Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698071988630.pdf (Guyana)
GUYANA CO-OP INSURANCE SERVICE ------------------------1C1Ji11a;;;:aS1!
:18-••� CONTENTS Page Directors and General Management Chairman's Statement 3 5 Report of the Directors 7 Revenue Account 9 3rd Annual Report Profit and Loss Appropriation Account 10 and Accounts Balance Sheet 11 Statement of Source and application of Funds 12 Notes to the Revenue Account 13 Notes to the Profit and Loss Appropriation a Account Notes to Balance Sheet 15 Accounting Policies 17 Report of the Auditors 18 of the 6UYAnA CO·OPERATIVE ln.lURAOCE /ERVICE for the year ended 31st December 1978 / cc•S=-·N--,CE---------------- --- • MARINE DEPARTMENT --4t--��.--· FI!-U: UND�:H.WH.ITING • --------------------------CLi111;;;Jlfit:i�·� DIRECTORS AND GENERAL MANAGEMENT Directors HAROLD E, WILKINSON -A.A. Chairman CLAUDE BONE -M.S.
Deputy Chairman YESU PERSAUD· F.C.C.A., F.R.S.A.

RONALD STEWART • B.Sc.

SHAMIR ALLY -A.S.C.A., A.M.B.I.M., M.I.S.M.

BASIL BLAIR General Manager RUDYARD D. FIELD-RIDLEY .

a.so.

(Econ), A.I.B.

Life Insurance Adviser S, YOGARAJAH • B.Sc.

(Hons), A.I.A.

Deputy Manager Non-Life HAROLD BRASSINGTON Deputy Manager Life TERENCE EDWARDS,· B.

Math.

(Hon,) M.A,So, Accountant ASLIM RAHAMAN -A.C.I.S., A.M.B.I.M.

Company Secretary DONALD D. COLE -B. Boe.

Sc.


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

Bae.

Auditors Solicitors Bankers AUDITOR GENERAL -Government or Guyana CLARK & MARTIN GUYANA NATIONAL CO-OPERATIVE BANK Branch Office 8 Strand, Berbice, Guyana.
New Amsterdam, nr155--1NaJRANICE-------------------- A SECTION OF THE LIFE DEPARTMENT BERBICE BRANCH OFFICE CHAIRMAN'S STATEMENT RESULTS The year 1978 was again a year of rapid progress income more than doubled from $4,018,675 in 1977 to $8,945,383 the same period, profit after tax increased for the Service.

Gross premium in 1978 While, over from $264,185 to $767,342.
The good results achieved enabled the Directors 7 per cent which, with the interim dividend total distribution leave retained to recommene a final dividend of of 5\ paid in March, will bring the for the year to 12 per cent.

Payment of this dividend as compared with $46,622 in 1977. profits of $404,320 will Apart from our motor insurance business showed a loss, substantial ness engaged in by the Service.
profits were recorded which, as predicted last year, again in all the other classes of busi­ It is particularly derwriting profits: vide us with the operating rate the increasing capacity for our services.

In this context, board for further advance in the future.
important that it should he recognised that we need to earn un­ the returns on investment sufficient t o pro­ surplus which we must have if we are to he able to gene­ are not themselves which will he needed to meet the increasing demands we look upon our results in 1978 as the soring­ FIRE INSURANCE Our portfolio of Fire business has maintained income increasing stems in part from rising insured values, but a large proportion is attributable to an influx of new business.
its strong growth rate with premit:OTt in 1977 to $5,777,120 in 1978.

This growth from $1,704,449 1978 saw an intensification In collaboration of our efforts in with two other local companies in my last Statement, and Universal Brokers, we spansored As mentioned the area of fire and accident insurance insurance Hotel from 28th May to 8th June, 1978.

Our s_ponsorshio nearly all of the large industrial flects the importance prevention.

loss due to fire damage, but recognise be done in this area.
orevention.
Reinsurers a two week Fire Prevention which we in Co-op Insurance concerns Intermediaries Ltd., our Canadian Re­ Seminar at the Pegasus of this seminar, at which in this country were represented, re­ have always attached to fire We believe that our efforts have helped to reduce the incidence that there is still a great deal more to of One of the points stressed for policy holders tion than they may have grown accustomed policyholders the limited resources can no longer afford bylecturP.rs of the country's Fire Service.
to shoulder a much greater resnonsib ility for•their f ire protec­ in the Fire Prevention Seminar was the need to of late.

