Insurers raise shareholders’ hopes as 2018 renenue increase
Determined to increase the shareholders’ confidence in the nation’s insurance industry, the 2018 underwriting performance of the sector operators, particularly Profit Before Tax (PBT) are taking an upswing.
The Chairman, Niger Insurance Plc, Stephen Dike, told The Guardian over the weekend that the insurance sector, generally in the past years, has been very challenging for some companies.
He said N661.31 million recorded by his company has been reassuring to investors of better times ahead.
According to him, the results, which are largely in line with growth expectations and strategic aspirations for the year, further reinforces a sustainable business model and brand promise to deliver more to all stakeholders.
Specifically, he explained that the effective execution of strategies by her company ensured strong top-line figures of a modest operating profit of N593.81 million in 2018 from a loss of N978.93 million in 2017.
He said the gross premium written in 2018, stood at N4.45 billion and gross premium income N5.22 billion.
Also, as part of restructuring the company’s assets to enhance liquidity, approvals had been made for the sale of some real estate properties, stressing that the sales will be concluded very soon.
He noted that to address the issue of solvency, the firm in January 2019 raised N2 billion, which was deposited in an escrow account with First City Monument Bank.
He acknowledged that the firm is facing a challenge, but expressed optimism that the company would emerge stronger, whilst soliciting supports and collaboration from shareholders.
The Managing Director of the company, Edwin Igbiti, noted that the company is committed to settling all claims issues, stressing that he joined the company because he believes it will not die, but live to meet the expectations of investors.
He also solicited support from the shareholders in moving the company to lofty heights.
The shareholders ratified all the proposals made by the board, amongst which was the authorization to raise N15 billion by way of a rights issue, private placement or to negotiate merger or acquisition, or any form of the business combination.
Some shareholders who spoke to The Guardian in an interview lauded the board and management for keeping the firm afloat.
The President, Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, lauded the chairman for keeping the company going and urged him to do more in making it stand strong amongst in the industry.
He implored the Managing a Director to live up to the confidence reposed on him by shareholders, whilst calling on the firm to settle all aggrieved claimants.
He urged the company to consider merge and acquisition rather than a private placement.
President, the Pragmatic shareholders association of Nigeria, Bisi Kabare, applauded the firm on its profit before tax which was turned to positive.
She posited that shareholders will continue to support the firm and called for the development of new products.
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