Staco Insurance Company (SL) Limited
Financial statements
for the year ended 31 December 2010
Staco Insurance Company (SL) Limited
Draft Financial Statements
for the Year ended 31 December 2014
13 February 2015
This report contains 41pages
Ref: S651/….eap
Staco Insurance Company (SL) Limited
Financial statements
for the year ended 31 December 2010
Staco Insurance Company Limited
Financial statements
for the Year ended 31 December 2014
Contents Page
General information 1
Report of the directors 2 - 3
Statement of financial position 4
Statement of comprehensive income – Non life 5– 6
Statement of Comprehensive income – Life 7
Statement of changes in equity 8-9
Statement of cash flows 10
Notes to the financial statement 11 - 41
Staco Insurance Company (SL) Limited
Financial statements
for the Year ended 31 December 2014
General information
Directors : Henry Macauley (Chairman)
Adekunle Micheal Aderinola (Managing)
BrimaNdoeka
Solomon Ogba
S.O. Oyefeso
EhiEguabor
EmericaKarefa-kargbo
Registered Office : 24 Upper Brook Street
Freetown.
Sierra Leone
Bankers : Access Bank (SL) Limited
Ecobank Sierra Leone Limited
Guaranty Trust Bank Sierra Leone Limited
Standard Chartered Bank Sierra Leone Limited
Union Trust Bank Limited
Zenith Bank Sierra Leone Limited
United Bank of Africa (SL) Limited
Bank PHB (SL) Limited
Sierra Leone Commercial Bank (SL) Limited
Rokel Commercial Bank (SL) Limited
Skye Bank (SL) Limited
HFC Mortgage and Savings Bank (SL) Limited
Corporate Secretaries : Freetown Nominees
5 Main Motor Road
Congo Cross
Freetown
Sierra Leone
Auditors and
Tax Advisers : KPMG
Chartered Accountants
KPMG House
37 Siaka Stevens Street
Freetown
Sierra Leone.
Report of the directors
The directors present their report and audited financial statements for the year ended 31December 2014.
Directors responsibility statement
The Company’s directors are responsible for the preparation and fair presentation of the financial statements, comprising the statement of financial position at 30 September 2014, and the statement of comprehensive income, the statement of changes in equity and the statement of cash flow for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, and the report of the directors in accordance with International Financial Reporting Standards, and in the manner required by the Sierra LeoneCompanies Act and the Insurance Act 2000.
The director’s responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of these financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
The directors’ have made an assessment of the company’s ability to continue as a going concern and have no reason to believe the business will not be a going concern in the year ahead.
Principal activity
The principal activities of the company continue to be the provision of life and general insurance services.
The company and its activities is regulated by and subjected to the provisions of the Insurance Act 2000.
Results
The results for the nine month period ending 30th September are shown in the attached financial statements.
Property and equipment
Details of the Staco Insurance Company (SL) Limited’s property and equipment are shown in note 12 to these financial statements.
Employment of disabled people
Staco Insurance Company (SL) Limited does not discriminate against a qualified individual with disability with regards to recruitment, advancement, training, compensation, discharge or other terms, conditions or privileges of employment. There were no disabled persons employed during the year.
Report of the directors (continued)
Health, safety and welfare at work
Staco Insurance Company(SL) Limitedhas retained the services of a medical doctor for all employees of the company and a conducive office environment is maintained for staff and visitors, with adequate lighting and ventilation.
Employee involvement and training
There are various forums where the staff meet and discuss issues that relate to them and their progress at the work place, these include unit meetings, and regular general meetings.
There is an approved training schedule for staff and the company also has a staff performance appraisal process through which staffs are appraised and promotions and /or increments are made.
Directors and their interests
The following directors served during the year:
Henry Macauley - (Chairman)
Adekunle Micheal Aderinola - (Managing)
BrimaNdoeka
Solomon Ogba
S.O. Oyefeso
EhiEguabor
EmericaKarefa-kargbo
Auditors
In accordance with Section 308 of the Sierra Leone Companies Act 2009 a resolution for the re-appointment of KPMG as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approval of the financial statements
The financial statements were approved by the board of directors on … ………………..2015.
………………………………. ………………………………..
