Custodian and Allied announces N29.8b gross premium
Despite the unfriendly business environment in the country, Custodian and Allied Plc. has announced a gross premium income of N29.8 billion, an increase of 19 per cent over the previous year, while profit before tax increased by 11.8 per cent from N5.1 billion to N5.7 billion and profit after tax rose by four percent to N4.2 billion.
The Chairman of the company, Chief M. Ade Ojo, addressing shareholders at the 21st yearly general meeting of the company held in Lagos, said “despite the tumultuous business environment which the company operated in 2015, it is indeed gratifying to note that the management of your company did not only survive but thrived respectably. Gross revenue increased by 19 per cent to N29.8 billion, while the profit before tax increased by 11.8 per cent from N5.1 billion to N5.7 billion and profit after tax rose by four per cent to N4.2 billion.”
According to him, “there was a sudden drop in interest rates at the end of last year which negatively affected the present value of our life insurance company’s future obligations in respect of its annuity portfolio. The revaluation of the portfolio required further financial provision which otherwise should have boosted our results for the year. However, it is hoped that recovery will ensure when interest rates rebound and the need for the provision reverses.
“Furthermore, the strength of the group is demonstrated in the structure of its assets which stood at N57 billion with cash, cash equivalents and financial assets component making up more than N38 billion, or approximately 66 per cent of the total assets. This level of liquidity assures of our readiness to take advantage of whatever opportunities that may arise while at the same time, provides the safety that our clients and shareholders require in this highly volatile environment.
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