Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698071956952.pdf (Guyana)
GUYANA CO-OP INS SERVICE 1111111111=111111.MW *E4.1't=ak4` GUYANA CO-OPERATIVE INSURANCE SERVICE DIRECTORS AND GENERAL MANAGEMENT Directors HAROLD E. W ILKINSON -A.A. Chairman CLAUDE BONE -M.S.

Deputy Chairman YESU PERSAUD -F.C.C.A., F.R.s;A. RONALD STEWART -B.So, SHAMIR ALLY• A.S.C.A., A.M.B.I.M., M.I.S.M.

BASIL BLAIR General Manager RUDYARD D. FIELD-RIDLEY -B.Sc.

(Eoon), A.I.B.

Life Insurance Adviser S.YOGARAJAH -B.So.

(Hons), A.I.A.
(Hons), A.I.A.

Deputy Manager Non-Life HAROLD BRASSINGTON Accountant ASLIM RAHAMAN -A.C.I.S., A.M.B.I.M.

Company Secretary DONALD D. COLE -B, Soc.

So.

Agencies Cont.roller BRIAN PATOIR Consulting Actuaries LANE, CLARK & PEACOCK with BURTON & CO. Medical Referee DR. J. PAUL -M.B., B.S., Dip, Bae.

Auditors AUDITOR GENERAL -Government of Guyana Solicitors CLARK & MARTIN Bankers GUYANA NATIONAL co�OPERATIVE BANK Branch Office 8 Strand, Berbice, New Amsterdam, Guyana.
------------ ,c .. c .... ,_siill----------- 2 CONTENTS Page Directors Management and General 2 2nd Annual Report Chairman's Statement 3 Report of the Directors 5 Revenue Account 7 and Loss Profit Account Appropriation 8 Balance Sheet 9 of Source and Statement of Funds application 10 Notes to the Revenue Account 11 and Notes to the Profit Loss Appropriation Account 12 Notes to Balance Sheet Accounting Policies 13 15 Report of the Auditors 16 and Accounts of the GUYAnA CO·OPEAATIVE 1n/UAAnCE 1/EAVICE for the year ended 31st December 1977 ----------- a .... c .. �•s:a------------J 1 GUYANA CO-OPERATIVE INSURANCE SERVICE CHAIRMAN'S STATEMENT RESULTS 1977 was the first full year of operation of the Guyana Co-operative It was a year which witnessed the ravaging Guyana Rice Board.
However, despille this set-back, growth.

Premium income from general insurance to $4:m in 1977.

'Operations increased bu·siness continued to show st.rong from $3.8 m in 1976 by fire of the Georgetown centre of the Insurance Service.

FIRE INSURANCE Our fire insurance of the market is favourable.
full importance of loss prevention to give greater attention business showed reasonably Our experience satisfactory results and our general view in 1977 ha-s brought home to us forcibly the and we propose -and rating, as a factor in underwriting to this matter in the future.
There also seems to be a great need for insurance companies and mortgage-lending institutions to warn the public of the _ dangers of under-insurance: This, too, is a matter to which we shall give serious financial greater attention in coming years.

MOTOR INSUR_ANCE.

Premium income from motor insurance increased from $1m in 1976 to $2m in 1977.

However, the increase in premiums did not keep abreast of the increase in the cost of claims.

Conse­ quently, the motor department recorded a loss of $157 .000.
A number of factors accounted in 1977.

The most important motor vehicle spare parts, a -sharp increase courts, a rise in the number of personal .injuries third party insurance of use claims.

Present indications Even allowing are that our motor insurance and a substantial for increases increase for the poor performance of our motor insurance business among these were: rising repair coats, the increased cost o.�.
in the amounts awarded as damages by the damage claims under motor and property in the incidence of own damage and loss will again record a loss in 1978. in premiums in that year, it might not be possible for this busines·s business to break even before possibly 1979 at the earliest.
year, the Service concent.rated mainly -on bnilding OTHER C LASSES OF GENERAL INSURANCE BUSINESS As in the previous fire insurance cont.ractors' tably, premium income from these classes was small but we have every reason to expect that the volume of b usiness will expand substantially portfolios.

