Jubilee Insurance 2010 Annual Report

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52 JUBILEE HOLDINGS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER 2010 NOTES (continued) 29. PAYABLE UNDER DEPOSIT ADMINISTRATION CONTRACTS (GROUP) 2010 2009 Kshs ‘000 Kshs ‘000 At start of year 7,644,098 5,967,517 Pension fund deposits received 2,164,230 1,684,281 Surrenders and annuities paid (815,560) (557,855) Interest credited to deposit administration policyholders 1,419,577 551,737 Translation loss (11,487) (1,582) At end of year 10,400,858 7,644,098 Deposit administration contracts are recorded at amortised cost. Movements in amounts payable under deposit administration contracts during the year are as shown below. The liabilities are shown inclusive of interest accumulated to 31 December, 2010. 30. unearned PREMIUM RESERVE Group These provisions represent the liability for short-term business contracts where the Group’s obligations are not expired at the year-end. Movements are shown below: Unearned premium reserve 2010 2009 Gross Reinsurance Net Gross Reinsurance Net At start of year 2,536,708 738,048 1,798,660 2,110,693 612,324 1,498,369 Increase in the period (net) 973,469 700,003 273,466 402,293 113,410 288,883 At end of year 3,510,177 1,438,051 2,072,126 2,512,986 725,734 1,787,252 31. trade and other payables Group Company 2010 2009 2010 2009 Kshs ‘000 Kshs ‘000 Kshs ‘000 Kshs ‘000 Payroll liabilities 2,510 7,252 - - VAT payable 16,980 4,960 - - Withholding taxes payable 18,191 52,166 - - Other liabilites 262,880 241,414 182 68 Other accruals 518,798 330,322 4,696 5,320 Total 819,359 636,114 4,878 5,388 32. BORROWINGS The borrowings are made up as follows: Group Company 2010 2009 2010 2009 Kshs ‘000 Kshs ‘000 Kshs ‘000 Kshs ‘000 Bank overdraft 121,581 64,394 - 7 Bank borrowing 1,207,598 985,135 - - Total borrowing 1,329,179 1,049,529 - 7 The bank borrowing relates to a loan of USD 15 million advanced by CFC Stanbic Bank Limited to The Jubilee Investments Company Limited (Uganda) to finance the investment in Bujagali Hydro-electric project in Uganda. The loan attracts an interest of 3.75% per annum. The loan is secured by corporate guarantee from the Company. 33. CONTIGENT LIABILITIES, COMMITMENTS AND OFF BALANCE SHEET ITEMS The Group companies are subjected to litigation arising in the normal course of business. The Directors are of the opinion that this litigation will not have a material effect on the financial position or profits the Group. Treasury bonds of Kshs1,260.45 million are held under lien with the Central Bank as security deposit in favour of the Commissioner of Insurance as required under the provisions of section 32 of Kenya Insurance Act,Kshs 11.06 million are held under lien with the Bank of Uganda as a security deposit in favour of the Commissioner of Insurance as required under the provision sections 7 (i) of Uganda Insurance act and Kshs 28.38 million are held under lien with the bank of Tanzania as security deposit in favour of the Commissioner of insurance as required under the provision of Tanzania Insurance Act. The Group does not have any material outstanding commitments. The Group has a Kshs 30million overdraft guarantee and letters of guarantee amounting to Kshs 66 million with Diamond Trust Bank Kenya Limited. JUBILEE HOLDINGS
JUBILEE HOLDINGS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER 2010 53 NOTES (continued) 34. RELATED PARTY TRANSACTIONS The ultimate parent of the Group is the Aga Khan Fund for Economic Development S.A., a company incorporated in Switzerland. There are various other companies related to Jubilee Holdings Limited through common shareholdings or common directorships. In the normal course of business, insurance policies are sold to related parties at terms and conditions similar to those offered to major clients. Related parties rendered various services to the Group during the year. Transactions with related parties (Group) 2010 2009 Gross premium: Kshs ‘000 Kshs ‘000 Diamond Trust Bank Limited 48,648 19,089 Industrial Promotion Services (Kenya) Limited 91,193 138,375 TPS Eastern Africa Limited 9,557 31,642 Property Development and Management Limited 5,592 7,678 Nation Media Group 85,069 65,373 Total 240,059 262,157 Net claims incurred: Diamond Trust Bank Limited 35,811 13,550 Industrial Promotion Services (Kenya) Limited 52,219 14,873 TPS Eastern Africa Limited 506,957 14,213 Property Development and Management Limited 2,091 3,656 Nation Media Group 85,073 49,939 Total 682,151 96,231 Services received from: Industrial Promotion Services (Kenya) Limited 4,305 1,983 TPS Eastern Africa Limited 1,033 6,253 Property Development and Management Limited 5,022 8,506 Nation Media Group 3,218 2,073 Total 13,578 18,815 ii) Balances with related parties Outstanding premium: Diamond Trust Bank Limited 20,143 664 Industrial Promotion Services (Kenya) Limited 2,117 4,427 TPS Eastern Africa Limited 51 (6) Property Development and Management Limited 19 68 Nation Media Group 5,489 12,201 Total 27,819 17,354 Outstanding claims: Diamond Trust Bank Limited 3,538 10,192 Industrial Promotion Services (Kenya) Limited 42,695 22,437 TPS Eastern Africa Limited 22,749 3,948 Property Development and Management Limited 490 758 Nation Media Group 36,521 30,215 Total 105,993 67,550 Deposits with financial institutions Diamond Trust Bank Limited 1,552,108 1,260,063 Total 1,552,108 1,260,063 Interest received from financial institutions Diamond Trust Bank Limited 193,215 316,611 Total 193,215 316,611 JUBILEE HOLDINGS
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Page 57 and 58: Proxy Form I/We (in block letters)
Page 59: Additional group information KENYA

Jubilee Insurance 2010 Annual Report

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