GLICO LIFE ANNUAL REPORT

Table of Contents
1
Corporate Information
Our Vision
2-9 To be a leader, a world class organization and a
Profile of Directors "brand of choice" in Ghana and the West African
sub-region.
10
Top Management
Our Mission
11 - 13
Chairman’s Report To be an acknowledged leader in Ghana's
insurance industry through consistent
commitment to excellence and stakeholder
14 - 17 satisfaction.
Managing Director’s Review
18
Directors Report
19
Certificate of Solvency
Our Core Value
20 Towards the attainment of our vision and mission,
Independent Auditors' Report we will be guided by these values:
Financial Statements: Ethics - We abide by the rules and principles set by

the regulators of whichever industry we operate in;
as well as our own principles of business conduct
21 that keep us ahead of the competition.
Profit & Loss & Other Comprehensive Income
Transparency - We operate and communicate in
sincerity and promote the truth in all our business
22 relationships.
Statement of Financial Position
Friendly and competitive services - We offer value
23 to our stakeholders through an efficient client
Statement of Changes in Equity relations system and prudent management
practices.
24 Professionalism - We set high standards to remain

competitive by providing quality service through a
Cash Flow Statement
highly skilled and motivated staff.
25 - 53
Notes to the Financial Statements
GLICO LIFE ANNUAL REPORT

Directors:
Harry Owusu - Chairman
K. Achampong-Kyei - Director
E. Forkuo Kyei - Managing Director
Stephen Enchill (Dr.) - Director
Grant Kesse (H.E.) - Director
Eddy Safo Kwakye - Resigned on 15/08/2014
Secretary:
Andrew Achampong Kyei (ESQ)
Registered Office:
GLICO House
No. 47 Kwame Nkrumah Avenue
P. O. Box 4251
Accra
Auditors:
Osei Kwabena & Associates
Chartered Accountants
98 Miamona Close
South Industrial Area
P. O. Box 10276
Accra - North
Solicitors:
Edward J. Mettle-Nunoo (ESQ)
Judina Chambers
Evergreen House
Community 4, Tema
Bankers:
Ghana Commercial Bank Ltd
Intercontinental Bank Ghana Ltd
Ecobank Ghana Ltd
Prudential Bank Ltd
National Investment Bank Ltd
Actuaries:
Stallion Consultants Limited
P.O. Box CT 38170
Cantonments - Accra
1 GLICO LIFE ANNUAL REPORT

PROFILE OF DIRECTORS
2 Standing (from left to right): Eddie Safo Kwakye, Dr. Stephen Enchill, Edward Forkuo Kyei, Andrew Achampong-Kyei, Sir. Daniel Charles Gyimah
Seated (from left to right): H. E. Grant Ohemeng Kesse, Harry Owusu, Kwame Achampong-Kyei
Profile of Directors
Profile Of Directors - Contd.
Mr. Harry Owusu holds a BA

(Education) Degree from the
University of Cape Coast and
Graduate Diploma in Communication
Studies from the University of Ghana,
Legon.
He received further training at the

Economic Development Institute of
the World Bank, USA, the
Development Finance Institute of the
Private Development Corporation of
the Philippines and the Duke Center
for International Development, Duke
University, North Carolina, USA.
Between August 2001 and April 2009,

he was the Executive Secretary of the
Revenue Agencies Governing Board
now Ghana Revenue Authority.
Harry Owusu He has held senior management

positions in the National Investment
Board Chairman Bank.
He has also served on several boards

of corporations including Rhecah
Buffalo Ghana Limited, Accra Markets
Limited, Ghana Highway Authority,
Ghana Stock Exchange, the Novotel
Hotel, Accra, the Gaming
Commission, GETFUND and GCNet.


Mr. Achampong-Kyei established
GLICO LIFE in 1987 as a specialist life
insurance company at a time when life
insurance in Ghana was dormant.
Today, he has organically grown the
component businesses: GLICO
GENERAL, GLICO FINANCIAL,
GLICO HEALTHCARE and GLICO
PROPERTIES which constitutes the
Group.
He is a visionary entrepreneur and a

distinguished insurance executive
and practitioner with close to 40 years
active experience (in the
insurance/financial industry) gained
through self development initiatives,
commitment to application of modern
insurance concepts & models both
locally and internationally.
M r. A c h a m p o n g - K y e i h a s
Kwame Achampong-Kyei compounded academic and
professional qualifications and is an
Executive Chairman accredited recipient of the
GLICO GROUP International Quality Award as well as
the Gold Award in Life Underwriting.
He is also an esteemed member of the
Chartered Insurance Institute and
holds a B.Sc Degree in Business
Studies, a post graduate Diploma in
Management studies from the United
Kingdom.
Mr. Achampong-Kyei serves as

Chairman on the executive boards
and committees of the GLICO
GROUP. From 1993-2004, he
assisted the National Insurance
Commission-Ghana, in establishing
the foundations of the current
insurance trade association as a
General Secretary.
GLICO LIFE ANNUAL REPORT 4

Mr. Forkuo Kyei joined GLICO in 1987

when he was still a student and fully in
1992 when he completed his first
degree. He has and still plays a pivotal
role in the growth and success of the
organization since its inception in
1987.
His wealth of experience and

expertise spans across two and half
decades of working within the
insurance and financial service
industry.
He is an Associate member of the

Chartered Insurance Institute (UK), a
fellow of Ghana Insurance Institute
and a member of the Life Council of
the Ghana Insurers Association. He
also holds an MBA in Finance &
Advance Strategic Management from
Edward Forkuo Kyei Cardiff University, Wales (UK).
Further, he holds an MSc in Insurance
Chief Executive Officer & & Risk Management from Cass
Managing Director Business School (UK).
He is also a graduate with a BSc in

Development Planning from the
Kwame Nkrumah University of
Science and Technology (KNUST),
Ghana.
Mr. Forkuo Kyei is currently the 2nd

Vice President and the Chairman of
the Life Insurance Council of the
Mr. Forkuo Kyei is the Chief Executive Ghana Insurers Association (GIA).
officer and Managing Director of GLICO
LIFE. Mr. Kyei is passionate about
insurance and has been instrumental
Hither to his appointments as Managing in the quest to advancing life
Director of GLICO LIFE, he held varied insurance in Ghana. He is indeed a
management position within GLICO valued resource for the Ghana
including that of the Executive Director of Insurance industry.
GLICO LIFE.

He further acquired additional skills from

working as management person in UAC
Ghana Limited (now Uniliver Ghana
Limited), PKF (a firm of Chartered
Accountants), Ghana National Petroleum
Corporation, Ikam Limited and GLICO Life
Insurance Company Limited.
Dr. Enchill is currently the Executive Vice

Chairman of First Capital Plus Savings
and Loan Limited. He also practises as a
Chartered Accountant and is the Senior
Partner of Forbes Consult International
(Chartered Accountants and
Management Consultants).
Professionally, he holds the finals of ICA

(Ghana) and a Member/Fellow of Institute
of Chartered Accountants, Ghana. He is
also a member of the Association of MBAs
(UK); after successfully graduating from
IFM of Manchester University and
Dr. Stephen Enchill University of Wales (UK) with an MBA in
Finance and Management. He also holds
Board Member a Doctorate Degree in Business
Administration with SMC University in
Switzerland.
Dr. Enchill has attended several seminars

and courses both in Ghana and outside
Ghana to enrich his knowledge base that
gives him urge in all his entrepreneurship
business endeavours. As part of his drive,
he lectured in Accounting and Financial
Management at the tertiary level and he is
also an examiner for Institute of Chartered
Dr. Stephen Enchill is a Business Executive Accountants (Ghana) for the past 12
and an Entrepreneur by practice and a years.
Chartered Accountant by profession. He
has acquired extensive experience in Stephen serves on other boards including
diverse business fields, both in Ghana and GLICO General Insurance Limited, First
internationally. Capital Plus, Action Aid Ghana and
Ekumfiman Rural Bank.
Dr. Enchill's working experience started from
working with Ghana Ports and Harbours
Authority in 1985.

He is a Fellow and Past President of

Ghana Institute of Planners. From 1964
to 1976, H.E. Kesse worked in the Civil
Service, rising to the rank of Deputy
Director, Town and Country Planning
Department.
From 1976 to June 2006, he was the

Chief Consultant of Kesse-Tagoe &
Associates, a firm of Planning and
Development Consultants. He was the
Chairman of the Board of Directors of
Gemini Life Insurance Company (now
GLICO LIFE) from 1995 to 2006.
He was a Member of Okyeman Lands

Commission from 1990 to 2004, a Board
Member of Ofori Panyin Secondary
School, Kukurantumi from 1991 to 2003
and the Board Chairman of St. Paul
Technical School, Kukurantumi from
H. E. Grant Ohemeng Kesse 1992 to 2002.
Board Member H. E. Kesse was also an external

Examiner of the Kwame Nkrumah
University of Science and Technology,
KNUST from 1974 to 1988, and a
member of the National Development
Planning Commission from 2002 to
2006.
H.E. Kesse was Ghana's Ambassador to

the Federal Republic of Germany, from
July 2006 to February 2009 and is
currently a Director of Adonten
Community Bank (New Tafo).
His Excellency (H.E) Grant Ohemeng
Kesse, a Planning and Development
Consultant, holds a Post-Graduate
Diploma in Planning (Notts), M.Sc. in
Transportation Planning (London) and a
Diploma of Imperial College.

For almost a decade, he was the Private

Sector Adviser to the Ghana Mission of
the United States Agency for
International Development (USAID).
Sir Gyimah served as the Managing

Director of Eximguaranty Company
(Ghana), a company engaged in
Financial Guarantees business in
Ghana, from 1998 to 2001. He also
served as the Managing Director of the
National Investment Bank from 2001 to
2009.
He has contributed immensely towards

the development of many institutions
outside his normal appointments as the
Chairman of the Board of Directors of the
Global Food Processing Company,
Nestle (Ghana) Ltd, and the First Ghana
Building Company Ltd.
Sir. Daniel Charles Gyimah
Additionally, Sir Gyimah was the
Board Member Chairman of the Metro Mass Transit
Company Ltd, a company which runs
intra and Inter-City Transport Services in
Ghana.
He held Directorship positions of the

Global Petrochemical Company, the
TOTAL (Ghana) Ltd and the AU
Development Company Ltd, a real
estate development company.
In the field of academia, he was the

Chairman of the Council of the University
Sir Daniel Charles Gyimah is a for Development Studies, and also
professional Chemical Engineer as well as served as a member of the Governing
a Chartered Banker with over thirty (30) Board of the Catholic University of
years experience. He is a Fellow of both the Ghana for ten (10) years.
Ghana Institution of Engineers and Currently, Sir Gyimah is an independent
Chartered Institute of Bankers (Ghana). financial and engineering consultant in
the AS Johnson and Associates.

Mr. Andrew Achampong-Kyei is a United

Kingdom qualified Solicitor and a Fellow of
the Institute of Legal Executives. He has
also been called to the Ghana Bar
Association. He is thus qualified to practise
both in Ghana and the United Kingdom.
He has extensive experience as a finance

and project lawyer and has worked with
leading law firms in the United Kingdom.
Andrew holds a Bachelor of Law Degree

from the University of Kent (UK) and a Post
- Graduate Diploma from the University of
Westminster (UK).
Prior to his appointment, Andrew had been

working intermittently with GLICO
throughout schooling, whenever he was in
Ghana. He rejoined GLICO in 2010 as the
Head of Legal and Special Risks with
Andrew Achampong - Kyei unique skills in Management, Finance and
Insurance Business.
Board Member
Andrew is currently the Company
Secretary of Group Companies and sits on
the Executive Committees of the company.

