 Lagos, Nigeria.
I\We hereby request that henceforth, all my\our Dividend Payment(s) due to me\us from my\our holdings in all the companies ticked at the right
hand column be credited directly to my \ our bank detailed below:
Bank Verification Number
Bank Name
Bank Account Number
Account Opening Date
Shareholder Account Information
Surname / Company’s Name First Name Other Names
Address:
State Country
City
Previous Address (If any)
CHN (If any)
Mobile Telephone 1 Mobile Telephone 2
Email Address
Signature(s) Company Seal (If applicable)
Joint\Company’s Signatories
For inquiries, please call 01-2714566-7 or send e-mail to customerscare@unitedsecuritieslimited.com
UNITED SECURITIES LIMITED

Website: www.unitedsecuritieslimited.com ; E-mail: info@unitedsecuritieslimited.com or the completed update form can also be submitted through any Access Bank PLC nearest to you.
Website: www.unitedsecuritieslimited.com
“UNITED SECURITIES LIMITED hereby ; E-mail: info@unitedsecuritieslimited.com
disclaims or the completed update form can also
liability or responsibility for errors/omissions/misstatements inbe submitted
any documentthrough any Access
transmitted Bank Plc nearest to you.
electronically”
“UNITED SECURITIES LIMITED hereby disclaims liability or responsibility for errors/omissions/misstatements in any document transmitted electronically”

Shareholder Information Update Form

I/We wish to request that my/our details as (a) Shareholder(s) of Wapic Insurance Plc be amended to reflect the following
information:
DATE SURNAME/NAME OF COMPANY
D D M M Y Y Y Y
PHONE NUMBER OTHER NAMES (FOR INDIVIDUAL SHAREHOLDER)
PRESENT POSTAL ADDRESS
CITY STATE
EMAIL ADDRESS 1
EMAIL ADDRESS 2
SHAREHOLDER’S SIGNATURE OR THUMBPRINT SHAREHOLDER’S SIGNATURE OR THUMBPRINT AUTHORISED SIGNATURE & BANKERS STAMP
INCORPORATION NUMBER WITH COMPANY SEAL
The completed form should be returned by post, or Or to the nearest Wapic Insurance Plc branch closest to
hand-delivered to office of the Registrar, United Securities the Shareholder, c/o Investor relations Unit. Scanned
Limited, 10 Amodu Ojukutu Street, Victoria Island, copies of the form are not acceptable as only originals
PMB 12753, Lagos. Tel: 01-730-0898, 01-714566-7 will be processed.
F: 2714568 E: info@unitedsecuritieslimited.com

Proxy Form
59th Annual General Meeting to be held at Lagoon Restaurant, 1c, Ozumba Mbadiwe Street, Victoria Island, Lagos on Wednesday, May 30, 2018 at 10:00a.m
“I/WE…………………………………………………………………………………………………………………………………………………………………………………………………………………………
(Name of Shareholder in block letters)
Being a member/(s) of the above named Company hereby appoints Mr. Aigboje Aig-Imoukhuede or failing him Mrs. Adeyinka Adekoya as my/our proxy to vote
for me/us and on my/our behalf at the 59th Annual General Meeting of the Company to be held on Wednesday, May 30, 2018 and at any adjournment thereof.
Unless otherwise instructed, the Proxy will vote or abstain from voting as he/she thinks fit.
Signatory of Shareholder………………………………………..…………………………………………………………………………………………………………………………………………….........…
ORDINARY BUSINESS / ORDINARY RESOLUTIONS FOR AGAINST ABSTAIN

