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GUYANA CO-OPERATIVE INSURANCE SERVICE 4th ANNUAL REPORT AND ACCOUNTS FORi979 THE YEAR ENDED 31st DECEMBER, CONTENTS Page Directors and General Management 2 Chairman's Statement 3 Report of the Directors 5 Revenue Account 7 Profit and Loss Appropriation Account 8 Balance Sheet Statement application of Source and of Funds Notes to the Revenue Account 9 10 11 Notes to the Profit and Loss Appropriation 12 Account Notes to Balance Sheet .Accounting Policies 13 15 Report of the Auditors 16 4th Annual Report and Accounts of the GUYAnA .
CO-OPERATIVE ln/URAnCE fERVICE for the year ended 31st December 1979 nas· DIRECTORS AND GENERAL MANAGEMENT Chairman HAROLD E. WILKINSON - A.A., F.B.I.M.

up to 30th April, 1979 •.. CHARLES B. HINDS - D.P.A.

from 1st May, to 11th November, 1979 Deputy Chairman CLAUDE BONE M. s. I Directors YESU PERSAUD -A.A •• F.C.C.A.'

F.R.S.A.

BASIL BLAIR -A.A. DONNA ALEXANDER -B.A.

(Econ.

and Hist.)

CARMEL ALBERT -M.Sc.

(Econ.)

A.C.I.S.

from 1st August, 1979 General Manager /Dir·ector RUDYARD D. FIELD-RIDLIY ".
: -B.Sc.

(Econ.

), A.I.B.

up to 7th November, 1979.

HAROLD E. WILKINSON -A.A., F.B.I.M.

from 8th November, 1979 Life Insurance Adviser S.YOG�AR -!.Sc.

(Hons), A.I.A.

Deputy Manager Fire HAROLD BRASSINGTON Deputy Manager Motor BRIAN-PATOIR Deputy Manager Life TERENCE EDWARDS, -B.

Math.

(Hon.)

M.A.Sc.

up to 30th November, 1979 Accountant ASLIM RAHAMAN -A.C.

I.S.'

M.B.

I.M.

Secretary DONALD D. COLE -B. soc.

Sc.


Consulting Actuaries LANE, CLARK & PEACOCK with BURTON & CO. Medical Referee DR. J. PAUL - M.B., B.S.

, Dip.

Bae.

Auditors AUDITOR.GE�L,Governmen t of Guyana.

Solic,itors CLARKE & MARTIN GUYANA NATIONAL CO-OPERATIVE BANK Bankers Branch Office Main and New Streets New Amsterdam, Berbice, Guyana.

2 CHAIRMAN'S STATEMENT RESULTS The year 1979 was another year of progress for the Service.

Gross premium income from $8.9 mn.

in 1978 to $10.3 mn.


in 1979 while profit after tax increased increased from $0.8 mn.

to $1.6 million.

The good results achieve/enabled the Directors to reconnnend per cent.

Payment of this dividend pared with $0.4 mn.

in 1978. will leave retained profits a dividend of 12 of $1.0 mn.

as com­ Except for our trotor insurance business, which showed a small profit of $15,510 of $0.2 mn.
from the loss of that amount in the previous -in fact, a turn ,around year -substantial underwriting business in by the Service.

engaged profits were recorded in all the other classes of FIRE INSURANCE Our portfolio of Fire busiaess has maintained from $5.Smn.

in '678 to $5.9 mn.

in 1979 • come increasing its growth rate with prebiium in­ • MOTOR INSURANCE Our Motor business had a substantial turn around -from a loss of $0.2 mn.
to a of $15,510 measures surplus -due to corrective overcome the effect of rising claims cost and a sustained of accidents.

tially.

cost of both own damage and liability underwriting The average taken in an attempt to increase ift the frequency claims rose substan­ MARINE The Service is still the first and only local Ins\irance Company cargo business The business $0.9 mn.

and we expect this to improve directly.

for the first full year produced su\�tantially in the years ahead.
to write marine premiums of OTHER CLASSES The Miscellaneous account covers Contractors' All Risks, Householders' Compre-· Cash-in-Tra insurance.

hensive, Fidelity combined results were substantially underwriting nsit, Personal 'Ihe individual Accident, classes surplus.- Ppblic and Employers' again showed very diverse better than in the previous Liabilit results, year·-over 80% in y and but the LIFE New life sums assured writt;en ;•i';n� group health As a result of.
thiff\inc�,eased 71"'-schemes in 1979 increased new business, gross premium income rose subs,,.tially.