TOP MANAGEMENT
MR. E. Forkuo Kyei Victor Owusu Boakye

Chief Executive Officer & Chief Finance Officer
Managing Director
Mrs. Vera Haizel - Cobina Divine Asiedu Yeboa

Chief Business Development Technical Operations Manager
Officer (Ind. Life)
Stephen Badu Ms. Cynthia Ewusi

Chief Business Development Business Development Manager
Officer (Group Life) (Micro Insurance)

Chairman’s Report
Chairman’s Report
Your Board is pleased with the company's

ongoing commitment to intensify and provide a
superior customer experience, as we believe it
is the number one driver of long-term business
success.
Our employees around the country are working

together to build our reputation as a customer-
focused company and foster a customer-centric
environment.
For our shareholders, we continue to focus on

sound risk management to withstand the
difficult economic periods and produce steady
underlying earnings.
During 2014, we made great progress towards

delivering our strategic objectives and achieved
most of our critical performance indicators. Net
income before taxation amounted to GH¢ 4,
389, 000, while total assets increased from GH¢
128,821,000 to GH¢140,881,000 in 2014.
These are positive indicators of our

performance and progress; yet, in order to
continue to serve our customers, deepen
Harry Owusu shareholder value and thrive in competitive
markets, there is more work to be done. None of
Chairman us at GLICO LIFE are sitting back and believing
that the race is over. Our eyes are on the future.
GLOBAL ECONOMIC REVIEW

In 2014, the global economy continued its
modest and uneven growth, with GDP growth
just slightly above the rate achieved in 2013.
Canada, the U.S. and the U.K. were the
strongest performers amongst developed
OVERVIEW countries. Europe and Japan remained under
On behalf of the Board of Directors, I am pleased to pressure and the rate of growth in China
report another year of outstanding performance by declined. Oil prices have fallen by
the Management and staff of GLICO Life Insurance approximately 50% since June 2014. While this
Company Ltd. for the year ended 31st December, has positive implications for consumer
2014. spending, energy-related companies and
regions are under pressure.
Even though we navigated through a challenging
external environment and an unstable economy,
2014 was still another year of progress at GLICO
LIFE. We delivered strong sales earnings and
increased our assets under management in the
year under review.
For our customers, we continued to focus on

providing relevant and efficient products to help
them achieve their financial goals.
11
Chairman’s Report
Chairman’s Report - Contd.
Inflation is low in most countries with Europe in By the end of 2014 the country had 19 life
particular concerned about deflation. The period of insurance companies, with GLICO LIFE
historically low interest rates continues and could being one of the top five life insurance
persist for some time, creating challenges for companies, altogether controlling 80% of the
insurers including lower investment yields, sector. Total premiums for the sector in 2013
increased hedge costs and reduced new business were GHS1.05bn ($400m), with life reaching
profitability. GHS458.8m ($175m)
ECONOMIC OUTLOOK FOR 2015 We continue to focus on businesses with

2015 will be a difficult year for the Ghanaian strong growth prospects fueled by consumer
economy. Although the overall objectives and demand and favorable demographic trends.
policies of Government remain unchanged, critical The aging of the population and modest
success factors will be Government's ability to economic growth continues to drive the
stem leakages in revenues, eliminate perceived demand for greater security and protection of
waste and implement the wide ranging 2014 retirement savings. We are responding to this
budget measures aimed at increasing tax demand with retirement product solutions to
revenues. There are concerns over the effects of suit our customers.
these new tax measures on business. It is therefore
critical that implementation is well thought through 2014 OPERATING RESULTS
to ensure these measures do not discourage the
business sectors affected, like the financial Premium Income
services sector, which have contributed In 2014, GLICO LIFE recorded a net
significantly to the growth of the economy. premium of GH¢58,945,000 which is a 11%
growth over 2013's performance of GH¢
We remain very positive about the long-term future 53,710,000.
of our business as millions of people in the
Ghanaian Insurance Market remain unpenetrated, Net Profit Before Tax
there will be increased demand for our products Net Profit before tax for the year under review
and services. was GH¢ 4,389,000. This shows a decrease
of 60% as compared to last year's figures of
INSURANCE INDUSTRY GH¢ 11,065,000.
The Ghanaian insurance sector is in a period of
transition with a lot of foreign investment mergers Claims
and acquisitions. There is also plenty of scope for In 2014, GLICO LIFE paid claims of
further growth, even with the high levels of GH¢38,652,000. This is a significant
competition in the existing market. At the same increase of 45.00% over the previous year's
time, initiatives to promote micro-insurance and the claim payment of GH¢ 26,666,000.
introduction of technologies that will help in the
distribution of insurance products will help the Dividend
sector expand. The directors propose the payment of
dividend of GH¢ 2,000,000 for the year
ended 31 December 2014.
Insurance penetration still remains low in the
country for a number of reasons, many of which are New Products
common to the region. Awareness in the country To boost our products portfolio and to offer
about the product remains low, with most clients value-based solutions, GLICO LIFE
Ghanaians lacking an appreciation for the benefits began actuarial evaluation to launch another
of transferring their risks to another party. customer focused product, Glico Survival
Insurance density was GHS7.50 ($2.85) in 2006, a Interest Plan (GSIP) in 2015. GSIP is a
number which at the end of 2013 had hit GHS39.24 product that covers CRITICAL ILLNESS or
($15). DREAD DISEASE.

Chairman’s Report
Chairman’s Report - Contd.
CORPORATE SOCIAL RESPONSIBILITY

GLICO LIFE's CSR policy is a fundamental part of
the way we do business and an essential element
of our success. It seeks to make imprints in
communities and contribute to its shape, form and
human capital formation focusing on four key
areas: sports, health, education and community
relations.
In 2014, GLICO LIFE took a distinct approach to

community support in these areas through its
philosophy to cushioning them for life. GH¢
86,876.00 was used in undertaking impactful
initiatives that benefitted the Ghanaian community.
ACKNOWLEDGEMENT
Finally, on behalf of the Board, my sincerest thanks
to our management team and employees
nationwide. Their hard work and dedication allows
us to deliver on the promise of helping our
customers achieve lifetime financial security.
We remain confident in our strategies and

particularly in our very capable management and
staff to deliver expected long term growth for
shareholders.
Thank you.
Harry Owusu
BOARD CHAIRMAN

Director's Review
Managing Director's Review
Today, the demand for our products and services is

greater than ever and our ability to provide an all
round product (wealth accumulation, financial
protection, educational plans, and retirement
products) has positioned GLICO LIFE among the
top insurance companies in Ghana. We are proud
of our history and excited about the opportunities
that lie in our future.
The core drivers of our success remain

unchanged: An unwavering focus on customers,
prudent risk management, investing in our staff and
product innovation.
Despite persistent low interest rates and slow-

moving economic growth in the country, in 2014 we
grew an underlying net income of
GHC60.2million.Insurance sales grew by 11%,
reflecting continued improvement in our sales
capabilities across the ten regions of Ghana.
Economic uncertainty, market volatility and low

interest rates is likely continue through
2015.During times like these, our mission to help
our customers achieve lifetime financial security is
more important than ever. We help customers in so
Edward Forkuo Kyei many ways: The monthly annuity cheque that
funds a secure retirement; a disability payment to
Managing Director help an employee recover from an illness or injury;
a death benefit to provide income or a legacy for the
bereaved family when a loved one passes, among
others.
Customers around the country take comfort in

doing business with a Standard & Poor's (S&P) B
Dear Stakeholders, rated company. A company with a reputation for
excellent claims payment for almost three
I t is a privilege to share with you the performance
of our Company for the year ended 2014. This
Annual Report gives you a closer look at GLICO
decades; and a company that provides high quality
products and services.
LIFE's all round achievements in the year 2014 and I am indeed grateful for the hard work and focused
a glimpse at our goals for the future. execution of our strategy by the Board,
Management and staff, amidst uncontrollable
The one great constancy over these many years external environmental factors.
has been our commitment to customer service and
innovation in products. As noted in the pages that
follow, GLICO LIFE has a strong track record of The following highlights GLICO LIFE's
focusing on our customers and delivering performance in 2014:
innovative products and services. Over the
generations, we have been there for our customers Group Business recorded 28.7% of total premium
- through accidents, natural disasters, death and whiles Individual Life made a contribution of 49%
terminal illness; always making good on our representing a growth of 37% over 2013.
commitments to "Cushion our policy holders for
life".

Director's Review
Managing Director's Review -
Contd.
Other lines of business such as Micro Insurance Some examples to stay competitive are: by
and Depositor's Administration/Pension Scheme reinsuring some of our huge businesses with our
recorded growth of 31.5%. Reinsurance collaborators to diversify our risk
exposures and by changing our investment
Net profit was 58% lower than 2013's figure of GHC strategies to re-evaluate acceptable equity risk and
10.164 million. GLICO Life Insurance Company in changing credit evaluation procedures among
the face of keener competition and economic others. In 2014, we also looked into new
challenges recorded a low Net Profit as compared investment opportunities to make up for
to 2013. For this reason, we have put structures in depreciation of the local currency.
place to reinforce our strong business models. We
have changed our investment strategies to improve The growth in the volume of insurance premiums in
generally on our performance in the coming years. Ghana has been among the highest in Africa over
With these new strategies, we are convinced we the past few years; with an increasing number of
will record an increase in Net Profit in 2015. foreign insurance companies entering Ghana's
virgin insurance markets.
Economic Review and Impact on Insurance
Operations Ghana's insurance industry has grown rapidly in
recent years, generally considered to be among
Ghana has been one of Africa's outstanding the countries with the strongest medium-term
performers in recent years with a strong GDP growth prospects in the insurance sector.
growth. However, in 2014 the Ghanaian economy Nevertheless, there is still room for denser
registered relatively commendable economic coverage and GLICO LIFE is poised to seize the
growth. The economy faced major challenges in opportunity.
the form of sharp currency depreciation, deepening
energy crisis, deteriorating macroeconomic Innovation to Serve Customers Better
imbalance, rise inflation and interest rates.
GLICO LIFE nationwide did wonderful things to
Ghana's economy is expected to slow down for the help serve customers better. Here are just a few
fourth consecutive year to an estimated 3.9% of the many highlights from 2014:
growth rate in 2015. Owing to a severe energy
crisis, unsustainable domestic and external debt • We enhanced our social media platform that helps
burdens, and deteriorated macroeconomic and our Customer Service advisors better manage
financial imbalances. their social media interactions with customers;
When the economy is down, fewer businesses and • We reduced customer complaints by 70% last
individuals do not have disposal money to spend on year by increasing our customer touch points,
insurance, a phenomenal that should not occur but focusing on the root cause of our most common
characteristic of the insurance industry in Ghana. complaints and changing work processes to
This means the demand for insurance slows and make it easier for our customers to do business
providers have to compete more with one another. with us;
Whether the economy is performing poorly or • We introduced our client portal to make it easy for
excellently, affects insurance businesses just as it customers to view the health of their policies and
does any business. When the economy is booming, print their policy statements themselves;
investment returns increase, making the ultimate
aim of claim payment more acceptable and simple. • We explored our channels for prompt claim
payment and entered into a partnership with NIB
As GLICO LIFE aims to achieve its Vision of bank to create convenience for our policyholders;
becoming the brand of Choice, we continue with
our strong business models even as the economic • We trained and retrained our staff in the
landscape changes unfavorably. expectation of the modern customers so as to
better understand their needs, expectations and
offer them services that creates value and
respect.

