Underwriter posts N5 billion earnings, pays three kobo dividend

Prestige Assurance Plc posted a Gross Written Premium (GWP) of N4.792 billion in 2018, its former Acting Chairman, Sir. Muftau Oyegunle, has said.

Oyegunle disclosed this at the company’s 49th yearly general meeting in Lagos, stressing that the 26 per cent performance increase was against N3.809 billion recorded in 2017.

According to him, the gross premium income was N4.66 billion; pre-tax was N645 million; the total assets moved from N11.8 billion to N13 billion; claims paid was N1.23 billion and a dividend of 3 kobo per share for 2018 financial year, was paid to shareholders.

He noted that the company’s board has taken certain steps to increase gross premium income, as well as retention capacity, adding that the objective is to grow yearly premium and profit margins.

This includes after-tax through expanding and deepening the deployment of digital marketing; retail sales; strengthening the portfolio of products and increasing physical presence across the nation by expanding the network of micro-offices.

Oyegunle also remarked that the management is working to simultaneously curtail costs and improve efficiency and customer experience through the use of information technology.

On recapitalisation, he noted that the board is examining the various options available to ensure the firm meets the new capital requirements and remains a significant participant in the sector.

He said the firm shall continue to work to ensure it retains its brand name and identity as one with a penchant for quality.

He sought the shareholders’ approval to increase the firm’s authorized share capital from N3 billion to N10 billion by creating 14 billion ordinary shares at 50 kobos, which will rank pari-pasu with existing shares of the company, and he was granted the permission by the shareholders.

Having secured the nod of the shareholders, he implored them to pick up their rights issues to enable the firm to meet the new capital requirement.

One of the shareholders, Nona Awo, lauded the company’s outstanding performance and urged the board and management to quickly approach the market to raise the required capital.

He also implored members of the board from India, to ensure they attract capital from their country to support the firm’s recapitalisation bid.

Other shareholders who spoke, pledged to acquire their rights as the firm possesses a bright future.

The shareholders also gave their supports to the nomination of Dr. Adedoyin Salami as the firm’s new chairman.