GNI promises shareholders higher return on investment

…As gross premium hits N3.12 billion
Great Nigeria Insurance Plc has strategically improved its financial performance, as it recorded a gross premium written of N3.12 billion in 2015 against N2.79 billion achieved in 2014, representing 11.8 per cent growth. Profit before tax also rose to N249.5 million in 2015 representing a 510.9 per cent improvement over previous year’s loss position of N60.6 million.

The Chairman, GNI, Bade Aluko, disclosed this at the firm’s 49th Annual General Meeting (AGM) in Lagos, noting that the firm had set the platform for a greater future, and established strong financial, technical and operational paths that will challenge and spur it to be among the top five insurance companies in Nigeria.

According to him, in 2014, the company recorded a gross premium written of N2.79 billion against N3.05 billion in 2013, representing a 8.5 per cent drop, which was then attributed to the newly introduced ‘NO Premium, No Cover’ policy of NAICOM that led most customers to reduce tenor of their covers.

He said the Profit before tax (PBT) which closed at positive N466.7 million in 2013, plummeted significantly to a loss position of N60.6 million in 2014. “However, our total asset grew marginally by 1.94 per cent from N10.32billion in 2013 to N10.45billion in 2014.

“Year 2015 saw a reversal of the non-impressive results of 2014. The year witnessed the beginning of manifestation of various turnaround strategies embarked upon by the board and management of your company. We are therefore happy to announce to you that your company recorded a profit before tax of N249.5 million in 2015 representing a 510.9 per cent improvement over previous year loss position of N60.6 million,” he said.

He maintained that in the face of evident challenging operating terrain in 2015, as at December 2015, GNI Plc total assets stood at N10.7billion, representing a 2.1 per cent growth over the 2014 figure of N10.48 billion, while shareholders’ funds increased by 11.3 per cent from N5.3billion in 2014 to N5.9 billion in 2015. Retained earnings, also improved from negative N876Million in 2014 to negative N473Million in 2015; an improvement of 46 per cent over previous year. This achievement is in congruence with our plan to grow the company organically towards reversing negative accumulated reserve carried over from previous years,” he said.

He said the firm had deployed measures and strategies aimed at increasing income generation, and positioning the brand more competitively while continuing relevant cost reduction measures in all areas of its operations.

The Managing Director of GNI, Cecilia Osipitan, attributed the progress recorded to ingenuity in products development deliberately tailored to meet the needs of customers, and aggressive marketing of these products leading to brand acceptability.

She said in line with NAICOM’s stance on enforcing the implementation of the compulsory insurance, and haven identified the retail segment of the market as the future of insurance in Nigeria, GNI Plc in its proactive nature set up a Retail and Micro Insurance Division in June 2014. She added that the division has set up teams of Financial Advisors in different locations across the country, and has been able to record impressive performance thus far.

“The cost reduction mechanism adopted by the company during the year also impacted operating expenses and profitability. Although, we experienced a slight fall in some areas of operations within the year under review; the performance is not unconnected to the policy uncertainty and economic headwinds experienced in the country during the year.

“Overtime the company improved tremendously on its technology and processes as improved real time and cutting-edge technology plays a vital role in pushing the frontiers of operations.

“A robust software was acquired to enhance timely reporting and rendition of reports to regulatory authorities. The implementation of the IMS & Life modules on the Agilis Software was completed, which astronomically enhanced our delivery and positively impacted the turnaround time.

“To enhance and improve the retail arm of the business the company successfully launched the GNIONGO apps to facilitate optimal service delivery,” she noted.

She maintained that the firm has a diverse and inclusive workforce that reflects the diversity of its clientele. She appreciated the workers for their good work, resilience and passion demonstrated while discharging their duties during the year under review, and consistently ensured exceptional service delivery and remained committed to the actualisation of the organisational goals.

She said the company has the right mix of people in management and other cadre who can harness the opportunities embedded in the untapped areas to grow its market share, and subsequently increase the profitability of the company over time.