AIICO INSURANCE : QUARTER 1 FINANCIAL STATEMENT FOR 2024

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

	AIICO INSURANCE PLC
UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
Table of contents	Page
Corporate Information	2
Consolidated Results at a Glance - The Group	4
Results at a Glance - The Company	5
Shareholding structure and free float status	6
Statement of Directors' Responsibilities in Relation to the Financial Statements	7
Certification Pursuant to Section 60(2) of Investment & Securities Act No. 29 of 2007	8
Material Accounting Policies	9
Consolidated and Separate Statements of Financial Position	41
Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income	42
Consolidated Statement of Changes in Equity - the Group	43
Statement of Changes in Equity - the Company	44
Consolidated and Separate Statements of Cash Flows	45
Notes to the Consolidated and Separate Financial Statements	46

1

AIICO INSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

Corporate Information
Directors		Mr. Kundan Sainani (Indian)	Chairman
		Mr. Babatunde Fajemirokun	Group MD / CEO
		Mr. Adewale Kadri	Executive Director
		Mr. Samaila Zubairu	Director/Independent
		Mr. Ademola Adebise	Director
		Mrs. Oluwafolakemi Edun (nee Fajemirokun)	Director
		Mr. Olalekan Akinyanmi	Director
		Mr. Raimund Snyders *	Director
		Mr. Rotimi Okpaise **	Director
Key
*		South African by Nationality
**		Appointed effective 23rd February 2023
Company Secretary		Mr. Donald Kanu
		AIICO Insurance Plc AIICO Plaza
		Plot PC 12, Churchgate Street
		Victoria Island, Lagos
Registered Office		AIICO Plaza
		Plot PC 12, Churchgate Street
		Lagos
RC No.		7340
TIN		00401332-0001
Corporate Head Office		AIICO Plaza
		Plot PC 12, Churchgate Street Victoria Island
		Lagos
		Tel: [phone]
		0700AIIContact (0700 2442 6682 28)
		Fax: [phone]
		Website: //www.aiicoplc.com
		E-mail: [e-mail]
Registrar		Coronation Registrars (formerly, United Securities Limited)
		09, Amodu Ojikutu Street Off
		Bishop Oluwole Street, Victoria Island
		P.M.B. 12753
		Lagos
Independent Auditor		Ernst & Young
		10th & 13th Floors, UBA House
		57, Marina Road
		Lagos Island
		Lagos
		website: www.ey.com/ng
Bankers		Access Bank Plc
		Ecobank Nigeria Plc
		First Bank of Nigeria Limited
		First City Monument Bank Plc
		Guaranty Trust Bank Limited
		Stanbic IBTC Bank
		Standard Chartered Bank Nigeria Limited
		Union Bank of Nigeria Plc
		United Bank of Africa Plc
		Wema Bank Plc
Actuary	Firm Name:	Zamara Consulting Actuaries Nigeria Limited
	Firm FRCN:	FRC/2019/00000012910
	Life Valuation	Nikhil Dhodia
	FRCN	FRC/2021/004/00000024023
	Firm Name:	Zamara Consulting Actuaries Nigeria Limited
	Firm FRCN:	FRC/2019/00000012910
	Non life Valuation	Jay Kosgei
	FRCN	FRC/2021/004/00000023786

2

AIICO INSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

Corporate information (continued)
Reinsurers		Africa Reinsurance Corporation
		Continental Reinsurance Plc
		Swiss Reinsurance
		WAICA Reinsurance
		Nigerian Reinsurance
		Trust Reinsurance
		Zep Reinsurance
		Arig Reinsurance
		Aveni Reinsurance
		NCA Reinsurance
Estate Valuer	Firm Name:	Niyi Fatokun & Co.
	Firm FRCN:	FRC/2019/00000012894
	Partner	Niyi Fatokun
	FRCN	(Chartered Surveyors & Valuer)
		FRC/2013/NIESV/70000000/1217
Regulatory Authority		National Insurance Commission (NAICOM)

