MANAGEMENT ACCOUNTS FOR THE SIX MONTHS PERIOD … · 1,199,166 962,861 780,089 538,701 GROUP...

MANAGEMENT ACCOUNTS

FOR THE SIX MONTHS PERIOD ENDED

30TH JUNE, 2016

MUTUAL BENEFITS ASSURANCE PLC

CONSOLIDATED AND SEPERATE STATEMENT OF PROFIT OR LOSS

for the period ended 30 June 2016

in thousands of Nigerian Naira Notes JUNE 2016 ACTUAL JUNE 2015 ACTUAL JUNE 2016 ACTUAL JUNE 2015 ACTUAL

Gross premium written 1.1 6,373,861 10,087,131 3,942,284 8,311,041

Gross premium income 1 6,451,842 8,440,034 3,911,300 6,820,441

Premium ceded to reinsurers 1.2 (888,194) (2,562,337) (818,958) (2,478,549)

Net premium income 1.3 5,563,648 5,877,697 3,092,342 4,341,892

Fee and commission income 2 78,085 84,406 49,200 76,498

Net underwriting income 5,641,733 5,962,103 3,141,542 4,418,390

Net benefits and claims 3 1,455,824 1,612,718 611,040 1,176,238

Underwriting expenses 4 1,278,515 949,328 859,438 462,196

Net underwriting expenses 2,734,339 2,562,046 1,470,478 1,638,435

Underwriting profit 2,907,394 3,400,056 1,671,064 2,779,955

Profit/(loss) on investment contracts 5 321,122 - - -

Investment income 6 199,164 1,122,442 166,291 293,071

Net fair value gain on assets at FVTPL 7 (12,807) - (12,807) -

Other income 8 128,916 59,998 89,510 218,683

Impairment charge no longer required 9 - - - -

Impairment charges 10 - - - -

Employee benefit expenses 11 (783,124) (485,429) (387,882) (485,429)

Other management expenses 12 (2,386,738) (1,342,714) (1,417,770) (1,342,714)

Result of operating activities 373,927 2,754,353 108,406 1,463,566

Finance costs 13 (13,254) (6,476) - -

Finance incomes 14 133,192 - - -

Profit before income tax 493,865 2,747,877 108,406 1,463,566

Income tax expense 15 (106,235) (86,241) (32,519) (36,479)

Profit from continuing operation 387,630 2,661,636 75,887 1,427,087

Discountinued operations

Loss from discountined operation 19 - - - -

Profit for the year 387,630 2,661,636 75,887 1,427,087

Profit attributable to:

Owners of the parent 375,324 2,645,222 75,887 1,427,087

Non-controlling interests 54 12,306 16,414 - -

387,630 2,661,636 75,887 1,427,087

Earnings per share:

Basic and diluted (kobo) 21 5 33 1 18

GROUP COMPANY

1


CONSOLIDATED AND SEPERATE STATEMENT OF OTHER COMPREHENSIVE INCOME


in thousands of Nigerian Naira

JUNE 2016 ACTUAL JUNE 2015

ACTUAL

JUNE 2016 ACTUAL JUNE 2015 ACTUAL

Profit for the year 387,630 2,661,636 75,887 1,427,087

Other comprehensive income:

Items that are or may be reclassified to the profit or loss account:

Foreign currency translation differences 134,254 - - -

134,254 - - -

Total comprehensive income for the year 521,884 2,661,636 75,887 1,427,087

Profit attributable to:

Owners of the parent 509,578 2,645,224 75,887 1,427,089

Non-controlling interest 12,306 16,414 - -

521,884 2,661,638 75,887 1,427,089

GROUP

The accompanying summary of significant accouting policies and notes to the consolidated and separate financial statements are an integral part of these

consolidated and separate financial statements.

COMPANY

2


CONSOLIDATED AND SEPERATE STATEMENT OF FINANCIAL POSITION

As at 30 June 2016

JUNE 2016 ACTUAL DEC 2015 ACTUAL JUNE 2015 ACTUAL JUNE 2016 ACTUAL DEC 2015 ACTUAL JUNE 2015 ACTUAL

ASSETS

Cash and cash equivalents 18 14,253,119 14,016,107 15,635,504 4,166,707 4,111,237 7,970,499

Financial assets - - - -

Available-for-sale investment securities 19 1,114,036 1,114,036 1,312,412 1,000 1,000 -

Fair value through profit or loss 19 88,381 93,463 126,475 88,381 93,463 126,475

Loans and receivables 19 12,569,126 11,379,273 8,659,129 822,350 757,766 923,298

Assets pledged as collateral 20 107,406 115,297 129,468 107,406 115,297 129,468

Trade receivables 21 436,094 208,703 198,914 226,951 64,769 72,765

Reinsurance assets 22 1,140,137 1,414,601 3,038,947 889,590 1,224,190 2,692,505

Other receivables and prepayments 23 1,677,151 1,257,308 1,348,829 821,957 772,234 360,826

Deferred acquisition costs 24 244,160 322,609 346,995 235,239 261,798 295,686

Finance lease receivables 25 890,071 1,044,864 49,190 697,521 668,726 747,165

Inventories 26 1,461,741 1,533,163 860,452 - - -

Investment properties 27 8,806,665 8,731,665 5,167,885 56,000 56,000 47,000

Investments in subsidiaries 28 - - 257,943 4,000,000 2,000,000 2,010,000

Investment in associates 29 6,116 6,116 - - - -

Intangible assets 30 82,051 89,646 76,351 50,841 57,302 66,918

Property, plants and equipment 31 4,188,772 3,850,522 5,546,482 3,331,434 3,037,356 3,221,572

Statutory deposit 32 500,000 500,000 500,000 300,000 300,000 300,000

Deposit for shares 33 417,588 417,588 472,384 277,588 2,277,588 332,383

Deferred tax assets 43.1 - - 97,097 - - -

Goodwill 1,543 1,543 76,351 - - - Total assets 47,984,075 46,096,504 43,900,808 16,072,969 15,798,729 19,296,559

LIABILITIES

Insurance contract liabilities 34 6,302,840 6,087,972 7,592,667 4,003,105 3,971,167 5,358,713

Investment contract liabilities 35 25,002,562 24,217,581 22,325,145 - - -

Trade payables 36 183,706 92,464 97,970 82,124 67,685 -

Other liabilities 37 1,919,525 1,812,887 694,401 398,632 446,642 2,097,288

Deposit liabilities 38 416,969 509,867 485,281 - - -

Book overdraft 39 - - - - - -

Borrowings 40 4,473,370 4,073,095 4,038,120 4,473,370 4,073,095 4,038,120

Current income tax liabilities 41 381,863 521,385 410,579 117,646 317,932 153,356

Deferred tax liabilities 42.2 1,136,077 1,136,079 957,549 720,943 720,943 673,346

Total liabilities 39,816,910 38,451,330 36,601,712 9,795,820 9,597,467 12,320,823

EQUITY

Share Capital 43.2 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Treasury shares 44 (250) (250) (250) (250) (250) (250)

Foreign currency translation reserve 45 328,886 194,632 - - - -

Contingency reserve 46 2,429,519 2,292,040 1,914,996 2,097,798 1,981,910 1,914,996

Revaluation reserve 47 1,288,563 1,288,563 1,288,563 1,288,563 1,288,563 1,288,563

Accumulated retained losses 48 (8,872) (246,826) 79,373 (1,108,962) (1,068,961) (227,572)

Shareholders' fund 8,037,846 7,528,159 7,282,682 6,277,149 6,201,262 6,975,737

Total equity attributable to the:

Owners of the parent 8,037,846 7,528,159 7,282,682 6,277,149 6,201,262 6,975,737

Non-controlling interests in equity 129,319 117,013 16,414 - - -

Total equity 8,167,165 7,645,172 7,299,096 6,277,149 6,201,262 6,975,737

Total liabilities and equity 47,984,075 46,096,502 43,900,808 16,072,969 15,798,729 19,296,560

GROUP COMPANY

The accompanying summary of significant accouting policies and notes to the consolidated and separate financial statements are an integral part of these consolidated and separate financial statements.

3


CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

Group

Foreign

For the period 30 June 2016 Share Treasury translation Contingency Revaluation Accumulated Non -

capital shares reserve reserve reserve loss Total controlling Total

in thousands of Nigerian Naira Note Restated* Restated* interests equity

As at 1 January 2015 4,000,000 (250) 134,500 1,942,418 1,288,563 (893,909) 6,471,322 16,414 6,487,736

Total comprehensive income for the year:

Profit for the year as reported in the 2015 financial statements - - - - - 792,744 792,744 19,306 812,050

Other comprehensive income - - 60,132 - - - 60,132 - 60,132

Total comprehensive income for the year - - 60,132 - - 792,744 852,876 19,306 872,182

Transactions with owners of equity

Loss of control - - - - - 216,699 216,699 68,555 285,254

Changes in equity - - - - - (12,738) (12,738) 12,738 -

Transfer to contingency reserve - - - 349,622 - (349,622) - - -

Total transactions with owners of equity - - - 349,622 - (145,661) 203,961 81,293 285,254

As at 31 December 2015 4,000,000 (250) 194,632 2,292,040 1,288,563 (246,826) 7,528,159 117,013 7,645,172

4,000,000 (250) 194,632 2,292,040 1,288,563 (246,826) 7,528,159 117,013 7,645,172

Total comprehensive income for the year: -

Profit for the year - - - - - 375,324 375,324 12,306 387,630

Other comprehensive income - - 134,254 - - - 134,254 - 134,254

Total comprehensive income for the year - - 134,254 - - 375,324 509,578 12,306 521,884


Loss of control - - - - - - - - -

Changes in equity - - - - - - - - -

Transfer to contingency reserve - - - 128,192 - (128,192) - - -

Total transactions with owners of equity - - - 128,192 - (128,192) - - -

JUNE 2016 ACTUAL 4,000,000 (250) 328,886 2,420,232 1,288,563 306 8,037,737 129,319 8,167,056

4,000,000 (250) 328,886 2,429,519 1,288,563 (8,872) 8,037,846 129,319 8,167,165

Difference 9,178 0

Attributable to equityholders of the Company

The accompanying summary of significant accouting policies and notes to the consolidated and separate financial statements are an integral part of these consolidated and separate financial statements.

4


CONSOLIDATED AND SEPERATE STATEMENT OF CHANGES IN EQUITY

Company

For the period 30 June 2016 Share Treasury Contingency Revaluation Accumulated

capital shares reserve reserve loss Total


As at 1 January 2015 4,000,000 (250) 1,665,665 1,288,563 (1,405,329) 5,548,649


Profit for the year - - - - 652,613 652,613

Other comprehensive income - - - - - -

Total comprehensive income for the year - - - - 652,613 652,613


Transfer to contingency reserve - - 316,245 - (316,245) -

Total transactions with owners of equity - - 316,245 - (316,245) -

As at 31 December 2015 4,000,000 (250) 1,981,910 1,288,563 (1,068,961) 6,201,262

4,000,000 (250) 1,981,910 1,288,563 (1,068,961) 6,201,262


Profit for the year - - - - 75,887 75,887

Other comprehensive income - - - - - -

Total comprehensive income for the year - - - - 75,887 75,887


Transfer to contingency reserve - - 115,888 - (115,888) -

Total transactions with owners of equity - - 115,888 - (115,888) -

JUNE 2016 ACTUAL 4,000,000 (250) 2,097,798 1,288,563 (1,108,962) 6,277,149

4,000,000 (250) 2,097,798 1,288,563 (1,108,962) The accompanying summary of significant accouting policies and notes to the consolidated and separate financial statements are an integral part of these consolidated and separate financial

statements.