Director's Review
Contd.
A N e w Vi s i o n f o r C o r p o r a t e S o c i a l • Investment income also continued to grow
Responsibility. registering 46% increase over previous year's
figures in spite of declining government security
In 2014, we sharpened our focus on CSR with a rates.
new approach guided by the goal of building
sustainable, healthier communities for life. This • On the other hand, cost control measures
strategy called for us to advance our efforts across continued in 2014 to stabilize operating cost was
four themes: strengthen organizational resilience 21% of Gross Premiums. The Group Concept
through the talent we attract and develop; create also led to cost sharing of certain services that
strong communities; be accountable for our hither to would have been borne solely by Life.
interactions with the environment; and
demonstrate exemplary governance. • Due to prudent strategic long-term investments in
properties, I am happy to announce that the
Our ongoing commitment to strong governance Company still achieved a commendable increase
practices, which included compliance with all laws to its asset base. Total asset grew substantially by
and regulations, was recognized in all our 9% from GH¢128.821 million in 2013 to
operations during the past year. GH¢140.881 million in 2014. Long-term
investments (including properties) have also
Developing our Human Resources started earning significant returns.
We approached our human resource development
through management and leadership training. We • Shareholders' funds decreased by 4% from
also arranged quarterly leadership and GH¢56.727 million to GH¢59.155 for the period
management training for our Heads of under review compared to a 46% increase in
Departments to improve their capacity to deliver 2012/2013.
results through their team effort. We embraced a
synergistic approach to broadening staff • Loans and Advances to customers decreased by
knowledge base of insurance and other allied 49% (GH¢ 4.156 million) as compared to GH
information through our internal “Synergy Building 8.471 million in 2013.
Workshops”.
Financial Results The Future

After enjoying a decade of strong growth, the life
insurance industry is currently going through a The insurance landscape in Africa has undergone
period of consolidation. The Regulator, National several changes in past years. With the increased
Insurance Commission, is tightening and foreign direct investments in Africa, the industry is
standardizing the rules of the business to protect expected to push up to higher levels and GLICO
policyholders' interest. In the midst of global and LIFE intends to position itself as a provider of tested
industry slowdown, the insurance players are advisory solutions to the Ghanaian populace.
grappling with slowing growth, rising costs,
deteriorating distribution structure and stalled The Ghanaian life insurance market is
reforms. consolidated with the top five companies
accounting for about 80% share in 2012 (up from
That notwithstanding, your Company has 78% in 2011), and GLICO LIFE is positioning itself
generated a total Gross Written Premium of GH¢ to climb higher up the top five ladder profitably.
59.654 million.
• Net premium income grew by 10% from

GH¢53.710 million in 2013 to GH¢58.954 in 2014.
• The increase attest to the implement of a resilient

and robust operational structure to drive up
premiums thus positioning our company for a very
optimistic future.

Managing Director's Review
Contd.
The life insurance sector witnessed a growth of I take this opportunity to express our deep
31.7%. There is stillroom for growth in this sector appreciation to our stakeholders for their
especially with the development of micro insurance continuous support and association with the
and innovative distribution and collection channels Company and also to convey that we are
such as bancassurance, mobile money and online committed to deliver value to all.
payments.
As I reflect on our experience in 2014 and look
The portfolio mix (proportion of life and non-life ahead to a successful 2015 and beyond, I am
premium) is expected to witness a further structural confident that the demand for what we do will still
shift in favor of life insurance segment. The future be strong, and if we maintain an intense focus on
growth of life insurance segment is expected to be the three things that matter the most - our
driven by a large untapped market and an customers, our staff and our risk -we will do very
established regulatory framework, which is making well.
Ghana a lucrative market for Life Insurance.
May the next years be as rewarding for GLICO
The core drivers of GLICO LIE's success remain LIFE customers, advisors, employees and
unchanged with the following forming the bedrock shareholders as the previous years.
of our strategy for the coming year.
• Integrity Thank you.

We are committed to the highest standards of
business ethics and good governance.
• Customer Focus
We provide sound financial solutions to offer value E. FORKUO KYEI
to our customers and always w o r k w i t h t h e i r MANAGING DIRECTOR
interests in mind.
• Excellence
We pursue operational excellence through our
dedicated people, our quality products and
services, and our value-based risk management.
• Value
We deliver wealth benefits to the customers and
shareholders we serve and to the communities in
which we operate.
• Innovation
We listen to our customers to provide them with
better experiences through Innovative products
and exceptional service.
Gratitude
On behalf of the Board, my sincerest appreciation
to our management team and employees
nationwide; their hard work and dedication allowed
us to deliver on the promise of helping our
customers achieve lifetime financial security.

Directors Report
Directors Report
The Directors have the pleasure in presenting their There was no change in the nature of the
Annual Report together with the audited financial Company's business during the year.
statements of GLICO Life Insurance Company for
the year ended 31 December, 2014.
Financial Results
The balance brought 2014 2013
Directors Responsibility Statement forward on income GH¢’000 GH¢’000
surplus account at GH¢ GH¢
Ghana Companies Act 1963 (Act 179) requires the January was 34,277 25,650
directors to prepare financial statements for each
financial year which give a true and fair view of the To which must be
state of affairs of the company at the end of the added
financial year and of the income statement for that Profit for the year after 4,319 10,164
year. charging all expenses,
depreciation and
The Directors are responsible for the preparation taxation of
and fair presentation of the consolidated financial
statements comprising the statement of financial Revaluation gains on
37,596 35,814
position at 31 December 2014. property, plant and
equipment disposed
The directors believe that in preparing the financial (net of tax)
statements, they have used appropriate
accounting policies, consistently applied and From which is made
supported by reasonable and prudent judgments an appropriation to
and estimates and that all international accounting contingency reserve of (589) (537)
standards which they consider to be appropriate 38,007 35,277
has been followed. Dividend Paid
Leaving a balance to
The directors are responsible for ensuring that the be carried forward on (2,000) (1,000)
company keeps accounting records which disclose income surplus
with reasonable accuracy the financial position of account of
the group and which enable them to ensure that the
financial statements comply with the Companies
Act, 1963 (Act 179) and Insurance Act 2006 (Act Dividend
724).
The directors propose the payment of dividend of
They are also responsible for taking such steps as GH¢ 2,000,000 for the year ended 31 December,
are reasonable to safeguard the assets of the 2014.
group and to prevent and detect fraud and other
irregularities. Auditors
In accordance with section 134(5) of the
The above statements which should be read in Companies Code 1963, (Act 179) the auditors,
conjunction with the statement of the auditors Messrs. Osei Kwabena & Associates, will continue
responsibilities is made with a view to in office as auditors of the company.
distinguishing for shareholders the respective
responsibilities of the directors and the auditors in By Order of the Board.
relation to the financial statements.
Principal Activities Director: ……………………………………
The principal activities of the company continued to

be undertaking of the business of insurance and Director: ……………………………………
other business incidental thereto.
30 / 4 / 15
…….……………………………………2015
Certificate Of Solvency in Respect
of Life Polices.
Certificate of Solvency in
Respect of Life Policies.
We have conducted an actuarial valuation of the
life assurance business of GLICO Life
Insurance Company Ltd as at 31 December
2014.
The valuation was conducted in accordance

with generally accepted actuarial principles and
in accordance with the requirements of the
Insurance Act, 2006 (Act 724). Those principles
require prudent provision for future outgo under
contracts, generally based upon the
assumptions that current conditions will
continue. Provision is therefore not made for all
possible contingencies.
In completing the actuarial valuation, we have

relied upon the financial statements of the
Company.
In our opinion, the Life Assurance business of

the Company was (not) financially sound and
the actuarial value of the liabilities in respect of
all classes of life insurance business did
(not)exceed the amount of funds of the life
assurance business at 31 December 2013.
Name of Actuary: Kofi Safo Ntim
Signed: ................................................
Stallion Consultancy Ltd.
th
28 April, 2015
Date: ....................................................

Independent Auditors' Report
Independent Auditors' Report
Report on Financial Statements We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a
We have audited the accompanying financial basis for our audit opinion.
statements of GLICO Life Insurance Company
Limited, as at 31st December, 2014, which have Opinion
been prepared on the basis of the significant In our opinion, the financial statements give a true
accounting policies and other explanatory and fair view of the financial position of the
notes. company as at 31 December 2014, and of its
financial performance and cash flow for the year
Directors' Responsibility for the Financial then ended and are drawn up in accordance with
Statements. the International Financial Reporting Standards,
The directors are responsible for the preparation issued by the International Accounting Standards
and fair presentation of these financial statements Board.
in accordance with the Companies Code 1963,
(Act 179) and the Insurance Act 2006 (Act 724). Report on Other Legal and Regulatory
These responsibilities include: designing, Requirements
implementing and maintaining internal control The Ghana Companies Code, 1963 (Act 179)
relevant to the preparation and fair presentation of requires that in carrying out our audit work we
financial statements that are free from material consider and report on the following matters. We
misstatement, whether due to fraud or error; confirm that:
selecting and applying appropriate accounting
policies; and making accounting estimates that are i. we have obtained all the information and
reasonable in the circumstances. explanations which to the best of our knowledge
and belief were necessary for the purposes of our
Auditors' Responsibility audit;
Our responsibility is to express an opinion on these
financial statements based on our audit. We ii. in our opinion proper books of accounts have
conducted our audit in accordance with been kept by the company, so far as appears from
International Standards on Auditing. Those our examination of those books; and
standards require that we comply with ethical
requirements and plan and perform the audit to iii. the balance sheet and income statement of the
obtain reasonable assurance as to whether the company are in agreement with the books of
financial statements are free from material accounts.
misstatement.
In accordance with section 78(1) (a) of the
An audit involves performing procedures to obtain Insurance Act, 2006, (Act 724), the company has
audit evidence about the amounts and disclosures kept accounting records that are sufficient to
in the financial statements. The procedures explain its transactions and financial position with
selected depend on the auditor's judgement, respect to its insurance businesses and any other
including the assessment of the risks of material business that it carries on.
misstatement of the financial statements, whether
due to fraud or error. In making those risk
assessments, the auditor considers internal
control relevant to the entity's preparation and fair
presentation of the financial statements in order to ...............................................................................
design audit procedures that are appropriate in the Signed By: Paul Osei-kwabena (ICAG/P/1161)
circumstances, but not for the purpose of FOR AND ON BEHALF OF:
expressing an opinion on the effectiveness of the OSEI KWABENA & ASSOCIATES (ICAG/P/111)
entity's internal control. An audit also includes (CHARTERED ACCOUNTANTS)
evaluating the appropriateness of accounting ACCRA, GHANA.
policies used and the reasonableness of th
30 April,
accounting estimates made by management, as ................................................................ 2015
well as evaluating the overall presentation of the
financial statements.
Statement of Profit & Loss &
Other Comprehensive Income.
Statement of Profit & Loss &
Other Comprehensive Income.
2014 2013
Note GH¢'000 GH¢'000
Insurance Premium Revenue 6 59,654 53,957

Insurance Premium Ceded to Reinsurers 6 (709) (247)
Net Insurance Premium Revenue 58,945 53,710
Increase in Life Fund (10,429) (17,026)

Investment Income 7 10,943 7,471
Other Operating Income 8 748 7,373
1,262 (2,182)
Net Income 60,207 51,528
Insurance Claims 9 35,750 23,367

Ordinary Life Surrenders 2,902 3,299
Commissions 4,127 2,253
42,779 28,919
Net Insurance Benefits and Claims
Operating and Other Expenses 10 12,681 11,114
Expenses 55,460 40,033
Results of Operating Activities 4,747 11,495

