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Guyana Co-operative Insurance Service Report and Accounts 1981 Contents Page Directors and General Management Chairman's Statement Report of the Directors Revenue Account Profit and Loss Appropriation Account Balance Sheet Statement of Source and Application of Funds Notes to the Revenue Accounts 2 3 5 Notes to the Profit and Loss Appropriation Account 12 Notes to the Balance Sheet Accounting Policies Report of the Auditors Graphs Risk Management Course Participants 13 15 16 17 20 Guyana Cu-operative Insurance Service Directors and General Management Chairman Deputy Chairman Directors Managing Director Deputy Managers Accountant Secretary D A Augustin - BSc(Econ) MA (Econ) G C Bone - MS Y Persaud - AA FCCA FRSA B B Blair - AA CV Albert -MSC (Econ) ACIS D A Yankana - AA FBIM 0 Yaw E Duncan (Econ & Hist) D Alexander BA(Hons) up to 31st July, 1981 S Da Costa up to 31st March, 1981 HE Wilkinson - AA FBIM H A M Brassington B S Patoir A Rahaman -ACIS MBIM DD Cole - B SocSc Assistant Managers L Rambihar - BMath FLMI WO Agard Jnr M Shahoud Consulting Actuaries Lane, Clark & Peacock Medical Referee Dr J Paul - MB BS DipBac Auditors Attorneys Bankers Branch Office Main and New Streets New Amsterdam Berbice Guyana.
Auditor General, Government of Guyana Clarke & Martin Guyana National Bank Co-operative Guyana Co-operative Insurance Service Chairman's Statement RESULTS business business increased profit after tax on non-life business year for the Service.

Gross premium income from from $12.0 mn.

in 1980 to $14.4 mn.

(20%) and that from 1981 was a fairly successful non-life life insurance However, $1.5 mn.

These results enabled the 12% free of tax.

The payment of at $2.3 mn.

and the Reserve Funu at $2.1 mn.


- increases of $0.8 mn.

and $0.4 mn.

from $0.6 mn.

in 1980 to respectively, $0.9 mn.

reduced from $2.0 mn.

in 1980 to to recommend their usual this dividend will leave retained earnings from $0.6 mn.

in 1980 to $0.7 mn.

(16%).

on 1980.

The Statutory Life Fund increased also increased Directors divic.end of NON-LIFE There were underwriting surpluses in all four branches of insurance business.

FIRE INSURANCE Because of two large fires reduced from $1.6 mu.
in 1980 to $0.7 mn, However, from $7.0 mn.

in 1980 to $8.5 mn.

(12%) and premium income for Net account from $0.8 mn.

in 1980 to $0.9 mn.

small ones, the underwriting and numerous gross premium income increased surplus was MOTOR Gross premium income increased claims cost continued to increase, $0.5 mn.

in 1980 to $0.2 mn.

from $2.8 mn.

in 1980 to $3.4 mn.

(21%) and, because the underwriting surplus was reduced from MARINE Gross premium income increased income for also increased account from $0.2 mn.
in 1980 to $0.3 mn.

The underwriting from $0.1 mn.

in 1980 to $0.2 mn.

from $1.2 mn.

in 1980 to $1.5 mn.

(25%) and premium surplus Net OTHER CLASSES There was an underwriting of $0.

3 111n.

as against $0.

2 mn.

in 1980 with gross premium income increasing from $1.0 mn.

to $1.1 mn.

and premium income for Net account from $0.2 mn.

to $0.3 mn.

surplus for the other miscellan eous classes of business OTHER INCOME The interest an overall increase under the head from $1.9 mn.

to $2.4 mn.
to $2.4 mn.

from investments increased from $1.6 mn.

to $2.1 mn.

which resulted in 3 Guyana Co-operative Insurance Service LIFE Gross premium income from individual in 1980 to $0.3 mn.

mainly on account of the fact that no sales force was employed during the year.