This is a res'DOnsibility which to abdicate, especially when one bears in mind work is to over-haul We feel that one of the more important tasks facing client Management every way to support our clients in this all important task full use of the services of our Fire Prevention would be only too willing to discuss with them methods of preventing fire loss.

firm s in their Risk systems.


We are prenared and urge them to make their fire-control Officer, in and limiting Cde.
J. McPherson who 5 CCl5 e, INBURANC,,-..--------------------------- MOTOR INSURANCE gave rise again to a very considerable OUr Motor business affected the over-all profitability measures taken during the year proved insufficient rising claims cost and a sustained average cost of both own damage and liability increases in premium levels will be inevitable increase loss which adversely underwriting Corrective to overcome the effect of The of accidents.
in the frequency claims rose substantially in 1979. and further of the institution.

MA.RINE underwriting The Service commenced direct 1978 and is the first Insurance directly.

The business view of the market is very favourable, make a useful and significant years.
contribution risks on 1st September, Company in Guyana to write this class of business of marine cargo showed modest development by the end of the year and our We expect this side of our activities to our profit and loss account in future to Personal Accident, OTHER CLASSES The Miscellaneous account covers contractors' All Risks, Householders' Cash-in-Transit, insurances.

bined results were appreciably results achieved were in the main attributable during the year.
LIFE classes again showed very diverse to the very low incidence The individual results, Public and Employers' Liability Comprehensive and Fidelity but the com­ better than in the previous year.

The favourable of claims New life sums assured written of the increased $322,671 emphasises the substantial need planned expansion increase new business, in 1978.

The in business in 1979 and the years beyond.


satisfactory experience of our life assurance portfolio of our Sales Force, we have every reason that exists for this protection to expect a substantial and, with the in 1978 took a substantial leap forward.

As a result gross premium income rose from $56,723 in 1977 to to feel the imp act of �he strong PROSPECTS In 1978 we continued inflationary been so marked a feature of this decade.
As a result of inflation, particular problem which faces us presently to strike a better balance between premiums and claims.

It is with regret that we will cost more than it has in must accept that in future in Guyana motor insurance the past.

have rise n to unprecedented trend that has motor claims in is how to raise motor heights and, perhaps, premiums to the level needeQ the most important the past year.
It is due tO their hard work and dedication ACKNOWLEDGEMENTS I should like to take this opportunity to thank Management and staff for their efforts during have been able to achieve the substantial improvement fitability in the years ahead.

I also wish to thank most warmly our clients and friends at home and abroad for their continued that we we have shown in pro­ and I have every confidence that they will continue patronage and support.

in their endeavnurs 6 H. E. WILKINSON.


THE REPORT OF THE DIRECTORS The Directors for the financial have pleasure year ended 31st December, 19.78. in-submittin9 their Annual Report and the Accounts RESULTS Net income before taxation was G$1,845,990 and after deducting t axes of G$1,078,648, the net profit after tax was G$767,342.
DIVIDENDS The Directors recommend a final dividend of 71 free of Company Tax which, with the interim year to 121, the same rate of dividend dividend of s, paid in March, will bring the total distribution for the paid in 1977.

NON•LIFE INSURANCE The following is a summary of the development of the Service's non-life busi­ ness in 1978: INSURANCES IN FORCE During the year, 1,382 policies ware issued insuring a total of G$474.4 million and yielding annual premium.a of G$1,190,332.
At the end of the year, there were 3,520 policies in force inauring a total of G$2,472.3 million and earning annual premiums of G$8,945,3 83.

CLAIMS Total claims was recoverable G$1,916,631.

paid and provided from Reinsurers for amounted to G$3,086.406 resulting in a net cost to the Service of of which G$1,16,,775 INVESTMENTS At 31st December, 1978, bank deposits and inveatment securities totalled G$9,029,265 over the figure at the beginning of the year.
repreaenting an increase in short term Government of G$6,098,696 or 48.11 Interest on investment increased by G$246,421 from G$257,366 in 1977 to G$503,787 in 1978.