Finance Costs (358) (430)
Profit Before Tax 4,389 11,065

Income Tax Expense 11 (70) (901)
Profit for the Year 4,319 10,164
Other Comprehensive Income

Items that will not be Reclassified to Profit or Loss
Fair Value Gains on Property, Plant and Equipment 12 - 142
Items that May be Reclassified Subsequently to

Profit or loss.
Change in Available-for-Sale Financial Assets 14 109 279
Total Comprehensive Income for the Year 4,428 10,585

Note 2014 2013

GH¢'000 GH¢'000
Assets
Property, Plant and Equipment 12 2,578 1,780
Investment Property 13 60,026 63,520
Equity Securities 14 16,898 15,496
Debt Securities 15 36,208 38,058
Loans and Receivables 16 12,627 8,471
Insurance Receivables 17 2,667 908
Bank and Cash Balances 19 9,877 588
Total Assets 140,881 128,821
Equity and Liabilities

Stated Capital 20 18,989 17,989
Contingency Reserve 3,326 2,737
Other Reserves 22 1,833 1,724
Income Surplus 35,007 34,277
Total Equity 59,155 56,727
Liabilities
Insurance Liabilities 24 75,573 65,143
Trade and Other Payables 26 2,548 3,380
Deferred Income Tax 18 3,701 3,631
Current Income Tax Liabilities 11 (96) (60)
Total Liabilities 81,726 72,094
Total Equity and Liabilities 140,881 128,821
Approved on ……………………….. 2015
……..………...............………….. Director ……..………...............………….. Director

Statement of Changes in Equity
Statement of Changes in Equity
Stated Contingency Income Surplus
2014 Capital Reserve Other Reserves Account Total
GH¢'000 GH¢'000 GH¢'000 GH¢'000 GH¢'000
Balance at 1 January 2014 17,989 2,737 1,724 34,277 56,727

Profit / (Loss) for the Year - - - 4,319 4,319
Net Change in Fair Value of Available- -
For-Sale Financial Assets, Net of Tax 109 - 109
Revaluation Gains on Property, Plant and Equipment - -
Increase in Stated Capital 1,000 - (1,000) -
Transfer from Income Surplus 589 (589) -
Dividends to Company Shareholders (2,000) (2,000)
Balance at 31 December 2014 18,989 3,326 1,833 35,007 59,155
Stated Contingency Income Surplus

2013 Capital Reserve Other Reserves Account Total
Balance at 1 January 2013 17,989 2,200 1,303 25,650 47,142

Profit / (Loss) for the Year - - - 10,164 10,164
Net Change in Fair Value of Available- -
For-Sale Financial Assets, Net of Tax 279 279
Revaluation Gains on Property, Plant and -
Equipment Disposed, Net of Tax 142 142
Transfer from Income Surplus 537 (537) -
Dividends to Company Shareholders (1,000) (1,000)
Balance at 31 December 2013 17,989 2,737 1,724 34,277 56,727

Statement of Cashflows
Statement of Cashflows
2014 2013
Note GH¢'000 GH¢'000
Cash Generated from Operating Activities

Profit Before Taxation 4,389 11,065
Adjusted for:
Depreciation and Amortisation 12 897 494
Change in Fair Value of Investment Property 13 - (6,225)
Change in Provision for Bad Loans 16 42 13
Foreign Exchange Gain/Loss 8 - 5
Change in Provision for Unexpired Risk 26 - -
Change in Provision for Life Fund 24 10,429 17,026
Operating Cash Flow Before Investment 15,757 22,378

in Working Capital.
Increase in Loans and Receivables 16 (5,198) (1,289)
Increase in Insurance Receivables 17 (1,760) 1,010
Increase in Trade and Other Payables 26 (832) 190
Tax Paid 11 (36) (90)
Net Cash from Operating Activities 7,931 22,199
Cash Flows from Investing Activities

Addition to Investment Properties 13 (3,045) (5,412)
Purchases of Property, Plant and Equipment 12 (1,695) (815)
Disposal of Investment Property 6,539 -
Purchases of Equity Securities 14 (1,293) (2,661)
Net Cash used in Investing Activities 506 (8,888)
Cash Flows from Financing Activities

Addition to Share Capital 1,000 -
Dividends Paid to Company's Shareholders (2,000) (1,000)
Net Cash (used in) / from Financing (1,000) (1,000)

Activities.
Increase in Cash And Cash Equivalents 7,437 12,311
Cash and Bank Overdrafts at Beginning of Year 27 38,646 26,335
Cash and Bank Overdrafts at end of Year 27 46,083 38,646

for the Year ended 31 December,
2014.
1. GENERAL INFORMATION
The Company is a limited liability company incorporated in Ghana under the Companies Code 1963,
(Act 179) and domiciled in Ghana. The address of its registered office is Glico House, No.47 Kwame
Nkrumah Avenue, Accra.
The company's main business is Life assurance. Life assurance business relates to the underwriting of
risks relating to death of an insured person, and includes contracts subject to the payment of premiums
for a term dependent on the termination or continuance of the life of an insured person.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set out
below. These policies have been consistently applied to all years presented, unless otherwise stated.
(a) Basis of Preparation
The financial statements are prepared in compliance with International Financial Reporting Standards
(IFRS). Additional information required by the Companies Code, 1963, (Act 179) and the insurance act
2006 (Act 724) are included where appropriate. The measurement basis applied is the historical cost
basis, except as modified by the revaluation of land and buildings, investment property, available-for-
sale financial assets, and financial assets and financial liabilities at fair value through income. The
financial statements are presented in Ghana Cedis (GH¢).
The preparation of financial statements in conformity with IFRS requires the use of estimates and
assumptions. It also requires management to exercise its judgement in the process of applying the
Company's accounting policies. The areas involving a higher degree of judgement or complexity, or
where assumptions and estimates are significant to the financial statements, are disclosed in Note 3.
The Directors have assessed the relevance of the new standard and interpretations, and amendments
to existing standards with respect to the Company's operations and concluded that they will not have
any impact on the Company's financial statements, other than for the amendments to IAS 1 -
Presentation of Financial Statements, which will require non-owner changes in equity to be presented
in a 'Comprehensive Statement of Income'.
(b) Insurance Contracts
I. Classification
The Company issues contracts that transfer insurance risk or financial risk or both. Insurance contracts
are those contracts that transfer significant insurance risk. Such contracts may also transfer financial
risk. As a general guideline, the Company defines as significant insurance risk, the possibility of having
to pay benefits on the occurrence of an insured event that are at least 10% more than the benefits
payable if the insured event did not occur.
Investment contracts are those contracts that transfer financial risk with no significant insurance risk.
See accounting policy for these contracts under Note 2(d).
Insurance contracts and investment contracts are classified into two main categories, depending on the
duration of risk and in accordance with the provisions of the Insurance Act 2006 (Act 724).

2014.
Notes to the Financial Statements -
Contd.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contd.
(b) Insurance Contracts - Contd.
The company therefore is engaged in only Life insurance business.
Life insurance business Includes insurance business of all or any of the following classes, namely, life
assurance business, superannuation business, industrial life assurance business and bond investment
business and business incidental to any such class of business;
Life assurance business means the business of, or in relation to, the issuing of, or the undertaking of
liability to pay money on death (not being death by accident or in specified sickness only) or on the
happening of any contingency dependent on the termination or continuance of human life (either with or
without provision for a benefit under a continuous disability insurance contract), and include a contract
which is subject to the payment of premiums for term dependent on the termination or continuance of
human life and any contract securing the grant of an annuity for a term dependent upon human life.
Superannuation business means life assurance business, being business of, or in relation to, the
issuing of or the undertaking of liability under superannuation, group life and permanent health
insurance policy.
II. Recognition and Measurement
i. Premium Income
For Life insurance business, premiums are recognised as revenue when they become payable by the
contract holder. Premiums are shown before deduction of commission.
Some life insurance contracts contain both an insurance component and a deposit component. The
insurance company is required to unbundle the deposit components from the insurance components.
Unbundling should however not be done where the deposit component cannot be separately
measured. (The NIC however requires life insurance companies to design all life products such that is
will be possible to separately measure the deposit component).
ii. Claims and Policy Holder Benefits Payable

For Life insurance business, benefits are recorded as an expense when they are incurred. Claims
arising on maturing policies are recognised when the claim becomes due for payment. Death claims
are accounted for on notification. Surrenders are accounted for on payment.
iii. Commissions Payable

A proportion of commission's payable is deferred and amortised over the period in which the related
premium is earned.
iv. Receivables and Payables Related to Insurance Contracts

Receivables and payables are recognised when due. These include amounts due to and from agents,
brokers and insurance contract holders.
If there is objective evidence that the insurance receivable is impaired, the Company reduces the
carrying amount of the insurance receivable accordingly and recognises that impairment loss in the
income statement. The Company gathers the objective evidence that an insurance receivable is
impaired using the same process adopted for loans and receivables. The impairment loss is also
calculated under the same method used for these financial assets. These processes are described in
Note 2 (j).

2014.
Contd.
(b) Insurance Contracts - Contd.
v. Salvage and Subrogation Reimbursements

Some insurance contracts permit the Company to sell (usually damaged) property acquired in settling a
claim (for example, salvage). The Company may also have the right to pursue third parties for payment
of some or all costs (for example, subrogation).
Estimates of salvage recoveries are included as an allowance in the measurement of the insurance
liability for claims, and salvage property is recognised in other assets when the liability is settled. The
allowance is the amount that can reasonably be recovered from the disposal of the property.
Subrogation reimbursements are also considered as an allowance in the measurement of the

insurance liability for claims and are recognised in other assets when the liability is settled. The
allowance is the assessment of the amount that can be recovered from the action against the liable third
party.
(c) Revenue Recognition
(i) Insurance Premium Revenue

For all insurance contracts, premiums are recognised as revenue (earned premiums) proportionally
over the period of coverage. The portion of premium received on in-force contracts that relates to
unexpired risks at the balance sheet date is reported as the unearned premium liability. Premiums are
shown before deduction of commission and are gross of any taxes or duties levied on premiums.
(ii) Commissions
Commissions receivable are recognised as income in the period in which they are earned.
(iii) Interest Income

Interest income for all interest-bearing financial instruments, including financial instruments measured
at fair value through income statement is recognised within 'investment income' (Note 7) in the income
statement using the effective interest rate method. When a receivable is impaired, the Company
reduces the carrying amount to its recoverable amount, being the estimated future cash flow
discounted at the original effective interest rate of the instrument, and continues unwinding the discount
as interest income.
(iv) Dividend Income

Dividend income for equities is recognised when the right to receive payment is established - this is the
ex-dividend date for equity securities.
(d) Investment Contracts

The Company issues investment contracts without fixed terms (unit-linked) and investment contracts
with fixed and guaranteed terms (fixed interest rate). The investment contracts include funds
administered for a number of retirement benefit schemes.
Investment contracts without fixed terms are financial liabilities whose fair value is dependent on the fair
value of underlying financial assets, derivatives and/or investment property (these contracts are also
known as unit-linked investment contracts) and are designated at inception as at fair value through
profit or loss. The Company designates these investment contracts to be measured at fair value
through income statement because it eliminates or significantly reduces a measurement or recognition
inconsistency (sometimes referred to as 'an accounting mismatch') that would otherwise arise from
measuring assets or liabilities or recognising the gains and losses on them on different bases.

