CORONATION INSURANCE : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

Coronation Insurance Plc

Unaudited Interim Financial Statements the period ended 30 September 2023

CORONATION INSURANCE PLC

INTRODUCTION

Coronation Insurance Plc's unaudited Interim Financial Statements complies with the applicable legal requirements of the Nigerian Securities and Exchange Commission regarding interim financial statements. These financial statements contain extract prepared in accordance with IAS 34 'Interim Financial Reporting' its interpretation issued by the International Accounting Standards and adopted by the Financial Reporting Council of Nigeria. Due to rounding numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

We confirmed that Coronation Insurance Plc has:

1. adopted a code of conduct regarding securities transactions by its directors on terms no less exacting than the required standard set out in the Financial Reporting Council of Nigeria (FRC), International Financial Reporting Standards (IFRS) and provisions of Rule 17.15(d) of the Listings Rules;
2. made specific enquiry of all directors and hereby confirm that its directors have complied with the required standard set out in the Listings Rules and in the Company's code of conduct regarding securities transactions by directors

In line with the provisions of Rule 2.2 of the Rules Governing Free Float Requirements, the shareholding pattern of the Company is disclosed at page 3 of the unaudited Financial Statements for the period ended 30th September, 2023.

We confirm that the Company's free float is in compliance with the Exchange's free float requirements for the Main Board on which the Company is listed

Shareholding Structure/Free Float Status

	30-Sep-23
Description	Unit	Percentage
Issued Share Capital	23,991,679,506	100%
Substantial Shareholdings (5% and above)
CORONATION CAPITAL, (MAURITIUS) LTD	9,794,561,952	40.82%
REUNION ENERGY, LIMITED - MAIN	5,011,809,066	20.89%
CORONATION ASSET, MANAGEMENT	1,242,456,657	5.18%
Total Substantial Shareholdings	16,048,827,675	66.89%
Directors' Shareholdings (direct and indirect), excluding directors with substantial interests
MR. AIGBOJE AIG-IMOUKHUEDE(Direct)	5,495,785	0.02
MR. AIGBOJE AIG-IMOUKHUEDE(Indirect Representing CORONATION CAPITAL, (MAURITIUS) LTD)	-	-
MR. AIGBOJE AIG-IMOUKHUEDE(Indirect Representing REUNION ENERGY, LIMITED - MAIN	-	-
MR. AIGBOJE AIG-IMOUKHUEDE(Indirect) TRUST AND, CAPITAL LIMITED	1,019,035,563	4.25
MR. AIGBOJE AIG-IMOUKHUEDE(Indirect) MARINA SECURITIES, LIMITED (MARS III)	642,125,079	2.68
MR. AIGBOJE AIG-IMOUKHUEDE(Indirect)UNITED ALLIANCE COMPANY OF NIG.LTD.	281,844,333	1.17
MR. AIGBOJE AIG-IMOUKHUEDE(Indirect) UNITED ALLIANCE COMPANY OF NIG.LTD.	71,177,164	0.30
MR. ADAMU ATTA (Direct)	7,471,883	0.03
OLISE BARNABAS, (Direct)	10,835,029	0.05
OSIME IFEYINWA (Direct)	656,693	0.00
UFOEZE CHIZOBA,	89,459,500	0.37
OGBONNEWO SEGUN, (LIEN-ARPS)	3,360,567	0.01
OLAJOLO OLAMIDE	32,272	0.00
OSUNTOKI TITILAYO	56,092	0.00
MR. PETER EHIMHEN	-	-
MUTIU SUNMONU	-	-
MR. BABABODE OSUNKOYA	-	-
Total Directors' Shareholdings	2,131,549,960	8.88
Other Influential Shareholdings
NIL	-	0.00%
Total Other Influential Shareholdings	-	0.00%
Free Float in Units and Percentage	5,811,301,871	24.22
Free Float in Value	₦ 3,719,233,197.44

Declaration:

(A)Coronation Insurance Plc with a free float percentage of 24.22% as at 30 September 2023, is compliant with the Exchange's free float