7 nr155--1NSURANCE--------------------- LIFE INSURANCE INSURANCES IN FORCE At 31st December, 1978 there were 341 individual and yielding G$17,912,367 annual premiums of G$322,671.

assuring and group policies in force CLAIMS Total claims paid and provided for amounted to G$75,934.

No sums were recover­ able from Reinsurers.


LIFE ASSURANCE FUND The Life Assurance Fund as at 31st December, 1978 stood at G$161,214.

GENERAL STAFF The average number of persons employed during the year was 86.

DIRECTORS The names of the persons who served as Directors in 1978 appear on page 3 of this report.
AUDITORS In keeping Institutions auditor General with the provisions Act, the Co-operative of Section 48 (2) of the Co-operative Financial Financial Administration appointed the Auditor of the Service for the financial year ended 31st December, 1978.

By Order of the Board DONALD D. COLE, Company Secretary.

ccn;e-- GENERAL ANO LIFE INSURANCE REVENUE ACCOU�TS for the year 1978 ended 31st December, Notes General Life TOTAL ..._ .... TOTAL 14,422 14,422 ' .
', ... ·1t1;11· U'JT "'" "' "' 6$ a, Gf Fund Life Insurance Add REVENUE Premiums (Net) Income From Investments 2 Other Income 3 1 3,921,573 309,836 4,231,409 2,200:144 153,424 2,254,388 503,787 36,455 540,242 .. , .... 14,.06' 271,130 385,044 US,086 385,044 435,066 4,810,404 360,713 5,171,117 2,893,376 87,486 2,980,884 Deduct EXPENDITURE AND OUTGO Claims (Net) Surrenders Commissions • 1,916,63174,934 1,991,565 1,388,117 22,491 1,4-05,614 300 300 56,693 20,628 71,321 G0,735 78 50,813 Management Expenses 5 958,265 84,228 1,042,493 742,178 23,720 765,896 Pension Fund Contributions 32,825 4,973 37,798 22,383 1,201 23,564 2,964,414 185,063 3,149,477 2,198,391 47,496 2,245,687 Taxation Net Profit before 1,845,990 1,845,990 694,9815 694,935 Life Insurance Before Taxation 175,650 175,650 19,992 19,992 Lrss: Taxation 6 1,078,648 14,436 1,093,084 430,300 5,570 436,370 Net Profit After Taxation 767,342 767,342 264,1815 �4.185 Life Insurance Fund at 31.12.
78 161,214 181,214 14,422 14,422 767,342 161,214 928,556 294,185 14,422 278,607 9 CCl5 �INSUAANC-�----- ------ - ------------ - - C;E\EIUL I\" 'R l'C:E IJlll,ICJ\ "' a, 19'J'J 767,342 264,165 191 836 661046 575,506 196,139 46 622 661046 622,128 26-1,185 80,100 137 708 217,808 217,563 404 320 46,622 PHOFIT I \D Ub, I PPRCIPRI for tl11· Year Endl'd :u�t llrct•ml1N, 19�8 I THJ\ ACCOI YI' Net Profit for thu Yuar After Taxation Less: Tran1iferred to Reserve Fund 7 Notes Balance Brought Forward Available for Distribution PROPOSE:D DIVIDE:ND