1. To receive the Audited Financial Statements for the year ended December 31, 2017 and the Reports of the
Directors, Auditors and Audit Committee thereon.
2. To re-elect Mr. Adamu Atta as a Non-Executive Director.
3. To re-elect Mr. Bababode Osunkoya as an Independent Non-Executive Director.
4. To elect Mr. Olusegun Ogbonnewo who was appointed as a Non-Executive Director by the Board since the
last Annual General Meeting
5. To elect Mr. Peter Ehimhen who was appointed as the Executive Director Technical Operations since the
last Annual General Meeting
6. To authorize the Directors to fix the remuneration of the Auditors.
7. To elect/re-elect members of the Audit Committee.
SPECIAL BUSINESS / ORDINARY RESOLUTIONS FOR AGAINST ABSTAIN
8. That the Directors’ Fees for the financial year ending December 31, 2017 be and is hereby fixed at
N6,500,000.00 (Six Million Five Hundred Thousand Naira only).
9. That in compliance with Article 5.07 (iv) of the National Insurance Commission Code of Good Corporate
Governance for the Insurance Industry in Nigeria, the Directors are hereby authorized to appoint an exter-
nal consultant to conduct the Annual Board Performance Appraisal for the financial year ending December
31, 2016.
Please indicate with an ‘X’ in the appropriate box how you may wish your votes to be cast on the resolution set above. Unless otherwise instructed, the
proxy will vote or abstain from voting at his/her discretion.
Dated this ……………..................................................................................................……. Day of ………..........................................................…………… 2018
……………………………………………………………………...
SIGNATORY OF SHAREHOLDER
IMPORTANT NOTES:
1. Before posting the above proxy, please tear off this part and retain it. A person attending the Annual General Meeting of the Company or his/
her proxy should produce this card to secure admission to the meeting.
2. A member of the Company is entitled to attend and vote at the Annual General Meeting of the Company. He/She is also entitled to appoint a
proxy to attend and vote instead of him/her, and in this case, the above card may be used to appoint a proxy.
3. In line with best practice, the name of two Directors of the Company have been entered on the proxy form to ensure that someone will be at
the meeting to act as your proxy, but if you wish, you may insert in the blank space on the form (marked*) the name of any person, whether a
member of the Company or not who will attend and vote on your behalf instead of one of the Directors named.
4. The above proxy, when completed must be deposited at the office of United Securities Limited, No. 9, Amodu Ojikutu Street, Off Bishop
Oluwole Street, Victoria Island, Lagos, not less than 48 hours before the time fixed for the meeting.
5. It is a requirement of the law under the Stamp Duties Act, CAP 58, Laws of the Federation of Nigeria, 2004, that any instrument of proxy to
be used for the purpose of voting by any person entitled to vote at any meeting of shareholders must bear a stamp duty.
6. If a proxy form is executed by a company, it should be sealed under its common seal or the hand and seal of its attorney
BEFORE POSTING THE ABOVE FORM PLEASE TEAR OFF THIS PART AND RETAIN IT FOR ADMISSION TO THE MEETING
ADMISSION CARD WAPIC INSURANCE PLC RC 1647

59TH ANNUAL GENERAL MEETING TO BE HELD AT LAGOON RESTAURANT, 1C, OZUMBA MBADIWE STREET, VICTORIA ISLAND, LAGOS
ON WEDNESDAY, MAY30, 2018 AT 10:00A.M
Name and Address of Shareholder ……………………………………………………………………………………………………………………………………………………………………
Number of Shares held ……………………………………………………………………………………………………………………………………………………………………………………

06.
6.0 Corporate Information

Corporate Office, Branches and Subsidiaries.