5


CONSOLIDATED AND SEPARATE STATEMENTS OF CASHFLOWS

As at 30 June 2016

in thousands of Nigerian Naira Notes 2016 2015 2016 2015

JUNE DECEMBER JUNE DECEMBERCash flows from operating activities

Cash received from insurance contract policy holders 6,067,121 14,427,121 3,700,753 10,471,416

Cash received from investment contract policy holders 35 12,862,465 12,862,465 - -

Cash withdrawal by investment contract policy holders 35 (13,199,960) (10,625,311) - -

Commission received 2 78,085 660,364 49,200 637,311 Reinsurance cost 22.2 (643,337) (5,839,258) (516,048) (5,727,648) Claims paid 3 (1,543,237) (3,036,515) (698,453) (1,467,272) Claims recovered from to reinsurers 3 87,413 624,074 87,413 375,482 Commission paid 24.1 (723,247) (1,131,658) (544,840) (801,799) Payments to employees 11 (783,124) (1,863,591) (387,882) (879,347) Other cash received 461,436 3,549,189 255,967 1,088,784 Cash paid to brokers, suppliers and other providers of services (1,543,749) (7,614,260) (1,174,796) (2,360,540)

Income tax paid (245,759) (211,598) (232,805) (131,862) Net cash flows from operating activities 874,107 1,801,022 538,509 1,204,525

Investing activities:

Purchase of investment properties (75,000) (666,250) - - Purchase of intangible assets 30 (9,632) (1,166) (9,632) -

Purchase of properties, plants and equipments 31 (559,329) (460,009) (475,054) (175,861) Proceeds from disposal of subsidiairies - 14,500 - 14,500 Proceeds from sale of properties, plant and equipment 6,763 108,326 1,650 23,168

Proceeds from sale of marketable securities - - - -

Proceeds from sale of investment properties - 525,000 - -

Additions to deposit for shares - (222,108) - (2,222,108)

Purchase of available-for-sale investments - (284,582) - - Net cash flows used in investing activities (637,198) (986,288) (483,036) (2,360,301)

Financing activities

Refunds from deposit for shares - - - - Repayments of borrowings - - - - Net cash flows (used in)/from financing activities - - - -

Net (decrease)/increase in cash and cash equivalents 236,909 814,734 55,473 (1,155,775)

Cash and cash equivalents as 1 January 14,016,107 13,201,373 4,111,237 5,267,012

Cash and cash equivalents at 31 December 18.2 14,253,016 14,016,107 4,166,710 4,111,237

14,253,119 14,016,107 4,166,707 4,111,237

-103 -0 3 -

GROUP COMPANY

The accompanying summary of significant accouting policies and notes to the consolidated and separate financial statements are an integral part of these

consolidated and separate financial statements.

6


NOTES TO THE FINANCIAL STATEMENTS - Continued


1 Gross premium income

in thousands of Nigerian Naira Notes JUNE 2016 ACTUAL JUNE 2015 ACTUAL

JUNE 2016

ACTUAL

JUNE 2015

ACTUAL

1.1 Gross premium written

Non-life 4,214,746 8,311,041 3,942,284 8,311,041

Life (Group life and individual life) 1,913,917 1,753,919 - -

Annuity 245,198 22,171 - -

34.2 6,373,861 10,087,131 3,942,284 8,311,041

6,294,512 9,834,054 3,862,935 8,311,041

Changes in unearned premium

Non-life (30,984) (1,490,600) (30,984) (1,490,600)

Life (Group life and individual life) 108,965 (156,497) - -

34.2 77,981 (1,647,097) (30,984) (1,490,600)

Gross premium income 6,451,842 8,440,034 3,911,300 6,820,441

6,372,493 8,273,154 3,831,951 6,820,442

1.2 Premiums ceded to reinsurers

Outward premium - Non life 516,048 367,168 516,048 367,168

Outward premium - life 69,236 83,788 - -

Changes in prepaid re-insurance 302,910 2,111,381 302,910 2,111,381

888,194 2,562,337 818,958 2,478,549

(888,194) (2,518,091) (818,958) (2,478,549)

1.3 Net premium income 5,484,300 5,877,697 3,012,993 4,341,892

5,484,299 5,755,063 3,012,993 4,341,893

2 Fee and commission income

Commission received from reinsurance 73,598 84,406 44,713 76,498

Commission received from co insurance 4,487 - 4,487 -

78,085 84,406 49,200 76,498

78,085 232,063 49,200 224,154

3 Net benefits and claims

Claims paid 34.1 1,543,237 1,765,648 698,453 1,306,531

Change in outstanding claims - - - -

Claims recoveries (87,413) (152,930) (87,413) (130,293)

Change in outstanding claims - Reinsurers 22.1 - - - -

1,455,824 1,612,718 611,040 1,176,238

1,455,824 1,472,794 611,041 976,238

4 Underwriting expenses

Amortisation of deferred acquisition costs 24.1 801,696 463,396 571,399 285,975

Maintenance costs 4.1 476,819 485,932 288,039 176,221

1,278,515 949,328 859,438 462,196

1,199,166 962,861 780,089 538,701

GROUP COMPANY

7




4.1 Maintenance costs

in thousands of Nigerian Naira Notes

JUNE 2016 ACTUAL JUNE 2015 ACTUAL JUNE 2016

ACTUAL

JUNE 2015

ACTUAL

Business acqusition cost 208,690 175,871 208,690 175,871

Administrative charges-Group Life 6,341 9,202 - -

Agency allowance 52,512 43,711 - -

Agency training 13,841 32,838 - -

Superintending and surveyors fees - 350 - 350

Group life actuary valuation report fee - - - -

Stamp duty expenses 1,237 3,481 - -

Agency unit manager allowance 65,201 87,719 - -

Business promotion expenses - 550 - -

Value added tax 25,394 23,640 - -

Underwriting medical expenses 2,022 3,139 - -

Marketing expenses 22,231 105,431 - -

397,469 485,932 208,690 176,221

397,469 485,932 208,690 176,221

5 Profit/(loss) on investment contracts

Interest income 1,417,546 - - -

Surrender fee 357,422 - - -

- - - - Guaranteed interest (1,023,636) - - -

Acquisition cost on investment policies (430,210) - - -

321,122 - - -

6 Investment income

Interest income on loans and advances 6.1 (293,413) 829,671 - 300

Dividend income 317 333 317 333

Interest income on fixed term deposit 341,491 238,172 119,692 238,172

Interest income on statutory deposit 25,577 - 15,346 -

Interest income on lease 17,340 21,651 17,340 21,651

Interest from current accounts with banks 2,090 56 314 56

Interest income from treasury bills 117,046 26,594 7,512 26,594

Rental income 47,395 5,965 5,770 5,965

Reclassification of investment contract

income 5

- - - -

199,164 1,122,442 166,291 293,071

199,163 1,513,130 166,291 288,633

GROUP COMPANY

8




6.1 Interest income on loans and advances

Loan to Prime Exploration 527,540 - - -

Loan to Mutual Homes and Properties - - - -

Loan to staff (820,953) 829,671 - 300

(293,413) 829,671 - 300

7 Net fair value gain on assets at FVTPL



ACTUAL

JUNE 2015

ACTUAL

Fair value (loss)/gain on financial assets

through profit or loss

(12,807) - (12,807) -

Fair value (loss)/gain on pledged assets - - - -

Fair value gain in investment property - - - -

(12,807) - (12,807) -

(12,807) 6,025 (12,807) 6,025

8 Other income

Profit on sale of property and equipment 3,816 4,781 1,650 4,781

Bank charges income 335 - - -

Net income from sale of properties 73 20,578 - -

Gain on disposal of PPE 114 - - -

Micro finance fees and commission 10,500 - - -

Default charges 9,194 - - -

Commission on turnover 3,592 - - -

Others 13,417 7,401 - -

Insurance claim received 1,251 116 1,251 116

Release of expired deposit premiums - - - 109,341

Release of excess liability - - - 85,529

Sundry income 50,453 11,577 50,405 11,577

Income from logistics activities ?? - 4,876 - -

Revenue from real estate operations - - - -

Foreign exchange gain ?? 36,171 10,669 36,204 7,339

Trucks and special operation - - - -

128,916 59,998 89,510 218,683

128,915 69,177 89,510 23,813

GROUP COMPANY

9




9 Impairment charge no longer required



ACTUAL

JUNE 2015

ACTUAL

Trade receivables 9.1 - - - -

Finance lease 25 - - - -

Investment in subsidiaries - - - -

Deposit for shares - - - -

Other receivables 23.4 - - - -

- - - -

- 7,973 - 7,973

9.1

10 Impairment charges

Loans and advances 19.3.1 - - - -

Trade receivables 21 - - - -

Finance lease receivables 25 - - - -

- - - -

- - - -

11 Employee benefit expenses

Wages and salaries 724,279 445,390 346,582 445,390

Defined contribution pension costs 58,845 40,039 41,300 40,039

783,124 485,429 387,882 485,429

(783,124) (769,734) (387,882) (476,546)

GROUP COMPANY

This represents amount received on premium income that had been impaired in the previous year.

In accordance with Pension Reform Act 2015, the Group contributes 10% each of the qualifying staff's salary (Basic,

transport, and housing), whilst the employees contribute 8%. The contributions are recognised as employee benefits

expense as and when due.

