DESPITE the challenging macro economic environment in the financial year 2014, Standard Alliance Insurance Plc recorded a gross premium income of N4.33 billion which is an improvement on the N3.78 billion posted in he previous year.
The underwriting profit was N1.4 billion, compared to the N1 billion posted in 2013
The Chairman of the company, Brigadier-General Dominic Oneya (rtd), addressing shareholders at the 19th yearly general meeting of the company in Lagos, said our company recorded a loss of N1.9 billion, compared to N240 million loss of 2013.
The rise in loss recorded, he said, was occasioned by impairment provisions on assets, as well as share of losses at our associate company. Notwithstanding the performance of 2014, we have continued to improve our efforts to take advantage of the positive business atmosphere from the ‘No premium no cover’ principle, as well as from positive post-election realities. I wish to assure you that the directors and management of your company are determined to bring improvements to the bottom line going forward.
On the future outlook, Oneya told the shareholders, “We expect the Nigerian business environment to become noticeably but steadily altered. One crucial driver of the outlook in 2015 will be reform and change agenda of the government which we expect corporate businesses to align with. With crude oil prices averaging around $55/barrel mid-way into 2015, the Nigerian government is expected to find and perfect alternative revenue sources, or has to lay the foundation for such in the medium term.
The future outlook for insurance appears to be positive, especially as the insuring public are becomes fully adjusted to ‘No premium no cover’ principle. The recent happenings in the global economy have brought risks to the top of the agenda of businesses and investors, especially the rout in the crude oil markets as well as weakening of performance in the emerging markets. Domestically, the impacts of a mixed macro-economic environment also paint the picture of a possible surge in insurance activities. These are reshaping the business mind towards risk management strategy and the need for effective and appropriate insurance products for protection against a myriad of risks.”
According to him, “We are very positive about the current financial year 2015. Our company is determined to take advantage of the wind of change and to turn this into profitable opportunity by readdressing our focus and efforts to the market place.