A new Life Manager will fie recruited at that time the Division will be re-activated, and group life insurance towards the end of 1982 and reduced from $0.4 mn.
PROSPECTS annually our retentions classes of business During 1982 it is proposed miscellaneous increasing the basis of generally accepted heavy claims on our fire account, identification account.

cargo insurance from existing obvious under-insurance drawn to the attention Management run during December, 1981. to increase our retentions on fire, marine cargo and on as part of our overall strategy in keeping with our financial international it is proposed standards.
to reassess of systematically capacity and on because of the our on premium income for net premium income from marine However, very conservatively transactions and from fire insurance because of of risks which will result in a reduction There are still good prospects for increased particularly since the need for appropriate insurance was of our large clients during the course on Effective Risk ACKNOWLEDGEMENTS I should like to express my thanks to Management dedication their excellent performance clients and friends at home and afiroad for their continued during the past year.
I have every confidence in the future.

I also wish to thank most warmly our and Staff for their hard work and patronage and support.
that they will continue A.D. AUGUSTIN 4 Guyana Co-operative Insurance Service Report of the Directors The Directors the financial have pleasure year ended 31st December, in submitting 1981. their Annual Report and the Accounts for RESULTS Net income before taxation the net profit after tax was G$1,452,9 73. was G$3,309,672 and after deducting taxes of G$1,856,699 DIVIDENDS The Directors recommend a final dividend of 12% free of tax.
NON-LIFE INSURANCE The following 1981. is a summary of the development of the Service's Non-Life business in IN FORCE INSURANCES During the year 2422 policies yielding annual premiums of G$3,059,171.

were issued insuring a total of G$552 million and At the end of the year, there were 4,565 policies in force insuring a total of premiums G$4,545 million and earning annual of G$14,406,227.

CLAIMS Total claims paid and provided was recoverable G$3,657,873.
from Reinsurers resulting in a net cost to the Service of for amounted to G$23,008,225 of which G$19,350,352 INVESTMENTS At 31st December, 1981, Securities over the figure at the beginning G$540,507 from G$1,553,361 totalled G$15,372,036 representing of the year.
Interest in 1981. in 1980 to G$2,093,868 bank deposits and investment in short term Government an increase of G$4,397,542 on investment or 28.6% increased by LIFE INSURANCE INSURANCES IN FORCE At 31st December, assuring G$43,781,467 1981 there were 824 individual and group policies in force and yielding annual premiums of G$665,551.
5 Guyana Co-operative Insurance Service CLAIMS Total claims paid and provided from Reinsurers, recoverable for amounted to G$334,496 i� a net cost resulting to the Service of G$331,856.

of which G$2,640 was FW;V LIFE ASSURANCE The Life Assurance Fund as at 31st December, 1981 stood at G$879 ,315.

GENERAL STAFF The average number of persons employed during the year was 96.

VIRECTORS The names of the persons who Report.


served as Directors in 1981 appear on page 2 of the AUDITORS In keeping with the provisions Institutions.

General auditor Act, The Co-operative Financial Administration appointed the Auditor of the Service for the financial year ended 31st December, 1981. of Section 48 (2) of the Co-operative Financial By order of the Board.