., · · froa $0 : .3 mn�·:;ia � 1978 to $0.6 � •.
Jlii:�1979� � · 3 nc,s PllOSPECTS Our prospects for the future years looks best in -rine cargo insurance bat at tld.s stage the Service the past was transacted is only gradually solely on the basis of an agency for a foreign COIIIPIIDY• waJdng its inroads in this area vhich in Secondly, although there are quite a few fire insurance coapanies, it does seea in Guyana and, if properties are correctly valued that there is gross under-insurance for �ranee, prospects \ in this area look bright as well.
· Thirdly, our Group Health aspect of Life Ittsurance business has a bright future but, here again, we have to move cautiously for the large scale business avenues open.

while acquiring the neces� expertise ACKNOWLEDGEMENTS I should like to take this opportunity to thank Management and staff for their during the past year.
It is due to their hard work 811111 dedication that we efforts have been able to achieve the substantia1 and I have every confidence that they will continue in their endeavours in the years ahead.

improveaent we have shown in profitability I also wish to thank 11Dst waral.y our clients and friends at hoae and abroad for their continued patronage and support.

C.BORE.
C.BORE.

TIIE REPORT OF THE DIRECTORS THE Directors for the financial year ended 31st December, 1979. have pleasure in submitting their Annual Report and the Accounts RESULTS o G$2,073,l05 Net income before taxation was G$3,645,172 the net profit after tax was Gtl,571,867.

and after deducting taxes of DIVIDENDS The Directors reconunend a final dividend 0£ 12% free of Company Tax, the same rate of dividend paid in 1977 and 1978.
NON-LIFE INSURANCE The following is a sununary of the development of Service's non-life business in 1979: INSURANCES IN FORCE During the year, 2334 policies were issued insuring a total of G$117 million and yielding annual premiums of G$929,463.

At the end of the year, there were 4,623 policies in force insuring a total of $2,6B3 million and earning annual premiums of G$10,256,467.
CLAIMS Total claims paid and provided was recoverable from Reinsurers resulting for amounted of which G$1,370,111 in a net cost to the Service of G$2,271,718 to G$3,641,829 INVESTMENTS At 31st Jlecemher, 1979, bank deposits in short term Government securities the figure at the beginning totalled of the year.
G$10,836,939 representing of GSl,807,674 or 20% over and investment an increase Interest G$1,269,690 in 1979. on investment increased by G$76.5,903 from .G$503,787, in 1978 to 5 nc,s LIFE INSURANCE INSURANCES IN FORCE At 31st December, 1979 there were 751 individual and grou� polt�es in force assuring G$24,405,338 and yielding annual premiums of G$559,599.

CLAIMS Total claims paid and provided able from Reinsurers.

for amounted to G$146,356.


No sums were recover­ LIFE ASSURANCE FUND The Life Assurance Fund as at 31st December, 1979 stood at G$387,406.

GENERAL STAFF The average number of persons employed during the year was 89.