Interim Final Rutained Profit 1978 at 31st Decembur, 10 GE�ERAL A�D LIFE l�S!JRANCE BALANCE SHEET as at 31st December, 1978 General Life TOTAL Geaeral Ute TOTAL 1977 1977 1977 •• •• •••• 515,083 322,513 7,895 330,408 9 301,685 250,000 551,665 301,310 250,000 551,310 FIXED ASSETS (at cost less depreciation) 506,311 6,772 G$ G$ ' Deposits INVESTMENT 10 75,000 350,000 16,062 25,337 PRELIMINARY EXPENSES ADVANCES TO LIFE INSURANCE CURRENT ASSETS LOANS 750,000 1,000,000 - DEBTORS AND PREPAYMENTS 1ETC.
2,795,278 21,000 7,849,375 197,514 425,000 li5J)(IO 300,000 3:i5,000 43,399 :i4,132 2a,srns •83,987 750,000 742,923 742,923 1,000,000 1,312,000 - 1,312,009 8,046,889 295,698 - 295,696 2,718,687 4,469 2,723,106 2,818,278 TREASURY BILLS CASH ON HAND AND AT BANK Lt1st1: CURRENT LIABILITIES OUTSTANDING CLAIMS CREDITORS, ACCRUALS, ETC.
11 1,261,291 120,262 1,381,553 2,670,171 231,531 2,901,702 12,905,944 338,776 13,244,720 6 998 606 236 000 7,232.596 2,505,245 16,990 2,522,235 1,292,()64 18,738 1,310,602 6,293,028 19,528 6,312,556 8,796,20� 42,047 3,838,249 T AXATION SHAREHOLDERS DIVIDEND PROPOSED DIVIDEND PENSION FUND 12 721,849 14,436 192,024 - 217,808 - 81,400 10,717 736,285 50,787 5,570 56,367 192,024 - - - 217,606 217,563 - 217,563 92,117 35,300 - 35,300 NET CURRENT ASSETS 2,694,590 277,105 3,171,695 1,604,539 169,645 1,774,235 10,011,354 61,671 10,073,025 5,391,916 66,3::i!j li,4li8,271 Financed bv: AUTHORISED SHARE-CAPITAL 100,000 Shares at $100 each 4 1545.648 , 911,214 51456,862 s t8t1s1s 757.34li3,837.868 1 10,000,000 10,000,000 000 10 1 010 1 10, 000 099 , ISSUED AND FULLY PAID 16,920 Shares at $100 eech RESERVE FUND RETAINED EARNINGS SHAREHOLDERS FUNDS LIFE INSURANCE FUND 1,602,000 1,602,000 1,600,209 1,600,200 517,439 517,439 32li,608 325,li03 404,320 404,320 46,622 46,622 2,523,759 2,523,759 1,972,425 1,972,425 161,214 161,214 14,422 14,422 ADVANCES FROM GENERAL INSURANCE 750,000 750,000 742,926 742,923 RESERVE FOR UNEXPIRED RISKS 2_.021,839 2,021,669 1,103,093 1,108,093 Date: 30th April, 1979.
41545,648 911,214 H, E. WILKINSON, R. D. FIELD-RIDLEY, Chairman 514561862 310801516 757.345 ·s18S71663 General Managl'r/Di•"-Clor 11 nr15�1NBURANIC6-------------- ------ STATEMENT ,\PPLICATIO� OF FII\DS OF SOIIRCE \ �ll "' G$ 1978 G$ 1977 GO SOURCE OF FUNDS FUNDS FROM OPERATIONS Profit befor<c T axation ADJUSTMENT NOT I�VOLVING THE MOVEME�T OF FUNDS: Depreciation Preliminary off Expenses v.ritten Total Generated from Operations FUND s FROM OTHER SOURCES Shares issued Increa,m in Insurance Funds 899,374 1,845,990 694,965 56,222 43,359 33,7:U 43,571 99,581 77,295 1,945,571 772,280 1,800 Ul0,200 356,6*7' General Insurance Life Insurance APPLICATION OF FUNDS Purchaslc!