Branch Networks
1. Port Harcourt	2. Kaduna
11 Ezimgbu Link Road (Mummy B Road)	Yaman Phone House
Off Stadium Road	1, Constitution Road
G.R.A Phase 4, Port Harcourt	Kaduna, Kaduna State
Rivers State	Tel: [phone];
Tel: [phone]	[phone]
[phone]
3. Abuja Area Office	4. Kano
No 44 Durban Street,	8, Post Office Road
Off Adetokunbo Ademola Crescent, Wuse II	Kano
FCT, Abuja.	Kano State
Tel: [phone]	Tel: [phone]
[phone]	[phone]
5. Abeokuta	6. Lagos, Ikeja
46, Tinubu Street	AIICO House
Ita Eko, Abeokuta	Plot 2, Oba Akran Avenue
Ogun State	Opp. Dunlop, Ikeja, Lagos
Tel: [phone]	Tel: [phone]
	[phone]
7. Aba	8. Lagos, Isolo
7, Factory Road	203/205, Apapa-Oshodi Expressway
Aba, Abia State	Isolo, Lagos
Tel: [phone]	Tel: [phone]
9. Enugu	10. Lagos, Ilupeju
55-59, Chime Avenue	AIICO House
Gbuja's Plaza New Haven	36/38, Ilupeju Industrial Avenue
Enugu State	Ilupeju, Lagos
Tel: [phone]	Tel: [phone]
	[phone]
11. Benin	12. Onitsha
28, Sakponba Road	Noclink Plaza, 41 New Market Road
Benin City	Opp UBA Bank, Onitsha
Edo State	Anambra State
Tel: [phone]	Tel: [phone]
[phone]	[phone]
13. Jos	14. Owerri
4, Beach Road	46, Wetheral Road
Jos, Plateau State.	Owerri, Imo State
Tel: [phone]	Tel: [phone]
[phone]	[phone]
15. Ibadan	16. Warri
12, Moshood Abiola Way	60, Effurun/Sapele Road
Challenge Area	Warri.
Ibadan, Oyo State	Delta State.
Tel: [phone]	Tel: [phone]
[phone]	[phone]

3

AIICO INSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

Results at a Glance - The Group
For the period ended 31 March 2024
Profit or Loss and Other Comprehensive Income			Increase/	Increase/
		(decrease)	(decrease)
In thousands of naira	31-Mar-24	31-Mar-23	Changes	%
Gross written premium	49,082,934	31,739,824	17,343,110	55
Insurance revenue	22,669,763	14,839,171	7,830,592	53
Insurance service expense	(17,755,037)	(13,465,447)	(4,289,590)	32
Net Expenses from reinsurance contracts	(4,792,847)	(2,156,138)	(2,636,709)	122
Insurance service result	121,879	(782,414)	904,294	(116)
Net investment income before fair value changes	7,747,365	5,977,624	1,769,741	30
Net fair value loss	(18,558,166)	(9,705,753)	(8,852,413)	91
Net impairment loss	-	(71,852)	71,852	(100)
Net foreign exchange income/(expense)	7,739,023	(436,713)	8,175,736	(1872)
Net insurance/reinsurance finance expenses	13,315,905	6,673,322	6,642,583	100
Net insurance and investment result	10,366,008	1,654,214	8,711,794	527
Other Income	259,899	356,039	(96,140)	(27)
Other Expenses	(545,545)	(567,199)	21,653	(4)
Profit before income tax from continuing operations	10,080,361	1,443,054	8,637,307	599
Income tax expenses	(1,293,385)	(8,339)	(1,285,047)	(15411)
Profit for the period	8,786,976	1,434,715	7,352,260	512
Total other comprehensive income/(loss)	(1,280,672)	(550,250)	(730,422)	133
Total comprehensive income for the period	7,506,304	884,465	6,621,839	749
Basic and diluted earnings per share (kobo)	24	4
Financial Position
In thousands of naira	31-Mar-24	31-Dec-23	Changes	%
Assets
Cash and cash equivalents	36,022,326	18,422,728	17,599,598	96
Financial assets	258,627,503	266,747,074	(8,119,571)	(3)
Trade receivables	1,769,515	980,752	788,763	80
Reinsurance contracts assets	22,959,929	17,116,370	5,843,559	34
Other receivables and prepayments	5,057,477	3,667,351	1,390,126	38
Investment properties	707,500	707,500	-	0
Property and equipment	8,809,190	8,913,645	(104,455)	(1)
Statutory deposits	500,000	500,000	-	-
Right of use assets	116,775	132,512	(15,737)	(12)
Goodwill and other intangible assets	1,166,216	907,630	258,587	28
Total assets	335,736,432	318,095,562	17,640,870	6
Liabilities
Insurance contract liabilities	224,342,321	218,023,682	6,318,639	3
Investment contract liabilities	4,056,210	3,855,324	200,887	5
Reinsurance contract liabilities	2,100,868	930,616	1,170,252	126
Other insurance contract liabilities	1,840,416	2,423,168	(582,752)	(24)
Trade payables	3,116,361	1,612,909	1,503,452	93
Other payables and accruals	6,423,042	8,332,138	(1,909,097)	(23)
Fixed income liabilities	32,185,073	30,241,800	1,943,273	6
Current income tax payable	2,138,447	845,061	1,293,385	153
Deferred tax liabilities	498	498	0	0
Total liabilities	276,203,236	266,265,196	9,938,040	4
Equity
Share capital	18,302,638	18,302,638	-	-
Share premium	64,745	64,745	-	-
Revaluation reserve	2,764,016	2,764,016	-	-
Fair value reserve	(2,374,269)	(1,107,650)	(1,266,619)	114
Contingency reserve	12,606,325	11,755,475	850,851	7
Retained earnings	27,718,256	19,615,890	8,102,366	41
Shareholders' funds	59,081,711	51,395,114	7,686,597	15
Non-controlling interests	451,485	435,252	16,234	4
Total equity	59,533,197	51,830,366	7,702,831	15
Total liabilities and equity	335,736,432	318,095,561	17,640,871	6