10




12 Other management expenses



ACTUAL

JUNE 2015

ACTUAL

Depreciation of property, plants and

equipments

31 285,843 144,122 180,975 144,122

Amortisation of intangible assets 30 17,227 - 16,093 -

Auditors' remunerations 17,243 3,750 7,963 3,750

Legal and consultancy fees 183,375 87,356 176,664 87,356

Directors fee and allowance 237,345 93,353 198,044 93,353

Medical expenses 24,968 38,791 6,425 38,791

Donations 19,784 29,379 3,339 29,379

Subscriptions 13,160 11,960 10,748 11,960

Rents and Rates 73,173 7,491 10,058 7,491

Computer repairs and maintenence 9,126 6,205 - 6,205

Repairs and maintainance 65,147 30,707 26,637 30,707

Utilities 14,229 5,828 10,794 5,828

Transport and travelling 93,308 63,368 41,093 63,368

Public relations and advertising 59,882 5,916 38,152 5,916

Motor vehicle running expenses 34,373 - 18,867 -

Computer repairs and maintenence - - - -

Business development costs - 2,812 - 2,812

Business acquisition costs 25,031 68,096 19,475 68,096

Training and recruitment 121,315 50,415 115,361 50,415

Insurance 21,574 12,472 15,326 12,472

Bank charges 63,933 38,848 28,129 38,848

Development costs - - - -

Training and forum for marketers 243,463 - - -

Vehicle registration expenses ?? - 6,326 - 6,326

Back duty assessment ?? - - - -

Insurance supervisory fee 92,301 - 30,880 -

Board meeting expenses - - - -

Conference and seminar expenses 29,818 806 29,818 806

Fines and penalties - - - -

Office general expenses - 15,974 - 15,974

Newspapers and periodicals 452 1,231 131 1,231

Printing and stationery 18,249 9,949 4,933 9,949

Telecommunication expenses 31,533 18,509 16,155 18,509

Security expenses 8,473 5,546 4,610 5,546

Other expenses 59,185 12,591 6,825 12,591

Head office expenses 60,000 1,532 - 1,532

Bad debt written off - 7,350 - 7,350

Exchange loss on foreign loan 400,275 483,355 400,275 483,355

Loss on disposal of property, plant & equipment 2,709 - - -

Investment related expenses 60,244 - - -

Operating lease expenses - 76,505 - 76,505

Group expenses cross charge ?? - 2,172 - 2,172

2,386,738 1,342,714 1,417,770 1,342,714

GROUP COMPANY

11




13 Finance costs



ACTUAL

JUNE 2015

ACTUAL

Interest on loans and overdraft - - - -

Interest charge on deposits 12,475 6,476 - -

Other charges 779 - - -

13,254 6,476 - -

(13,254) (3,457) - -

14 Finance income

Interest income on Micro loans 87,436 - - -

Interest income on SME loans 25,527 - - -

Interest on Eazy cash product 6 - - -

Interest income on overdraft 16,035 - - -

Interest income on treasury bills 1,314 - - -

Income from funds placement 2,874 - - -

133,192 - - -

133,192 - 15 Income income tax expense

15.1 Current income tax charge

Company income tax:

General business 106,235 36,479 32,519 36,479

Life business - - - -

Mutual Benefits Homes and Property Limited - - - -

Mutual Model Transport Limited - - - -

Mutual Benefits Mircofinance Bank Limited - - - -

106,235 36,479 32,519 36,479

Education tax:

General business - - - -


- - - -

Information technology tax:



Mutual Benefits Mircofinance Bank Limited - -

- - - -

Minimum tax:

Charks investment Limited - - - -


Mutual Benefits Life Assurance Limited - 49,762 - -

- 49,762 - -

(Over)/under provision in taxation:

Under provision - - - -

Over provision - - - -

- - - -

Total current incone tax expenses for the

year 41 106,235 86,241 32,519 36,479

GROUP COMPANY

12




16 Income income tax expense - continued

Movement in deferred tax liabilities and assets



ACTUAL

JUNE 2015

ACTUAL

Deferred tax liability:



Mutual Benefits Homes and Properties Limited - - - -


Intra-group gain on investment property - - - -

- - - -

(2) - - -

Deferred tax assets:


Charks investment Limited - - - -

- - - -

Total income tax expense 106,235 86,241 32,519 36,479

GROUP COMPANY

13




17 Earnings per share

17.1 Earnings per share - Basic

in thousands of Nigerian Naira Notes JUNE 2016 ACTUAL JUNE 2015 ACTUAL

JUNE 2016

ACTUAL

JUNE 2015

ACTUAL

Profit attributable to equity holders 387,630 2,661,636 75,887 1,427,087

Weighted average number of ordinary

shares for basic earnings per share17.2 7,999,500 7,999,500 7,999,500 7,999,500

Basic earnings per ordinary share (kobo) 5 33 1 18

17.2

Weighted average number of ordinary

shares - basic

Issued ordinary shares at 1 January 8,000,000 8,000,000 8,000,000 8,000,000

Effect of treasury shares held 500 500 500 500

As at 31 December 7,999,500 7,999,500 7,999,500 7,999,500

17.3 Earnings per share- Diluted

The company has no potential dilutive ordinary shares during the year (2015: Nil). Hence, the weighted average number

of ordinary shares for basic and dilutive is the same so also the Dilutive and Basic earnings per share.

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the

weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the

Company and held as treasury shares.

GROUP COMPANY

The calculation of diluted earnings per share has been based on the profit attributable to ordinary shareholders and the

weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential

ordinary shares.

14



18 Cash and cash equivalents


JUNE 2016 ACTUAL DEC 2015 ACTUAL JUNE 2015 ACTUAL JUNE 2016 ACTUAL DEC 2015

ACTUAL

JUNE 2015 ACTUAL

Cash in banks and on hand 716,814 1,671,479 774,734 (73,963) 576,801 285,353

Short-term deposits 18.1 8,430,125 10,275,068 14,603,770 3,000,670 3,294,436 7,445,145

Treasury bills with original maturity of less

than 90days

5,106,180 2,069,560 257,000 1,240,000 240,000 240,000

14,253,119 14,016,107 15,635,504 4,166,707 4,111,237 7,970,499

18.1 Short-term deposits

18.2



ACTUAL

JUNE 2015 ACTUAL

Cash in banks and on hand 716,814 1,671,479 732,644 (73,963) 576,801 285,353

Short-term deposits 8,430,125 10,275,068 14,767,791 4,000,670 3,294,436 7,445,145

Treasury bills with original maturity <90days5,106,180 2,069,560 240,000 240,000 240,000 240,000

14,253,119 14,016,107 15,740,435 4,166,707 4,111,237 7,970,499

Book overdraft - - - - - -

14,253,119 14,016,107 15,740,435 4,166,707 4,111,237 7,970,499

19 Financial assets \



ACTUAL

JUNE 2015 ACTUAL

Available-for-sale investment securities 19.1 1,114,036 1,114,036 1,312,412 1,000 1,000 -

Fair value through profit or loss 19.2 88,381 93,463 126,475 88,381 93,463 126,475

Loans and receivables 19.3 12,569,126 11,379,273 8,659,129 822,350 757,766 923,298

13,771,542 12,586,772 10,098,016 911,731 852,229 1,049,773

Current 3,298,923 3,877,419 3,588,245 280,444 193,494 193,494

Non-current 10,472,619 8,709,353 6,509,771 631,287 658,735 275,187

13,771,542 12,586,772 10,098,016 911,731 852,229 1,049,773

19.1 Available-for-sale investment securities



ACTUAL

JUNE 2015 ACTUAL

Unquoted investments 19.1.1 1,386,391 1,386,391 1,584,767 173,355 173,355 172,355

Allowance for impairment 19.1.3 (272,355) (272,355) (272,355) (172,355) (172,355) (172,355)

1,114,036 1,114,036 1,312,412 1,000 1,000 -

19.1.1 Analysis of investments in unlisted entities

Empire Aviation Limited 122,355 122,355 122,355 122,355 122,355 122,355

Global Haulage Limited 150,000 150,000 50,000 50,000 50,000 50,000

Mutual Model Transport Limited (MMTL) 1,000 1,000 10,000 1,000 1,000 -

ICHL Limited 279,036 279,036 320,000 - - -

Motor Way Assets Limited 330,000 330,000 330,000 - - -

Massive Investment TV Limited - - - - - -

Leasing Company of Liberia 33,600 33,600 33,600 - - -

Joint Venture Trade Financing 420,000 420,000 420,000 - - -

Consolidated Bureau de change - - - - - -

Maple Autos Limited - - - - - -

Other investments 50,400 50,400 298,812 - - -

1,386,391 1,386,391 1,584,767 173,355 173,355 172,355

- - - - - -

The Group’s financial assets are summarized below by measurement category:

GROUP COMPANY

The Group's available-for-sale financial assets are carried at cost less impairment losses (if any) as there were no reliable observable data to determine their fair values at the

reporting date.

GROUP COMPANY

GROUP COMPANY

Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group.

For the purpose of the statement of cash flows, the cash and cash equivalents comprise the following balances with maturity of three months or less from the date of acquisition.

GROUP COMPANY

15



19.1.2 Movement in unlisted entities

At 1 January 1,386,391 871,582 934,767 173,355 173,355 172,355

Purchase during the year - 330,000 330,000 - - -

Disposal of subsidiaries - (45,418) - - - -

Write-off - (49,809) - - - -

Remaining interest in MMTL - 1,000 - - - -

Transfer from deposit for shares - 279,036 320,000 - - -

At 31 December 1,386,391 1,386,391 1,584,767 173,355 173,355 172,355

19.1.3 Analysis of impaired unlisted investments

Empire Aviation Limited 122,355 122,355 122,355 122,355 122,355 122,355

Global Haulage Limited 150,000 150,000 150,000 50,000 50,000 50,000

Massive Investment TV Limited - - - - - -

Consolidated Bureau de change - - - - - -

Maple Autos Limited - - - - - -

Other investments - - - - - -

272,355 272,355 272,355 172,355 172,355 172,355

- - - - - -

19.1.4 The movement in impairment

At 1 January 272,355 272,355 272,355 172,355 172,355 172,355

Write-off - - - - - -

At 31 December 272,355 272,355 272,355 172,355 172,355 172,355

19.1.5 Basis of impairment

i

ii

19.2 Investment securities - fair value thorugh profit or loss



ACTUAL

JUNE 2015 ACTUAL

Quoted shares 88,381 93,463 126,475 88,381 93,463 126,475

Movement in listed entities

At 1 January 93,463 128,201 133,975 93,463 128,201 133,975

Liquidation of subsidiaries - - - - - -

Fair value (loss)/gain (5,082) (34,738) (7,500) (5,082) (34,738) (7,500)

At 31 December 88,381 93,463 126,475 88,381 93,463 126,475

The Company uses "incurred loss model" in determining impairment of its investments. Under the incurred loss model, a loss is considered to have been incurred on investment

when there is no longer reasonable assurance that the future cash flows associated with the investment will either be collected in their entirety or when due,thereby, the

investment is considered to have been impaired.

Available for sale financial assets are considered impaired when the following loss events are identified:

An indication that there is measurable decrease in the estimated future cash flows on the financial assets since the initial recognition of those assets.

Where there has been no financial returns on the instruments since acquisition.

If any of the events stated above is identified the Company calculates an impairment loss which is determined by comparing the recoverable amount with the carrying amount of

the investment, any amount by which the carrying amount exceeds the recoverable amount is treated as impaired and charged to an impairment expense account in the income

statement. The Company investments in some unlisted entities had not been generating returns over a prolonged period of time,the financial statements of the entities were

unavailable to ascertain the recoverable amount of the investments, in other cases some of the entities were no longer in existence.Therefore, based on the assessment of the

investment in each of the entities, the recoverable amount of these investments were considered to be nil and full impairment loss was charged to the income statement.