of Fixed Assets Deposits Investments Tax Paid Preliminary Expenses 175,650 1,075,024 1,076,82'1 456,837 3,022,395 1,229,117 240,897 375 70,000 413,157 2,771 136,442 250,080 355,000 786,749 37,256 INCREASE/DECREASE IN WORKING CAPITAL Decrease in Loans Increase in Debtor,; and Prepayments Increase in Outstanding Claims Increase in Creditors Increase in Pension Fund M DVEMENT IN LIQUID FUNDS Increase in Cash and Bank Balances Treasury Bills and Savings Account 12 727 200 1,565,527 2,295,195 (336,410) (312,000) 1,006,873 93,172 (714, 510) (1,211,433) (1,276,802) (2,448,768) (489,617) (56,818) (35,300) 8,231,042 1,172,946 2,295,195 (336,410) -- -� Ci s 5-- tNaUAANCI!
NOTES TO THE REVENUE ACCOUl'iT 1 PREMIUMS Fire, Motor and Miscellaneous General Life TOTAL Geaeral Life TOTAL a, •• •• •••• .
.,, 19'17 a, 1117 Insurance Written Life Assurance Health Insurance 7,537,353 7,537,353 3;270,778 3,270,778 191,964 191,964 87,049 87,049 130,707 130,797 11,874 19,874 Net Cost of Reinsurance 3,666,285 12,335 8,679,120 1,069,884 3,299 1,078,183 7,537,858 322,671 7,910,529 8,270,778 58,1'23 3;327,501 ' INVESTMENT INCOME GNCB • Fixed Deposit BANK OF GUYANA Debentures Defence Bonds Treasury Bills Other s,921,513 309,336 4,231,409 2,200dU 63,121 2,25fr368 163,323 17,913 131,736 178,727 176,727 17,666 17,636 '·""'-3,494 1,750 331,968 '" 332,624 11,86' 1,750 1,ff7 12,798 1,467 11,854 6,246 6,246 61,010 61,018 5031787 B6,455 540,24g ill.Ill i,iH iH,&§g 3 OTHER INCOME Agencies Commissions 266,160 Brokerage Fees Miscellaneous 113,934 •CLAIMS PAID ANP PROVIDED FOR 33510H 266,160 BH.989 - SIIS,232 18,l!H> 113,334 33519H 21,714 430&!
!0 ' 0'., 16,120 21,714 4351068 Fire, Motor and Miscellaneous3,086,406 3,086,406 8,209,418 8,209,416 Death Claim Health Claims 12,000 12,000 15,000 15,000 52,934 62,934 7,497 7,497 3,036,406 74,934 3,191,340 3,209,416 22,497 3,231,913 L.,.,.,_.
Reinsurancs Recoveries 1,169,775 1,169,775 1!6261999 1,6961299 119161631 741934 119911565 1,8681117 92,497 114051614 cc•s�·N.,RAJNCle-------------------- \OTES TO THE RE\ E�l'E ACCOl'\T MANAGEMENT EXPENSES G$ G' Gener11l LHe TOTAL Genetal Life TOTAL 1917 1977 GS 1977 GS GS G$ Administration Expenses 888,121 75,010 963,131 693,320 16,451 709,771 Fees Directors 7,400 7 ,·lOO 8,300 8,300 Dspreci&tion 55,244 978 7,500 1,000 8,500 7,500 350 7,850 7,240 7,240 r ,ts1 7,451 56,222 33,056 669 38,725 956.265 84,226 1,042,493 !
(2,IJ6 ..•.