Nevertheless, all risks and employers' covers to m.embers in coming years.

of the public.
of the public.

up its motor and liability Predic• the Service was able to offer cash-in•t.ransit, r GUYANA CO-OPERATIVE INSURANCE SERVICE underwriting of life insurance business on 1st July, 1977.

At the direct LIFE INSURANCE We commenced end of the financial factory will grow rapidly earnings in future and encouraging.
On the basis of present trends, year, the experience of our life assurance portfolio we envisage was both satis­ that the business to the Service's contributor important and become an increasingly years.

PROSPECTS We have a fairly the nature of the problems sound financial position U'l<I a professional staff with and our opportunities for expansion into good insight are excellent.
ACKNOWLEDGEMENTS I wish to thank our clients We are very conscious at home and our friends abroad for their support of the value of their patronage and friendship and confidence.

at this time.

the Service progress Whatever in large measure butable them go out my sincere tinued co-operation and support.

has made and whatever to the untiring efforts thanks and those of my colleagues success of the General is attri­ To on the Board for their con­ it has achieved and his staff.
Manager H. E. WILKINSON ----------- CCl5----------- 4 • ----•s• ----· --------- GUYANA CO-OPERATIVE INSURANCE SERVICE THE REPORT OF THE DIRECTORS The Directors have pleasure in submitting their Annual Report and the Accounts for the financial year ended 31st December, 1977.

RESULTS Net income before taxation was 6$694,985 and after deducting taxes of G$4S0,800, the net profit after tax was 6$264,185.
DIVIDENDS Based on the profit achieved during the year and on the balance brought forward from 1976, the Directors of the Service.

proposed a dividend of 12% after tax on the Ordinary Shares NON •LIFE INSURANCE The Service's of the development business continues in 1977: of this busineS's non-life to progress.

The following is a summary INSURANCES IN FORCE During the year, 2,537 policies were issued insuring yi.elding annual premiums of 6$2,028,551.

policies 6$4,018,675.


in force insuring a total of G$536 million and a total of G$430.8 million At the end of the year, there were 2,941 and earning annual premiums of CLAIMS Total claims paid and provided from Reinsurers was recoverable for amounted to 6$3,209,41 6 of which 0$1,826,299 in a net cost to the Service of G$1,3&3,117.
resulting INVESTMENTS The Service continued At 31st December, 1977, bank deposits to maintain a high degree of liquidity and investment port­ in its investment representing an increase of 6$906,115 in short term Government or 44.8% over the folios.

securities figure at the beginning totalled 6$2,930,569 of the year.
LIFE INSURANCE The Service commenced its life operations on 1st July, 1977 .and engaged in the Accident Mortgage Assurance, Assurance, classes of business: Protection Group Life Assurance, following Group Creditors Personal The three classes of insurance the business with the largest premium income were, in order of siz.e, Group Health Insurance 6$19,674), and Group Life Assurance 6$14,887).
Group Health Insurance but classes showed very dive�se results Mortgage Protection Ordinary Life Assurance, satisfact,orily The individual in the aggregate.

Insurance.

6$19,548) Assurance developed and Group ------------ nc•s------------' 5 GUYANA CO-OPERATIVE INSURANCE SERVICE INSURANCE IN FORCE At 31st December, l.D77 there were 37 individual policies in force assuring 0$460,007 and yielding annual premiums of 0$28,135.

CLAIMS Total claims paid and provided for amounted to 0$22,497.
from Reinsurers as individual claims were well within the Service's No sums were recoverable retention limits.

LIFE ASSURANCE FUND The Life Assurance Fund now stands at 0$14,422 GENERAL CAPITAL ISSUE An issue was made of 1,002 Ordinary Shares of 0$100.

each.

The Issued Share Capital therefore increased from G$1.5 million to G$1,600,200.

STAFF The average number of persons employed during the year was 63.