GROUP COMPANY

16



19.2 Investment securities - fair value thorugh profit or loss - Continued

19.2.1 Analysis of investments in listed entities



ACTUAL

JUNE 2015 ACTUAL

Africa Prudential Registrars Plc 207 207 207 207 207 207

Access Bank of Nigeria Plc 405 426 511 405 426 511

Ashaka Cement Plc - - - - - -

Cadbury Plc 5,940 6,600 9,900 5,940 6,600 9,900

Costain West Africa Plc 100 100 103 100 100 103

Diamond Bank Plc 2,567 2,852 4,287 2,567 2,852 4,287

Ecobank Transnational Inc 5,033 5,592 6,822 5,033 5,592 6,822

First Bank Holdings Plc 10,106 10,638 17,174 10,106 10,638 17,174

First City Monument Bank Plc 7,630 8,478 11,242 7,630 8,478 11,242

Guaranty Trust Bank Plc 3,769 4,188 6,345 3,769 4,188 6,345

Sterling Bank Plc 22,724 23,920 33,819 22,724 23,920 33,819

United Bank for Africa Plc 9,082 9,560 13,518 9,082 9,560 13,518

UBA Capital Plc 431 454 602 431 454 602

Unity Bank Plc 576 637 715 576 637 715

Universal Insurance Company Plc 2,500 2,500 2,500 2,500 2,500 2,500

Wema Bank Plc 96 96 165 96 96 165

Lafarge WAPCO Plc 13,693 13,693 20,742 13,693 13,693 20,742

West African Provincial Insurance Plc 9 9 9 9 9 9

Zenith International Bank Plc 3,513 3,513 5,317 3,513 3,513 5,317

88,381 93,463 133,975 88,381 93,463 133,975

88,381 93,463 126,475 88,381 93,463 126,475

19.3 Loans and advances



ACTUAL

JUNE 2015 ACTUAL

Term loans 11,950,401 10,858,142 8,043,505 365,660 386,892 342,207

Overdrafts 69,182 31,997 - - - -

Staff loans 612,096 551,687 615,624 456,690 370,874 581,091

Gross loans and advances 12,631,679 11,441,826 8,659,129 822,350 757,766 923,298

Allowance for specific impairment 19.3.1 (62,553) (62,553) - - - -

Allowance for collective impairment 19.3.1 - - - - - -

12,569,126 11,379,273 8,659,129 822,350 757,766 923,298

Current 3,298,923 3,877,419 3,588,245 280,444 193,494 774,585

Non-current 9,270,203 7,501,854 5,070,884 541,906 564,272 148,713

12,569,126 11,379,273 8,659,129 822,350 757,766 923,298

19.3.1 Impairment on loans and advances



ACTUAL

JUNE 2015 ACTUAL

allowance for specific impairment

Balance, begining of the year 62,553 36,658 - - - -

Impairment charged for the year - 25,895 - - - -

Reversal for the year - - - - - -

Write-offs - - - - - -

Balance, end of the year 62,553 62,553 - - - -

Allowance for collective impairment

Balance, begining of the year - - - - - -

Impairment charged for the year - - - - - -

Reversal for the year - - - - - -


Balance, end of the year - - - - - -

GROUP COMPANY

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than those that the Group intends to

sell in the short term or that it has designated as at fair value through profit or loss or available for sale. Details of balances of loans and receivables at the year end are as

presented below:

GROUP COMPANY

GROUP COMPANY

17



19.3.2 Credit quality of loans and advances is summarised as follows:



ACTUAL

JUNE 2015 ACTUAL

Neither past due nor impaired 12,506,573 11,379,273 8,043,505 822,350 757,766 342,207

Past due but not impaired - - - - - -

Individually impaired 62,553 62,553 - - - -

Gross 12,631,679 11,441,826 8,043,505 822,350 757,766 342,207

Less: allowance for impairment (62,553) (62,553) - - - -

Net balance 12,569,126 11,379,273 8,043,505 822,350 757,766 342,207

19.3.3 The Group monitors concentrations of credit risk by borrowers; individual or corporate.

Loans to Loans to Loans to Loans to

in thousands of Nigerian Naira individuals corporate individuals corporate

31 December 2016

Gross 890,096 11,741,583 456,690 365,660

Impairment - (62,553) - -

Net Balance 890,096 11,679,030 456,690 365,660

31 December 2015

Gross 839,678 10,602,148 370,874 386,892

Impairment - (62,553) - -

Net Balance 839,678 10,539,595 370,874 386,892

20 Assets pledged as collateral



ACTUAL

JUNE 2015 ACTUAL

Quoted shares 107,406 115,297 129,468 107,406 115,297 129,468

21 Trade receivables



ACTUAL

JUNE 2015 ACTUAL

General busines 226,951 64,769 198,914 226,951 64,769 72,765

Mutual Benefits Niger 60,659 60,659 - - - -

Mutual Benefits Liberia 148,484 83,275 - - - -

436,094 208,703 198,914 226,951 64,769 72,765

Current 436,094 208,703 198,914 226,951 64,769 72,765

Non-current - - - - - -

436,094 208,703 198,914 226,951 64,769 72,765

21.1Movement in impairment of insurance

receivables

Balance, beginning of the year 330,221 317,357 - 28,762 - -

Additions during the year - 28,762 - - 28,762 -

Reversal during the year (330,221) (15,898) - (28,762) - -

- 330,221 - - 28,762 -

The directors, having sought the advice of professional counsel, are of the opinion that no significant liability will crystalise from this litigation therefore, fair value loss/(gain) has been made in the financial

statements.

The movement in the carrying amount is the fair value change in respect of the marker price as at year end.

GROUP COMPANY

GROUP COMPANY

GROUP COMPANY

These are quoted financial instruments held on lien by providers of short term borrowings for the purpose of securing the debt The debt providers maintain posession of the Quoted instruments but do not

have ownership unless default. Pledged assets are measured at fair value as at year end.

Mutual Benefits Assurance Plc purchased quoted shares of ₦400 million with a Margin facility from Guaranty Trust Bank Plc.There is an on-going litigation on this investment arising from the additional

investment cover requested for by the Bank due to the fall in the value of the shares purchased which was rejected by the Company.

GROUP COMPANY

18



22 Reinsurance assets



ACTUAL

JUNE 2015 ACTUAL

Reinsurance share of outstanding claims 22.1 570,661 570,661 - 518,979 518,979 -

Reinsurance receivable 1,171 1,171 - - - -

Co-assurance claims receivable 233,290 262,897 - 117,620 149,310 -

Prepaid reinsurance 22.2 335,015 579,872 3,038,947 252,991 555,901 2,692,505

1,140,137 1,414,601 3,038,947 889,590 1,224,190 2,692,505

1,140,137 1,414,600 6,618,588 889,591 1,224,190 6,426,860

Current 1,140,137 1,414,601 3,038,947 889,590 1,224,190 2,692,505


1,140,137 1,414,601 3,038,947 889,590 1,224,190 2,692,505

22.1 The movement in reinsurers' share of claims reported and loss adjustment expenses is as follows:



ACTUAL

JUNE 2015 ACTUAL

Opening balance 570,661 426,399 - 518,979 218,612 -

Changes in reinsurance share of outstanding

claims 3 - 144,262 - - 300,367 -

570,661 570,661 - 518,979 518,979 -

22.2 The movement in prepaid reinsurance

Balance, beginning of the year 579,872 807,240 1,562,803 555,901 788,100 1,235,294

Additions during the year 643,337 5,839,258 3,954,692 516,048 5,727,649 3,935,759

Recognised in profit or loss 1.2 (888,194) (6,066,626) (2,478,549) (818,958) (5,959,848) (2,478,549)

335,015 579,872 3,038,947 252,991 555,901 2,692,505

23 Other receivables and prepayments



ACTUAL

JUNE 2015 ACTUAL

Prepayments 393,096 424,998 360,721 243,249 290,295 8,109

Loan to policy holders 2,937 4,906 - - - -

?? Other bank balances 23.1 78,859 72,783 65,140 65,140 65,143 65,140

?? Investment receivables 23.2 12,506 70,292 16,757 16,758 16,757 16,757

Other assets 23.3 121,227 91,204 - - - -

Due from Related Companies - - 135,116 - 162,828 135,116

Sundries receivables 454,708 261,236 705,769 334,152 249,798 71,128

?? Directors current account 299,339 101,766 153,362 244,558 69,313 152,612

Property development 41,905 147,576 - - - -

Trade receivables of non-insurance subsidiaries 151,974 164,447 - - - -

Deposit for building material - - - - - -

1,759,051 1,339,208 1,436,864 903,857 854,134 448,861

Allowance for impairment on other

receivables 23.4 (81,900) (81,900) (88,035) (81,900) (81,900) (88,035)

1,677,151 1,257,308 1,348,829 821,957 772,234 360,826

1,677,066 1,257,307 1,594,050 821,957 772,235 646,432

Current 1,677,151 1,257,308 1,348,829 821,957 772,234 360,826


1,677,151 1,257,308 1,348,829 821,957 772,234 360,826

23.1 Other bank balances

Balance held in Skye Bank Jericho 2,533 2,533 2,533 2,533 2,533 2,533

Balance held in GTB ( Premium call) 18,068 18,068 18,068 18,068 18,068 18,068

Balance held in Unity Bank Plc 1,541 1,541 1,541 1,541 1,541 1,541

Balance held in Guaranty Trust 42,988 42,988 42,988 42,988 42,988 42,988

Balance held in Sterling Bank - - - - - -

Balance held in GTB( current account) 11 11 11 11 11 11

Other bank balances 13,719 7,642 (1) 2 (1)

78,860 72,783 65,141 65,140 65,143 65,140

78,859 72,783 66,331 65,140 65,143 65,140

23.2 Investment receivables

Placement with Charks - - - - - -

Placement with Deap Capital - - - - - -

Placement with Profound Securities 16,757 16,757 16,757 16,757 16,757 16,757

ICHL Limited - 37,436 - - - -

Upfront treasury bill (4,251) 16,099 - 1 - -

12,506 70,292 16,757 16,758 16,757 16,757

Reinsurance receivables are to be settled on demand and the carrying amount is not significantly different from their fair value.

GROUP COMPANY

GROUP COMPANY

GROUP COMPANY

19



12,506 70,292 (18,242) 16,758 16,757 16,757

23.3 Other assets



ACTUAL

JUNE 2015 ACTUAL

WHT recoverable - OPL 61,134 48,718 - - - -

Uniform stock 16 48 - - - -

Private placement 5,500 5,500 - - - -

Stock of cheque 2,710 2,839 - - - -

Branch account - - - - - -

SMS Alert account - - - - - -

Telephone 19 21 - - - -

Accrued interest ?? - - - - - -

Unpaid capital ?? 26,137 26,137 - - - -

Adjustment account ?? - - - - - -

Suspense account ?? - - - - - -

Cheques and coupons - - - - - -

Due from government - - - - - -

Excess interest charges 6,390 6,390 - - - -

ATM Receivables ?? 1,552 1,552 - - - -

Premium Refund 17,770 - - - - -

121,228 91,205 - - - -

121,227 91,204 85,517 - - -

23.4 The movement in impairment

Balance, beginning of the year 81,900 88,035 88,035 81,900 88,035 88,035

Write-offs during the year - - - - - -

Write back during the year - (6,134) - - (6,135) -

81,900 81,900 88,035 81,900 81,900 88,035

24 Deferred acquisition costs

Deferred acquisition cost - Fire 27,845 27,845 28,607 27,845 27,845 28,607

Deferred acquisition cost - Gen Accident 81,974 108,532 140,875 81,974 108,532 140,875

Deferred acquisition cost - Motor 56,955 56,955 71,460 56,955 56,955 71,460

Deferred acquisition cost - Marine 34,286 34,286 23,969 34,286 34,286 23,969

Deferred acquisition cost - Oil & Gas & aviation 34,179 34,179 30,775 34,179 34,179 30,775

