Crusader Insurance Profit Rises by 91.4%
By Uche Obike
Crusader Insurance Nigeria Plc has recorded a N64.5 million profit after tax during the half year ended June 30, 2004, compared with N33.7 million in 2003. This represents an increase by N30.8 million or 91.4 per cent.
The company's unaudited financial results for the same period under review, also showed gross premium of N669.4 million, as against N445.6 million in the comparable period of 2003, representing a growth by N223.8 million or 50.2 per cent.
The company had earlier announced a profit after tax of N88.81 million for the financial year ended December 31, 2003, compared with N39.54 million achieved the previous year.
Its total assets also increased to N3.66 billion from N2.49 billion, representing an increase of 47 per cent, while gross premium income increased by 33 per cent to N812 million from N608 million.
As at December 31, 2003, the shareholders' funds stood at N474.14 million, compared with N3 34.96 million in 2002, while earnings per share (EPS) improved by 28 per cent from 13 kobo to 17 kobo.
The Chairman of the company, Professor Monsur Kenku explained recently to the shareholders that the improved performance was possible through the implementation of innovative strategies, dedication and sound management judgment.
Kenku said that inspite of the emerging market opportunities created by the Insurance Act, unhealthy competition leading to premium rates cutting still prevailed.
"Life assurance business continued to suffer a decline in real terms because of adverse macroeconomic conditions and the growth recorded in nonlife business was due to high inflation and currency devaluation," he said.
He added that the insurance industry was still battling with large premium receivables, lack of growth of business volume in real terms and effects of high inflation that characterized the economic terrain.
However, the company declared a dividend of 7.5 kobo on every 50 kobo share, an increase of 50 per cent over five kobo on every 50 kobo share declared in 2002.
On the company's future outlook, the Chairman expressed optimism that the consolidation of democratic governance in Nigeria will bring some measure of stability into the economy.
He, however, noted that the anticipated gains from the current implementation of the structural and economic reforms will largely depend on the political will of the government.
The Chairman said further that the passage of the pension reform bill will redefine the practice of life insurance business in the country and invigorate interests of the entire financial services sector in the pension management and administration.
He disclosed that some practitioners were already restructuring their operations in anticipation of its passage into law.
He added that "we have repositioned ourselves to maximise the avalanche of opportunities arising from it."
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