GUINEA INSURANCE FORECAST STATEMENT OF CASH FLOWS AND INCOME STATEMENT FOR THE 4TH QUARTER ENDING DECEMBER 31, 2024:
Forecast Statement of Cash Flows:
For the 4th Quarter Ending December 31, 2024
(All figures in NGN '000)
Operating Activities:
Premium Received: The company anticipates receiving a total of ₦5,000,000 in premium payments.
Commission Received: Additional ₦262,500 will be earned from commissions, contributing to the operational inflow.
Commission Paid: On the expense side, ₦750,000 will be disbursed as commission payments.
Maintenance Cost: Routine operational maintenance is expected to cost ₦227,500.
Reinsurance Premium Paid: Payments related to reinsurance will account for ₦750,000.
Gross Claims Paid: The firm forecasts claims payouts amounting to ₦1,057,000.
Reinsurance Recoveries: A portion of the claims will be recovered through reinsurance, totaling ₦377,390.
Payments to Employees: Employee compensation is projected to be ₦131,575.
Other Operating Expenses: Further operational expenses are expected to sum up to ₦1,136,735.
Tax Paid: ₦20,000 will be remitted as tax for the period.
The net cash flow from operating activities is forecasted to be ₦1,567,080, indicating a strong operational inflow despite significant payouts and expenses.
Investing Activities:
Investment Income: Although not explicitly stated, the company may receive some returns from previous investments.
Purchase of Property & Equipment: The company plans to spend ₦80,445 on property and equipment.
Purchase of Financial Assets: A large outlay of ₦900,000 is expected for financial asset purchases.
The net cash flow from investing activities will show a negative balance of ₦980,445, driven by capital expenditures and asset purchases.
Financing Activities:
There are no anticipated inflows or outflows from financing activities, meaning no new shares are expected to be issued nor any interest or lease payments.
Net Increase in Cash:
After combining operating and investing activities, the company expects a net increase in cash of ₦586,635.
Cash and Cash Equivalents at January 1, 2024: The year began with ₦547,344 in cash reserves.
Cash and Cash Equivalents at December 31, 2024: By the end of the year, cash reserves are projected to grow to ₦1,133,980.
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Forecast Income Statement
For the 4th Quarter Ending December 31, 2024
(All figures in NGN '000)
Gross Premium Written: The company expects to write premiums amounting to ₦5,000,000 during the quarter.
Changes in Unearned Premium: ₦500,000 will be deducted, representing the adjustment for unearned premiums, leading to a gross premium income of ₦4,500,000.
Reinsurance Expenses: These will total ₦750,000, resulting in a net premium income of ₦3,750,000.
Fees and Commission Income on Reinsurance: The company expects to earn ₦283,640 from reinsurance commissions, contributing to a total net underwriting income of ₦4,033,640.
Underwriting Results:
Claims Expenses: ₦571,812 is expected to be paid out in claims.
Underwriting Expenses: Forecasted underwriting expenses amount to ₦773,640.
Underwriting Profit: After accounting for claims and expenses, the company anticipates a robust underwriting profit of ₦2,688,188.
Other Revenue and Expenses:
Other Operating Expenses: ₦716,577 is projected for operating costs, reducing overall profitability.
The Profit Before Tax is forecasted to be ₦1,971,611, with ₦25,000 allocated for taxes, leading to a final Profit After Tax of ₦1,946,611.
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Summary:
The company expects positive cash flows from operations and robust profitability for the 4th quarter of 2024. While there are considerable outflows in investing activities, the company projects maintaining strong liquidity, with cash balances improving by the end of the year. Profitability will primarily be driven by efficient underwriting, and cost management efforts, resulting in a healthy bottom line despite significant claims and expenses.
Forecast Statement of Cash Flows:
For the 4th Quarter Ending December 31, 2024
(All figures in NGN '000)
Operating Activities:
Premium Received: The company anticipates receiving a total of ₦5,000,000 in premium payments.
Commission Received: Additional ₦262,500 will be earned from commissions, contributing to the operational inflow.
Commission Paid: On the expense side, ₦750,000 will be disbursed as commission payments.
Maintenance Cost: Routine operational maintenance is expected to cost ₦227,500.
Reinsurance Premium Paid: Payments related to reinsurance will account for ₦750,000.
Gross Claims Paid: The firm forecasts claims payouts amounting to ₦1,057,000.
Reinsurance Recoveries: A portion of the claims will be recovered through reinsurance, totaling ₦377,390.
Payments to Employees: Employee compensation is projected to be ₦131,575.
Other Operating Expenses: Further operational expenses are expected to sum up to ₦1,136,735.
Tax Paid: ₦20,000 will be remitted as tax for the period.
The net cash flow from operating activities is forecasted to be ₦1,567,080, indicating a strong operational inflow despite significant payouts and expenses.
Investing Activities:
Investment Income: Although not explicitly stated, the company may receive some returns from previous investments.
Purchase of Property & Equipment: The company plans to spend ₦80,445 on property and equipment.
Purchase of Financial Assets: A large outlay of ₦900,000 is expected for financial asset purchases.
The net cash flow from investing activities will show a negative balance of ₦980,445, driven by capital expenditures and asset purchases.
Financing Activities:
There are no anticipated inflows or outflows from financing activities, meaning no new shares are expected to be issued nor any interest or lease payments.
Net Increase in Cash:
After combining operating and investing activities, the company expects a net increase in cash of ₦586,635.
Cash and Cash Equivalents at January 1, 2024: The year began with ₦547,344 in cash reserves.
Cash and Cash Equivalents at December 31, 2024: By the end of the year, cash reserves are projected to grow to ₦1,133,980.
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Forecast Income Statement
For the 4th Quarter Ending December 31, 2024
(All figures in NGN '000)
Gross Premium Written: The company expects to write premiums amounting to ₦5,000,000 during the quarter.
Changes in Unearned Premium: ₦500,000 will be deducted, representing the adjustment for unearned premiums, leading to a gross premium income of ₦4,500,000.
Reinsurance Expenses: These will total ₦750,000, resulting in a net premium income of ₦3,750,000.
Fees and Commission Income on Reinsurance: The company expects to earn ₦283,640 from reinsurance commissions, contributing to a total net underwriting income of ₦4,033,640.
Underwriting Results:
Claims Expenses: ₦571,812 is expected to be paid out in claims.
Underwriting Expenses: Forecasted underwriting expenses amount to ₦773,640.
Underwriting Profit: After accounting for claims and expenses, the company anticipates a robust underwriting profit of ₦2,688,188.
Other Revenue and Expenses:
Other Operating Expenses: ₦716,577 is projected for operating costs, reducing overall profitability.
The Profit Before Tax is forecasted to be ₦1,971,611, with ₦25,000 allocated for taxes, leading to a final Profit After Tax of ₦1,946,611.
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Summary:
The company expects positive cash flows from operations and robust profitability for the 4th quarter of 2024. While there are considerable outflows in investing activities, the company projects maintaining strong liquidity, with cash balances improving by the end of the year. Profitability will primarily be driven by efficient underwriting, and cost management efforts, resulting in a healthy bottom line despite significant claims and expenses.