(B)Coronation Insurance Plc with a free float value of N3,719,233,197.44 as at 30 September 2023, is compliant with the Exchange's free float

Analysis of shareholders

The shareholding pattern of the Company as at September 30th 2023 is as stated below:

30 September 2023

					% of number of		% of number of
Range	Number of Shareholders		No. of shares held		shareholders		shares held
Coronation Insurance Plc's unaudited Interim	651,181		127,929,478		79.30		0.53
1,001 - 5,000	123,488		264,319,384		15.04		1.10
5,001 - 10,000	21,237		153,981,427		2.59		0.64
10,001 - 50,000	19,807		405,873,419		2.41		1.69
50,001 - 100,000	2,550		176,136,793		0.31		0.73
100,001 - 500,000	2,145		433,164,178		0.26		1.81
500,001 - 1,000,000	322		232,219,771		0.04		0.97
1,000,001 - 5,000,000	326		631,337,817		0.04		2.63
5,000,001 - 10,000,000	49		340,399,428		0.01		1.42
10,000,001 - 50,000,000	41		825,023,995		0.00		3.44
50,000,001 - 100,000,000	10		771,039,371		0.00		3.21
100,000,001 - 500,000,000	7		1,188,668,158		0.00		4.95
500,000,001 - 1,000,000,000	2		1,373,723,049		0.00		5.73
1,000,000,001 - 5,000,000,000	2		2,261,492,220		0.00		9.43
5,000,000,001 & Above	2		14,806,371,018		0.00		61.71
	821,169		23,991,679,506		100.00		100.00

Consolidated Statements of Financial Position

as at 30 September 2023

	Group		Company
	30 SEPT 2023	31 DEC 2022	30 SEPT 2023	31 DEC 2022
	N'000	N'000	N'000	N'000
ASSETS
Cash and cash equivalents	8,184,703			5,838,196	4,072,743			2,968,272
Financial assets	12,533,461			11,063,031	2,507,035			3,035,745
Trade receivables	346,505			241,300	272,717			236,069
Reinsurance assets	8,074,876			4,873,511	5,399,090			3,670,514
Deferred acquisition cost	739,634			357,032	366,093			114,920
Other receivables & prepayments	2,508,475			665,066	925,795			557,591
Investment property	89,750			89,750	89,750			89,750
Investment in associates	7,041,975			9,029,592	6,023,440			5,423,440
Investment in subsidiaries				-	9,259,506			9,259,506
Intangible assets	938,246			839,444	304,515			299,475
Property and equipment	3,713,075			3,582,384	3,117,877			3,145,956
Right of use asset	4,996			45,434				-
Current income tax asset				-				-
Deferred tax asset	235,112			235,112	235,112			235,112
Statutory deposit	971,550			813,038	300,000			300,000
Total assets	45,382,357			37,672,890	32,873,671			29,336,350
LIABILITIES
Insurance contract liabilities	17,640,703			12,819,459	10,848,898			8,672,640
Investment contract liabilities	2,196,692			1,348,822	-			-
Trade payables	930,896			624,208	741,863			489,451
Other payables	2,688,072			2,777,011	1,743,334			1,598,774
Lease liability	26,620			20,666	861,439			882,797
Current income tax	654,268			385,361	269,545			215,020
Deferred tax liabilities				-				-
Total liabilities	24,137,252			17,975,527	14,465,078			11,858,683
EQUITY
Equity attributable to owners
Share capital	11,995,952			11,995,952	11,995,952			11,995,952
Share premium	4,612,938			4,612,938	4,612,938			4,612,938
Contingency reserves	4,163,869			3,334,764	3,834,507			3,406,510
Other reserves	4,378,720			796,127	1,900,071			1,419,383
Retained earnings	(3,906,375)			(1,042,418)	(3,934,876)			(3,957,116)
Total equity	21,245,104			19,697,363	18,408,593			17,477,667
Total equity attributable to the owners of the parent	21,245,104			19,697,363	18,408,593			17,477,667
Total equity	21,245,104			19,697,363	18,408,593			17,477,667
Liabilities and equity	45,382,357			37,672,890	32,873,671			29,336,350