4

AIICO INSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

Results at a Glance - The Company
For the period ended 31 March 2024
Profit or loss and other comprehensive income			Increase/	Increase/
		(Decrease)	(Decrease)
In thousands of naira	31-Mar-24	31-Mar-23	Changes	%
Gross written premium	48,756,519	31,415,815	17,340,704	55
Insurance revenue
Insurance service expense	(17,595,240)	(13,384,611)	(4,210,629)	31
Net Expenses from reinsurance contracts	(4,792,847)	(2,156,138)	(2,636,709)	122
Insurance service result	(67,268)	(1,057,903)	990,634	(94)
Net investment income before fair value changes	7,594,475	5,880,974	1,713,500	29
Net fair value loss	(18,558,166)	(9,705,753)	(8,852,413)	91
Net foreign exchange income/(expense)	7,739,023	(436,713)	8,175,736	(1872)
Net insurance/reinsurance finance expenses	13,315,905	6,673,322	6,642,583	100
Net insurance and investment result	10,023,969	1,361,229	8,662,740	636
Other Income	220,259	266,964	(46,705)	(17)
Other Expenses	(372,953)	(343,121)	(29,832)	(9)
Profit before income tax from continuing operations	9,871,275	1,285,072	8,586,203	668
Income tax expenses	(1,286,529)	(11,763)	(1,274,766)	100
Profit for the period	8,584,745	1,273,309	7,311,437	574
Total other comprehensive loss	(1,140,143)	(121,884)	(1,018,259)	835
Total comprehensive income for the period	7,444,603	1,151,425	6,293,178	547
Basic and diluted earnings per share (kobo)	24	3
Financial Position
In thousands of naira	31-Mar-24	31-Dec-23 Changes	%
Assets
Cash and cash equivalents	23,547,115	7,921,257	15,625,858	197
Financial assets	236,114,317	243,686,602	(7,572,285)	(3)
Trade receivables	1,506,547	909,559	596,988	66
Reinsurance contracts assets	22,959,929	17,116,370	5,843,559	34
Other receivables and prepayments	4,278,725	2,838,437	1,440,288	51
Investment in subsidiaries	1,087,317	1,087,317	-	-
Investment properties	707,500	707,500	-	0
Property and equipment	8,564,191	8,708,397	(144,205)	(2)
Statutory deposits	500,000	500,000	-	-
Right of use assets	116,775	132,512	(15,737)	(12)
Goodwill and other intangible assets	1,103,647	840,555	263,093	31
Total assets	300,486,063	284,448,506	16,037,557	6
Liabilities
Insurance contract liabilities	224,342,321	217,701,608	6,640,712	3
Investment contract liabilities	4,056,210	3,855,324	200,887	5
Reinsurance contract liabilities	2,100,868	930,616	1,170,252	126
Other insurance contract liabilities	1,840,416	2,423,168	(582,752)	(24)
Trade payables	3,116,361	1,612,909	1,503,452	93
Other payables and accruals	5,747,931	7,570,587	(1,822,656)	(24)
Current income tax payable	2,049,556	763,026	1,286,530	169
Total liabilities	243,253,664	234,857,238	8,396,426	4
Equity
Share capital	18,302,638	18,302,638	0	0
Share premium	64,745	64,745	(0)	(0)
Revaluation reserve	2,764,016	2,764,016	-	-
Fair value reserve	(1,153,686)	(13,544)	(1,140,143)	8,418
Contingency reserve	12,606,325	11,755,475	850,851	7
Retained earnings	24,648,361	16,717,938	7,930,423	47
Shareholders' funds	57,232,399	49,591,268	7,641,131	15
Total liabilities and equity	300,486,063	284,448,506	16,037,557	6