Life Business 8,921 60,811 51,309 - - -

244,160 322,609 346,995 235,239 261,798 295,686

244,161 322,609 346,995 235,240 261,798 295,686

24.1 The movement in deferred acquisition cost is as follows:



ACTUAL

JUNE 2015 ACTUAL

Balance, beginning of the year 322,609 260,153 260,153 261,798 208,844 208,844

Additions during the year 723,247 1,131,658 492,487 544,840 801,799 492,487

Amortisation in the year (801,696) (1,069,202) (405,645) (571,399) (748,845) (405,645)

Balance, end of year 244,160 322,609 346,995 235,239 261,798 295,686

Current 244,160 260,153 346,995 235,239 208,844 295,686

Non-current - 62,456 - - 52,954 -

244,160 322,609 346,995 235,239 261,798 295,686

GROUP COMPANY

GROUP COMPANY

20



25 Finance lease receivables

Net investment in finance lease 25.1 1,009,374 1,164,167 170,832 816,824 788,029 868,807

Less:

Allowance for specific impairment (119,303) (119,303) (121,642) (119,303) (119,303) (121,642)

Allowance for collective impairment - - - - - -

890,071 1,044,864 49,190 697,521 668,726 747,165

890,072 1,044,865 744,766 697,522 668,727 744,765

Current 522,260 276,911 49,190 198,826 183,326 747,165

Non-current 367,811 767,953 - 498,695 485,400 -

890,071 1,044,864 49,190 697,521 668,726 747,165

Allowance for specific impairment

Balance, begining of the year 119,303 866,101 121,642 119,303 121,642 121,642

Charged for the year - - - - - -

Reversal - (2,339) - - (2,339) -

Write-offs - (744,459) - - - -

Balance, end of the year 119,303 119,303 121,642 119,303 119,303 121,642

Allowance for collective impairment

Balance, begining of the year - - - - - -

Impairment charged for the year - - - - - -


Balance, end of the year - - - - - -

25.1 Credit quality of finance lease receivable is summarised as follows:



ACTUAL

JUNE 2015 ACTUAL

Neither past due nor impaired 890,071 1,044,864 49,190 697,521 668,726 747,165

Past due but not impaired - - - - - -

Individually impaired 119,303 119,303 121,642 119,303 119,303 121,642

Gross 1,009,374 1,164,167 170,832 816,824 788,029 868,807

Less: allowance for impairment (119,303) (119,303) (121,642) (119,303) (119,303) (121,642)

Net balance 890,071 1,044,864 49,190 697,521 668,726 747,165

The Group monitors concentrations of credit risk by borrowers; individual or corporate.

Loans to Loans to Loans to Loans to

in thousands of Nigerian Naira individuals corporate individuals corporate

30 June 2016

Gross - 1,009,374 - 816,824

Impairment - (119,303) - (119,303)

Net Balance - 890,071 - 697,521

31 December 2015

Gross - 1,164,167 - 788,029

Impairment - (119,303) - (119,303)

Net Balance - 1,044,864 - 668,726

26 Inventories

Diesel Stocks-Head office ??? - - - - - -

Construction in progress 1,443,750 1,515,172 860,452 - - -

Building raw materials 17,991 17,991 - - - -

Land properties for construction - - - - - -

1,461,741 1,533,163 860,452 - - -

- - -

Current 1,461,741 1,533,163 860,452 - - -


1,461,741 1,533,163 860,452 - - -

GROUP COMPANY

Included in Inventories are plots of Land purchased for the construction of buildings for resale. The Landed properties also encompass cost of construction of the buildings meant

for resale, cost of conversion and other such direct costs incurred in bringing the properties to their present location and condition in line with International Accounting Standard

(IAS) 2. The Company's inventories are reported at the lower of cost and net realisable value.

GROUP COMPANY

21



27 Investment properties



ACTUAL

JUNE 2015 ACTUAL

At the beginning of the year 8,731,665 6,984,764 5,167,885 56,000 47,000 47,000

Additions 75,000 666,250 - - - -

Transfer from Mutual Benefits Homes &

Properties Limited - 1,445,000 - - - -

Reclassification from property, plant and

equipment - - - - - -

Disposal - (525,000) - - - -

Fair value gain - 160,651 - - 9,000 -

8,806,665 8,731,665 5,167,885 56,000 56,000 47,000

The items of investment properties are as

shown below:

Mutual Tulip Estate i 798,140 798,140 798,140 - - -

Property at Ikeja GRA- Sasegbon ii 625,000 625,000 623,917 - - -

Property at Ikeja Alausa iii 275,000 275,000 273,816 - - -

Property at Ikota iv 56,000 56,000 47,000 56,000 56,000 47,000

Property at Sango/Idiroko - Mogga v 90,315 90,315 90,315 - - -

Property at Sango/Idiroko - Caxtonjo vi 60,210 60,210 60,210 - - -

Property at Onireke,Ibadan vii 545,000 545,000 543,792 - - -

Mutual Alpha Court duplex, Costain, Lagos viii 4,175,000 4,100,000 2,730,695 - - -

Property at Asokoro, Abuja ix 702,000 702,000 -

Property at Akure Plots (5,500 Square

Meters)x

350,000 350,000 -

Property at Paradise Estate, Anthony Estatexi

250,000 250,000 -

Property at Ado Ekiti Land, (100 Hectares) xii 700,000 700,000 -

Property at Oyingbo, Lagos xiii 180,000 180,000 -

8,806,665 8,731,665 5,167,885 56,000 56,000 47,000

Investment properties - Continued



ACTUAL

JUNE 2015 ACTUAL

Rental income derived from investment

properties6 47,395 37,320 - 5,770 18,570 5,965

Investment properties related expenses 12 (60,244) (81,761) - - - -

Profit arising from investment properties

carried at fair value(12,849) (44,441) - 5,770 18,570 5,965

Description of valuation techniques used and key inputs to valuation on investment properties:

The valuation of the properties is based on the price for which comparable land and properties are being exchanged hands or are being marketed for sale. Therefore, the market-

approach Method of Valuation.

By nature, detailed information on concluded transactions is difficult to come by. They have therefore relied on past transactions and recent adverts in deriving the value of the

subject properties.

Investment properties are stated at fair value, which has been determined based on valuations performed by Messrs Jide Alabi & Co (FRC/2012/NIESV/00000000314), Arigbede

& Co Estate Surveyors and Valuers (FRC/2015/00000004634) and Alabi, Ojo & Makinde Consulting (FRC/2016/NIESV/00000010800), accredited independent valuers as at 31

December 2016. The valuers are specialists in valuing these types of investment properties. The determination of fair value of the investment property was supported by market

evidence. The modalities and process of valuation utilized extensive analysis of market data and other sectors specific percularities corroborated with available data derived

from previous experiences.

Valuations are performed on an annual basis and the fair value gains and losses were recorded within the profit or loss.

The Group enters into operating lease arrangements for all of its investment properties. The rental income arising during the year amounted to ₦37,320,000 (2015: ₦24,785,000)

which is included in investment income. Direct operating expenses arising in respect of such properties during the year are included in within operating and administrative

expenses.

There are no restrictions on the realisability of investment property or remittance of income and proceeds of disposal. The Company has no contractual obligations to purchase,

construct or develop investment property or for repairs or enhancement.

GROUP COMPANY

GROUP COMPANY

22



27 Investment properties - Continued

i Mutual Tulip Estate

ii Property at Ikeja GRA- Sasegbon

iii Property at Ikeja Alausa

iv Property at Ikota

v Property at Sango/Idiroko - Mogga

vi Property at Sango/Idiroko - Caxtonjo

37 Investment property - Continued

vii Property at Onireke,Ibadan

viii Mutual Alpha Court duplex, Costain, Lagos

ix Property at Abuja

x Property at Akure Plots (5,500 Square Meters)

xi Property at Paradise Estate, Anthony Estate

xii Property at Ado Ekiti Land, (100 Hectares)

This represents 53 unsold units of the 60 units Terrace Triplex housing scheme located at Costain Iporin, Lagos. The property was constructed by Mutual Benefits Homes and

Properties Limited and was transferred to the Mutual Benefits Life Assurance Limited in 2015 as part settlement of loan. As at 31 December 2016, 53 units were revalued at ₦4.1

billion. The Board of Directors of the Group has earmarked at least 20 units for outright sales within the next 12 months.

Land property sitting on 3287.02 square meters of land located at Asokoro, Abuja, Nigeria was purchased at a cost of ₦666.25million. Perfection of title in the name of the

Company is ongoing. The property was valued at ₦702million by Messrs AO&M, Alabi, Ojo & Makinde Consulting, Estate Surveyors and Valuers as at 23 December 2016.

Land property of 5,500 square meters of land located at Akure, Ondo State, Nigeria was transferred to the Company from Mutual Homes and Properties Limited at a fair value of

₦350million. The valuation was done by Messrs Arigbede & Co. Estate Surveyors and Valuers. The title to the property is a Certificate of Occupancy and there is a deed of

assignment in favour of the Company. The property was valued by Messrs Arigbede & Co. Estate Surveyors and Valuers as at 1 February 2016.

Land property of 9 plots of land located at Paradise Estate, Anthony Estate, Lagos, Nigeria was transferred to the Company from Mutual Homes and Properties Limited at a fair

value of ₦250million. The Company has allocation letters from Lagos State Government in its name. The property was valued by Messrs AO&M, Alabi, Ojo & Makinde Consulting,

Estate Surveyors and Valuers as at 7 January 2016.

Land property consisting of 100 Hectares of land located at Ado-Ekiti, Ekiti State Nigeria was transferred to the Company from Mutual Homes and Properties Limited at a fair

value of ₦700million. The property was valued by Messrs Arigbede & Co. Estate Surveyors and Valuers as at 19 January 2016.

Land property of 1,548 square metres of land located at Alausa central business district. Lagos state in Nigeria was purchased at a cost of ₦177million.The landed property was

revalued to ₦275 million by Messrs Jide Alabi & Co Estate Surveyors and Valuers as at 31 December 2016.

The property is situated at Plot 18A, Olori Bolaji Akinloye Street, Off Rooad 1, Ikota Villa Estate, Off Lekki-Ajah express way, Lagos State. The property is 5-bedroom detached

house. It measures a gross floor area of approximately 148.84 square meters. It is a building on two floors. The ground foor is provided with a sitting room, kitched, store, a guest

bedroom en-suite with toilet and bathroom. It was revalued by Jene Onuora Consulting (Estate Surveyors & Valuers) on the 19 June 2015.

Land property of 4040 square metres of land located at Sango/Idiroko road, opposite Mogga Petroleum, Onibukun village, Ota Atan, Ogun state in Nigeria was purchased at a

cost of ₦90million. Issues relating to consent and perfection of title in the name of the Company are ongoing. The landed property was valued to ₦90 million by Messrs Jide Alabi

& Co Estate Surveyors and Valuers as at 31 December 2016.

Land property of 3665.6 square metres of land located at Sango/Idiroko road, opposite Caxtonjo Oil Onibukun village, Ota Atan, Ogun state in Nigeria was purchased at a cost of

₦60million. Issues relating to consent and perfection of title in the name of the Company are ongoing. The landed property was valued to ₦60 million by Messrs Jide Alabi & Co

Estate Surveyors and Valuers as at 31 December 2016.