2014.
Contd.
(d) Investment Contracts - Contd.
The best evidence of the fair value of these financial liabilities at initial recognition is the transaction
price (i.e. the fair value received) unless the fair value of that instrument is evidenced by comparison
with other observable current market transactions in the same instrument or based on a valuation
technique whose variables include only data from observable markets. When such evidence exists, the
Company recognises profit on day 1. The Company has not recognised any profit on initial
measurement of these investment contracts because the difference is attributed to the prepayment
liability recognised for the future investment management services that the Company will render to each
contract holder.
Financial liabilities for investment contracts without fixed terms is determined using the current unit
values in which the contractual benefits are denominated. These unit values reflect the fair values of the
financial assets contained within the Company's unitised investment funds linked to the financial
liability. The fair value of the financial liabilities is obtained by multiplying the number of units attributed to
each contract holder at the balance sheet date by the unit value for the same date.
For investment contracts with fixed and guaranteed terms, the amortised cost basis is used. In this case,
the liability is initially measured at its fair value less transaction costs that are incremental and directly
attributable to the acquisition or issue of the contract.
Subsequent measurement of investment contracts at amortised cost uses the effective interest method.
This method requires the determination of an interest rate (the effective interest rate) that exactly
discounts to the net carrying amount of the financial liability, the estimated future cash payments or
receipts through the expected life of the financial instrument or, when appropriate, a shorter period if the
holder has the option to redeem the instrument earlier than maturity.
The Company re-estimates at each reporting date the expected future cash flows and recalculates the
carrying amount of the financial liability by computing the present value of estimated future cash flows
using the financial liability's original effective interest rate. Any adjustment is immediately recognised as
income or expense in the income statement.
(e) Property Plant and Equipment
All categories of property and equipment are initially recorded at cost. Buildings and freehold land are
subsequently shown at fair value, based on periodic, but at least triennial, valuations by external
independent valuers, less subsequent depreciation for buildings. All other property and equipment is
stated at historical cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Company and the cost of the item can be measured reliably. All other repairs and maintenance are
charged to the income statement account during the financial period in which they are incurred.

2014.
Contd.
(e) Property Plant and Equipment - Contd.
Increases in the carrying amount arising on revaluation are credited to other comprehensive income.
Decreases that offset previous increases of the same asset are charged against the revaluation surplus
in the other comprehensive income; all other decreases are charged to the income statement account.
Each year the difference between depreciation based on the revalued carrying amount of the asset (the
depreciation charged to the income statement account) and depreciation based on the asset's original
cost is transferred from the revaluation surplus to retained earnings.
Free hold land is not depreciated. Leasehold land that qualify as a finance lease, have lease payments
amortised over the period of the lease. Depreciation on other assets is calculated using the straight line
method to allocate their cost or revalued amounts less residual values over their estimated useful lives,
as follows:
Buildings 33 years
Leasehold Property 17 years
Furniture and Fittings 10 years
Office Equipment 5 years
Motor Vehicles 5 years
Computer Equipment 3 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance
sheet date.
An asset's carrying amount is written down immediately to its estimated recoverable amount if the
asset's carrying amount is greater than its estimated recoverable amount (see 2 (h) below).
Gains and losses on disposal of property and equipment are determined by reference to their carrying
amount and are included in the income statement account. On disposal of revalued assets, amounts in
the revaluation surplus relating to that asset are transferred to income surplus.
(f) Investment Properties
Buildings, or part of a building, (freehold or held under a finance lease) and land (freehold or held under
an operating lease) held for long term rental yields and/or capital appreciation and are not occupied by
the Company are classified as investment property. Investment property is carried at fair value,
representing open market value determined annually by external valuers. Changes in fair values are
included in other operating income in the income statement account.
(g) Intangible Assets
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring to use the specific software. These costs are amortised over their estimated useful lives (three to
five years).
Costs associated with developing or maintaining computer software programmes are recognised as an
expense as incurred. Costs that are directly associated with the production of identifiable and unique
software products controlled by the Company, and that will probably generate economic benefits
exceeding costs beyond one year, are recognised as intangible assets. Direct costs include the
software development employee costs and an appropriate portion of relevant overheads.

2014.
Contd.
(g) Intangible Assets - Contd.
Computer software development costs recognised as assets are amortised over their estimated useful
lives (not exceeding five years).
(h) Impairment of Non - Financial Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that
suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.
(i) Financial Assets
The Company classifies its financial assets into the following categories: financial assets at fair value
through profit or loss; loans, advances and receivables; held-to-maturity financial assets; and available-
for-sale assets. Management determines the appropriate classification of its financial assets at initial
recognition.
(I) Financial Assets at Fair Value Through Profit or Loss

This category has two sub-categories: financial assets held for trading, and those designated at fair
value through profit or loss at inception. A financial asset is classified as held for trading if acquired
principally for the purpose of selling in the short term. Derivatives are also categorised as held for
trading. Financial assets are designated at fair value through profit or loss when:
- doing so significantly reduces or eliminates a measurement inconsistency; or

- they form part of a group of financial assets that is managed and evaluated on a fair value basis in
accordance with a documented risk management or investment strategy and reported to key
management personnel on that basis.
(ii) Loans, Advances and Receivables

Loans, advances and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market, other than: (a) those classified as held for trading and
those that the Company on initial recognition designates as at fair value through income statement; (b)
those that the Company upon initial recognition designates as available-for-sale; or (c) those for which
the holder may not recover substantially all of its initial investment, other than because of credit
deterioration.
(iii) Held-to Maturity

Held-to-maturity assets are non-derivative financial assets with fixed or determinable payments and
fixed maturities that management has the positive intention and ability to hold to maturity. Were the
Company to sell more than an insignificant amount of held-to-maturity assets, the entire category would
have to be reclassified as available for sale.
(iv) Available-for-Sale
Available-for-sale assets are non-derivatives that are either designated in this category or not classified
in any other categories.

2014.
Contd.
(I) Financial Assets - Contd.
Regular way purchases and sales of financial assets at fair value through profit or loss, held-to-maturity
and available-for-sale are recognised on trade-date - the date on which the Company commits to
purchase or sell the asset.
Financial assets are initially recognised at fair value plus, for all financial assets except those carried at
fair value through profit or loss, transaction costs. Financial assets are derecognised when the rights to
receive cash flows from the financial assets have expired or where the Company has transferred
substantially all risks and rewards of ownership.
Loans, advances and receivables and held-to-maturity financial assets are carried at amortised cost
using the effective interest method. Available-for-sale financial assets and financial assets at fair value
through profit or loss are carried at fair value. Gains and losses arising from changes in the fair value of
'financial assets at fair value through profit or loss' are included in the income statement account in the
period in which they arise. Gains and losses arising from changes in the fair value of available-for-sale
financial assets are recognised directly in equity until the financial asset is derecognised or impaired, at
which time the cumulative gain or loss previously recognised in equity is recognised in the profit or loss
account. However, interest calculated using the effective interest method is recognised in the income
statement account. Dividends on available-for-sale equity instruments are recognised in the income
statement account when the Company's right to receive payment is established.
Fair values of quoted investments in active markets are based on current bid prices. Fair values for
unlisted equity securities are estimated using valuation techniques. These include the use of recent
arm's length transactions, discounted cash flow analysis and other valuation techniques commonly
used by market participants. Equity securities for which fair values cannot be measured reliably are
recognised at cost less impairment.
(j) Impairment of Financial Assets
The Company assesses at each balance sheet date whether there is objective evidence that a financial
asset or a group of financial assets is impaired. A financial asset or a group of financial assets is
impaired and impairment losses are incurred only if there is objective evidence of impairment as a result
of one or more events that occurred after initial recognition of the asset (a 'loss event') and that loss
event (or events) has an impact on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated. The criteria that the Company uses to determine that
there is objective evidence of an impairment loss include:
- Delinquency in contractual payments of principal or interest;

- Cash flow difficulties experienced by the borrower (for example, equity ratio, net income
percentage of sales);
- Breach of loan covenants or conditions;
- Deterioration of the borrower's competitive position; and
- Deterioration in the value of collateral;
The estimated period between a loss occurring and its identification is determined by management for
each identified portfolio. In general, the periods used vary between 6 and 12 months.

2014.
Contd.
(j) Impairment of Financial Assets - Contd.
(i) Assets Carried at Amortised Cost

The Company first assesses whether objective evidence of impairment exists individually for financial
assets that are individually significant, and individually or collectively for financial assets that are not
individually significant. If the Company determines that no objective evidence of impairment exists for
an individually assessed financial asset, whether significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics and collectively assesses them for impairment.
Assets that are individually assessed for impairment and for which an impairment loss is or continues to
be recognised are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has
been incurred, the amount of the loss is measured as the difference between the asset's carrying
amount and the present value of estimated future cash flows (excluding future credit losses that have
not been incurred) discounted at the financial instrument's original effective interest rate. The carrying
amount of the asset is reduced through the use of an allowance account and the amount of the loss is
recognised in the income statement account. If a loan or held-to-maturity asset has a variable interest
rate, the discount rate for measuring any impairment loss is the current effective interest rate
determined under the contract. As a practical expedient, the Company may measure impairment on the
basis of an instrument's fair value using an observable market price.
The calculation of the present value of the estimated future cash flows of a collateralised financial asset
reflects the cash flows that may result from foreclosure less costs for obtaining and selling the collateral,
whether or not foreclosure is probable.
For the purposes of a collective evaluation of impairment, financial assets are grouped on the basis of
similar credit risk characteristics (i.e. on the basis of the Company's grading process that considers
asset type, industry, geographical location, collateral type, past-due status and other relevant factors).
Those characteristics are relevant to the estimation of future cash flows for groups of such assets by
being indicative of the debtors' ability to pay all amounts due according to the contractual terms of the
assets being evaluated.
Future cash flows in a group of financial assets that are collectively evaluated for impairment are
estimated on the basis of the contractual cash flows of the assets in the group and historical loss
experience for assets with credit risk characteristics similar to those in the group. Historical loss
experience is adjusted on the basis of current observable data to reflect the effects of current conditions
that did not affect the period on which the historical loss experience is based and to remove the effects of
conditions in the historical period that do not exist currently.
When a loan is uncollectible, it is written off against the related provision for loan impairment. Such
loans are written off after all the necessary procedures have been completed and the amount of the loss
has been determined. Subsequent recoveries of amounts previously written off decrease the amount of
the provision for loan impairment in the income statement.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised (such as an improvement
in the debtor's credit rating), the previously recognised impairment loss is reversed by adjusting the
allowance account. The amount of the reversal is recognised in the income statements.

2014.
Contd.
(j) Impairment of Financial Assets - Contd.
(ii) Assets Carried at Fair Value

In the case of equity investments classified as available for sale, a significant or prolonged decline in the
fair value of the security below its cost is considered in determining whether the assets are impaired. If
any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the
difference between the acquisition cost and the current fair value, less any impairment loss on that
financial asset previously recognised in profit or loss - is removed from equity and recognised in the
income statement account. Impairment losses recognised in the income statement account on equity
instruments are not reversed through the income statement account. If, in a subsequent period, the fair
value of a debt instrument classified as available-for-sale increases and the increase can be objectively
related to an event occurring after the impairment loss was recognised in profit or loss, the impairment
loss is reversed through the income statement.
(iii) Renegotiated Loans

Loans that are either subject to collective impairment assessment or individually significant and whose
terms have been renegotiated are no longer considered to be past due but are treated as new loans. In
subsequent years, the renegotiated terms apply in determining whether the asset is considered to be
past due.
(k) Accounting for Leases
Leases of property, plant and equipment where the Company assumes substantially all the risks and
rewards of ownership are classified as finance leases. Assets acquired under finance leases are
capitalised at the inception of the lease at the lower of their fair value and the estimated present value of
the underlying lease payments. Each lease payment is allocated between the liability and finance
charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental
obligations, net of finance charges, are included in non-current liabilities. The interest element of the
finance charge is charged to the income statement account over the lease period. Property, plant and
equipment acquired under finance leases is depreciated over the estimated useful life of the asset.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases are charged to the income
statement account on a straight-line basis over the period of the lease.
(l) Cash and Cash Equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short term
highly liquid investments with original maturities of three months or less.
(m) Employee Benefits
(i) Retirement Benefit Obligations

The Company operates a defined contribution retirement benefit scheme for its employees. The
Company and all its employees also contribute to the National Social Security Fund, which is a defined
contribution scheme. A defined contribution plan is a retirement benefit plan under which the Company
pays fixed contributions into a separate entity. The Company has no legal or constructive obligations to
pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits
relating to employee service in the current and prior periods.

