Standard Alliance Insurance Plc, has posted a profit before tax of N268 million from a gross premium of N1.296 billion written during its operations in the second quarter ending June 30, 2016.
According to the unaudited results recently released to the Nigerian Stock Exchange, this is comparable with the N606 million realised from a gross premium of N1.228 billion written during the corresponding period of 2015, representing a 55 per cent decline.
The company’s Chief Executive Officer, Bode Akinboye, attributed the decline to the impact of the new foreign exchange regime, adding that the new regime accounted for the significant change of the profit before tax, not only from the first quarter performance but also in comparison with the same period of last year.
He noted that the unrealised foreign exchange loss of N443 million arose from the need to revalue the company’s dollar obligation in line with the material devaluation of the naira against the US dollar, adding that without this, the company would have been looking at a profit before tax of well over N700million.
Also, the unaudited results showed that the Group’s gross revenues amounted to N2.671 billion as at June 30,2016, indicating a rise by six per cent over the N2.52 billion recorded in the corresponding period of 2015.
However, total assets stood at N12.317 billion, indicating an increase of five per cent over the N11.787 billion position as at December 2015, while shareholders’ fund rose by three per cent to N4.93 billion as at June 30, 2016 solely on the back of internal capital generation.
According to him, “these results showed some remarkable recovery from the prior periods’ accounts where the company posted a positive underwriting profit, but reported a loss as a result of exceptional charges for diminution of investments.”
He attributed the performance to the fundamentals of the company, which he said remained strong in its area of core business, noting that because of the positive feat being achieved under the new management and board, the company has continued to win more clients.
The Chief Executive Officer explained further “the company, like others in the financial services sector, has been operating under a debilitating investment climate. The results showed our resilience and ability to ride the prevailing economic storm in the country.”
Disclosing that the company was currently undergoing expansion in its retail, e-business and digital transformation activities, Akinboye assured that “the company was quite hopeful of posting a much enviable result during the remaining period of the year as the economy begins to show visible signs of positive recovery.”