Land property of 6808.179 square meters of land located at kudeti Avenue, Commercial Reservation Onireke, Ibadan, Oyo State in Nigeria was transferred from Mutual Benefits


Land property of 117,000 square metres of land located at Berger within Ogun section of the boundary between Ogun state and Lagos state in Nigeria was purchased at a cost of

Land property of 6,500 square metres of land located at Sasegbon Street, GRA Ikeja, Lagos state in Nigeria was purchased at a cost of ₦593million. The landed property was

revalued to ₦625 million by Messrs Jide Alabi & Co Estate Surveyors and Valuers as at 31 December 2016.

23



27 Investment property - Continued

xiii Property at Oyingbo, Lagos

28 Investments in subsidiaries


JUNE 2016 ACTUAL DEC 2015

ACTUAL

JUNE 2015 ACTUAL

Mutual Benefits Life Assurance Limited 4,000,000 2,000,000 2,010,000

Mutual Model Transport Limited - - -

Charks Investment Limited - - -

4,000,000 2,000,000 2,010,000

Allowance for impairment 30.1 - - -

- - - 4,000,000 2,000,000 2,010,000

Property of 461 square meters of land located at Apapa Road, Ebute-Metta, Lagos State, Nigeria was transferred at a value of ₦180million. The title is held in perpetuity and

Deed of Assignment in favour of the Company is ongoing. The property was valued by Messrs AO&M, Alabi, Ojo and Makinde Consulting, Estate Surveyors and Valuers as at 21

January 2016.

The Company’s investment in subsidiaries is as stated below:

COMPANY


24


NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMETNS - Continued

As at 30 June 2016


GROUP CLASS

ULTIMATE

PARENT

100%

92%

Mutual Benefits

Niger Republic SA

Company name Nature of business Country of origin Relationship% of equity

controlledNCI Status

Year of

control

1 Mutual Benefits Life Assurance Insurance Nigeria Direct - Subsidiary 100% - Set up Dec 2007

2 Mutual Benefits Microfinance Bank Ltd Banking Nigeria Indirect - Subsidiary 80% 20% Acquired Jan 2009

3 Mutual Benefits Homes and Properties Ltd Property development Nigeria Indirect - Subsidiary 100% - Set up Jan 2008

4 Mutual Benefits Liberia Insurance Liberia Indirect - Subsidiary 95% 5% Set up Jan 2008

5 Mutual Benefits Niger Republic Insurance Niger Republic Indirect - Subsidiary 92% 8% Set up Jan 2015

6 Charks Investment Limited Leasing Nigeria Associate 25%

7 TFS Securities & Investment Company Ltd Capital Market Nigeria Associate 25%

MUTUAL BENEFIT'S GROUP STRUCTURE

Mutual Benefit

Assurance Plc

Mutual Benefits Life

Assurance Limited

Mutual Benefit

Liberia Company

Limited

95%100%

Mutual Benefits

Homes and

Properties Ltd

80%

Mutual Benefits

Microfinance

Bank Limited

25



As at 30 June 2016


Mutual Benefits Life Assurance Limited

Mutual Model Transport Limited

Charks Investment Ltd

Mutual Benefits Microfinance Bank

Mutual Benefits Homes and Properties Ltd

Mutual Benefits Liberia

Mutual Benefits Niger Republic

TFS Securities Limited

TFS Securities and Investment Company Limited is an associate of Mutual Benefits Assurance Plc. Mutual Benefits currently has 24.92% shareholding in TFS Securities.

The Company is into the business of Stock broking.

Mutual Life Assurance Limited is a wholly owned subsidiary of Mutual Benefits Assurance Plc.The principal activity of the Company is the underwriting of life insurance

policies.

Mutual Model Transport Limited was a wholly owned subsidiary of Mutual Benefits Assurance Plc as at 31 December 2015. The Company is a sub operator under

LAGBUS engaging in the business of Public transportation. The Company was incorporated on the 2 September 2009 as a Private Limited Liability Company and

commenced business on the 14 January 2010. During the year, the Group disposed 90% of its shareholdings in the Company and lost control.

Charks Investment Limited was an 80% owned subsidiary of Mutual Benefits Assurance Plc as at 31 December 2015. The Company is into the business of corporate

leasing and hire purchase financing. On the 1 January 2016, the Group reduced its shareholdings to 25% through the disposal of 55%, therefore, making Charks

Investments Ltd to be an associate to the Group.

Mutual Benefits Microfinance Bank was incorporated in Nigeria in January 2008 and its principal activity involves the provision of retail banking services to both individual

and corporate customers. Mutual Benefits Life Assurance Limited obtained control of the company with acquisition of 80% of the voting rights of the Company in January

2009.

Mutual Benefits Homes and Properties Limited was incorporated in December 2007 to provide property development services to corporate and individual customers. The

Company was established as a wholly owned subsidiary of Mutual Benefits Life Assurance Limited.

Mutual Benefit Assurance Company Liberia was incorporated on 29 August 2007 and granted commenced operations on 2 January 2008. It is into underwriting of all

classes of non-Life and life businesses. It is 95% owned by Mutual Benefits Life Assurance Limited.

Mutual Benefits Niger S.A commenced operations on 2 January 2015. It is into underwriting of all classes of non-life businesses. It is 92% owned by Mutual Benefits Life

Assurance Limited.

26



As at 30 June 2016

29 Investment in associaties


JUNE 2016

ACTUAL

DEC 2015

ACTUAL

JUNE 2015

ACTUAL

JUNE 2016

ACTUAL

DEC 2015

ACTUAL

JUNE 2015

ACTUAL

Gross investment 226,290 226,290 220,174 220,174 220,174 220,174

Share of profit/loss b/f - - - - - -

Share of profit: current year - - - - - -

Disposal - - - - - -

Dimunution in investment (220,174) (220,174) (220,174) (220,174) (220,174) (220,174)

6,116 6,116 - - - -

6,116 6,116 - - - -

Current - - - - - -

Non-current 6,116 6,116 - - - -

6,116 6,116 - - - -

Summarised financial information of associates


Mar-2016 Dec-2015 JUNE 2016

ACTUAL

DEC 2015

ACTUAL

JUNE 2015

ACTUAL

Total assets - 464,236 464,236

Total liabilities - 218,908 218,908

Total revenue - 17,886 17,886

Profit/(loss) before income tax - 5,656 5,656

30 Intangible assets

in thousands of Nigerian Naira Note

JUNE 2016

ACTUAL

DEC 2015

ACTUAL

JUNE 2015

ACTUAL

JUNE 2016

ACTUAL

DEC 2015

ACTUAL

JUNE 2015

ACTUAL

Cost:

Balance at the beginning of the year 248,720 195,745 195,745 153,881 153,881 153,881

Additions 9,632 1,166 900 9,632 - -

Reclassification from furniture and fittings 31 - 47,593 - - - -

Foreign exchange reserves - 4,216 - - - -

258,352 248,720 196,645 163,513 153,881 153,881

Amortization:

Balance at the beginning of the year 159,074 96,612 96,612 96,579 64,659 64,659

Amortisation charge 12 17,227 50,662 23,682 16,093 31,920 22,304

Reclassification from furniture and fittings 31 - 11,244 - - - -

Foreign exchange reserves - 555 - - - -

176,301 159,074 120,294 112,672 96,579 86,963

82,051 89,646 76,351 50,841 57,302 66,918

The Group holds 20% or more of the voting power of the investee and is therefore presumed to have significant influence over the investee. In

GROUP COMPANY

There were no published price quotations for the associates of the Group. Furthermore, there are no significant restriction on the ability of associates

GROUP COMPANY

27


NOTES TO THE CONSOLIDATED AND SEPARATE STATEMENTS OF FINANCIAL STATEMENTS - Continued

As at 30 June 2016

31 Property, plant and equipments (Group)

Furniture Organisa - Capital

Leasehold Land & Leasehold Plant and Motor fittings and Trading tional work-in Total

in thousands of Nigerian Naira Note properties Building Improvement machinery vehicles equipment booth cost progress

Cost:

As at 1 January 2015 470,242 2,513,345 637,757 367,629 3,548,481 1,254,256 3,799 114,751 45,000 8,955,260

Additions - - 98,656 34,569 152,661 167,236 - - 6,887 460,009

Reclassification - - - - - (47,593) - - - (47,593)

Transfer (316,116) - 361,116 - - - - - (45,000) -

Disposal of subsidiaries - (191,375) - (30,713) (2,667,502) (57,404) - - - (2,946,994)

Foreign exchange reserve - - 14,735 1,168 9,088 1,983 - - - 26,974

Disposal - - - (31,040) (277,371) (1,351) - - - (309,761)

31 December 2015 154,126 2,321,970 1,112,264 341,613 765,357 1,317,128 3,799 114,751 6,887 6,137,895

Additions - - 178,901 1,480 1,335 310,514 - - 67,099 559,329

Reclassification 30 - - - - - (1,670) - - - (1,670)

Transfer - - - - - - - - - -

Disposal of subsidiaries - - - - - - - - - -

Foreign exchange reserve - - 69,380 - - - - - - 69,380

Disposal - - - - (17,350) (3,286) - - - (20,636)

JUNE 2016 ACTUAL 154,126 2,321,970 1,360,544 343,093 749,342 1,622,686 3,799 114,751 73,986 6,744,297

Accumulated depreciation:

As at 1 January 2015 297,802 146,067 109,974 278,856 1,560,377 538,881 3,043 114,751 - 3,049,751

Charge for the year - 7,118 142,075 47,934 152,877 250,241 756 - - 601,001

Disposal - - - (24,035) (267,566) (961) - - - (292,562)

Reclassification (143,676) - 143,676 - - (11,244) - - - (11,244)

Disposal of subsidiaries - (23,208) - (23,586) (977,882) (45,514) - - - (1,070,190)

Foreign exchange reserve - - 1,378 714 7,094 1,430 - - - 10,617

31 December 2015 154,126 129,977 397,103 279,883 474,900 732,833 3,799 114,751 - 2,287,373

Charge for the year - 23,220 76,780 17,460 57,176 111,207 - - - 285,843

Disposal - - - - (17,350) (339) - - - (17,689)

Reclassification 30 - - - - - - - - - -

Disposal of subsidiaries - - - - - - - - - -

Foreign exchange reserve - - - - - - - - - -

JUNE 2016 ACTUAL 154,126 153,196 473,883 297,343 514,727 843,701 3,799 114,751 - 2,555,526

Carrying amounts at:

JUNE 2016 ACTUAL - 2,168,774 886,661 45,750 234,615 778,985 - - 73,986 4,188,771

31 December 2015 (0) 2,191,993 715,161 61,730 290,456 584,295 - - 6,887 3,850,522

No leased assets are included in the above property, plant and equipment and the Group had no capital commitments as at 31 December 2016. The capital work-in progress is a control account for the acquisition of fixed assets for which

advance payments have been made but assets yet to be completed, delivered and put to use. None of the assets have been pledged as collateral.

