Cosmos Insurance Company Public LTD

Annual / Quarterly Financial Statement • Apr 22, 2016

COSMOS INSURANCE PUBLIC COMPANY LTD

CONSOLIDATED STATEMENT OF PROFIT AND LOSS ACCOUNT for the year ended 31 December 2015

	2015	2014
	€	€
Income
Gross earned premiums	18,696,723	19,919,540
Reinsurers' share in earned premiums	(11,415,435)	(13,117,617)
Net earned premiums	7,281,288	6,801,923
Plus:
Premium fees and other fees	1,420,401	1,450,137
Commission from reinsurers	4,632,737	5,184,795
Total other income	6,053,138	6,634,932
Total income	13,334,426	13,436,855
Expenses
Compensations	(6,104,686)	(5,107,054)
Commissions payable and sales expenses	(4,249,744)	(4,657,029)
Other operating and administrative expenses from insurance operations	(2,825,357)	(2,980,290)
Total operating and administrative expenses from insurance operations	(13,179,787)	(12,744,373)
Change in the unexpired risk reserve	(27,160)	-
Technical insurance result	127,479	692,482
Income from investments	144,871	159,874
Insurance operating result	272,350	852,356
Investment portfolio results	6,495	100,752
Deficit from revaluation of investment property	(194,085)	(187,015)
	(187,590)	(86,263)
Other income	178,940	156,140
Profit share from insurers' joint venture	56,301	146,171
Other expenses	(566,620)	(780,381)
Finance costs	(64,346)	(86,769)
Administrative expenses of dependent company	(4,948)	(2,996)
(Loss) / profit before taxation	(315,913)	198,258
Taxation	4,043	(71,025)
(Loss) / profit for the year	(311,870)	127,233
(Loss) / profit for the year attributable to:
Company owners	(312,055)	127,011
Minority interest	185	222
	(311,870)	127,233
Basic and fully diluted (loss) / earnings per share (cent)	(1.74)	0.71

CONSOLIDATED STATEMENT OF TOTAL INCOME for the year ended 31 December 2015

	2015 €	2014 €
(Loss) / profit for the year	(312,055)	127,011
Revaluation of immovable property	43,650	29,250
Deferred taxation at revaluation	(9,172)	(1,752)
Total (expenses) / income for the year	(277,577)	154,509

COSMOS INSURANCE PUBLIC COMPANY LTD

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONI as at 31 December 2015

	2015	2014
	€	€
ASSETS
Property, plant and equipment	4,717,006	4,809,045
Intangible assets	294,996	335,064
Investment property	2,929,000	2,782,000
Long-term debtors	670,000	735,000
Total non-current assets	8,611,002	8,661,109
Trade and other receivables	6,239,412	7,490,819
Investments at fair value through profit and loss	3,814,629	2,647,577
Taxation	61,854	-
Deferred acquisition costs	2,141,224	2,207,904
Reinsurers' share in technical reserves	9,937,192	11,910,530
Cash and cash equivalents	3,152,376	3,478,632
Total current assets	25,346,67	27,735,462
Total assets	33,957,689	36,396,571
EQUITY
Share capital	5,575,350	5,575,350
Share premium reserve	163,984	163,984
Revaluation reserve	2,185,285	2,150,807
Profit and loss account reserve	(1,524,382)	(1,156,711)
Total equity	6,400,237	6,733,430
LIABILITIES
Deferred taxation	418,144	428,108
Long-term insurance liabilities	4,069,092	4,423,247
Total non-current liabilities	4,487,236	4,851,355
Trade and other payables	611,869	643,114
Current instalments of long-term insurance liabilities	404,818	770,495
Pending claims and claims administrative expenses reserve	13,018,814	13,613,603
Unearned premiums	7,274,289	7,486,193
Unexpired risk reserve	27,160	-
Taxation	-	28,208
Reinsurers' share in technical reserves	1,582,277	2,179,728
Current instalment loans	44,435	90,333
Bank overdraft	106,554	112
Total current liabilities	23,070,216	24,811,786
Total liabilities	27,557,452	29,663,141
Total equity and liabilities	33,957,689	36,396,571

CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION for the year ended 31 December 2015

