Standard Alliance Posts N106.4m Profit in 2003
By Nnamdi Duru
Standard Alliance Insurance Plc has recorded an impressive performance from its operations last year with a N106.44 million profit after tax, increasing its total assets to N1.28 billion. The company's after tax profit improved by 23.87 percent while its asset base was increased by 66.97 percent.
This information is the content of the company's 2003 Financial Statement unveiled at its 8th Annual General Meeting in Lagos recently. At the meeting, shareholders drew the attention of the board and management to the need to create jobs for Nigerians, warning them against over-substitution of man with machines in its bid to cut costs.
Adressing the meeting, the Chairman of the company, Briggadier Abba Kyari (Rtd.) deplored the reduction in infrastructural development and slow pace of economic activities last year occassioned by the Federal Government's hosting of Commonwealth Heads of Government Meeting as well as failure in meeting up with fiscal policies projections.
Last year, the company was able to rake in N1.03 billion gross premium and N883.79 million net premium income respectively. These were 41.78 percent improvement on gross premium income which stood at N725.77 million in 2002 and 54.19 percent increase over net premium income that was N573.19 million retained the previous year.
Its profit before tax last year was 15.28 higher than what it was the previous year, rising from N96.55 million in 2002 to N111.30 million in 2003. Likewise, the company's profit after tax peaked at N106.44 million last year, a 23.87 percent rise in the amount recorded the previous year, which was N85.93 million.
The company also increased its paid-up share capital by 75 percent from N200 million the previous year to N350 million last year as well as increase its insurance fund by 109.03 percent from N303.15 million in 2002 to N633.66 million in 2003.
The company's total assets was also grown by 66.97 percent from N764.85 million the previous year to N1.28 billion last year while improving upon the dividends paid to its shareholders by 33.33 percent from 7.5 kobo per share the previous year to 10 kobo last year for every 50 kobo ordinary share held in the company.
However, the company's earnings per share declined by 30.91 percent. It fell from 22 kobo per share in 2002 to 15.2 kobo per share in 2003. Its net assets per share also rose by 110.62 percent from 43.3 per share in 2002 to 91.2 kobo in 2003.
Meanwhile, shareholders who were satisfied with the performance of the company last year also warned the management of the company not to sacrifice job creation for the benefit of the nation's youth on the alter of computerisation or job mechanisation.
Standard Alliance Insurance Plc last year increased its capital base from N200 million to N350 million, it also transformed from a private limited liability company to a public company with its successful initial public offer recently listed on the floor of the Nigerian Stock Exchange (NSE).
Shareholders in the company subsequently increased from 24 to 1073 just as the number of workers in its pay roll increased marginally from 160 to 172 while its branch network was increased by 2 to make a total of 9 branches.
Worried by a reduction of a particular group of senior employees from 11 to 1 in the organisation between 2002 and 2003, the shareholders advised the management to be wary of changing men with machines in its operations. The worried shareholders advised, "don't let machine take over the jobs of our children".
Standard Alliance Insurance Plc was incorporated in 1981 as Jubilee Insurance Company Limited, a non-life business insurer. In 1996, the company was acquired and its name changed and a new license was granted it to transact all classes of insurance. It has a subsidiary named Standard Life Assurance Company Limited.
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