28



As at 30 June 2016

31 Property, plant and equipment (Company)

Furnitures

Leasehold Leasehold Plant and Motor fittings and Total

in thousands of Nigerian Naira properties Building Improvement machinery vehicles equipment

Cost/revaluation:

As at 1 January 154,126 2,321,970 337,757 56,129 393,863 864,776 4,128,621

Additions - - 970 4,255 115,770 54,866 175,861

Disposal - - - - (16,000) (1,031) (17,031)

Transfer - - - - - - -

31 December 2015 154,126 2,321,970 338,727 60,384 493,633 918,611 4,287,451

Additions - - 178,901 1,290 1,335 293,528 475,054

Disposal - - - - (17,350) - (17,350)

Transfer - - - - - - -

JUNE 2016 ACTUAL 154,126 2,321,970 517,628 61,674 477,618 1,212,139 4,745,155

Accumulated depreciation:

As at 1 January 2015 154,126 122,859 49,976 47,336 222,976 326,428 923,701

Charge for the year - 46,351 67,551 4,437 75,461 137,259 331,059

Disposal - - - - (3,635) (1,031) (4,666)

Transfer - - - - - - -

31 December 2015 154,126 169,210 117,527 51,773 294,802 462,656 1,250,094

Charge for the year - 23,220 25,931 1,537 40,345 89,944 180,977

Disposal - - - (17,350) - (17,350)

Transfer - - - - - - -

Foreign exchange reserve - - - - - - -

JUNE 2016 ACTUAL 154,126 192,430 143,458 53,310 317,797 552,600 1,413,721

Carrying amounts at:

JUNE 2016 ACTUAL - 2,129,540 374,170 8,363 159,821 659,540 3,331,434

31 December 2015 - 2,152,760 221,200 8,611 198,831 455,955 3,037,357

No leased assets are included in the above property, plant and equipment and the company had no capital commitments as at 31 December 2015. None of the assets have been pledged as collateral.

29



As at 30 June 2016

31 Property, plant and equipments (Company)

i

iii

in thousands of Nigerian Naira 31 Dec-2015 31 Dec-2014

Cost 130,161 130,161

Accummulated depreciation (7,810) (5,206)

122,351 124,955

If land and buildings were measured using the cost model, the carrying amounts would be as follows:

COMPANY

The cost to date at the date of the revaluation was ₦130,161,000. The property was valued in an open market by reference to the cost approach to value and the Income Approach to value was adopted to

cross check the market value.

The Company's land and building at Aret Adams House were professionally valued on 18 December 2012 by Jide Alabi & Co Estate Surveyors and Valuers (FRC/2013/NIESV/00000000314). The valuation which

was based on open market value between a willing buyer and a willing seller produced a surplus amount of ₦1,431,736,925 which has been credited to the property, plant and equipment revaluation account.

As a result of the valuation, the revised value of the properties as at 31 December 2013 was ₦1,556,691,485.

30



As at 30 June 2016

32 Statutory deposit


JUNE 2016 ACTUAL DEC 2015 ACTUAL JUNE 2015 ACTUAL JUNE 2016

ACTUAL

DEC 2015 ACTUAL JUNE 2015 ACTUAL

Statutory deposit 500,000 500,000 500,000 KK,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,300,000 300,000 300,000

500,000 500,000 500,000 300,000 300,000 300,000

500,000 500,000 500,000 300,000 300,000 300,000

33 Deposit for shares

Mutual Model transport Limited - - - - - -

Mutual Exploration 347,588 347,588 402,384 277,588 277,588 332,383

ICHL Nigeria Limited - - - - - -

Mutual Benefits Life Assurance Limited 33.1 - - - - 2,000,000 -

Charks Investment Limited - - - - - -

Mutual Benefits Niger Republic SA - - - - - -

Avanage Nigeria Limited 70,000 70,000 70,000 - - -

417,588 417,588 472,384 277,588 2,277,588 332,383

Impairments - Charks investment Ltd - - - - - -

Transfer to Mutual Benefits Life Assurance

Limited 33.2 - - - - - -

Conversion to finance lease 33.3 - - - - - -

417,588 417,588 472,384 277,588 2,277,588 332,383

33.1

33.2

33.3

34 Insurance contract liabilities



ACTUAL


Outstanding claims 34.1 2,986,788 2,713,084 3,347,588 1,784,673 1,783,719 1,991,677

Unearned premiums 34.2 3,316,052 3,374,888 4,245,079 2,218,432 2,187,448 3,367,036

6,302,840 6,087,972 7,592,667 4,003,105 3,971,167 5,358,713

Current 6,302,840 6,087,972 7,592,667 4,003,105 3,971,167 5,358,713


6,302,840 6,087,972 7,592,667 4,003,105 3,971,167 5,358,713

6,302,840 6,087,972 4,003,105 3,971,168

34.1 Movement in outstanding claims

At 1 January 2,713,084 1,492,255 1,492,255 1,783,719 1,487,818 1,487,818

Claims incurred in the current year 1,816,940 4,257,344 3,154,561 699,407 1,763,175 1,306,531

Claims paid during the year (1,543,236) (3,036,515) (1,299,228) (698,453) (1,467,274) (802,672)

2,986,788 2,713,084 3,347,588 1,784,673 1,783,719 1,991,677

Outstanding claims

Non-Life business 34.1.1 1,805,939 1,804,553 1,991,677 1,784,673 1,783,719 1,991,677

Life business 34.1.2 1,180,849 908,531 1,355,911 - - -

2,986,788 2,713,084 3,347,588 1,784,673 1,783,719 1,991,677

2,986,788 2,713,084 3,280,527 1,784,673 1,783,719 1,791,677

This represents deposit for shares in Avanage (₦70 million) and Mutual Benefits Niger Republic SA (₦301.3 million) that were transfered to Mutual Benefits Benefits Life

Assurance Limited in 2014.

This represents initial investment for the acquisition of buses in Mutual Model Transport Limited which is the only operational assets of the company.However,this

could no longer be accommodated in the share capital of the company which is ₦10 million and as such,a resolution was passed consolidating all the facilities with

Mutual Model Transport Limited and thereby,converting them to finance lease.

GROUP COMPANY

The deposit is in respect of 100,000,000 units of ordinary shares of Mutual Benefits Life Assurance Limited (the subsidiary) at ₦20 each. The shares have been allotted.

The subsidiary has obtained certificate of registration of increase in share capital from Corporate Affairs Commission to accommodate the additional shares and has also

registered the 100,000,000 shares alloted to Mutual Benefits Assurance Plc.

This represents amounts deposited with the Central Bank of Nigeria (CBN) pursuant to Section 10(3) of the Insurance Act, 2003. This amount is not available for the day-

to-day use in the working capital of the Company and so it is excluded from the cash and cash equivalents.

GROUP COMPANY

31



As at 30 June 2016

34.1.1 Non-Life business:

Non-Life outstanding claims

Claims reported by policyholders 1,161,978 1,160,592 1,991,677 1,140,712 1,139,758 1,991,677

Claims incurred but not reported (IBNR) 643,961 643,961 - 643,961 643,961 -

1,805,939 1,804,553 1,991,677 1,784,673 1,783,719 1,991,677

1,805,939 1,804,553 1,791,677 1,784,673 1,783,719 1,791,677

34 Outstanding claims - Continued



ACTUAL


Movement in Non-life outstanding claims

At 1 January 1,804,553 1,492,255 1,492,255 1,783,719 1,487,818 1,487,818

Claims incurred in the current year 699,839 1,819,793 1,141,671 699,407 1,763,175 1,106,531

Claims paid during the year (698,453) (1,507,495) (842,249) (698,453) (1,467,274) (802,672)

1,805,939 1,804,553 1,791,677 1,784,673 1,783,719 1,791,677

34.1.2 Life business:

Life outstanding claims

Outstanding claims 632,801 360,483 1,355,911 - -

Claims incurred but not reported 548,048 548,048 - - -

1,180,849 908,531 1,355,911 - -

Analyis of life outstanding claims per class of

insurance

Group life i 869,790 597,472 1,072,212 - -

Individual life ii 245,727 245,727 249,000 - -

Annuity iii 65,332 65,332 34,699 - -

1,180,849 908,531 1,355,911 - -

i Movement in group life outstanding claims

At 1 January 597,472 840,566 840,546 - -

Claims incurred in the current year 1,065,548 1,203,787 688,645 - -

Claims paid during the year (793,230) (1,446,881) (456,979) - -

869,790 597,472 1,072,212 - -

34 Outstanding claims - Continued

GROUP


JUNE 2016 ACTUAL DEC 2015 ACTUAL JUNE 2015 ACTUAL

34.1.2 Life business:

ii Movement in individual life outstanding claims

At 1 January 245,727 249,000 249,000

Claims incurred in the current year 40,809 73,344 -

Claims paid during the year (40,809) (76,617) -

245,727 245,727 249,000

iii Movement in annuity

At 1 January 65,332 34,699 34,699 - -

Claims incurred in the current year 10,744 36,155 - - -

Claims paid during the year (10,744) (5,522) - - -

65,332 65,332 34,699 - -

GROUP COMPANY

32



As at 30 June 2016

34.2 Unearned premiums

Non-Life business 2,298,042 2,267,058 3,367,036 2,218,432 2,187,448 3,367,036

Life business 1,018,010 1,107,830 878,043 - - -

3,316,052 3,374,888 4,245,079 2,218,432 2,187,448 3,367,036

i The movement in unearned premium

At 1 January 3,374,888 2,578,027 2,578,027 2,187,448 1,876,436 1,876,436

Premiums written in the year 1.1 6,373,861 14,598,070 10,087,131 3,942,284 10,541,503 8,311,041

Premiums earned during the year 1 (6,432,697) (13,801,209) (8,440,034) (3,911,300) (10,230,491) (6,820,441)

3,316,052 3,374,888 4,225,124 2,218,432 2,187,448 3,367,036

The movement in life unearned premium

At 1 January 1,107,830 701,591 701,591 - -

Premiums written in the year 2,159,115 3,437,070 1,806,711

Premiums earned during the year (2,248,935) (3,030,831) (1,630,259)