AS LIM RAHAMAN, Secretary (Actg.)
6 Guyana Co-operative Insurance Service Revenue Account for the year ended 31st December, 1981 GENERAL AND LIFE INSURANCE Notes General Life TOTAL Genera] Life TOTAL 1980 G$ 1980 G$ 1980 G$ GS G$ GS Life Insurance Fund Add: REVENUE 616,657 616,657 387,406 387,406 Premiums (Net) 1 6,892,397 631,742 7,524,139 5,856,126 655,711 6,511,837 Income from Investments 2 2,093,868 113,360 2,207,228 1,553,36) 96,101 1,649,462 Other Income 3 273,582 190 273,772 382,133 184 382,317 9,259,847 1,361,949 10,621,796 7,791,620 1,139,402 8,931,022 Ve.duc-t EXPENDITURE (OUTGO) Claims (Net) 4 3,657,873 331,856 3,989,729 2,018,493 339,444 2,357,937 Surrenders Commissions 14,199 14,199 5,262 5,262 308,635 2,298 310,933 98,189 26,531 124,720 Management Expenses 5 1,576,412 83,883 1,660,295 1,201,592 108,805 1,310,397 Pension Fund Contri- butions 64,243 64,243 38,635 5,109 43,744 5,607,163 432,236 6,039,399 3,356,909 485,151 3,842,060 Net Profit for year before Taxation 3,652,684 3,652,684 4,434,711 4,434,711 Fund Life Insurance before Taxation 929,713 929, 713 654,251 654,251 Prior Year Adjustments 343,012 5,507 348,519 199,846 535 200,381 3,652,684 929,713 4,582,397 4,434,711 654,251 5,088,962 3,309,672 924,206 4,233,878 4,634,557 654,786 5,289,343 Less Taxation 6 1,856,699 44,891 1,901,590 2,616,057 38,129 2,654,186 Net Profit after Taxation 1,452,973 2,018,500 1,452,973 2,018,500 Life Insurance Fund at 31.12.81 879,315 879,315 616,657 616,657 1,452,973 879,315 2,332,288 2,018,500 616,657 2,635,157 7 Guyana Co-operative Insurance
 Service Profit and Loss Appropriation Account 1981 for the year ended 31st Decembe,, GENER.i\L INSURANCE DIVISION Net Profit for the year afte.r Taxation 1,452,973 2,018,500 Notes G$ 1:ISC G$ Transferred to Reserve Account 7 363,243 504,6.!')
1,089,730 1,513,875 Balance Brought Forward 1,485,088 223.
504 2,574,818 1,737,379 Taxation -Prior Years 3,694 19,969 Available for Distribution 2,578,512 1,757,348 PROPOSED DIVIDEND Interim Final 272,260 272,260 Retained Profit at 31st D ecember, 1981 2,306,252 1,485,088 8 Guyana Co-operative Insurance Service Ba lance Sheet 1981 as at 31st December, GENERAL AND LIFE INSURANCE Notes General Fixed Assets G$ (at cost less depreciation) 8 824, 4·54 Life Total General Life 1980 1980 G$ G$ Total 1980 G$ G$ G$ Deposits INVESTMENTS 9 10 PRELIMINARY EXPENSES LOANS CURRENT ASSETS ADVANCES TO LIFE INSURANCE DIVISION ETC.
DEBTORS & PREPAYMENTS TREASURY BILLS CASH ON HAND AND AT BANK 11 7,005 2,697,418 13,641 83$3,097 847,845 12,905 7,005 56,915 800,000 3,497,418 2,677,418 800,000 10,859 3,620 3,620 860,750 56,915 3,477,418 10,859 3,000,uOO 3,000,000 3,000,000 3,000,000 500,000 6,561,691 8,132,878 - 500,000 500,000 - 298,629 6,860,320 8,218,500 151,220 - 8,132,878 7,524,384 - 500,000 8,369,720 7,524,384 7,239,158 505,434 7,744,592 3,450,111 354,156 3,804,267 CREDITORS, ACCRUALS, ETC.
13,302,770 Le.M: Cl RRENT LIABILITIES CLAIMS OUTSTANDING TAXATION SHAREHOLDERS DIVIDEND PROPOSED DIVIDEND NET CURRENT ASSETS Financed By: AUTHORISED SHARE CAPITAL 100,000 Shares@ $100 each ISSUED AND FULLY PAID 20,025 Shares@ $100 each RESERVE FUND RETAINED EARNINGS SHAREHOLDERS' FUND FUND LIFE INSURANCE 22,433,727 804,063 23,237,790 19,692,995 505,376 20,198,371 6,951,889 102,039 7,053,928 9,721,072 97,928 8,732,174 76,426 95,081 13,397,851 44,891 207,991 618,630 38,129 192,240 - 272,260 272,260 - - - - 163,100 - ADVANCES FROM GENERAL INSURANCE RESERVE FOR UNEXPIRED RISKS 1,896,640 1,896,640 1,547,259 1,547,259 8,272,585 1,379,315 9,651,900 6,738,797 1,116,657 7,855,454 DATE: 18th September, 1982.
(actg) 9 DONALD.