2014.
Contd.
(m) Employee Benefits - Contd.
(i) Retirement Benefit Obligations - Contd.

The assets of all schemes are held in separate trustee administered funds, which are funded by
contributions from both the company and employees.
The Company's contributions to the defined contribution schemes are charged to the income statement
account in the year in which they fall due.
(ii) Other Entitlements

The estimated monetary liability for employees' accrued annual leave entitlement at the balance sheet
date is recognised as an expense accrual.
(n) Current and Deferred Income Tax
Income tax expense is the aggregate of the charge to the income statement account in respect of
current income tax and deferred income tax. Tax is recognised in the income statement account unless it
relates to items recognised directly in equity, in which case it is also recognised directly in equity.
Current income tax is the amount of income tax payable on the taxable profit for the year determined in
accordance with the Internal Revenue Act 2000 (Act 592).
Deferred income tax is recognised using the liability method, on all temporary differences arising
between the tax bases of assets and liabilities and their carrying values for financial reporting purposes.
However, the deferred income tax is not accounted for if it arises from the initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates and
laws that have been enacted or substantively enacted at the balance sheet date and are expected to
apply when the related deferred income tax liability is settled.
(o) Dividends
Dividends payable to the company's shareholders are charged to equity in the period in which they are
declared.
(p) Stated Capital
Ordinary shares are classified as equity where the company has no obligation to deliver cash or other
assets to shareholders. All shares are issued at no par value.
(q) Cash and Cash Equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise cash in hand,
balances with banks with less than three months' maturity from the date of acquisition, including: cash,
treasury bills and other eligible bills, loans and advances to banks, amounts due from other banks and
short-term government securities less bank overdrafts.

2014.
Contd.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING
POLICIES
The Company makes estimates and assumptions concerning the future. Estimates and judgements
are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. The resulting
accounting estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are addressed below.
(a) Estimate of future benefit payments and premiums arising from long-term insurance
contracts
The determination of the liabilities under long-term insurance contracts is dependent on estimates
made by the Company. Estimates are made as to the expected number of deaths for each of the years in
which the Company. is exposed to risk. The Company bases these estimates on standard industry and
national mortality tables that reflect recent historical mortality experience, adjusted where appropriate
to reflect the Company own experience. For contracts that insure the risk of longevity, appropriate but
not excessively prudent allowance is made for expected mortality improvements. The estimated
number of deaths determines the value of the benefit payments and the value of the valuation
premiums. The main source of uncertainty is that epidemics such as AIDS, and wide-ranging lifestyle
changes, such as in eating, smoking and exercise habits, which could result in future mortality being
significantly worse than in the past for the age groups in which the Company has significant exposure to
mortality risk. However, continuing improvements in medical care and social conditions could result in
improvements in longevity in excess of those allowed for in the estimates used to determine the liability
for contracts where the Company is exposed to longevity risk.
(b) Impairment of Available for-Sale Equity Investments

The Company determines that an available-for-sale equity investment is impaired when there has been
a significant or prolonged decline in its fair value below its cost. This determination of what is significant
or prolonged requires judgement. In making this judgement, the Company evaluates among other
factors, the normal volatility in share price. In addition, impairment may be appropriate when there is
evidence of deterioration in the financial health of the investee, industry and sector performance,
changes in technology, and operational and financing cash flows.
The carrying amounts of available for sale investments at end of the current and previous year are set
out in note 15.
(c) IFRS 13 Fair Value Measurement

The fair value of investments is measured as per IFRS 13 : Fair Value Measurement. The fair value of
other financial assets and liabilities, namely contributions receivable (employees), accrued interest,
accounts payable and accrued expenses, approximates their carrying value due to the short-term
nature of these instruments.
Financial instruments measured at fair value are classified according to a fair value hierarchy that
reflects the importance of the data used to perform each valuation. The fair value hierarchy is made up
of the following levels:
Level 1 - valuation based on quoted prices (unadjusted) in active markets for identical assets or
liabilities;
Level 2 - valuation techniques based on inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly or indirectly;

2014.
Contd.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING
POLICIES - Contd.
(c) IFRS 13 Fair Value Measurement - Contd.
Level 3 - valuation techniques using inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The fair value hierarchy requires the use of observable data on the market each time such data exists. A
financial instrument is classified at the lowest level of hierarchy for which significant input has been
considered in measuring fair value.
4. CHANGES IN ACCOUNTING POLICY AND DISCLOSURES
New and Amended Standards and Interpretations
The accounting policies adopted are consistent with those of the previous financial year, except for the
following new and amended IFRS and IFRIC interpretations effective as of 1 January 2011:
• IAS 24 Related Party Disclosures (amendment) effective 1 January 2011

• IAS 32 Financial Instruments: Presentation (amendment) effective 1 February 2010.
• IFRIC 14 Prepayments of a Minimum Funding Requirement (amendment) effective 1 January
2011.
• Improvements to IFRSs (May 2010)."
The adoption of the standards or interpretations is described below:
IAS 24 Related Party Transactions (Amendment)
The IASB issued an amendment to IAS 24 that clarifies the definitions of a related party. The new
definitions emphasise a symmetrical view of related party relationships and clarifies the circumstances
in which persons and key management personnel affect related party relationships of an entity. In
addition, the amendment introduces an exemption from the general related party disclosure
requirements for transactions with government and entities that are controlled, jointly controlled or
significantly influenced by the same government as the reporting entity. The adoption of the amendment
did not have any impact on the financial position or performance of the company.
IAS 32 Financial Instruments: Presentation (Amendment)
The IASB issued an amendment that alters the definition of a financial liability in IAS 32 to enable entities
to classify rights issues and certain options or warrants as equity instruments. The amendment is
applicable if the rights are given pro rata to all of the existing owners of the same class of an entity’s non-
derivative equity instruments, to acquire a fixed number of the entity’s own equity instruments for a fixed
amount in any currency. The amendment has had no effect on the financial position or performance of
the company because the company does not have these types of instruments.
IFRIC 14 Prepayments of a Minimum Funding Requirement (Amendment)
The amendment removes an unintended consequence when an entity is subject to minimum funding
requirements and makes an early payment of contributions to cover such requirements. The
amendment permits a prepayment of future service cost by the entity to be recognised as a pension
asset. The company is not subject to minimum funding requirements, therefore the amendment of the
interpretation has no effect on the financial position nor performance of the company.
2014.
Contd.
4. CHANGES IN ACCOUNTING POLICY AND DISCLOSURES - Contd.
Improvements to IFRSs
In May 2010, the IASB issued its third omnibus of amendments to its standards, primarily with a view to
removing inconsistencies and clarifying wording. There are separate transitional provisions for each
standard.
• The adoption of the following amendments resulted in changes to accounting policies, but no impact on
the financial position of the company.
• IFRS 7 Financial Instruments — Disclosures: The amendment was intended to simplify the disclosures
provided by reducing the volume of disclosures around collateral held and improving disclosures by
requiring qualitative information to put the quantitative information in context.
• IAS 1 Presentation of Financial Statements: The amendment clarifies that an entity may present an
analysis of each component of other comprehensive income either in the statement of changes in equity
or in the notes to the financial statements.
• Other amendments resulting from Improvements to IFRSs to the following standards did not have any
impact on the accounting policies, financial position or performance of the company:
• IFRS 3 Business Combinations (Contingent consideration arising from business combination prior to
adoption of IFRS 3 (as revised in 2008)
• IFRS 3 Business Combinations (Un-replaced and voluntarily replaced share-based payment awards)
• IAS 27 Consolidated and Separate Financial Statements
• IAS 34 Interim Financial Statements
• The following interpretation and amendments to interpretations did not have any impact on the
accounting policies, financial position or performance of the company:
• IFRIC 13 Customer Loyalty Programmes (determining the fair value of award credits)
• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
• IFRS 3 Business Combinations: The measurement options available for non-controlling interest (NCI)
were amended. Only components of NCI that constitute a present ownership interest that entitles their
holder to a proportionate share of the entity’s net assets in the event of liquidation should be measured
at either fair value or at the present ownership instruments’ proportionate share of the acquiree’s
identifiable net assets. All other components are to be measured at their acquisition date fair value.
• The amendments to IFRS 3 are effective for annual periods beginning on or after 1 July 2011. The
company, however, adopted these as of 1 January 2011 and changed its accounting policy accordingly
as the amendment was issued to eliminate unintended consequences that may arise from the adoption
of IFRS 3.

2014.
Contd.
5. MANAGEMENT OF INSURANCE AND FINANCIAL RISK
The Company's activities expose it to a variety of risks, including insurance risk, financial risk, credit
risk, and the effects of changes in debt and equity market prices, foreign currency exchange rates and
interest rates. The Company's overall risk management programme focuses on the identification and
management of risks and seeks to minimise potential adverse effects on its financial performance, by
use of underwriting guidelines and capacity limits, reinsurance planning, credit policy governing the
acceptance of clients, and defined criteria for the approval of intermediaries and reinsurers.
Investment policies are in place which help manage liquidity, and seek to maximise return within an
acceptable level of interest rate risk.
INSURANCE RISK
The risk under any one insurance contract is the possibility that the insured event occurs and the
uncertainty of the amount of the resulting claim. By the very nature of an insurance contract, this risk is
random and therefore unpredictable.
For a portfolio of insurance contracts where the theory of probability is applied to pricing and
provisioning, the principal risk that the Company faces under its insurance contracts is that the actual
claims and benefit payments exceed the carrying amount of the insurance liabilities. This could occur
because the frequency or severity of claims and benefits are greater than estimated. Insurance events
are random and the actual number and amount of claims and benefits will vary from year to year from
the level established using statistical techniques.
Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative
variability about the expected outcome will be. In addition, a more diversified portfolio is less likely to
be affected across the board by a change in any subset of the portfolio. The Company has developed
its insurance underwriting strategy to diversify the type of insurance risks accepted and within each of
these categories to achieve a sufficiently large population of risks to reduce the variability of the
expected outcome.
Factors that aggravate insurance risk include lack of risk diversification in terms of type and amount of
risk, geographical location and type of industry covered.
(a) Frequency and Severity of Claims

The frequency and severity of claims can be affected by several factors. Estimated inflation is also a
significant factor due to the long period typically required to settle these cases. The company
manages these risks through its underwriting strategy, adequate reinsurance arrangements and
proactive claims handling.
The underwriting strategy attempts to ensure that the underwritten risks are well diversified in terms of
type and amount of risk, and industry. Underwriting limits are in place to enforce appropriate risk
selection criteria. For example, the company has the right not to renew individual policies, it can
impose deductibles and it has the right to reject the payment of a fraudulent claim. Insurance contracts
also entitle the company to pursue third parties for payment of some or all costs (for example,
subrogation).

