Custodian and Allied shareholders see strong growth, RoI

Shareholders of Custodian and Allied plc are excited about the company’s growth potential and quality returns on investment, following the growing size of the company after its recent consolidation.

They believe that the company’s shares are a must hold given prospect for growth, even as they say the coming years hold stronger value for investors.

Speaking at its annual general meeting held in Lagos, the shareholders lauded the profitability as well as the dividend payout of 16 kobo per share, demanding on management to open up the insurance market through more awareness, education and innovative products.

Sunny Nwosu, national coordinator, Independent Shareholders Association of Nigeria (ISAN), said “the board and management should be commended for the way they handled last year’s operations of the business despite the low penetration being witnessed in the industry and the tough business environment.

Nwosu said the insurance penetration and awareness was less than 1 percent. and the industry made up of 54 insurance companies was struggling for the small business opportunity, stating that was why so

many insurance companies were struggling.

He urged the company to continue to sensitise and educate the general public on the need for insurance, adding that most people were still ignorant of the importance of insurance to their daily living, urging

leadership of the National Insurance Commission to do all it can to minimise the issue of fake insurance policies in the country because of its impact on image.

Boniface Okezie, president, Progressive Shareholders Association of Nigeria (PSAN) said: “We hope for a better operating environment next year so that the company can pay better dividend.” The company has strong growth prospect and the management is reliable, the shareholder noted.

Custodian and Allied, a wholly-owned Nigerian investment holding company, quoted on the Nigerian Stock Exchange and with significant investments in general and life insurance, pension fund

administration, trusteeship and property holding businesses in 2013 financial year recorded a profit before tax of N4.3 billion.

The Group’s total asset base stood at N45.6 billion, while profit after tax stood at N3.6 billion.

The result was achieved on the back of robust insurance subsidiaries whose gross premium written rose to N22.9 billion and gross premium earned was N18.7 billion plus notable fees and investment income contributions from the pension fund administration subsidiary and the holding company.

Custodian remains a leader in the other financial services sector and its subsidiaries lead in their respective sectors. Going by the achievement of the Group this year, Custodian has once again lived up to its promise to always exceed stakeholders’ expectations.

Wole Oshin, director of the company, said: “Our performance demonstrates Custodian’s commitment to its clients and shareholders. We will always endeavour to remain one of the most attractive stock options in the financial sector, through innovative services, expanded product portfolio, improved operational efficiencies and stronger financial capacity.

“The merger exercise we concluded last year is yielding favourable results and we will not rest on this performance. We have expanded services offered from General Insurance to Life Business, Pensions and Trusteeship and remain committed to upholding the best standards and practices in the financial sector in Nigeria.”

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