DIRECTORS The names of the persons who served as Directors in 1977 appear on page 2 of this report.
AUDITORS In keeping with the prov1s1ons Institutions General Act, the Co-operative the Service for -Auditor of of Section 48 (2) of the Co-operative Administration Financial year ended 31st December, the financial Financial the Auditor 1977. appointed By Order of the Board DONALD D. COLE, Company Secretar y .
....__ _________ n •• c ... •s-1-----------' 8 GUYANA CO-OPERATIVE INSURANCE SERVICE GENERAL AND LIFE INSURANCE REVENUE ACCOUNT for the Year Ended 31st December, 1977 GENERAL LIFE NOTES INSURANCE INSURANCE TOTAL ( as restated) GENERAL INSURANCE 1976 G$ G$ G$ G$ REVENUE Premiums (Net) 1 2,200,944 53,424 2,254,368 659,577 Income from Investments 2 257,366 8,494 265,860 25,091 Other Income 3 435,066 435,066 522,745 2,893,376 61,918 2,955,294 1,207,413 Deduct EXPENDITURE & OUTGO Claims (Net) 4 1,383,117 22,497 1,405,614 47,334 Commissions 50,73-S 78 50,813 40,041 Management Expenses 5 742,176 24,921 767,097 316,247 Pension Fund Contribu tions 22,363 22,363 2,522 2,198,391 47,496 2,245,887 406,144 Net Profit before Taxation 694,985 694,985 801,269 Less : Taxation 6 430,800 430,800 475,666 Net Profit after Taxation 264,185 264,185 325,603 Life Insurance Fund at 31.12.
77 .. .. 14,422 14,422 264.185 14,422 278,607 325,603 -----------ac•s-------------' 7 GUYANA CO-OPERATIVE INSURANCE SERVICE GENERAL INSURANCE DIVISION PROFIT AND LOSS APPROPRIATION for the Year Ended 31st December, ACCOUNT 1977 NOTES for the year after Net Profit taxation Less transferred to Reserve Fund 7 GENERAL INSURANCE GENERAL INSURANCE 1976 (as restated) G$ G$ 264,185 66,046 325,603 198,139 325,603 brought Balance Less transferred Balance available forward from 1976 to Reserve Fund G $ 325,603 7 259,557 for distribution 66,046 264,185 325,603 Less Proposed Retained Profit Dividend at 31.
12.77.

217,563 46,622 325,603 ...._ _________ n ...... c .... •siiiill __________ ....... 8 GUYANA CO-OPERATIVE INSURANCE SERVICE l I GENERAL AND LIFE INSURANCE BALANCE SHEET .

as at 31st December, 1977 GENERAL INSURANCE GENERAL LIFE GENERAL AND LIFE 19'76 INSURANCE INSURA NCE INSURANCE - TOTAL (as reslated) G$ G$ G$ G$ G$ FIXED ASSETS (at cost less depreciation) 8.

DEPOSITS INVESTMENT PRELIMINARY EXPENSES ADVANCES TO LIFE INSURANCE CURRENT ASSETS 9.

18.
18.

322,513 7,895 301,310 250,000 55,000 300,000 54,182 29,805 742,923 330,408 227,690 551,310 301,230 355,000 83,987 90,302 742,923 LOANS ETC • DEBTORS AND PREPAYMENTS CASH ON HAND AND AT BANK 11.
1,312,000 1,312,000 9,718,637 4,469 2,723,106 2,9652869 2311531 311971400 6,9911,506 236,000 712321506 305,127 3,437,616 2,024,45 4 52767,197 Less CURRENT LIABILITIES ACCRUALS ETC, CLAIMB OUTSTANDING CREDITORS, TAXATION PROPOSED DIVIDEND PENSION FUND N8T CURRENT ASSETS Financed By AUTHOWSED SHARE CAPITAL 100,000 shares at $100 each ISSUED AND FULLY P AID 1,292,064 3,796,202 42,047 3,838,249 3,348,632 18,738 1,310,802 34,000 412,306 217,563 50,787 5,&70 56,357 217,563 351300 351300 lZ.
5,391,ll16 66,355 5,4582271 3,794,938 1,972,259 1,774,2.35 169,645 1,6,04,590 3,837,863 2,591,481 3,080,518 757,345 G$ G$ G$ G$ GS 1010001000 1010001000 1010001000 at $100 each 16,002 Shares RESERVE FUND RETAINED EARNINGS SHARE HOLDERS FUND LIFE INSURANCE FUND AT 31st DECEMBER, 1977 ADVANCES FROM GENERAL INSURANCE RESERVE FOR UNEXPIRED RiSKS 1,600,200 325,603 i!
!,622 1,972,425 1,600,200 1,500,000 325,603 46,622 325,603 1,972,425 1,825,603 14,422 14,422 742,923 742,923 111081093 31080,518 757,345 111091003 765,878 3,8371863 215911481 l)ate: 4th August, 1978.