DIRECTORS The names of the persons who served as Directors in 1979 appear on page 2 of this report.
AUDITORS In keeping with the provisions of Section 48 (2) of the Co-operative financial Institutions Financial General auditor of the Service for the financial Act, the Co-operative Administration ap'f)ointed year ended 31st December, 1979. the Auditor By Order of the Roard DONALD D. COLE, Company Secretary.
nc,s GENERAL ANO LIFE INSURANCE REVENUE ACCOUNTS for the year ended 31st December, 1979 Notes General Life TOTAL General G$ G$ G$ 1978 G$ Life TOTAL 1978 1978 G$ G$ Life Insurance Fund Add REVENUE Premiums (Net) 161,214 161,214 14,422 14,422 1 5,443,454 539,558 5,983,012 3,921,573 309,836 4,231,409 Income From Invest- ments 2 1,269,690 77,103 1,346,793 503,787 36,455 540,242 Other Income 3 Deduct EXPENDITURE AND OUTGO Claims (Net) 4 Surrenders Commissions Management Expenses 467,733 1,141 468,874 385,044 385,044 7,180,877 779,016 7, 959",893 4,810,404 360,713 5,171,117 2,271,718 146,356 2,418,074 1,916,631 74,934 1,991,565 1,189 1,189 300 300 70,726 66,384 137,llO 56,693 20,628 77,321 5 1,157,429 140,433 1,297,862 958,265 84,228 1,042,493 Pension Fund Contri- butions Net Profit before Taxation Life Insurance Before Taxation 35,832 6,263 3,535,705 360,625 42,095 32,825 4,973 37,798 3,896,330 2,964,414 185,063 3,149,477 3,645,172 3,645,172 1,845,990 1,845,990 418,391 418,391 175,650 175,650 Less: Taxation 6 2,073,305 30,985 2,104,290 1,078,648 14,436 1,093,084 Net Profit After Taxation Life Insurance Fund 79 at 31.12.
1,571,867 1,571,867 767,342 767,342 387,406 3S7,406 161,214 161,214 1,571,867 387,406 1,959,273 767,342 161,214 �28,556 7 nc,s GENERAL INSURANCE DIVISION PROFIT AND LOSS APPROPRIATION for the Year Ended 31st Dec em bet, 197 9 ACCOUNT Net Profit for the Year After Taxation 1,571,867 767,342 Notes G$ 1978 6$ Less: Transferred to Reserve Fund (7) Balance Brought Forward L•••: Taxation -Prior Years Available PROPOSED DIVIDEND for distribution Interim Final Retained Profit at 31st December 1979 392,967 191,836 1,178,900 575,506 404,320 46,622 1,583,220 622,128 341,408 1,241,812 622,128 80,100 217,808 137,708 1,024,004 404,320 GENERAL · AND LIFE INSURANCE BALANCE · SH�ET as at 31. st December, 197 9 Notes General Life TOTAL G$ G$ G$ DI& F1DD ASSETS (at cost less depreciation) Deposi�• DIVISqmrf .
PULDIDIAllT UPF.RSES AIJlfAIEP.S to LIFE IllSIJUllCK CURRENT ASSETS DElfflllS MD PREPAY lllll'is, El'C.

ftl'.ASUU BIIJ.S CASH OIi lWID AID> AT BAIi[ Lesa: CURRENT LIABILITIES OO'rSTMDillC CLAIMS CllEDl'IOllS, nc.
.ACCRUALS, TAXATIOR SIWUHJLDDS·DIVIDEND PltOPOSID DIVIDEND PDSI<II PUBD 8 9 10 659,994 10,878 670,872 54,135 54,135 2,824,918 800,000 l,624,918 18,098 18,098 500,000 500,000 3,000,000 3,000,000 4,359,469 66,464 4,425,933 7,529,212 7,529,212 11 3,307,727 113,866 3,421,593 18,196,408 180,330 18,376,738 5,451,199 36,.207 5,487,406 10,122,819 54,708 10,177,527 1,562,302 30,985 1,593,287 137,708 : .. 137,708 217,808 217,808; 12 17,491,836 121,900 17,613,736 11ft allltllft' ASSETS 704,572 58,430 763,002 IS8IJSaoe FULLY PAID 16-Shares at $100 each ,�r DSJ81.
IUIID �:f UTAt1IID IWIRDIGS SBARJIIIJJ.DDS PONDS LIFE I1ISbRARCE FOND ..ADVAIICES Pfflf GENERAL DIS1JUBCE USERYE POI.

UBEIPillED JlIRS Da�e: 3rd lloYember, 1980.