2014.
Contd.
5. MANAGEMENT OF INSURANCE AND FINANCIAL RISK - Contd.
Insurance Risk Contd.
(b) Sources of uncertainty in the estimation of future claim payments

Claims on insurance contracts are payable on a claims-occurrence basis. The company is liable for all
insured events that occurred during the term of the contract, even if the loss is discovered after the end
of the contract term. As a result, liability claims are settled over a long period of time, and a larger
element of the claims provision relates to incurred but not reported claims (IBNR). There are several
variables that affect the amount and timing of cash flows from these contracts. These mainly relate to
the inherent risks of the business activities carried out by individual contract holders and the risk
management procedures they adopted. The compensation paid on these contracts is the monetary
awards granted for damages and bodily injury suffered by the insured.
The estimated cost of claims includes direct expenses to be incurred in settling claims, net of the
expected subrogation value and other recoveries. The company takes all reasonable steps to ensure
that it has appropriate information regarding its claims exposures. However, given the uncertainty in
establishing claims provisions, it is likely that the final outcome will prove to be different from the original
liability established. The liability for these contracts comprises a provision for IBNR, a provision for
reported claims not yet paid and a provision for unexpired risks at the end of the reporting period. The
amount of claims is particularly sensitive to the level of court awards and to the development of legal
precedent on matters of contract and tort. General insurance contracts are also subject to the
emergence of new types of latent claims, but no allowance is included for this at the end of the reporting
period.
In calculating the estimated cost of unpaid claims (both reported and not), the company estimation
techniques are a combination of loss-ratio-based estimates (where the loss ratio is defined as the ratio
between the ultimate cost of insurance claims and insurance premiums earned in a particular financial
year in relation to such claims) and an estimate based upon actual claims experience using
predetermined formulae where greater weight is given to actual claims experience as time passes.
The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the
cost of settling claims already notified to the Group, where information about the claim event is
available. IBNR claims may not be apparent to the insured until many years after the event that gave
rise to the claims. For casualty contracts, the IBNR proportion of the total liability is high and will typically
display greater variations between initial estimates and final outcomes because of the greater degree of
difficulty of estimating these liabilities.
In estimating the liability for the cost of reported claims not yet paid, the company considers any
information available from loss adjusters and information on the cost of settling claims with similar
characteristics in previous periods. Large claims are assessed on a case-by-case basis or projected
separately in order to allow for the possible distortive effect of their development and incidence on the
rest of the portfolio.
Where possible, the company adopts multiple techniques to estimate the required level of provisions.
This provides a greater understanding of the trends inherent in the experience being projected. The
projections given by the various methodologies also assist in estimating the range of possible
outcomes. The most appropriate estimation technique is selected taking into account the
characteristics of the business class and the extent of the development of each accident year.

2014.
Contd.
Insurance Rick - Contd.
Financial Risk
The company's activities expose it to a variety of financial risks: Market risk (including currency risk,
interest rate risk, and price risk), credit risk and liquidity risk. The company's overall risk management
programme focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on its financial performance, but the company does not hedge any risks.
The Company manages financial risks via the Board Investment Committee (BIC) which is mandated
to achieve long-term investment returns in excess of the Company's obligations under insurance and
investment contracts. The principal technique of the Company's BIC is to match assets to the liabilities
arising from insurance and investment contracts by reference to the type of benefits payable to
contract holders. For each distinct category of business, a separate portfolio of assets is maintained.
Market Risk
(i) Foreign Exchange Risk
The Company is not exposed to significant foreign exchange risk arising from various currency
exposures. Foreign exchange risk arises from future commercial transactions, recognised assets
and liabilities.
(ii) Price Risk

The Company is exposed to equity securities price risk because of investments in quoted and
unquoted shares classified either as available-for-sale or at fair value through profit or loss. To manage
its price risk arising from investments in equity and debt securities, the Company diversifies its
portfolio. Diversification of the portfolio is done in accordance with limits set by the Company. All
quoted shares held by the Company are traded on the Ghana Stock Exchange (GSE).
(iii) Interest Rate Risk

Fixed interest rate financial instruments carried at fair value expose the Company to fair value interest
rate risk. Variable interest rate financial instruments expose the Company to cash flow interest rate
risk.
The Company's fixed interest rate financial instruments are government securities, deposits with
financial institutions and borrowings. The Company does not hold variable interest rate financial
instruments.
Credit Risk
The Company has exposure to credit risk, which is the risk that a counterparty will be unable to pay
amounts in full when due. Key areas where the Company is exposed to credit risk are:
- receivables arising out of direct insurance arrangements;

- receivables arising out of reinsurance arrangements; and
- reinsurers' share of insurance liabilities.
Other areas where credit risk arises include cash and cash equivalents, corporate bonds and deposits
with banks and other receivables.
The Company has no significant concentrations of credit risk. The Company structures the levels of
credit risk it accepts by placing limits on its exposure to a single counterparty, or groups of
counterparty, and to geographical and industry segments. Such risks are subject to an annual or more
frequent review. Limits on the level of credit risk by category and territory are approved quarterly by the
Board of Directors.
2014.
Contd.
Insurance Risk - Contd.
Reinsurance is used to manage insurance risk. This does not, however, discharge the Company's
liability as primary insurer. If a reinsurer fails to pay a claim for any reason, the Company remains liable
for the payment to the policyholder. The creditworthiness of reinsurers is considered on an annual basis
by reviewing their financial strength prior to finalisation of any contract.
(c) Liquidity Risk
Liquidity risk is the risk that the Company is unable to meet its payment obligations associated with its
financial liabilities as they fall due and to replace funds when they are withdrawn.
The Company is exposed to daily calls on its available cash for claims settlement, withdrawals from
deposit administration schemes and administration expenses. The Company does not maintain cash
resources to meet all of these needs as experience shows that a minimum level of reinvestment funds
from maturing policies can be predicted with a high level of certainty. The Board sets limits on the
minimum level of bank overdraft facilities that should be in place to cover expenditure at unexpected
levels of demand.
(d) Capital Management
The company's objectives when managing capital, which is a broader concept than the 'equity' on the
balance sheets, are:
- to comply with the capital requirements as set out in the Insurance Act 2006 (Act 724);
- to comply with regulatory solvency requirements as set out in the Insurance Act 2006 (Act 724).
- to safeguard the Company's ability to continue as a going concern, so that it can continue to provide
returns to shareholders and benefits for other stakeholders; and
- to provide an adequate return to shareholders by pricing insurance and investment contracts

commensurately with the level of risk.
The Insurance Act 2006 (Act 724) requires each insurance Company to hold the minimum level of paid
up capital to the equivalent of one million dollars ($ 1 million).
Capital adequacy and solvency margin are monitored regularly by management. The required
information is filed with the National Insurance Commission on a quarterly basis. During the year the
Company held the minimum paid up capital required as well as met the required solvency margins.

2014.
Contd.
Insurance Risk - Contd.
(d) Capital Management - Contd.
The Company's paid up Capital at the end of 2013 and 2012 is presented on Note 21. The table below
summarises the solvency margin of the Company at 31 December 2013 and comparative for 31
December 2012:
2014 2013
GH¢'000 GH¢'000
i) Total Assets 140,881 128,821

ii) Total Liabilities 81,726 72,094
iii) Net Assets 59,155 56,727

Solvency Margin = (Net assets / Total liabilities) 72% 79%
Insurance companies are required to have a financial solvency margin of 50% or the minimum capital
which ever is higher in order to be solvent. During those two years, the company complied with all of
the externally imposed capital requirements it is subject to.
(e) Fair Values of Financial Assets and Liabilities
The fair value of held-to-maturity investment securities at 31 December 2014 is estimated at GH¢ 38
million (2012: GH¢ 23.6 million). The fair values of the Company's financial assets and liabilities
approximate the respective carrying amounts, due to the generally short periods to contractual
repricing or maturity dates as set out above. Fair values are based on discounted cash flows using a
discount rate based upon the borrowing rate that the directors expect would be available to the
Company at the balance sheet date.

2014.
Contd.
6. NET INSURANCE PREMIUM REVENUE
The gross earned premium income of the Company can be analysed between the main
classes of business as shown below:
Premium Revenue Arising from Insurance Contracts Issued
2014 2013
GH¢'000 GH¢'000
Individual Life Assurance 23,326 19,956

Group Life Assurance 17,134 15,812
Micro Insurance 14,432 10,473
Deposit Administration / Pension Scheme 4,380 7,434
Bancassurance 382 282
59,654 53,957
Premium Revenue Ceded to Reinsurers
on Insurance Contracts Issued. (709) (247)
Net Insurance Premium Revenue 58,945 53,710
Individual Life Assurance

Universal Endowment Assurance 19,036 16,593
Ordinary Life Assurance 1,184 454
Temporary Assurance 5,218 4,498
25,438 21,545
Premium Refunds (2,112) (1,589)

23,326 19,956
2014 2013
7. INVESTMENT INCOME GH¢'000 GH¢'000
Interest Income 7,720 4,699

Rental Income 2,634 2,309
Dividend Income 18 19
Loans And Receivables Interest Income 257 267
Cash And Cash Equivalents Interest Income 314 177
10,943 7,471

2014.
Contd.
8. OTHER OPERATING INCOME

2014 2013
GH¢'000 GH¢'000
Fair Value Gains On Investment Property - 6,225

Documentation Fee 711 1,129
Miscellaneous Income 10 24
Exchange Gain 27 (5)
748 7,373
9. INSURANCE CLAIMS
2014 2013
GH¢'000 GH¢'000
Death Claims 3,979 1,655

Matured Claims 6,187 4,015
Temporary Assurance 1,443 966
Micro Insurance Matured Claims 7,676 6,456
Das Claims 6,313 4,160
Partial Withdrawal Option 10,152 6,115
Other Claims - -
35,750 23,367
10. OPERATING AND OTHER EXPENSES

2014 2013
GH¢'000 GH¢'000
Employee Benefits Expense 2,903 2,390

Administrative Expenses 4,136 3,091
Auditors' Remuneration 78 60
Directors Remuneration 837 619
Depreciation 897 494
Operating Lease Rentals 227 379
Actuarial Fees 29 26
Bad Debt Expense 42 13
Other Operational Expenses 3,532 4,042
12,681 11,114

2014.
Contd.
Employee Benefits Expense Include:

2014 2013
Retirement Benefit Costs: GH¢'000 GH¢'000
- Defined Contribution Scheme 89 70

- National Social Security Fund 220 168
Income Tax Expense

2014 2013
GH¢'000 GH¢'000
Deferred Income Tax 70 901

Current Income Tax - -
70 901
Year of Balance at Payment Charge Balance

Assessment 1 January for year 31 December
2012 31 (1) - 30
2013 30 (90) - (60)
2014 (60) (36) (96)

2014.
Contd.
12. PROPERTY, PLANT AND EQUIPMENT

At Revaluation At
Company
1 Jan Additions Surplus 31 Dec
GH¢'000 GH¢'000 GH¢'000 GH¢'000
Cost/valuation
Land & Buildings - Residential 686 - - 686

Motor Vehicle 1,394 1,335 2,729
Furniture & Fittings 589 126 715
Office Equipment 469 104 573
Computer Equipment 955 130 1,085
Leasehold Property 11 - 11
4,104 1,695 - 5,799
Comprising
Cost of Assets Revalued 686 686
Revaluation Surplus - - -
Cost of Assets not Revalued 3,418 1,695 5,113
4,104 1,695 - 5,799
At Charge for At
1 Jan the year 31 Dec
GH¢'000 GH¢'000 GH¢'000
Depreciation
Land & Buildings - Residential 58 21 78
Motor Vehicle 729 546 1,274
Furniture & Fittings 210 72 282
Office Equipment 383 115 498
Computer Equipment 941 144 1,085
Leasehold Property 3 1 4
2,324 897 3,221
Net Book Value

At 31 December 2014 2,578
At 31 December 2013 1,780
The land and buildings were revalued by Valuation & Appraisal Consult, Professional Valuers, at
open market values 12th November, 2013.