D. COLE, General Manager/Director A.D. AUGUSTIN, Chairman.
Guyana Co-operative Insurance Service Statement of ... ""ource and Application of Funds SOURCE OF F'UNDS FUNDS FROM OPERATIONS Profit before Taxation ADJUSTMENT NOT INVOLVING THE MOVEMENT OF FUNDS: Depreciation Preliminary Expenses Total Generated FUNDS FROM OTHER SOURCES from Operations G$ G$ )981 G$ 1980 t,$ 3,309,672 4,634,557 61,314 7,239 --- 64,888 7,239 68,553 72, P7 3,378,225 ,, , 706 ,f.8 Increase (Decrease) in Insurance Funds General 349,381 Life 307,549 656,930 80,000 50,000 228,969 267,380 14 7, 'jQQ 500,000 Investments Cashed Deposit Recovered Advances Recovered TOTAL FUNDS APPLICATION OF FUNDS Purchase of Fixed Assets Deposits Tax Paid Dividends Purchase of Shares Loans INCREASE(DECREASE)IN WORKING CAPITAL Debtors & Prepayments Loans Advances Ou ts tanding Claims Creditors Dividends M OVEMENT IN LIQUID FUNDS Cash and Bank Balances, Treasury Bills and Savings Account 10 786,930 1,143,849 4,165,155 5,850,533 38,661 90 3,108,484 272,260 100,000 254,766 2,780 3,570,745 435,536 3,000,000 3,519,495 7,263,827 645,660 (1,413,294) (2,271,220) 3,943,787 (3,000,000) 500,000 2,765,072 (4,331,594) (4,589,251) I, 368,927 192,240 (272,260) 4,548,819 377,846 645,660 (1,413,294) Guyana Co-operative Insurance Service Notes to the Revenue Account 1 P�EMIUMS General Life TOTAL General Lif TOTAL 1980 1980 1980 Fire, Motor,Marine laneous Insurance and Miscel- Written 14,056,846 G$ G$ G$ G� G$ G$ 14,056,846 ll,753,0Jl 11,753,031 Life Assurances Health Insurance 319,238 319,238 353,930 353,930 346,313 346,313 126,001
 326,001 14,056,846 665,551 14,722,397 11.
751,03� 679,931 12,432,962 Net Cost of Reinsurance and Co-Insurance 7,164,449 33,809 7,198,258 5 ,8% ,905 14,:?20 5,921,125 6,892,397 631,742 7,524,139 5,8J6,l2J 655,711 6,511,837 -------- ---- ---- 2 INVESTMENT INCOME GNCB - Fixed Deposit BANK OF GUYANA Debentures Defence Bonds Treasury Bills Other 3 OTHER INCOME Agencies Commission Miscellaneous 4 CLAIMS PAID AND PROVIDED FOR 292,255 38,490 330,745 446,165 3.
787 469,952 273,852 74,500 348,352 294,359 72,235 366,594 1,750 1,750 1,750 1,750 920,476 920,476 494,080 494,080 605,535 370 605,905 317,007 79 317 ,086 2,093,868 113,360 2,207,228 1,553,361 96,101 1,649,462 246,441 246,441 351,605 351,605 27,141 190 27,331 30,528 184 30, 712 273,582 190 273,772 382,133 184 382,317 Fire, Motor, Marine and Miscellaneous 23,008,225 23,008,225 6,273,562 6,273,562 Death Health Le..t.-0 : 50,672 50,672 63,228 63,228 283,824 283,824 Z76,216 276,216 23,008,225 334,496 23,342,721 6,273,562 339,444 6,613,006 Reinsurance Recoveries 19,350,352 2,640 19,352,992 4,255,069 4,255,069 3,657,873 331,856 3,989,729 2,018,493 339,444 2,357,937 11 Guyana Co-operative Insurance Service Notes to the Revenue Account 5 MANAGEMENT EXPt,;·:•rns G$ G$ G$ General Lire TOTAL General Life TOTAL 1980 1980 1980 G$ G$ G$ Administrative Expenot·:; 1,480,841 80,623 J ,561,464 l, 108,930 105,853 1,214,783 Fees Directors Audit Fees Depreciation 10,500 9,225 10,500 25,000 2,000 27,000 20,000 1,500 21,500 