The Nation Newspaper

Tag: premium

  • Union Assurance’s gross premium rises by 19%

    Union Assurance Company Limited has grown its gross premium by 19.6 per cent over the figure registered at the end 2010 business year.

    The gross premium for the 2011 business year stood at N3.84 billion, against N3.21 billion realised in 2010, showing a difference of N630 million.

    This is contained in the chairman’s statement to shareholders during the 13th Annual General Meeting (AGM) of the firm in Lagos.

    The Chairman, Mrs. Olufunke Osibodu, told shareholders the company recorded another good year, saying the firm’s total assets grew by 4.35 per cent, from N8.65 billion in the preceding year to N9.03 billion in the review year.

    A further analysis of the accounts showed that the underwriting performance improved by 22.9 per cent, from N1.05 billion in 2010 to N1.29 billion in 2011. Claims incurred during the year, rose by 33.7 per cent, from N414.09 million in 2010 to N553.8 million in the review period.

    Also, Profit Before Tax grew by 16.8 per cent, from N125 million in 2010 to N143.69 million in 2011, while Profit After Tax rose from N38.74 million in 2010, to N105.81 million.

    Mrs Osibodu said within the review year, the company’s insurance funds moved significantly from N2.267 billion in 2010 to N2.855 billion in 2011, while the contingency reserve closed at N592.808 million, up from N498.344 million in 2010.

    Despite the good result posted by the company, no dividend was declared for shareholders. She pleaded with the shareholders to bear with the management to enable them complete the capacity building initiative started in 2009.

    She said: “We plead for your support to reinvest our profit for the year towards the completion of our capacity-building initiative which we started in 2009. More funds need to be committed to our business expansion plan to enable you reap better yields subsequently. The board is, therefore, not recommending any dividends for the year.”

    She lamented the low acceptance of insurance in Nigeria, saying the country has one of the least developed insurance markets in Africa

    She expressed optimism that with the rapidly rising youthful population, the ‘catch process’ for the life insurance market is unstoppable, adding that Nigeria’s low penetration, however, provides opportunity for growth which the company was positioning itself to tap into.

    She assured the shareholders that their investment in the company would rebound.

     

  • Law Union and Rock’s premium rises to N4.2b

    Law Union and Rock Insurance Plc has recorded an increase in premium income from N4.046 billion in 2010 to N4.20 billion in 2011, representing a modest increase of four per cent.

    The chairperson of the company, Princess Adenike Adeniran, who disclosed this at the company’s 43th Annual General Meeting (AGM) in Lagos, said despite the economic challenges that most businesses had to contend with, the company was able to record the modest achievement last year.

    Pricesss Adenike noted that earned premium of the company increased by eight per cent. The figure stood at N3.547 billion, up from N3.285 billion recorded in 2010. Investment income of the company stood at N228.63 million while the company paid N34.378 million as tax within the period.

    Adenike further stated that within the year under review, the total assets of the underwriting firm stood at over N7 billion with a very strong growth potential to place the company among the top players in the Nigerian insurance industry.

    To this end, she hinted that the company will implement all the strategic initiatives that have been mapped out to move the company towards the attainment of set its goals. Some of the strategies according to her are: total reorganisation of the company, re-orientation of the staff and reduction of management overheads as well as removal of all unnecessary financial expenses.

    Others are aggressive drive for collection of outstanding premium, penetration into the oil and gas market, new products developments, drive for retail market and efficient information technology systems. Furthermore she said improved welfare, prudent and profitable investment system, development of agency platforms as well as continued maintenance of robust relationship with insurance brokers and other stakeholders, would be vigorously pursued.

    Adenike assured the stakeholders that with the implementation of these strategies, the company stands to benefit extensively from the market reshaping campaign being carried out by the National Insurance Commission (NAICOM).

    The company has appointed new directors, managing director and chief executive officer. The directors are: Mr Remi Babalola, Olaseni Kusamotu, Victor Faleye, Olaiya Ajana, Oluwatoyin Olusanya and Funmi Ekundayo.

    Mrs. Toyin Ogunseye is the new Managing Director. She has over 20 years experience.