H. E. WILKINSON, Chairman- R.I>.
FIELl>-RII>LEY, General Manager/Director 9 GUYANA CO-OPERATIVE INSURANCE SERVICE STATEMENT APPLICATION OF SOURCE AND OF FUNDS 1977 GENERAL INSURANCE 1976 ( as restated) SOURCE OF FUNDS 6$ 6$ 6$ FUNDS FROM OPERATIONS Profit before Taxation ADJUSTMENTS NOT MOVEMENT OF FUNDS: INVOLVING THE Depreciation Preliminary Expenses written off 33,724 43,571 694,985 801,269 10,079 17,250 27,329 Total Generated from Operations 77,295 FUNDS FROM OTHER SOU RCES Shares Issued 100,200 Increase in Insurance Funds 356,637 APPLIC ATION OF FUNDS Purchase of Fixed Assets 136,442 Deposits Investments Tax Paid 250,080 355,000 786,749 Preliminary Expenses 37,256 INCREASE/DECREASE IN WORKING C APITAL Increase in Loans Decrease in Debtors and Prepayments Increase in Outstanding Claims Increase in Creditors Increase in Pension Fund MOVEMENT IN LIQUID FUNDS Increase in cash and Bank Balances, Treasury Bills and Savings Account 10 772,280 828,598 1,500,000 765,878 456,837 2,265,878 1,229,117 3,094,476 237,769 301,230 63,360 107,552 1,565,527 709,911 (336,410) 2,384,565 1,006,873 305,127 (714,510) 3,437,616 (1,276,802) (34,000) (489,617) (3,348,632) (35,300) 1,172,946 2,024,454 (336,410) 2,384,565 � GUYANA CO-OPERATIVE INSURANCE SERVICE NOTES TO TIIE REVENUE ACCOUNT GENERAL INSURANCE GENERAL INSURANCE LIFE INSURANCE TOTAL (as restated) 1976 1.
PREMIUMS Fire, Motor and Miscellaneous Insurance written 3,270,778 3,270,778 2,446,945 G$ G$ G$ G$ Life Assurance Health Iitsurance 37,049 37,049 19,674 19,674 3,270,778 56,723 3,327,501 2,446,945 Net costofReinsurance 110691834 31299 1.073.133 1,787,368 212001944 531424 212541368 659,577 Re-stated figures for 1976 due to changes in the calculation of Re-insurance Commission 2.

INVESTMENT INCOME G.N.C.B.


BANK OF GUYANA Debentures Fixed Deposit 178,727 178,727 15,466 4,302 8,494 12,796 Defence Bonds Treasury Bills Other 1,467 11,854 61.016 1,467 11,854 9,498 61.016 127 2571366 8149.

2651860 25,091 3.