4,743,619 887,406 5 631 025 10.000.000 10.000.000 1,602,000 1,602,000 799,325 799,325 1,024,004 1,024,00 4 3,425,329 3,425,329 387,406 387,406 500,000 500,000 1,318,290 1,318,290 4,743,619 887,406 5,631,025 C. BONE, D eputy ChairmanH.E.
WILKINSON, General Manager/Director STATEMENT APPLICATION OF SOURCE AND OF FUNDS SOURCE OF FUNDS FUNDS FROM OPERATIONS G$ G$ 19'79 6$ ( , '•!:;.

,,,, , .

.,.,.
Profit before Taxation ADJUSTMENT NOT INVOLVING THE MOVEMENT OP' FUNDS: Depreciation Preliminary Expenses written off Total Generated FUNDS FROM OTHER SOURCES from Operations 3,643,257 t.845,990 60,214 25,301 1 85,515 3,728,772 Shares Issued Increase (Decrease) in Insurance Funds: General (703,599) Life 257,177 (446,422) 7,540 500,000 899,374 175,650 Sale of Asset Deposits Recovered APPLICATION OF FUNDS Purchase of Fixed Assets Deposits Investments Tax paid Preliminary Expenses Dividends Paid INCREASE{DECREASE)IN WORKING CAPITAL Loans Debtors and Prepayments Outstanding Claims Creditors Pension Fund MOVEMENT IN LIQUID FUNDS Cash and Bank Balances, Account Savings Treasury Bills 10 61,llR 1,076,824 3,789,890 3,022,395 221,628 240,897 2,450 375 3,199,918 70,000 1,699,777 413,157 2,771 272,124 5,395,897 121.200 (1,606,007) 2,000,000 (312,000) 1,609,655 93,172 (2, 965, 171) (1,211,431) (3,864,971) ,(2,448,768) 92,117 (56,818) 1,522,363 6,231,042 NOTES TO THE REVENUE ACCOUNT General Life TOTAL PREMIUMS Fire, Motor, M&rine and Mis.- Insurance cellaneous, G$ G$ G$ Written 9,624,714 9,624,714 Life Assurance ·.
Health Insurance 374,961 374,961 1842638 1841638 Bet Cost of Reinsurance -� 9,624,714559,599 10,184,313 4,181,26020,041 4,201,301 5,4432454 5391558 519831012 ,, ... ,,,, > ··?� ��� ·)� 2 INVESTMENT INCOME , · GRCB - Pixed Deposit 240,219 5,746 245,965 BANK OF GUYANA Debentures Defence Bonds Treasury Bills Other ' 3 OTHER INCOME 3,767 39,074 42,841 :·.�-I�{: 1,750 1,750 808,396 32,240 840,636 215,558 43 215,601 ,.,246 1,269,690 77,103 1,346,793 Agencies Ccnaissions 457,253 457,253 Miscellaneous 10,480 1,141 11,621 467.733 11141 468.874 CLAIMS PAID AND PROVIDED FOR Pire, Motor, Marine and Mtaeellaneous 3,641,829 3,641,829 Death Claim Health Claims Group Personal Acci- dent Claims 25,370 25,370 116,986 116,986 4,000 4,000 Less: 3,641,829 146,356 3,788,185 Reinsurance Recoveries1,370,111 1,370,111 2,271,718 146,356 2,418,074 GCl5 NOTES TO THE REVENlJE ACCOUNT 5 MANAGEMENT EXPENSES General Life TOTAL General Life G$ G$ G$ 1911 GS 1911 GS TOTAL 1911 G$ Administration Expenses 1,075,739 117,372 1,193,111 888,121 75,010 963,131 Directors Fees 7,700 7,700 7,400 7,400 Audit Fees 15,000 1,000 16,000 7,500 1,000 8,500 Fees Actuarial 20,838 20,838 7,240 7,240 Depreciation 58,990 l,�23 60,213 55,244 978 56,222 TAXATION 111571429 140.433 112971862 958.265 841228 110421493 Income Tax 736,503 30,985 767,488 377,515 14,436 391,951 Corporation Tax 1,288,879 1,288,879 660,651 ,,o,651 Property Tax 47,923 47,923 40,482 40,482 Current Year Taxation 2,073,305 30,985 2,104,290 1,078,648 14,436 1,093,084 NOTES TO PHOFIT AND LOS� An:m1 T
 APPllOPRIATION 7 RESERVE FUND In accordance with section 25% of net surplus was transferred 50 (1) of the Co-operative Financial Institutions to Reserve Fund before any declaration Act 1976 an amount of of Dividend.
12 NOTES TO THE BALANCE SHEET GCIS FIXED ASSETS G$ G$ Furniture Motor Printing Land Fixtures Vehicles Machinery Equipment Building TOTAL G$ G$ G$ Coat at 1st .January, 1979 253,317 68,478 101,634 191,614 615,043 Adclitions Disposals Accuaalated Depreciation at lat .January, 1979 58,702 162,926 221,628 (9,000) (9,000) 312,019 59,478 101,634 354,540 827,671 48,605 35,431 10,175 5,749 99,960 ProYiai.on for Year 27,661 12,995 10,164 6,019 56,839 llet Book Values at 31st Deceaber, 1979 llet Book Values at 31st December, 1978 76,266 48,426 20,339 11,768 156,799 235,753 11,052 81,295 342,772 670,872 204,712 33,047 91,459 185,865 515,083 DEPOSITS Deposit with Insurance Aatborf.tiea Geaeral Life TOTAL · General Life TOTAL 19'18 G$ 19'11 G$ 19'11 G$ G$ GS GS 250,000 250,000 500,000 .Accountant General 50,000 50,000 50,000 50,000 Other 4,135 4,135 1,685 1,685 54,135 542135 301,685 250,000 551,685 nc,s NOTES TO TIIE BALANCE SHEET GENERAL Face Ledger Value Value LIFE Face Ledger TOTAL Value Value 10 INVESTMENTS 6$ 6$ 6$ 6$ 6$ Defente Bonds 50,000 50,000 50,000 Caribbean Investment Corporation 24,918 24,918 24,918 " Debentures 2,750,000 2,750,000 800,000 800,000 3,550,000 2,824,918 2,824,918 800,000 800,000 3,624,918 11 CASH ON HAND AND AT BANK General Life 6$ GS Fixed Deposits 300,000 80,000 Pension Fund Savings Account Cash and Bank Balances 551,166 33,866 Bank of Guyana Deposit Account 2,456,561 2,456,561 942.943 942'.94] 3,307,727 113,866 3,421,593 1,261,291 120.262 1,/J&l ,553 12 PENSION FUND Pension Scheme is now being
 administrated by the G.N.C.B.
Trust Corporation.