5

AIICO INSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

Shareholding Structure And Freefloat Status
Company name	AIICO Insurance Plc
Year end	December
Reporting Period	31-Mar-24
Share Price at end of reporting period	N0.80 (31 December 2023: N0.76)
Shareholding Structure/Free Float Status
	31-Mar-24	31-Dec-23
Description	Unit	Percentage	Unit	Percentage
Issued Share Capital***	36,605,276,013	100%	36,605,276,013	100%
Substantial Shareholdings (5% and above)
AIICO Bahamas Limited	15,104,442,427	41.26%	15,104,442,427	41.26%
LeapFrog III Nigeria Insurance Holdings LTD	11,173,946,135	30.53%	11,173,946,135	30.53%
Total Substantial Shareholdings	26,278,388,562	71.79%	26,278,388,562	71.79%
Directors' Shareholdings (direct and indirect), excluding directors with substantial interests
Babatunde Fajemirokun	117,119,739	0.32%	117,119,739	0.32%
Ademola Adebise	49,070	0.00%	49,070	0.00%
Total Directors' Shareholdings	117,168,809	0.32%	117,168,809	0.32%
Total Other Influential Shareholdings	-	0.00%	-	0.00%
Free Float in Units and Percentage	10,209,718,642	27.89%	10,209,718,642	27.89%
Free Float in Value	₦ 8,167,774,913.60	₦ 7,759,386,167.92

Declaration:

AIICO Insurance Plc with a free float percentage of 27.89% as at 31 March 2024, is compliant with The Nigeria Stock Exchange's free float requirements for companies listed on the Main Board.

Mr. Donald Kanu

Company Secretary

FRC/2013/PRO/NBA/004/00000002884

Plot PC 12, Churchgate Street

Victoria Island

Lagos, Nigeria

9-May-24

6

AIICO INSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

Certification Pursuant to Section 60(2) of Investment and Securities Act No. 29 of 2007.

We the undersigned, hereby certify the following with regards to our unaudited financial statements for the period ended 31 March 2024 that:

1. We have reviewed the report and to the best of our knowledge, the report does not contain:
2. • Any untrue statement of a material fact, or
   • Omission to state a material fact, which would make the statements, misleading in the light of circumstances under which such statements were made;
   • To the best of our knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operation of the Group as of, and for the periods presented in the report.
3. We:
4. • are responsible for establishing and maintaining internal controls.
   • have designed such internal controls to ensure that material information relating to the Company and its consolidated subsidiaries is made known to such officers by others within those entities particularly during the periods in which these reports are being prepared;
   • have evaluated the effectiveness of the Group's internal controls as of date of the report;
   • have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date;
5. We have disclosed to the Audit Committee:
6. • all significant deficiencies in the design or operation of internal controls which would adversely affect the Group's ability to record, process, summarize and report financial data and have identified for the Group's auditors any material weakness in internal controls, and
   • Any fraud, whether or not material, that involves management or other employees who have significant role in the Group's internal controls;

We have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Mr. Babatunde Fajemirokun	Mrs. Bisola Elias
Managing Director/ Chief Executive Officer	Chief Financial Officer
FRC /2015/PRO/CIIN/010/00000019973	FRC/2018/PRO/ICAN/001/00000018839
09-May-24	09-May-24

8

AIICO INSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

Material Accounting Policies

For the period ended 31 March 2024

• Reporting entity
  AIICO Insurance Plc ("the Company") was established in 1963 by American Life Insurance Company and was incorporated in 1970. It was converted to a Public Liability Company in 1989 and quoted on the Nigerian Stock Exchange (NSE) in December 1990. The Company was registered by the Federal Government of Nigeria to provide insurance services in Life Insurance Business, Non-Life Insurance Business, Deposit Administration and Financial Services to organizations and private individuals. Arising from the merger in the insurance industry, AIICO Insurance Plc acquired Nigerian French Insurance Plc and Lamda Insurance Company Limited in February 2007.