l!J..ill1: .. 767" 097 _ ... ,.J.

Audit Fees Fees Actu1uial •TAXATION lncoms Tax Corporation Tax Property Tax 660,651 40,482 377,515 14,436 391,951 li7,991 51570 159,791 660,651 257,637 - 257,1137 40,462 25,942 ..... 11oas,os4 i3Q18QO .

i'!iI1f iH1II0 .. 1,078,648 14,436 NOTES TO PROFIT A�D LOSS APPHOPHIATIO\ ACCOlJ�T 1 Jf:lf:aVE FUNQ In acconl11nce was transfsrred 1'ith section 50 (1) or the Co-opeqi.tive Financial to ijeserve Fund before any declaration of Dividend.
Institutions Act 1976 an &mount of 25% or net surplus 14 �OTES TO THE BALA�CE SHEET ac•se--- •FIXED ASSETS Furniture Mstor Pristinll: Land TOTAL FixtQres Vehicles Machtaery & Equipment GO •• •• GI Buildinll: GI 374,146 Csst at 1st January, 1978 219,009 56,869 98,768 Additisns 341308 253,317 68,478 101,634 191,614 615,043 866 1911614 2401897 1 12,109 2 Accumulated Depreciation 1978 1st January, st 25,052 18,686 43,738 Provision for Year 23,553 16,745 10,115 5,749 56,222 48,605 35,431 10,115 5,749 99,960 Net B sok Values at 31st December, 1978 204,112 33,047 91,459 185,885 515,083 Net Book Values at 31st Dscember, 1977 193,957 37,683 98,768 330,408 DEPOSITS General Life TOTAL General Life TOTAL 6$ •••••• 191'1' 197T 191'7 6$ 6$ Deposit with Insurance Authorities 250,000 250,000 5 00,000 250,000 250,000 500,000 Accountant General Other 50,000 1,685 50,000 50,000 50,000 1,685 1,310 1,310 301.685 250.000 551 685 so11a10 2501222 i511;!10 15 INBURAN CCIS �>:.�� NOTF.S TO TIIE Il.\ L�, CE SHEET SERI/ICE GENERAL LIFE 1917 GENERAL LIFE 10 INVESTMENTS GS 0$ Face Led&:er Value Value Face Leda:er Value Value 0$ G$ TOTAL Face Ledcer Face Ledcer TOTAL Value Value Value Value GS GI GO G$ GI Defence Bonds 50,000 50,000 50,000 50,000 50,000 GI 50,000 Caribbean Investment Corporation 25,000 25,000 25,000 5,000 5,000 5,000 Debentures 350,000 350,00 75 000 75 000 350 10003501000 350,000 4251000 ss,ooo 551000 300 300,000 300,000 300,000 10003001000 355.000 11 CASH ON HAND AND AT BANK G$ GS GS General LHe TOTAL General Life TOTAL
 1977 19ii 191i GO GO GO Fi;<ed Deposits Pension Fund Savings Account 100,000 90,000 81,400 10,717 190,000 2,500,000 200,000 2,700,000 92,117 35,300 35,300 Cash and Bank Balances 136,948 19,545 156,493 134,S71 31,531 166,402 Bank af Guyana Deposit Accaunt 942,943 942,943 1,261,291 120,262 1,381,553 2,670,171 231, 531 2 901 102 1 , 12 PENSION FUND Employer's and Employees' contributions totalling $92,117 have been deposited temporarily in Pension Fund Savings Account.
------------------------------------····-- 16 -----------------------1C1..i11i.

;1NS11::1 e, ........... ACCOUNTING POLICIES INVESTMENT INCOME Income on fixed return security return securities is dealt with on a Cash basis.

is recognised as it is earned, whilst Income on variable DEPRECIATION Depreciation cost of the assets t.o their residual values over their expected method calculated useful lives.
of fixed assets is on the straight-line to write down the PRELIMINARY EXPENSES Prelimin written sion are being written ary expenses incurred in the formation off over a period of three years and those in respect are being Division Divi­ of the Life Insurance Insurance o f General off over a period of five years.

ACCOUNTING FOR INFLATION These accounts to adopt replacement overcome the distorting have been prepared Cost Accounting on a historical or Current effects of inflation.
cost basis, no attempt Cost Accounting procedures has been made which will 17 nc1s5i-,N--CE-------- --------- --- REPORT OF THE AUDITOR GENERAL ON THE ACCOUNTS OF THE GUYANA CO-OPERATIVE 1978.

INSURANCE SERVICE FOR THE YEAR ENDED 31ST DECEMBER, I have examined the Accounts set out on pages 9 to 17 which are in agreement all the information and explanations with the which I have and have obtained books of the Service required.
In my opinion, of accounting Service for the year then ended, applied on a consistent at 31st December, basis.

these accounts which have give on this basis, a true and correct been prepared of the state of affairs 1978 and of the net income and source and application of funds in accordance with generally accepted view of the accounting principles on the historical cost basis R. P. FARNUM, A.A.

Auditor General, the Auditor Office of 121, Parade Street, Kingston, Georgetown, Guyana.
General Dated: 18th June, 1979, 18 --------------------------1Dui1IL ;;;ah1a5-- =• .........

HIGHLIGHTS THE MEN BEHIND IT ALL 19 cc•B=-·N-,ANca- ------------------ - MOTOR UNDERWRITING MOTOR CLAIMS 20 Printed by Guyana Co-operative Insurance Service, 46, Main Street, Georgetown Guyana.

GUYANA CO-OPERATIVE INSURANCE SERVICE 47, Main Street, Georgetown, Guyana