	Share capital	Share premium reserve	Revaluation reserve	Profit and loss account reserve	Total
	€	€	€	€	€
Balance as at 1 January 2014	5,575,350	163,984	2,123,309	(1,261,828)	6,600,815
Total comprehensive expenses Payment of defence in deemed	-	-	27,498	127,011	154,509
dividend distribution	-	-	-	(21,894)	(21,894)
Balance as at 31 December 2014	5,575,350	163,984	2,150,807	(1,156,711)	6,733,430
Balance as at 1 January 2015 Total comprehensive income /	5,575,350	163,984	2,150,807	(1,156,711)	6,733,430
(expenses) Payment of defence in deemed	-	-	34,478	(312,055)	(277,577)
dividend distribution	-	-	-	(55,616)	(55,616)
Balance as at 31 December 2015	5,575,350	163,984	2,185,285	(1,524,382	6,400,237

Notes:

• 1. Companies which do not distribute 70% of their profits after tax, as defined by the Special Contribution for Defence Law of the Republic, within two years after the end of the relevant tax year, will be deemed to have distributed this amount as dividends. Special contribution for defence at 20% for the years 2012 and 2013 and 17% for 2014 onwards will be payable on such deemed dividends to the extent that the shareholders (individuals and companies), at the end of the period of two years following the end of the relevant tax year, are Cyprus tax residents and are deemed to be domiciled in Cyprus. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by the Company for the account of the shareholders.
• 1. The share premium reserve and the revaluation reserve are not available for distribution.
• 1. A total special defence contribution of €646,740 regarding payments of deemed dividend distribution for the years 2003 €78,493, 2004 €72,381, 2005 €49,141, 2006 €111,676, 2007 €118,821, 2009 €66,312, 2010 €49,278, 2011 €23,128, 2012 €21,894 and 2013 €55,616 is credited to the holding company and may be recovered for future dividend distributions.

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 December 2015

	2015	2014
Cash flow from operating activities	€	€
(Loss) profit for the year taxation	(311,870)	127,233
Adjustments for:
Depreciations	323,244	381,218
Write-off of goodwill	36,286	36.286
Profit from revaluation of shares and securities	(31,887)	(123,793)
Loss from revaluation of investment property	194,085	187.015
Write-off of not recognised minority interest	(185)	(222)
Profit from the sale of shares and securities	(17,097)	(22,411)
(Profit)/loss from the sale of property, plant and equipment	(1,600)	204
Loss from the sale of shares and securities	2,508	641
Loss from revaluation of shares and securities	9.564	38,675
Interest payable	64,346	86,769
Interest receivable	(144,871)	(159,874)
Taxation	(4,043)	71,025
Decrease in unearned premiums	(211,904)	(465,131)
(Loss)/profit for operations before changes in working capital	(93,424)	157.635
Decrease in trade and other receivables	1,251,407	952,428
Decrease in long-term debtors	65,000	85,000
Decrease in trade and other liabilities	(31,245)	(110,725)
Decrease in deferred acquisition costs	66,680	116,583
Decrease in reinsurers' share in claims and technical reserves	1,375,887	114,970
Decrease in the pending claims and claims administrative expenses reserve	(594,789)	(1,191,571)
Unexpired risk reserve	27.160	-
Cash flow from operations	2,066,676	124,320
Tax paid	(105,155)	(414)
Payment of defence in deemed dividend distribution	(55,616)	(21,894)
Net cash flow from operating activities	1,905,905	102,012
Cash flow from investing activities
Purchase of property, plant and equipment	(63,876)	(24,874)
Purchase of software programmes	(119,897)	(121,799)
Purchase of shares and other securities	(2,182,162)	(1,228,746)
Proceeds from sales of shares	1,052,022	792,339
Proceeds from sale of property, plant and equipment	1,600	-
Purchase of investment property	(341,085)	(8.070)
Interest received	144,871	159,874
Net cash flow for investing activities	(1,508,527)	(431,276)
Cash flow from financing activities
Insurance liability loans	(719,832)	1,791,039
Interest paid	(64,346)	(86,769)
Payments for loans	(45,898)	(333,122)
Net cash flow (for)/from financing activities	(830,076)	1,371,148
Net (decrease)/increase in cash and cash equivalents	(432,698)	1,041,884
Cash and cash equivalents at beginning of year	3,478,520	2,436,636
Cash and cash equivalents at end of year	3,045,822	3,478,520