Guinea Insurance Records 123% Rise in Gross Premium
Despite the difficult operating environment and challenges during the financial year ended December 31, 2003, Guinea Insurance Plc has announced 123 per cent increase from N149.9 million in 2002 to N334.5 million, while earned premium rose from N91.0 million in 2002 to N251.7 million, an increased of 177 per cent.
The company's profit before tax was N25.2 million from a loss of N2.5 million in year 2002, indicating an increase of 1098 per cent, while profit after tax stood at N22.0 million as against a loss of N3.3 million in 2002 or 762 per cent increase.
The Chairman, Sir Emeka Offor told the shareholders that the good result was aided by the improved loss ratio and prudent underwriting of risk leading to increased underwriting profit in all classes over and above year 2002.
Despite the improved performance, the company was not to recommend any dividend payment for year under.
Offor explained that "the request by the board of directors to the various regulatory authorities for payment of dividend from the current year's profits was turned down due to the accumulated losses carried forward. As could be seen from the current performance of your company and the level of growth, it is really obvious, as I had consistently been saying in the last two years, that the era of losses which had led to no dividend payments are over."
He assured that "with sustained performances in subsequent years, it is obvious that dividend and script issues, would surely be recommended by the board of directors."
On the future of the company, Offor said the company would strive to sustain the trend by ensuring that "we continue to take the advantages of challenging opportunities that exist in the market, expand our frontiers and diversify into other areas of providing financial services to our numerous customers."
"The current investment on information Technology coupled with the high level training and skill improvements schemes to our workforce and high qualitative, efficient and effective service delivery will no doubt impact positively on our operations thereby strengthening the increasing confidence of our numerous clients and other stakeholders. This will surely boost our performance level and guarantee the profitability of our company," Offor said.
He expressed confidence that the universal banking system coupled with the ongoing privatisation will surely act as a boost to the insurance industry in future.
He added that "the pension reform bill 2004, introduced by this Government, has since been passed into law and would offer another opportunities and challenges to the industry. The Insurance industry is expected to take advantages of some of the provisions in the act to boost their operations."
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