60,071 1,260 61,331 63,437 1,452 64,889 9,225 1,576,412 83,883 1,660,295 1,201,592 108,805 1,310,397 6 TAXATION Income Tax Corporation Tax Tax Property 1,144,105 653,774 44,891 698,665 930,800 38,129 968,929 1,144,105 1,628,900 58,820 56,357 56,357 58,820 1,628,900 1,856,699 44,891 1,901,590 2,616,057 38,129 2,654,186 --- --- Notes to the Profit and Loss Appropriation Account 7 k£SERVE FUND In accordance with section 50 (1) of the Co-operative Financial Institutions Act, 1976, an amount of 25% of Net Surplus was
 transferred to Reserve Fund before any declaration of Dividend.
12 Guyana Co-operative Insurance Service Notes to the Balance Sheet 8 FIXED ASSETS Cost at 1st January, 1981 Additions Disposals Accumulated Depreciation at ls t January, 1981 Provision for Year Furniture Motor Printing Land TOTAL Fixtures Vehicles Mach::.nery & Equipment Bui]ding G$ G$ G$ G$ G$ 353,588 59,478 101,634 567,737 1,082,437 35,614 3,047 38,661 389,202 59,478 101,634 570,784 1,121,098 --- 107,091 59,438 30,502 24,656 221,687 35,113 10,163 16,038 61,314 --- 142,204 59,438 40,665 40,694 283,001 Net Book Value at 31st December., 1981 Net Book Value at 31st 1980 December, 246,998 40 60,969 530,090 838,097 246,497 40 71,132 543,081 860,750 9 DEPOSITS Accountant General Other General Life TOTAL General Life TOTAL 1980 G$ 1980 G$ 1980 G$ G$ G$ G$ 7,005 7,005 50,000 7,005 6, 9 l5 50,000 6,915 7,005 56,915 -- --- --- --- 56,915 13 Guyana Co-operative Insurance Service Notes to the Balance Sheet 10 INVESTMENTS G$ G$ G$ GENERAL INSURANCE Face Ledger TOTAL Face Ledger TOTAL Value Value Value Value 1980 1980 G$ G$ G$ Defence Bonds 50,000 50,000 50,000 50,000 50,000 50,000 Caribbean Investment Corporation 24,918 24,918 24,918 24,918 24,918 24,918 Debentures 2,522,500 2,522,500 2,522,500 2,602,500 2,602,500 2,602,500 Seals & Packaging Industries Ltd 100,000 100,000 100,000 Sub-Total LIFE INSURANCE Debentures 2,697 ,411� 2,697,418 2,697,418 2,677,418 2,677,418 2,677,418 800,000 800,000 800,000 800,000 800,000 800,000 3,497,418 3,497,418 3,497,418 3,477,418 3,477,418 3,477,418 11 CASH ON HAND AND AT BANK G$ General
 Life TOTAL General Life TOTAL 1980 G$ 1980 1980 G$ G$ G$ G$ Fixed Deposits 450,000 473,000 923,000 2,250,000 223,000 2,473,000 Cash and Bank Balances 156,498 32,434 188,932 508,433 131,156 639,589 Bank of Guyana Deposit Account 6,632,660 6,632,660 691,678 691,678 7,239,158 505,434 7,744,592 3,450,111 354,156 3,804 ° ,267 14 Guyana Co-operative Insurance Service Accounting Policies accounting The principal the year and in stating its financial policies followed position are as set out below: by the Service in determining profit for INVESTMENT INCOME The income on fixed return securities is recognised income on variable return securities is dealt with on a cash basis; as it is earned, whilst DEPRECIATION Depreciation write down expected useful lives.
The rates used are as of fixed assets is on the straight line method calculated to their residual values over the cost of the assets to their follows: Office Furniture, fittings, etc.

