One of the underwriting firms, Regency Alliance Insurance has announced a Gross Premium Written (GPW) of N3.368 billion during the period ended September 31, 2017.The figure is higher than N3.10 billion recorded in the same period in 2016, indicating 8.61 percent increase, while N5.58 billion, a 30 percent increase from N4.30 billion in 2015.
The effect of the increased premium generation according to the company was however significantly eroded by the 117.46 percent increase in net claims, 18.08 percent increase in underwriting expenses and a 14.63 percent increase in management expenses when compared with 2016 figures.Chairman of the company, Baba Gana Kingibe, said these while giving his reports at the Company’s 24th Annual General Meeting held in Lagos recently.
“One salient result of the economic situation has been an increase in both the number of claims and value therein throughout the insurance industry. In 2017, there was huge claims pay-out in oil, gas, accident and motor classes.”“Your company is positioned to make the best of the brighter future ahead. We will always be guided by our corporate ideals and values of professionalism, integrity, commitment and efficiency as we create wealth for all our stakeholders while mitigating all associated risks that may arise, Kingibe stated
The company also recorded a 76.15 percent increase in investment income, which according to the chairman were reflective of the high deposit rates and governments yield rates offered during the year, coupled with the of the effect of the increase in prices of equities held by the company.The company’s profit after tax however dropped 58.25 percent to close at N196.48 million from N470.59 million in 2016. But from the company’s accumulation, the shareholders got a dividend payout of N200.06 million, translating to N3 kobo per 50 kobo share.
The company’s total assets in the 2017 financial year closed at N9.31 billion in 2017 as against N7.25 billion in 2016.
This he said efforts were being made to increase market penetration through the deployment of e-commerce platforms.He said the Board and Management are optimistic that the dampened socio-economic climate is temporary and Nigeria remains a land of immense opportunities and prospects.
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