Niger Insurance Plc said its gross premium rose by 5.95 per cent to N11.06bn in 2014 from N10.44bn in 2013.
A statement by the company on Tuesday quoted its Chairman, Mr. Bala Zakariyau, as stating this during its 45th annual general meeting in Sokoto.
He said that the group’s profit after tax rose to N690.96m in 2014 from N627.42m in 2013 despite the challenges of a harsh operating environment.
“The management’s ability to cut costs also helped to increase the profit as management expenses reduced by 29.27 per cent from N4.68bn in 2013 to N3.31bn in 2014,” he said.
He further stated that the net premium income of the underwriting outfit increased by 1.45 per cent to N9.79bn in 2014 from N9.65bn in 2013.
Niger Insurance, he said, had been increasing equity in the business while improving on its insurance funds.
This has made its investment income to grow by 46 per cent to N1.15bn in 2014 from N790.54m in 2013.
Zakariyau explained that the growth in investment income was due to strict implementation of the National Insurance Commission’s directive of ‘no premium no cover policy.’
The directive is aimed at stimulating liquidity in the system by reducing the huge ‘receivables’ carried on the statement of financial position of insurance companies.
The chairman said it would pay 3.5kobo per 50kobo share, totalling N270.88m for the entire shareholders.
He added that Niger Insurance had 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 rose by 12.33 per cent in 2014 to N4.19bn from N3.72bn recorded in 2013, he said.
He said the company was determined to give more attention to the retail segment of the industry, which has been less volatile.
According to the Niger Insurance boss, the company is planning to diversify its investments portfolio and revamp product offerings.
The chairman stressed that the organisation would hasten the formation of new local and international alliances to further consolidate its position in the industry.