Corporate Information
Wapic Insurance Plc.
Corporate Head Office
119 Awolowo Road,Ikoyi
P.O. Box 55508, Falomo-Ikoyi
Lagos, Nigeria
Branch Information
Location Address Telephone Email
Abuja Access Bank Building, 2nd Floor, Plot 6, Jos (+234) (01) 2774584 info@wapic.com
Street, Area 3 Opposite Sharon Ultimate Hotel,
Abuja FCT
Port-Harcourt 42B Trans Amadi Industry Layout (+234) (01) 2774582 info@wapic.com
Port Harcourt, Rivers State
Benin Access Bank Building (+234) (01) 2774585 info@wapic.com
103 Akpakpava Road, Benin
Edo State
Enugu Access Bank Regional Office, Plot 7 Ebeano (+234) (01) 2774583 info@wapic.com
Layout, Garden Avenue, Enugu
Enugu State
Ibadan Access Bank Building (+234) (01) 2774581 info@wapic.com
Beside Tantalizers
Ring Road
Ibadan
Oyo State
Kano Access Bank Building , 12 B Post Office Road, info@wapic.com
Kano State
Our Subsidiaries
SN Business Address
1 Wapic Life assurance Limited, 119 Awolowo Road, Ikoyi, P.O. Box 55508, Falomo-Ikoyi
Lagos, Nigeria
2 Wapic Insurance (Ghana) Limited, 35 Aviation Road, PMB 163, KIA
Airport Residential Accra, Ghana


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DIGITAL TR ANSFORMATION

Wapic Insurance Plc | Annual Report & Accounts 2017 1

2 Wapic Insurance Plc | Annual Report & Accounts 2017

04. FINANCIAL STATEMENTS

Comprehensive income 160

05. SHAREHOLDER INFORMATION

E-Dividend Mandate Form 239

06. CORPORATE INFORMATION

Subsidiaries Highlights 243

Wapic Insurance Plc | Annual Report & Accounts 2017 3

4 Wapic Insurance Plc | Annual Report & Accounts 2017

dedication to international compliance and sustainability.

dedica 01. Overview

Wapic Insurance Plc | Annual Report & Accounts 2017 5

Business and Financial Highlights

2017 2016 2015

Profit Before Tax 2016 1,193

Profit After Tax 2016 586

Gross Written Premium 2016 8,005

6 Wapic Insurance Plc | Annual Report & Accounts 2017

Shareholders’ Funds 2017 17,958

Total Assets 2017 28,605

Wapic Insurance Plc | Annual Report & Accounts 2017 7

Aigboje Aig-Imoukhuede (CON)

Wapic Insurance Plc | Annual Report & Accounts 2017 9

Sustainability Thank you and God bless.

In line with our mission to ‘Lead in all that is Worthy’ your

10 Wapic Insurance Plc | Annual Report & Accounts 2017

Wapic Insurance Plc | Annual Report & Accounts 2017 11

Operating Environment and Market Strategy and Growth Opportunities

12 Wapic Insurance Plc | Annual Report & Accounts 2017

Furthermore, and in synergy with the January 2018

Wapic Insurance Plc | Annual Report & Accounts 2017 13

14 Wapic Insurance Plc | Annual Report & Accounts 2017

02. Business Review

Wapic Insurance Plc | Annual Report & Accounts 2017 15

Our vision Our mission

16 Wapic Insurance Plc | Annual Report & Accounts 2017

Reports of External Consultants

Wapic Insurance Plc | Annual Report & Accounts 2017 17

18 Wapic Insurance Plc | Annual Report & Accounts 2017

FOREIGN REINSURERS RATING AGENCY

Wapic Insurance Plc | Annual Report & Accounts 2017 19

20 Wapic Insurance Plc | Annual Report & Accounts 2017

Corporate Sales Division

Wapic Insurance Plc | Annual Report & Accounts 2017 21

22 Wapic Insurance Plc | Annual Report & Accounts 2017

The total volume of Insurance business in this sector is

Wapic Insurance Plc | Annual Report & Accounts 2017 23

Retail Sales and Distribution Division

24 Wapic Insurance Plc | Annual Report & Accounts 2017

Contact Center facebook.com/mywapic

Email: contactcentre@wapic.com twitter.com/mywapic

Wapic Insurance Plc | Annual Report & Accounts 2017 25

business units to avoid future repetition.

Complaints via Ombudsman

26 Wapic Insurance Plc | Annual Report & Accounts 2017

Solicited Customer Feedback and Service Improvement

Wapic Insurance Plc | Annual Report & Accounts 2017 27