• Basis of accounting
• 1. Statement of compliance
     These consolidated and separate financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB), the financial statements comply with the Companies and Allied Matters Act 2020, the Financial Reporting Council of Nigeria Act No 6, 2011, the Insurance Act of Nigeria 2003 and relevant National Insurance Commission (NAICOM) policy guidelines and circulars.
     These consolidated and separate financial statements were authorised for issue by the Company's Board of Directors on 9 May 2024.
     The consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2023.
  2. Going concern
     These consolidated and separate financial statements have been prepared using appropriate accounting policies, supported by reasonable judgments and estimates. The Directors have a reasonable expectation, based on an appropriate assessment of a comprehensive range of factors, that the Group and the Company have adequate resources to continue as going concern for the foreseeable future.
     Functional and presentation currency
     These consolidated and separate financial statements are presented in Nigerian Naira, which is the Group and Company's functional and presentation currency. Except as indicated, financial information presented in Naira has been rounded to the nearest thousand.

2.4 Basis of measurement

These consolidated and separate financial statements have been prepared under the historical cost convention, except for the following items; which are measured on an alternative basis on each reporting date.

Items	Measurement Bases
Non-derivative Financial asset at fair value through other	Fair value
comprehensive income
Non-derivative Financial asset at fair value through profit or	Fair value
loss
Investment properties	Fair value

2.5 Use of estimates and judgement

• In preparing these consolidated and separate financial statements, management has made judgements and estimates that affect

• the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
  The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are described in Note 4.

9

AIICO INSURANCE PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

Material Accounting Policies

For the period ended 31 March 2024

2.6 Regulatory authority and financial reporting

The Group is regulated by the National Insurance Commission of Nigeria (NAICOM) under the National Insurance Act of Nigeria. The Act specifies certain provisions which have impact on financial reporting as follows:

1. Section 20 (1a) provides that provisions for unexpired risks shall be calculated on a time apportionment basis of the risks accepted in the year;
2. Section 20 (1b) requires provision for outstanding claims to be credited with an amount equal to the total estimated amount of all outstanding claims with a further amount representing 10 percent of the estimated figure for outstanding claims in respect of claims incurred but not reported at the end of the year under review;

1. Sections 21 (1a) and 22 (1b) require maintenance of contingency reserves for general and life businesses respectively at specified rates as set out under Note 3.27 to cover fluctuations in securities and variation in statistical estimates;

2.7 Changes in accounting policies

1. New and amended standards and interpretations

   The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2023 (unless otherwise stated). The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

2. Issued and Amended standards effective from periods beginning on or after 1 January 2023

1. IFRS 17 - Insurance Contracts
   In May 2017, the IASB issued IFRS 17 Insurance Contracts (IFRS 17), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts (IFRS 4) that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. A few scope exceptions will apply.
   The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent or insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. The core of IFRS 17 is the general model, supplemented by:
2. • A specific adaptation for contracts with direct participation features (the variable fee approach)
   • A simplified approach (the premium allocation approach) mainly for short-duration contracts.

IFRS 17 is effective for reporting periods beginning on or after 1 January 2023, with comparative figures required. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. This standard will significantly change how the Group measures, present and disclose its insurance contracts from the year 2023 and the Group has put adequate processes in place.

1. Definition of Accounting Estimates - Amendments to IAS 8
   In February 2021, the IASB issued amendments to IAS 8, in which it introduces a definition of 'accounting estimates'. The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop accounting estimates.
   The amendments are effective for annual reporting periods beginning on or after 1 January 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. Earlier application is permitted as long as this fact is disclosed. The amendments are not expected to have a material impact on the Group's financial statements.

10