Niger Insurance Plc recorded gross premium of N11.06 billion in 2014.
This, according to the company, represents six per cent growth against N10.44 billion recorded in 2013.
The company’s chairman, Alhaji Bala Zakariya’u, who disclosed this at the 45th annual general meeting of the company held in Sokoto recently, said the group’s profit after tax rose to N690.96 million in 2014 from N627.42 million in 2013.
He said this was achieved in spite of the challenges in the operating environment.
He said the ability of the company’s management to cut costs also helped to increase the company’s profit as management expenses reduced by 29.27 percent from N4.68 billion in 2013 to N3.31 billion in 2014.
The Niger Insurance boss informed that the net premium income of the firm increased by about 1.45 percent to N9.79 billion in 2014 from N9.65 billion in 2013.
According to him, Niger Insurance is increasing equity in the business and also improving on its insurance fund as investment income grew by 46 percent to N1.15 billion in 2014 from N790.54 million in 2013.
He explained that the growth in investment income was due to strict implementation of NAICOM directives on “No Premium No Cover Policy” from January 1, 2014, adding that the policy aimed at stimulating liquidity within the system by reducing the huge receivables being carried on the statement of financial position of insurance companies.
He said going by the company’s performance during the period under review, a dividend payment of 3.5 kobo per 50 kobo share amounting to N270.88 million was approved by the shareholders at the meeting.
He added that Niger Insurance has been intensifying payment of claims to clients as its claims ratio increased to 37.88 per cent in 2014 from 35.72 per cent in 2013.Claims expenses in 2014 was N4.19 billion, representing an increase of 12.33 percent compared to N3.72 billion recorded in 2014.
Going forward, he said the company, is determined to give more attention to the retail segment of the industry which is less volatile and diversify its investments portfolio, review and revamp product offerings.
He further assured that the organisation would hasten formation of new local and international alliances to further consolidate its position in the industry.