Mutiu Sunmonu

FRC/2014/IODN/00000006187

Chairman

Olamide Olajolo

FRC/2013/CIIN/00000000877

Managing Director

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

Coronation Insurance Plc

Consolidated Statements of Profit or Loss

For the period ended 30th September2023

(All amounts in Naira thousands unless otherwise stated)

		GROUP				COMPANY
	2023	2022	2023	2022		2023	2022	2023	2022
	3 Months September 3 Months September	YTD	YTD		3 Months September 3 Months September	YTD	YTD
	September	September		September	September
	N'000	N'000	N'000	N'000		N'000	N'000	N'000	N'000
Gross written premium	5,292,081	4,004,657	20,383,204	15,514,563		3,698,028	3,093,298	14,266,595	10,792,283
Movement in Unearned premium	1,521,736	592,202	(2,724,639)	(1,627,655)		1,152,128	129,149	(2,196,757)	(1,080,607)
Gross premium income	6,813,817	4,596,859	17,658,564	13,886,908		4,850,156	3,222,447	12,069,838	9,711,676
Reinsurance expenses	(3,299,518)	(1,856,938)	(8,274,195)	(5,432,079)		(2,845,610)	(1,529,022)	(6,784,289)	(4,403,911)
Net premium Income	3,514,298	2,739,921	9,384,369	8,454,829		2,004,546	1,693,425	5,285,549	5,307,765
Fees and commission income	843,297	325,544	1,732,707	868,987		708,106	262,893	1,338,145	648,785
Net underwriting income	4,357,596	3,065,465	11,117,076	9,323,816		2,712,652	1,956,318	6,623,695	5,956,550
Claims Paid	(2,062,895)	(1,005,676)	(4,437,488)	(4,181,234)		(1,604,654)	(542,638)	(2,934,053)	(2,469,318)
Movement in Outstanding Claims	147,256	(54,509)	(886,351)	996,305		186,541	(186,509)	20,499	857,076
Claims expense recoverable	495,040	295,446	2,473,293	990,297		399,870	230,300	978,660	385,673
Net claims expenses	(1,420,600)	(764,739)	(2,850,546)	(2,194,632)		(1,018,243)	(498,847)	(1,934,893)	(1,226,569)
Underwriting expenses	(1,450,792)	(830,577)	(3,220,794)	(2,132,643)		(1,071,269)	(598,011)	(2,193,269)	(1,457,403)
Increase in individual life fund	(600)	(0)	3,889	(1,072)		-	-	-	-
Total underwriting expenses	(2,871,992)	(1,595,315)	(6,067,450)	(4,328,347)		(2,089,512)	(1,096,858)	(4,128,162)	(2,683,972)
Total underwriting profit	1,485,604	1,470,150	5,049,626	4,995,469		623,140	859,460	2,495,532	3,272,578
Investment income	855,028	362,702	1,565,875	1,026,658		103,423	102,332	293,024	417,273
Net realized gain on financial assets	870,708	-	866,464	-		870,708	-	866,464	-
Net FV Gain/Loss on Financial Asset HFT@FVTPL	-	(3)		(3)		-	(3)	-	(3)
Profit on deposit administered contracts	34,397	18,447	67,714	84,413		-	-	-	-
Other operating income	822,428	650,455	807,941	1,026,905		251,044	93,376	68,855	201,037
Total investment and other income	2,582,561	1,031,601	3,307,994	2,137,973		1,225,175	195,705	1,228,343	618,307
Net income	4,068,165	2,501,751	8,357,620	7,133,442		1,848,315	1,055,165	3,723,875	3,890,885
Impairment on trade receivable	-	23,050	-	23,050		-	23,050		23,050
Impairment on other assets	-	-	-	-		-	-		-
Impairment on financial assets (ECL)	(50,152)	48,943	(53,481)	56,267		-	-		-
Employee benefit expenses	(443,416)	(385,412)	(1,283,659)	(965,619)		(184,029)	(194,352)	(558,931)	(482,163)
Other operating expenses	(1,549,017)	(1,249,936)	(4,308,599)	(4,024,699)		(943,991)	(734,715)	(2,492,947)	(2,503,469)
Finance cost on lease	-	-	-	-		-	-	-	-
Total operating expenses	(2,042,585)	(1,563,355)	(5,645,738)	(4,911,001)		(1,128,020)	(906,017)	(3,051,878)	(2,962,582)
Operating profit	2,025,580	938,396	2,711,881	2,222,441		720,295	149,148	671,997	928,303
Share of Profit of Associate	(1,024,872)	(671,312)	(2,188,803)	(1,341,548)		-	-	-	-
Profit before tax	1,000,708	267,084	523,078	880,893		720,295	149,148	671,997	928,303
Income tax	(282,883)	(150,663)	(473,978)	(274,002)		(221,759)	-	(221,759)	-
Profit after tax	717,825	116,421	49,101	606,891		498,535	149,148	450,238	928,303
Other Comprehensive Income, net of tax:
Exch. Diff. on translation of foreign operation	-	-	-	-		-	-	-	-
Net fair value gain/(loss) on AFS financial asset	(603,210)	(32,213)	861,399	(244,314)		(491,791)	20,848	480,688	(35,858)
Gain on revaluation of property & equipment	-	-	-			-	-	-	-
- Net changes in ECL allowance on FVOCI during the	-	-	-			-	-	-	-
year
- Fair value gain on equity securities during the period	-	-	-			-	-	-	-
- Exchange loss on net investment in a foreign	-	-	-			-	-	-	-
operation
Share of Other Comprehensive Income of Associate	84,321	(761,476)	2,721,194	(1,183,362)		-	-	-	-
Total Other Comprehensive Income	(518,889)	(793,689)	3,582,593	(1,427,676)		(491,791)	20,848	480,688	(35,858)
Total comprehensive income/loss	198,936	(677,267)	3,631,694	(820,784)		6,745	169,996	930,926	892,445
Basic Earning Per Share (Kobo)
0.00	0.49	0.00	2.53		-	0.01	0.00	0.04