Chairman Director
3
41
41
Staco Insurance Company Limited
Financial statements
for the Year ended 31 December 2014
41
Staco Insurance Company Limited
Financial statements
for the Year ended 31 December 2014
41
Staco Insurance Company Limited
Financial statements
for the Year ended 31 December 2014
41
Staco Insurance Company Limited
Financial statements
for the Year ended 31 December 2014
Statement of financial position
as at 31 December
In thousands of Leones Note 2014 2013
Assets
Property and equipment 12 772,470 778,167
Financial assets 13 3,736,825 2,853,429
Loans and receivables including
insurance receivables 14 1,788,707 994,202
Cash and cash equivalents 15 3,429,369 460,852
Deferred tax asset 10d 121,410 214,336
______
Total assets 9,848,781 5,300,986 ======
Equity
Share capital 16 100,000 100,000
Deposit for shares 17 1,349,618 1,349,618
Contingency reserve 18 529,988 299,853
Retained earnings 19 578,561 125,368
______
Total equity 2,558,167 1,874,839
______
Liabilities
Loans and borrowings 20 192,499 307,500
Employee benefit provision 21 26,770 19,096
Insurance contract 22 585,231 424,461
Trade and other payables 23 1,799,787 817,885
Income tax liability 10c 89,872 38,479
Insurance funds:
Non-life 9a 4,109,971 1,735,184
Life 9b 486,484 83,542
______
Total liabilities 7,290,614 3,426,147
______
Total equity and liabilities 9,848,781 5,300,986
======
The financial statements were approved by the board of directors on 2015
and were signed on its behalf by:
……………………………………………….. Chairman
………………………………………………... Director
The notes on pages 11 to 41are an integral part of these financial statements
Statement of comprehensive income - Non-life
for the year ended 31 December
In thousands of Leones Note 2014 2013
Revenue
Insurance premium revenue 7,399,618 3,838,474
Insurance premium ceded
to reinsurers (624,501) (141,745)
______
Net insurance premium Written 5.1 6,775,117 3,696,729
Less: Unearned Premium (980,344) -
______
Net Premium Earned5,794,7733,696,729
Investment income 6 196,156 225,324
______
Net revenue 5,990,929 3,922,053
______
Expenditure
Claims paid, outstanding
and unintimated 5.1 248,784 1,179,556
Commissionpaid 5.1 1,078,993 475,633
Management expenses 5.1& 7 2,460,204 2,045,362
Net finance cost 8a (24,219) 89,974
______
3,763,762 3,790,525
Amounts transferred to
Insurance fund account 9a 1,394,443 398,281
______
5.1 5,158,205 4,188,806
______
Net (expense)/income from non-life operations 832,724 (266,753)
Other income 44,488 6,429
______
(Loss)/ profit before tax 877,212 (260,324)
Tax credit/ (expense) 10a (202,031) 135,058
______
(Loss)/ profitfor the year 675,181 (125,266)
======
Other comprehensive income for the
year, net of tax - -
______
Total comprehensive (loss)/ income for
the year 675,181 (125,266)
======
The notes on pages 11 to 41are an integral part of these financial statements
Statement of comprehensive income - Non-life(continued)
In thousands of Leones Note 2014 2013
(Loss)/ profit attributable to:
Equity holders of the company 675,181 (125,266)
______
(Loss)/ profit for the year 675,181 (125,266)
======
Total comprehensive (loss)/ income
attributable to:
Equity holders of the company 675,181 (125,266)
______
Total comprehensive (loss)/ income for
the year 675,181 (125,266)
======
Basic and diluted (loss)/ earning per share 11 675 (125)
======
The financial statements were approved by the board of directors on 2015
and were signed on its behalf by:
……………………………………………….. Chairman
……………………………………………….. Director
The notes on pages 11 to 41 are an integral part of these financial statements
Statement of comprehensive income - Life
for the year ended 31 December
In thousands of Leones Note 2014 2013
Revenue
Net insurance premium revenue 708,652 238,196
Investment income 6b 7,533 5,996
______
Net revenue 716,185 244,192
______
Expenditure
Claims paid, outstanding and unintimated 379,363 150,340
Commission (earned)/paid 44,597 26,102
Management expenses 81,002 53,560
Net finance cost 8 2,354 -
______
507,366 230,002
Amounts transferred to
life insurance fund account9b 208,849 14,190
______
716,185 244,192
======
The financial statements were approved by the board of directors on 2015and were signed on its behalf by:
……………………………………………….. Chairman
……………………………………………….. Director
The notes on pages 11 to 41are an integral part of these financial statements
41
Staco Insurance Company Limited
Financial statements
for the Year ended 31 December 2014
Statement of changes in equity
for the year ended 31 December 2014
In thousands of Leones
Share Deposit Retained Contingency
capital for shares earnings reserves Total
Balance at 1 January 2014 100,000 1,349,618 125,368 299,853 1,874,839
Total comprehensive income
for the year
Profit/(Loss) for the year - - 675,181 - 675,181
Other comprehensive income