OTHER INCOME Agency's Commissions 395,232 Fees Brokerage 18,120 Miscellaneous 211714 395,232 185,99'4 18,120 116,509 211714 220,242 4.
CLAIMS PAID AND PROVIDED FOR 4351066 4351066 522, 7'15 Fire, Motor and Miscellane- ous Death Claim Health Claims Less: 3,209,416 3,209,416 47,334 15,000 7,497 15,000 I,i&I 3,209,416 22,497 3,231,913 47,334 Reinsurance Recoveries 118261299 1,383,117 22,497 1,8261299 1,405,614 47,334 cc•s 11 GUYANA CO-OPERATIVE INSURANCE SERVICE NOTES TO THE REVENUE AC COUNT GENERAL LIFE GENERAL INSURANCE 1976 INSURANCE INSURANCE T OTAL- ( as restated) 5.MANAGEMENT EXPENSES G$ G$ G$ G$ Administration Expenses 726,376 17,120 743,496 310,147 Directors' Fees 8,300 8,300 3,100 Audit Fees 7,500 350 7,850 3,000 Actuarial Fees 7,451 7,451 -+- 7421176 24,921 7671097 316,247 6.TAXATION Income Tax 20% 147,221 147,221 164,927 Tax 35% Corporation 257,637 257,637 288,623 Property Tax 25,942 25,942 22,116 430,800 430,800 475,666 NOTES TO PROrlT AND LOSS APPROPRIATION ACCOUNT 1, R ESERVE F UND In accordance with s ection 50 (1) of the Co-operative an amount of not less than 25% of net surplus any declaration of Dividend, Financial was transferred Institutions to Reserve Fund before Act 1976 12 -- GUYANA CO-OPERATIVE INSURANCE SERVICE 1 NOTES TO THE BALANCE SHEET FURNITURE FIXTURES EQUIPMENT MOTOR PRINTING VEHICU:S MACHINERY TOTAL 8.FIXED ASSET S G$ G$ G$ G$ Cost a t 1st January, 1977 181,400 56,369 237,769 Additions 37,674 98., 768 136,442 Disposals {65) (65) 219,009 56,369 98,768 374,146 Accumulated Depreciation 1977 at 1st January, 5,485 4,594 Provision for Year 19,632 14,092 Disposals (65) 252052 18,686 10,079 33,724 (65) 43,738 NET BOOK
 VALUES at 31st December, 1977 1931957 37,683 98,768 330,408 NE'J:.'
BOOK VALUE_S at 31s"t December, 1976 1751915 51,775 227,690 9.
DEPOSITS GENERAL INSURANCE LIFE INSURANCE TOTAL 1976 GOVERNMENT OF GUYANA G$ G$ G$ G$ Deposited with Insurance s Authoritie General 50,000 Accountant 250,000 250,000 500,000 250,000 50,000 50,000 Other 1,310 1,310 1,230 301,310 250,000 551,310 301,230 13 - 1976 G$ GUYANA CO-OPERATIVE INSURANCE SERVICE NOTES TO THE BALANCE SHEET GENERAL INSURANCE LIFE INSURANCE LEDGER VALUE LEDGER VALUE FACE VALUE FACE VALUE TOTAL 1976 10.
INVESTMENTS Defence Bonds 50,000 50,000 - - 50,000 - Caribbean Investment Corporation 5,000 5,000 - - 5,000 - Debentures - 55iM2 am 800,_000 300.000 300,22 300,000 355.000 300.000 -- GENERAL INSURANCE INSURANCE TOTAL LIFE 0$ G$ 0$ 11.
CASH ON HAND AND AT BANK Treasury Bills Fixed Deposits Pension Fund Savings Account 295,698 2,500,000 - 295,698 295,698 200,000 2,700,000 1,275,000 35,300 - 35,300 Cash and Bank Balances 134,871 2, 965 869 , ....... 31,531 2 ,31 531 ===mmi= 166,402 3,1 97,400 400 ==.... 453,756 2 024,454 12.

PENSION FUND Employer's and Employees' contributions totalling $35,300 have been deposited temporarily in a Pension Fund Savings Account.
14 GUYANA CO-OPERATIVE INSURANCE SERVICE ACCOUNTING POLICIES INVESTMENT INCOME Income on fixed return securities is recognised as it is earned, whilst Income on variable return security is dealt with on a Cash basis.

DEPRECIATION Depreciation of fixed assets is on the straight-line method calculated to write down the cost of the assets to their residual values over their expected useful lives.
PRELIMINARY EXPENSES Preliminary expenses incurred in the formation of General Insurance Division are being written off over a period of three years and those in respect of the Life Insurance Divi- sion are being written off over a period of five years.

ACCOUNTING FOR INFLATION These accounts have been prepared on a historical cost basis, no attempt has been made to adopt replacement Cost Accounting or Current Cost Accounting procedures which will overcome the distorting effects of inflation.
15 GUYANA CO-OPERATIVE INSURANCE SERVICE REPORT OF THE AUDITOR GENERAL ON THE ACCOUNTS OF THE GUYANA CO-OPERATIVE 1977.

INSURANCE SERVICE FOR THE YEAR ENDED 31ST DECEMBER, I have examined books of the Service required.
the Accounts and have obtained set out on pages 7to15 which are in agreement all the information and explanations with the which I have In my opinion, these accounts which have been prepared on the historical cost basis give on this basis, a true and correct of the view of the state of affairs at 31st December, 1977 and of the aet income and source and application of funds of accounting Service for the year then ended, in accordance applied on a consistent basis, with generally accepted accounting principles R. P. FARNUM, A.A.
Auditor General, Office of the Auditor General 121 Parade St.reet, Kingston, Guyana.

Georgetown, Date: 5th August, 1978. .

.. i 1(1