Coronation Insurance Plc

Statement of Changes in Equity for the Period ended September 2023

(All amounts in Naira thousands unless otherwise stated)

Company

					Statutory contingency
	Share capital	Share premium	Other reserves		reserve	Retained earnings	Total
	-	-
As at 1 January 2023	11,995,952	4,612,938		1,419,383	3,406,510	(3,957,116)	17,477,667
Profit for the period						(48,297)	(48,297)
Other comprehensive income				972,479			972,479
Total comprehensive income	-	-		972,479	-	(48,297)	924,182
	11,995,952	4,612,938		2,391,862	3,406,510	(4,005,413)	18,401,848
Transfer contingency reserve					317,057	(317,057)	-
As at period end	11,995,952	4,612,938		2,391,862	3,723,567	(4,322,470)	18,401,848

Group

					Statutory contingency
	Share capital	Share premium	Other reserves		reserve	Retained earnings	Total
As at 1 January 2023	11,995,952	4,612,938		796,127	3,659,242	(1,042,418)	20,021,841
Profit for the period						(668,724)	(668,724)
Other comprehensive income				4,101,482			4,101,482
Total comprehensive income	-	-		4,101,482	-	(668,724)	3,432,757
	11,995,952	4,612,938		4,897,609	3,659,242	(1,711,143)	23,454,598
Interim appropriation adjustment						(22,969)	(22,969)
Foreign currency translation				-	125,058		125,058
Transfer contingency reserve					487,558	(487,558)	-
Share of Associate profit at start of year				-		(1,163,931)	(1,163,931)
As at period end	11,995,952	4,612,938		4,897,609	4,271,858	(3,385,601)	22,392,756