14 ACCOUNTING POLICIES INVESTMENT INCOME .nc,s Income on_ fixed return securities variable return security is dealt with on a cash basis.

is recognised as it is earned, whilst income on DEPRECIATION Depreciation the cost of the assets to their residual of fixed assets is on the straight values over their expected line method calculated to write down useful lives.

PRELIMINARY EXPENSES Preliminary expenses being written off over a period of five years.
incurred in the formation of the Life Insurance are Division ACCOUNTING FOR INFLATION These accounts made to adopt replacement which will overcome have been prepared the distorting on a historical cost basis.

No attempt has been Cost Accounting or Current Cost Accounting procedures effects of inflation • .

UN EXP IRED RISKS The computation method whereby sixty per cent of the net premiums per cent as unearned for the financial of unexpired year.
risks has been changed from 1/24 constant to the 60:40 is treated as earned and forty REPORT OF mE AUDITOR GENERAL ON THE ACCOUNTS OF THE GUYANA CO-OPERATIVE INSURANC E SERVICE FOR THE YEAR ENDED 31ST DECEMBER, 1979.

I have examined the Accounts of the Service and have obtained set out on pages 7 to 15 which are in agreement information and explanations all the ,'; ·"t:, with the books which I have required.
In my opinion, these accounts which have been prepared give on this basis, a true and fair view of the state of 1979 and of the.

net income and source and on the historical cost -� basis of accounting affairs of the Service at 31st December, application accounting principles applied on a consistent basis.

of funds for the year then ended, in accordance with generally accepted R.P.

FARNUM, A.A.

Auditor General, Office of the Auditor General 121, Parade Street, Kingston, Guyau.
·Georgetown, Dated: 14th November, ·1980.

· 16