5 and 10% Motor vehicles 257; and Buildings 3%.

ACCOUNTING FOR INFLATION These accounts have been prepared on an historical cost basis.
No attempt has been made Lo adopt a replacement dure which will overcome distorting cost accounting or current cost proce­ effects of inflation; and RESERVE FOR UNEXPIRED RISKS of the reserve for unexpired The computation whereby 60% of the net premium received financial year.
risks is on the 60:40 method and shown in the accounts for the year is treated as earned and 40% as relating to the following 15 Guyana Co-operative Insurance Service REPORT OF THE AUDITOR GENERAL ON THE ACCOUNTS OF THE GUYANA CO-OPERATIVE INSURANCE SERVICE FOR THE YEAR ENDED 31ST DECEMBER, 1981.
I have examined L: accordance with Act, Chapter 75:01 the accounts Section (48) of the Co-operativ e Financial set out on pages (7) to (15) which are with the books of the Service and have obtained all the information Institutions in agreement and explanations which I have required.
these accounts In my opinion, basis of accounting of the Service at 31st December, 1981 and of the results of its operations source and application of its funds for the year ended accepted preceding give on this basis, a true and fair view of the state of affairs applied on a bas·is consistent with accounting principles which have been prepared on the historical cost in accordance that of the with generally year.

and R.P.

FARNUM,A.A.

Audi tor General.


Office of the Auditor General, 121, Parade Street, Kingston, Georgetown, Guyana.

Dated: 1982-10-11.

Printed by Guyana Co-operative Insurance Guyana.

Service, 46/47 Main Street, Georgetown, Guyana Co-operative Insurance Service SOURCES OF REVENUE FOR THE YEAR 1981 O'lliER 2.
INVESTMENT INCCH 22.06% DISTRIBUTION OF REVENUE FOR THE YEAR 1981 IWIAGEMENT EXPENSES 21.71% TAXATION 23.95% CLAIMS 50.42% 17 Guyana Co-operative Insurance Service CAPITAL FUNDS DEVELOPMENT OF THF CAPITAL FUNDS in millions of G$ 7.3 5.8 6 4 2 3.8 2.7 2.0 18 1977 1978 1979 1980 1981 Guyana Co-operative Insurance Service TECHNICAL RESERVES In Millions of G$ 10 8.9 6.7 5.4 4.5 2.4 8 6 4 2 1977 1978 1979 1980 1981 19 N 0 ---- --= • \ C, C: "< CD ::::, = n Q I Q "C ct) al ... -·< ct)-::::J ,.,, C: = ::::J C, ct) "' ct) � -·C, ct) Participants on the Risk Management 4th 1981, by the Risk Management Universal Service.
Reinsurers Intermediaries Course held during the period November 30th to December, Group, London under the auspices of Gibbs Sage Ltd, London, Toronto, brokers and the Guyana Co-operative Insurance The Course Instructor, Mr. Jim Bannister, is seated third from right, Mr. B. Gater, Gibbs Ltd, third from left and Mr. H.E.

Wilkinson, Managing Director, extreme left.

;, Sage