net of tax - - - - -
______
Total other comprehensive
income - - -- -
______
Other transfers
Transfer to contingency reserve
(Non-Life) - - (221,988)221,988 -
Transfer to Contingency reserve
(Life) - - - 8,1478,147
______
Total other transfers - - (221,988) 230,1358,147
______
Total comprehensive (loss)/income
and transfers 453,193230,135 683,328
______
Transaction with owners, recorded
directly in equity - - - - -
Contribution by and distributors
to owners
Dividend to equity holders - - - - -
______
Total contribution by and
distributors to owners - - - - -
______
Balance at 31December 2014 100,000 1,349,618 578,561529,9882,558,167
======
The notes on pages 11 to 41 are an integral part of these financial statements
Statement of changes in equity(continued)
for the year ended 31 December 2013
In thousands of Leones
Share Deposit Retained Contingency
capital for shares earnings reserves Total
Balance at 1 January 2013 100,000 1,349,618 515,788 184,699 2,150,105
Total comprehensive income
for the year - - - - -
Profit/(Loss) for the year - - (125,266) - (125,266)
Other comprehensive income
net of tax - - - - -
______
Total other comprehensive
income - - - - -
______
Other transfers
Transfer to contingency reserve - - (115,154) 115,154 -
______
Total other transfers - - (115,154) 115,154 8,147
______
Total comprehensive (loss)/ income
and transfers - - (240,420) 115,154 (125,266)
______
Transaction with owners, recorded
directly in equity - - - - -
Contribution by and distributors
to owners
Dividend to equity holders - - (150,000) - (150,000)
______
Total contribution by and
distributors to owners - - (150,000) - (150,000)
______
Balance at 31December 2013 100,000 1,349,618 125,368 299,853 1,874,839
======
The notes on pages 11 to 41 are an integral part of these financial statements
Statement of cash flows
for the year ended 31 December
In thousands of Leones Note 2014 2013
Cash flows from operating activities
(Loss)/ Profit for the year 877,212 (260,324)
Adjustment for:
Depreciation 12 147,967 114,368
Net finance cost 8 (21,865) 89,974
(Profit)/Loss on disposal 4,466 (5,428)
______
Cash flows (used in)/from operating activities 1,007,780 (61,410)
Changes in operating assets and liabilities
Changes in receivables (794,506) (390,055)
Changes in payables 981,901 515,173
Changes in insurance fund – Non-Life 1,394,443 398,281
Changes in end of service benefit 7,674 12,458
Changes in insurance contract 160,770 256,530
Changes in life fund 200,701 14,190
Contingency Reserve Transfer - Life 8,147 -
Change in Unearned Premium 1,182,585 -
______
4,149,495 745,167
Interest & Charge paid (114,347) (90,797)
Income tax paid (57,712) (42,705)
______
Net cash from operating activities 3,977,436 611,665
======
Cash flow from investing activities
Acquisition of property and equipment 12 (152,238) (395,647)
Acquisition of investment (883,396) (582,388)
Proceeds from sale of property and equipment 5,500 9,000
______
Net cash used in investing activities (1,030,134) (969,035)
======
Cash flows from financing activities
Net change in loans and borrowings (115,001) 265,395
Dividends to owners - (150,000)
_______
Cash flow from financing activities (115,001) 115,395
=======
Net decrease in cash and cash equivalents 2,832,302 (241,975)
Cash and cash equivalents at
beginning of the year 460,852 702,004
Exchange rate fluctuation 136,215 823
______
Cash and cash equivalents at
end of the year 15 3,429,369 460,852
======
The notes on pages 11 to 40 are an integral part of these financial statements
Notes to the financial statement
1. General information
Staco Insurance Company (SL) Limited underwrites non-life insurance risks such as those associated with fire, motor, accident, medical and marine businesses. The company also invests in treasury and other eligible bills in Sierra Leone on which it earns interests.
The company is a limited liability company incorporated and domiciled in Sierra Leone. The address of its registered office is 24 Upper Brock Street, Freetown, Sierra Leone.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of presentation
These financial statements are prepared in accordance with International Financial Reporting Standards (IFRS).
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. 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 areas where assumptions and estimates are significant to the financial statements are disclosed in Note3.
All amounts in the notes are shown in thousands of Leones, rounded to the nearest thousand, unless otherwise stated.
2.2 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the company operates (the ‘functional currency’). The financial statements are presented in thousands of Leones, which is the company’s presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.