Notes to the Financial Statements For the year ended 31 December 2015
Amortization: Balance, beginning of year
173,448
145,664
Amortisation charge
28,295
27,784
Balance, end of year
201,743
173,448
Closing net book amount
239,493
80,048
Analysis of Goodwill allocation to CGUs
Total Carrying Amount
Discount Rate
Terminal Growth rate
Recoverable Amount
Excess of Recoverable Amount Over Carrying Amount
Entity/CGU
Goodwill
Net Assets
AXA Mansard Pensions Limited
200,000
1,748,467
1,948,467
22.09%
5.00%
2,005,612
57,145
AXA Mansard Insurance Plc- Life business
726,531
3,444,459
4,170,990
22.09%
5.00%
8,171,703
4,000,713
12,000
840,383
852,383
22.09%
5.00%
2,214,315
1,361,932
938,531
6,033,309
6,971,840
12,391,629
5,419,789
AXA Mansard Health Limited
(i) AXA Mansard Health Limited On 1 May 2013, AXA Mansard Insurance plc acquired 99.9% of the share capital of AXA Mansard Health Limited for N12 million. The principal activity of AXA Mansard Health Limited is the provision of health care services through health care providers and for that purpose is accredited with the National Health Insurance Scheme. As a result of this acquisition, the Group has access to the local health insurance market thereby growing the Group’s insurance network. The goodwill of N12m arising represents the fair value of the consideration transferred as AXA Mansard Health Limited had a zero carrying value of its net assets at acquisition date. Cash was paid as consideration and there was no contingent consideration. None of the goodwill recognised is expected to be deductible for income tax purposes. Significant estimates The recoverable amount of this CGU would equal its carrying amount if the key assumptions were to change as follows: 2015
Cost of equity Terminal growth rate
From
To
% change
Impact on Recoverable Amount (N'000)
22.09%
20.99%
-5%
166,995
5.0%
4.75%
-5%
(19,632)
(ii) AXA Mansard Pensions Limited On 1 January 2015, AXA Mansard Insurance Plc acquired 60% of the share capital of AXA Mansard Pensions Limited (formerly Penman Pensions) Limited. The Company’s principal activity is the administration and management of Pension Fund Assets in line with the provisions of the Pension Reform Act 2014 and the relevant National Pension Commission circulars. Cash was paid as consideration and there was no contingent consideration. None of the goodwill recognised is expected to be deductible for income tax purposes.
150
2015 AXA Mansard Annual Report & Accounts