The acting Chairman Mr Bayo Adejumo said the company recorded a N294.9m profit after tax in the 2014 financial period.
He spoke at the company’s Annual General Meeting which was presided over by the company’s Independent Director, Baba-Gana Kingibe.
Adejumo said the profit was a dip from the 2013 profit which stood at N403.1m. He attributed the reduced earning to ‘unrealised loss in value of equities of N113.2m as against the gain of N229.1m in 2013.
He said although the company experienced a tough financial year in 2014, the group’s profit after tax rose from N51.3m in 2013 to N103.1m in 2014. In the chairman’s address which was published in the company’s 2014 financial report, Adejumo said the dividends were not recommended to shareholders in 2014 because the company’s retained earnings was still in deficit.
He however, expressed the hope that the company would be in a position to reward its shareholders very soon. He said “The Company’s performance modestly improved during the year (2014). The gross premium increased by 12 percent form N3.146bn to N3.535bn. The underwriting profit decreased from N1.033bn to N946.961m. This decrease is as a result of huge jump in reinsurance expenses in the year compared with the previous year”.
While addressing some of the concerns raised by the shareholders relating to the management’s payment of fines to the National Insurance Commission (NAICOM), Mr Biyi Otegbeye said the company would continue to improve on its relationship with the NAICOM.
He said “We have a compliance officer that is highly placed. The NAICOM management is receptive to the industry and as the relationship gets better, all these contraventions and fines would be reduced”.
Otegbeye attributed the non-payment of dividends to the shareholders to the company’s implementation of the International Financial Reporting Standard (IFRS). He said “We have been able to make significant progress, the fundamentals of the company remain strong and robust and what we experienced during the AGM is an expression of confidence by the shareholders in what the management and directors are doing.
“The non-payment of dividends this year is the result of the reversal we made in the company’s retained income as a result of the implementation of the IFRS. But you can see that the negative retained earnings have been substantially reduced, so hopefully by the end of this year, the company should turn around and declare dividends”.