1,018,010 1,107,830 878,043 - -

35 Investment contract liabilities

Group deposit administration 225,940 218,672 266,791 - -

Individual deposit administration 24,776,622 23,998,909 22,058,354 - -

25,002,562 24,217,581 22,325,145 - -

25,002,562 24,217,581 21,966,397

Current 9,742,373 8,827,046 9,185,794 - -

Non-current 15,260,189 15,390,535 13,139,351 - -

25,002,562 24,217,581 22,325,145 - -

The movement in deposit administration funds

Balance at the beginning of the year 24,217,581 20,857,951 20,146,917 -

Deposits received during the year 12,862,465 12,862,465 6,526,006 - -

Guaranteed interest 1,122,476 1,122,476 463,952 - -

Withdrawals during the year (13,199,960) (10,625,311) (4,811,730) - -

Balance at the end of the year 25,002,562 24,217,581 22,325,145 - -

25,002,562 24,217,581 21,966,397

36 Trade payables

Reinsurance payables 26,807 92,178 40,557 (76,205) 67,400 -

Due to brokers - - - - - -

Co-Insurance payables 156,899 286 57,413 158,329 285 -

183,706 92,464 97,970 82,124 67,685 -

183,706 92,463 - 82,124 67,686 -

Current 183,706 81,322 97,970 82,124 67,685 -

Non-current - 11,142 - - - -

183,706 92,464 97,970 82,124 67,685 -

33



As at 30 June 2016

37 Other liabilities



ACTUAL


Accruals 303,742 337,990 168,893 15,339 12,100 11,809

Creditors control-Management 44,259 52,714 - 44,259 52,714 425,605

Rent received in advance 50,302 58,875 19,752 7,177 7,625 18,815

Dividend Payable 89,141 89,141 1,918 89,141 89,141 1,918

Commission payable 73,826 134,454 48,587 76,533 58,002 48,587

Due to related companies 37.1 36,160 1 - - - -

PAYE 10,487 5,074 8,079 (20) 779 1,322

VAT payable 390,686 169,106 2,970 (3,659) 54 30

WHT payable 68,100 66,516 65,054 9,721 10,752 8,836

Staff pension 3,647 9,363 - (4,345) 1,152 -

Industrial Training Fund - - - - - -

ATM working capital ??? 18,326 25,935 - - - -

Salary control account (653) - 3,199 (653) - -

Deferred income 40.2 60,760 2,495 35,685 60,760 2,495 35,685

Amount due to brokers ??? 69,489 140,884 - 69,489 140,884 -

Amount due to Directors (1,495) 4,778 - (8,134) - -

National Housing Fund 5,129 4,441 1,287 4,662 3,997 911

Cooperative 3,624 3,671 370 - - 256

Deposit for shares ??? - - - - - -

Deposit for premium 439,279 448,853 128,206 (27,257) 11,177 211,755

Provision for NAICOM levy 37,223 37,863 - 37,223 37,863 -

Premium Refund - - - - - -

Sundry creditors 193,684 196,399 77,725 28,396 17,907 50,654

Trade creditors - - - - - 1,148,427

Investment payable ??? - 525 132,677 - - 132,677

Premium refund - - - - - -

??? Deposit for shares 37.2 - - - - - -

Deposit for properties by customers 23,809 23,809 - - - -

1,919,525 1,812,887 694,401 398,632 446,642 2,097,288

Current 1,919,525 1,812,887 694,401 398,632 446,642 2,097,288


1,919,525 1,812,887 694,401 398,632 446,642 2,097,288

38 Deposit liabilities



ACTUAL


Current 236,999 206,115 187,387 - - -

Time 64,686 187,783 153,714 - - -

Savings 115,284 115,969 144,180 - - -

416,969 509,867 485,281 - - -

416,968 509,867 409,000

Current 416,969 509,867 485,281 - - -


416,969 509,867 485,281 - - -

39 Book overdraft

Book overdraft - - - - - -

GROUP COMPANY

The Group has a cash management system under which overdrawn book balances exist at the reporting date due to un-posted lodgements and un-cleared cheques.

GROUP COMPANY

34



As at 30 June 2016

40 Borrowings



ACTUAL


GTBank margin facility 40.2 400,870 400,870 400,870 400,870 400,870 400,870 Loan from Daewoo Securities Limited 40.3 4,072,500 3,672,225 3,637,250 4,072,500 3,672,225 3,637,250

4,473,370 4,073,095 4,038,120 4,473,370 4,073,095 4,038,120

4,473,370 4,073,095 4,450,870 4,473,370 4,073,095 ####

Current - - - - - -

Non-current 4,473,370 4,073,095 4,038,120 4,473,370 4,073,095 4,038,120

4,473,370 4,073,095 4,038,120 4,473,370 4,073,095 4,038,120

40.1 The movement in borrowings during the year is

as follows:

Balance, beginning of the year 4,073,095 3,619,988 3,619,988 4,073,095 3,562,515 3,562,515

Impact of foreign exchange rate changes 400,275 510,580 475,605 400,275 510,580 475,605


Accrued interest - - - - - -

Payments during the year - - - - - -

Balance at the end of the year 4,473,370 4,073,095 4,095,593 4,473,370 4,073,095 4,038,120

4,473,370 4,073,095 4,450,870 4,473,370 4,073,095

40 Borrowings - Continued

40.2 GTBank margin facility

40.3 Loan from Daewoo Securities Limited



ACTUAL


Balance at 1 January 3,672,225 3,161,645 3,161,645 3,672,225 3,161,645 3,161,645

Impact of foreign exchange rate changes 400,275 510,580 888,355 400,275 510,580 888,355

4,072,500 3,672,225 4,050,000 4,072,500 3,672,225 4,050,000

Subsequently, in 2009 , the subscriber called for the repayment of the bond and an amount of ₦421,455,030 has since been repaid to date.

As at 31 December 2014, confirmation received from Daewoo Securities Limited indicated an outstanding balance of JPY4,710,900,101 (₦6,612,690,000) in respect of

the bond .

However, there is a litigation in respect of this loan.In view of the Litigation, the terms and conditions of the bonds are no longer being complied with by both the issuer

and the subscriber. The implication for noncompliance with the terms and conditions by the Company are that in the event that the outcome of litigation is

unfavourable penalties may be awarded.

During the year, the professional opinion obtained from the counsel of the Company, Bayo Osipitan & Co specified that there is high unlikelihood that the coupon rate

and penal interest will be payable by Mutual Benefits Assurance Plc as a high chance of success is anticipated in the on going court case.

1,750,000,000 Japanese Yen (JPY) due to be repaid in year 2020 was issued to Daewoo Securities Limited who acted as subscribers to the bond and 750,000,000

Japanese Yen (JPY) due to be repaid in year 2027 was subsequently issued to Daewoo Securities (Europe) Limited who acted as paying agent. The Bonds were issued

with the options to subscribe for the ordinary shares of the Company.

GROUP COMPANY

This is a margin facility obtained from Guaranty Trust Bank Plc. There is an on-going litigation on this investment arising from the additional investment cover requested

for by the Bank due to the fall in the value of the shares purchased against which the investment was initially secured, which was rejected by the Company. The

directors, having sought the advice of professional counsel, are of the opinion that no significant liability will crystalise from this litigation therefore, no provision has

been made in the financial statements.

GROUP COMPANY

The Company issued a zero coupon global bond/option valued at 2,500,000,000 Japanese Yen (JPY) to Daewoo Securities (Europe) Limited (the Company) in two

tranches.

35



As at 30 June 2016

41 Current income tax liabilities



ACTUAL


At the beginning of the year: 521,385 541,185 541,185 317,932 202,778 248,738

Current year charge:

Company income tax 106,235 30,453 36,479 32,519 - 36,479

Education tax - 14,969 - - 14,528 -

Information technology tax - 12,692 - - 8,906 -

Minimum tax - 191,700 - - 177,622 -

Under provision during the year - - - - - -

15.1 106,235 249,814 36,479 32,519 201,056 36,479

Disposal of subsidiaries (22,792) - - - - -

Payments during the year (222,965) (269,614) (167,085) (232,805) (85,902) (131,861)

Balance at the end of the year 381,863 521,385 410,579 117,646 317,932 153,356

381,863 521,385 117,646 317,932

42 Deferred income tax

Deferred income tax asset 42.1 - - (97,097) - - -

Deferred tax liabilities 42.2 1,136,077 1,136,079 957,549 720,943 720,943 673,346

1,136,077 1,136,079 860,452 720,943 720,943 673,346

42.1 Movement in Deferred income tax asset

Balance, beginning of year - 97,097 97,097 - - -

(Charge)/credit in income statement for the year - (16,074) - - - -

Disposal of subsidiaries - (81,023) -

Balance at the end of the year - - 97,097 - - -

- - - -

42 Deferred income tax - Continued



ACTUAL


42.2 Movement in Deferred income tax liabilities

Balance, beginning of year 1,136,079 1,237,469 957,549 720,943 673,346 673,346

(Credit)/charge in income statement for the year (2) 37,612 - - 47,597 -


Balance at the end of the year 1,136,077 1,136,079 957,549 720,943 720,943 673,346

1,136,077 1,136,079 781,127 720,943 720,943 673,346

Deferred income tax liability is attributable to

the following:

Property, plant and equipment 840,988 856,155 677,625 720,943 720,943 673,346

Investment property 34,362 22,697 22,697 - - -

Intra-group gain on investment property 260,727 257,227 257,227 - - -

1,136,077 1,136,079 957,549 720,943 720,943 673,346

Unrecognised deferred tax assets



ACTUAL


Property, plant and equipment 175,250 126,668 - - - -

Tax losses 1,624,100 1,783,607 - - - -

Balance, end of year 1,799,349 1,910,275 - - - -

GROUP COMPANY

Deferred tax assets relating to the Group’s life business have not been recognised in respect of the following items because it is not probable that future taxable profit

will be available against which the life business can use the benefits therefrom.

GROUP COMPANY

GROUP COMPANY

36



As at 30 June 2016

43 Share capital

Share capital comprises:

43.1 Authorized:

10,000,000,000 (2014: 10,000,000,000) Ordinary

shares of 50k each5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000

43.2 Issued and fully paid:

8,000,000, 000 (2014:8,000,000,000) Ordinary

shares of 50k each4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

There was no movement in share capital account during the year.

44 Treasury shares



ACTUAL


Company's shares held 250 250 250 250 250 250

45 Foreign currency transalation reserve

46 Contingency reserve



ACTUAL



Transfer from retained earnings 137,479 349,622 249,331 115,888 316,245 249,331

Balance, end of year 2,429,519 2,292,040 1,914,996 2,097,798 1,981,910 1,914,996

Analysis per business segment

Non-life business 2,097,798 1,981,910 1,914,996 2,097,798 1,981,910 1,914,996

Life business 331,721 310,130 - - - -

2,429,519 2,292,040 1,914,996 2,097,798 1,981,910 1,914,996

Non-life business


Transfer from retained earnings 115,888 316,245 249,331 115,888 316,245 249,331

Balance, end of year 2,097,798 1,981,910 1,914,996 2,097,798 1,981,910 1,914,996

47 Revaluation reserves

48 Retained earnings

The retained earnings represents the amount available for dividend distribution to the equity shareholders of the Company. See statement of changes in equity for

movement in retained earnings.

This is revaluation surplus in respect of building in line with the Company's accounting policies.

GROUP COMPANY

Treasury share: this represents the market value of shares of the Company held by the Company through its investement in quoted securities of the Nigerian Stock

Exchange.

This comprises exchange differences resulting from the translation to Naira of the results and financial position of Group companies that have a functional currency

other than Naira. Mutual benefits liberia limited and Mutual benefits Niger Republic limited have functional currencies other than Naira.

In compliance with Section 21 (1) of Insurance Act 2003, the contingency reserve for non-life insurance business is credited with the greater of 3% of total premiums, or

20% of the profits. This shall accumulate until it reaches the amount of greater of minimum paid-up capital or 50 percent of net premium. While for life business, the

contingency reserves is credited with an amount equal to 1% of gross premium or 10% of net profit (whichever is greater) and accumulated until it reached the amount

of minimum paid up capital.

GROUP COMPANY

37

MANAGEMENT ACCOUNTS FOR THE SIX MONTHS PERIOD … · 1,199,166 962,861 780,089 538,701 GROUP...

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