Form L34: Statement of Cash Flows

Company: Coronation Insurance Plc

NAICOM registration Number: Ric -046

Period Ending: 30 SEPTEMBER 2023

Scale Factor; In Thousands of Naira

Consolidated Statement of Cash Flows For the period ended 30 September 2023

Group

20232022

Company

20232022

	30th September		30th September		30th September		30th September
	N'000		N'000		N'000		N'000
Cash flows from operating activities
Premiums received	20,277,999	15,392,909	14,229,947	10,706,253
Fees and commission received	1,906,053	970,479	1,480,022	689,387
Fees and commission paid	(3,603,396)	(2,591,316)	(2,444,443)	(1,860,193)
Reinsurance premiums paid	(9,357,728)	(5,455,111)	(7,526,648)	(4,929,146)
Gross claims paid to policy holders	(4,437,488)	(4,181,234)	(2,934,053)	(2,469,318)
Reinsurance recoveries on claims	1,040,278	1,687,036	673,147	818,017
Other operating cashflows	1,925,822		(4,969,123)		139,610		(2,789,963)
Net cashflow from operations	7,751,539	853,641	3,617,582	165,038
Cash flows from investing activities
Purchase of Intangible assets	(78,590)	(265,903)	(78,590)	(52,547)
Purchase of Property and equipment	(471,928)	(450,254)	(248,069)	(204,067)
Purchases of investment in subsidiaries		-
Purchase of investment securities	(20,831,972)	(4,914,316)	(16,937,441)	(2,049,760)
Proceeds from Redemption of investment securities	13,550,793	5,323,371	13,591,501	1,450,484
Other investing activities cashflow	2,426,666		1,174,670		1,159,488		420,794
Net cash (used in) / from investing activities	(5,405,031)	867,568	(2,513,112)	(435,096)
Cash flows from financing activities
Proceeds from issue of shares	-	-	-	-
Dividend paid	-	-	-	-
Net cash from financing activities	-		-		-		-
Cash and cash equivalent at beginning of year	5,838,196	7,063,452	2,968,272	4,223,582
Net increase/(decrease) in cash and cash equivalent	2,346,507	1,721,209	1,104,471	(270,058)
Cash and cash equivalent at end of year	8,184,703		8,784,661		4,072,743	3,953,524

Summary of Cash and cash equivalents

For the purposes of the statement of cash flow, cash and cash equivalents is as follows:

	Group			Company
	2023			2022	2023	2022
	30th September	30th September		30th September		30th September
	N'000	N'000		N'000		N'000
Cash at bank and in hand	1,640,375			3,168,654	350,232	1,654,750
Money market placements	6,544,329			5,616,007	3,722,510	2,298,775
Treasury bills less than 90 days maturity
Balance, end of year	8,184,703			8,784,661		4,072,743		3,953,524
						Company

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

4 Critical accounting estimates and judgments

1. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities. The underlying judgments of the selection and disclosure of the Group's critical accounting policies and estimates, and the application of these policies and estimates are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

   Key sources of estimation uncertainty

2. Determination of fair values
   The determination of fair value for financial assets and liabilities for which there is no observable market price requires the use of techniques as described in accounting policy 3.2(b). Further disclosures on the Group's valuation methodology have been made on note 6 (Fair value hierarchy). For financial instruments that trade infrequently and have little price transparency, fair value is less objective, and requires varying degrees of judgement depending on liquidity, concentration, uncertainty of market factors, pricing assumptions and other risks affecting the specific instrument.
3. Actuarial valuation of insurance contracts liabilities
   The estimation of the ultimate liability arising from claims made under insurance contracts is one of the Group's most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the liability that the Group will ultimately pay for such claims. The ultimate cost of outstanding claims is estimated by using a standard actuarial claims projection technique called the Basic Chain Ladder (BCL).
   The main assumption underlying these techniques is that the Group's past claims development experience can be used to project future claims
4. Expected Credit Loss
   The determination of Expected Credit Loss on financial assets requires the use of techniques as described in accounting policy 3.2(a). Further disclosures on the Company's valuation methodology have been made on note 3.2(d) (impairment) . Determination of expected credit loss requires varying degrees of judgement on the probability at default, loss given defaault, uncertainty of forward looking information and other risks affecting the specific instrument.