2014.
Contd.
13. INVESTMENT PROPERTY

2014 2013
GH¢'000 GH¢'000
Balance at 1 January 63,520 51,883

Additions 3,045 5,412
Disposals (6,539) -
Fair Value Gains/(Losses) - 6,225
Balance at 31 December 60,026 63,520
14. AVAILABLE-FOR-SALE EQUITY INVESTMENTS 2014 2013

GH¢'000 GH¢'000
Unlisted Securities:
Additions 1,293 2,661
Listed Securities:
Balance at 1 January 1,182 903
Fair Value Gains/(Losses) 109 279
Total Equity Securities - Available for Sale 16,898 15,496
15. DEBT SECURITIES 2014 2013

GH¢'000 GH¢'000
Treasury Bills and Bonds Maturing:
- Within 1 Year from Acquisition 35,564 16,147
Listed Bonds (HFC):
- Housing Bonds 6 6
- Real Estate Investment Trust (REIT) 48 48
- Unit Trust 13 13
Other Securities 576 7,479
36,208 23,694
Debt Securities are all Classified as Held to Maturity.

2014.
Contd.
16. LOANS AND OTHER RECEIVABLES 2014 2013

GH¢'000 GH¢'000
Loans and Receivables:
- Policy Loans 6,135 6,615
- Agents' Loans 85 73
- Micro Insurance Loans 615 258
- Deposits and Prepayments 380 381
- Staff Debtors 127 246
- Other Debtors 5,413 984
- Less Provision for Impairment of Loans and Other Receivables (128) (86)
Total Loans and Receivables 12,627 8,471
17. INSURANCE RECEIVABLES 2014 2013

GH¢'000 GH¢'000
Insurance Receivables:
- Due from Contract Holders 2,667 908
- Less Provision for Impairment of Receivables from Contract Holders - -
2,667 908
18. DEFERRED INCOME TAX

Deferred tax is calculated, in full, on all temporary differences under the liability method using a
principal tax rate of 25% (2013: 25%). The movement on the deferred income tax account is
as follows:
2014 2013
GH¢'000 GH¢'000
Income Statement (Credit)/Charge (Note 11) 70 901

2014. Notes to the Financial Statements -
Contd.
Deferred tax assets and liabilities, deferred tax charge/(credit) in the income statement, and deferred tax charge/(credit) in equity are attributable
to the following items:
COMPANY At Charged to Charged to At

1 Jan P&L equity 31 Dec
GH¢'000 GH¢'000 GH¢'000 GH¢'000
Year ended 31 December 2014
Property and Equipment:
- On Historical Cost Basis (312) 70 - (242)
- On Revaluation Surpluses 188 - - 188
Investment Property Fair Value Gains 3,755 - - 3,755
Net Deferred Tax lLiability 3,631 70 - 3,701
Year ended 31 December 2013

Property and Equipment:
- On Historical Cost Basis (279) (33) - (312)
- On Revaluation Surpluses 188 - - 188
Investment Property Fair Value Gains 2,821 934 - 3,755
Net Deferred Tax Liability 2,730 901 - 3,631

2014.
Contd.
19. BANK AND CASH BALANCES

2014 2013
GH¢’000 GH¢’000
Current Accounts 10,767 2,259

Cash in Hand 40 142
Overdrafts (930) (1,813)
Total 9,877 2,401
20. STATED CAPITAL
i) The number of shares authorized and issued are as follows:-
2014 2013
Ordinary:
Authorized (in Thousands) 2,000,000 2,000,000
Issued (in Thousands) 577,795 577,795
ii) Proceeds from the issued shares are as follows:-

2013
2014
GH¢’000
GH¢’000
Ordinary Shares:
Issued for Cash 2 2
Issued for Consideration Other Than Cash 7,995 7,995
Transfer from Income Surplus Account 3,493 3,493
Transfer from Capital Surplus Account 6,500 6,500
Total 17,989 17,989

2014.
Contd.
21. CONTINGENCY RESERVE
The Company sets aside on an annual basis, a contingency reserve of not less than one per cent of the total
premiums or twenty per cent of net profit whichever is greater as required by the Insurance Act (Act 724).
Movements in the contingency reserve are shown in the statement of changes in equity on pages 10 and
11.
22. OTHER RESERVES

Capital Surplus Available For
Reserve Sale Reserve Total
GH¢'000 GH¢'000 GH¢'000
Balance at 1 January 2014 762 961 1,724

Net Change in Fair Value of Available-for-Sale Financial Assets - 109 109
Revaluation Gains on Property, Plant and Equipment - - -
Balance at 31 December 2014 762 1,070 1,833
The capital surplus represents solely the surplus on the revaluation of buildings and freehold land
(included within property and equipment), net of deferred tax. The reserve is not distributable.
23. INCOME SURPLUS
The income surplus balance represents the amount available for dividend distribution to the
members of the Company, except for cumulative revaluation surplus on the Company's investment
properties of GH¢ 24,720,101 (2013: GH¢ 24,720,101) whose distribution is subject to restrictions
imposed by Companies Code 1963 (Act 179) and regulation to the Insurance Act 2006 (Act 724).
Movements in the income surplus account are shown in the statement of changes in equity on
pages 10 and 11
2014 2013
24. ACTUARY LIABILITY GH¢’000 GH¢’000
Transfer to Profit and Loss Account 10,429 17,026

2014.
Contd.
The Company determines its liabilities on Actuary liability contracts based on assumptions in relation
to future deaths, voluntary terminations, investment returns and administration expenses. A margin
for risk and uncertainty is added to these assumptions. The liabilities are determined on the advice of
the consulting actuary and actuarial valuations carried out on an annual basis.
VALUATION ASSUMPTIONS
The latest actuarial valuation of the Actuary liability was carried out as at 31 December 2014 by
Stallion Consultants Ltd, consulting actuaries, using the Gross Premium Reserve method for
traditional products. For Group Plans, the reserves were calculated by estimating the unearned
premium reserve as at valuation date, whilst the Account Values of the investment-linked policies as of
the valuation date was used to approximate the solvency reserve.
Significant valuation assumptions are summarised below. The assumptions changed in 2012.
(a) Mortality
The mortality rate are in accordance with the 1956 - 62 South African Ultimate Mortality Tables
published by the Actuarial Society of South Africa. This mortality rates were adjusted for the Ghanaian
market.
(b) Investment Returns
A weighted average rate of investment return is derived with reference to the portfolio that backs the
liabilities. For the current valuation, the rate of return was 15% (2013:15%)
(c) Expenses, Tax and Inflation
The current level of expenses is taken to be an appropriate expense base. An expense loading
corresponding to 15% of gross premium was used to cover future extra expenses. It has been
assumed that the current tax legislation and rates continue unaltered. However, future expenses will
increase at a rate of 10% per annum.

2014.
Contd.
26. TRADE AND OTHER PAYABLES

2014 2013
GH¢'000 GH¢' 000
Sundry Creditors 85 281

Accrued Expenses 2,170 2,815
Unearned Interest 293 278
Other Payables 0 7
2,548 3,380
27.
CASH AND CASH EQUIVALENTS
For the purposes of the cash flow statement, cash and cash equivalents comprise the
following:
2014 2013
GH¢'000 GH¢' 000
Cash and Bank Balances 9,877 588

Deposits with Financial Institutions 644 9,698
Treasury Bills Maturing within
1 Year of the Date of Acquisition 35,564 28,360
46,085 38,646
28. RELATED PARTY TRANSACTIONS
2014 2013
Directors' Remuneration GH¢'000 GH¢' 000
Directors' Fees 690 540

Other Remuneration 147 79
837 619

NETWORK BRANCHES
HEAD OFFICE
47 Kwame Nkrumah Avenue, Adabraka. P. O. Box GP 4251, Accra, Ghana. Tel: +233 (0) 302 246 140 / 246 147
Fax: +233 (0) 302 258 210 Website: www.glicogroup.com / Email: info@glicogroup.com
cad@glicogroup.com / Customerservices@glicogroup.com
GREATER ACCRA
• Accra Main Obestsebi Lamptey Circle, Ayikai Street, Spare Parts Lane, Abossey Okai. Tel: +233 (0) 302 670335
• Abeka Lapaz H/No. 137 Accra - Tema Motorway Extension, Abeka Lapaz, Accra. Tel: +233 (0)302 256 794
• Airport No. 3 Aviation Road, close to Ghana Home Loans Building, Airport. Tel: +233 (0)302 767 140
• East Legon 112 Freetown Avenue, Accra. Tel: +233 (0)302 974 770
• Burma Camp Old Commercial Bank Building Opp. the Post office Burma Camp, Accra. Tel: +233 (0)302 769 427
• Tema Koforidua Brothers Building Community 7, Near Datus Complex Sch, Tema. Tel: +233 (0)303 305 604
REGIONS
• Cape Coast Opposite Accra Station, Tantri P.O.Box CC87, Cape Coast. Tel: +233(0) 332 137 117
• Agona Swedru Adjacent ADB Opposite Happy Corner, Taxaco. Tel: +233(0) 302 975128
• Akim Oda Adjacent Oda Gov't Hospital, P.O.Box 960, Oda. Tel: +233(0) 342 922 877
• Kasoa 2nd Floor, EcoBank Premises Bawjiase Road, Kasoa. Tel: +233(0) 302 943 164
• Ho Adjacent to City Lights P. O. Box 460, HO. Tel: +233(0) 362 026707
• Koforidua Antartic Plaza P. O. Box 713, Koforidua. Tel: +233 (0) 342 023022
• Sefwi Asawinso Opposite Methodist Primary Sefwi Asawinso. Tel: +233(0) 3221 92240
• Kumasi Adum, Opposite Abura Printing Press P. O. Box 3517, Kumasi. Tel: +233 (0) 322 024465
• Obuasi Former Olam Building P. O. Box 1057, Obuasi. Tel: 032(0) 322 543025
• Sunyani Opposite Cocoa House P. O. Box 1607, Sunyani. Tel: +233(0) 352 023207
• Takoradi NIB House Kofi Annan Road, P. O. Box 1057,Takoradi. Tel: +233 (0) 312 023123
• Tamale J.Y. Pharmacy, Kalphonie Road P. O. Box 884, Tamale. Tel: +233(0) 372 022534
• Wa Radio Progress Road In the same building with Buk Electricals. Tel: +233 (0) 392 021441
• Bolgatanga SSNIT Building, Bolga-Navrongo Road. P. O. Box 618, Bolgatanga. Tel: +233(0) 382 024023

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Table of Contents

Financial Statements: Ethics - We abide by the rules and principles set by

24 Professionalism - We set high standards to remain

1 GLICO LIFE ANNUAL REPORT

Profile Of Directors - Contd.

Mr. Harry Owusu holds a BA

He received further training at the

Between August 2001 and April 2009,

Harry Owusu He has held senior management

He has also served on several boards

3 GLICO LIFE ANNUAL REPORT

Profile Of Directors - Contd.

He is a visionary entrepreneur and a

Mr. Achampong-Kyei serves as