One of the fastest growing Nigeria insurer, Custodian and Allied plc has recorded the most impressive bottom-line growth among its listed peers, as half-year (H1) profit surged 100 percent, BusinessDay analyses show.
For the year’s first six months to June 2014, the Nigerian insurer’s profit after tax (PAT) surged by 100.8 percent to N2.27 billion from N1.13 billion the same period of the corresponding year (HY) 2013.
Underwriting capacity was efficient as it recorded a 20.34 percent increase in net premium income to N4.91 billion, compared with N4.08 billion as of HY 2013, while gross premium income rose 30 percent to N9.83 billion.
The company has been spurring growth with merger synergies as evidenced in its superb performance since last year.
Furthermore, the fantastic results are attributable to the superb contributions of Custodian and Allied and its four holding subsidiaries – Custodian and Allied Insurance, Custodian Life Assurance, Crusader Sterling Pensions, and Custodian Trustees.
Reinsurance, net claims and management expenses were up by 25.67 percent to N9.37 billion, as against N7.45 billion last year. Total assets increased by 5.60 percent to N48.21 billion in HY 2013
The future of the industry presents innumerable opportunities for Custodian and Allied as its contribution to the Nigeria industry is expected to spike.
The insurance industry value is expected to grow to N877.0 billion and contribute 7.3 percent to GDP by 2018.
The company gave a higher return to shareholders as return on average equity (ROAE) was 23.10 higher than the 18.47 percent recorded in December 2013, while the return on assets stood at 10.10 percent in the review period, which is also higher than the 7.8 percent recorded in 2013.
The company’s share price closed at N3.96 on the floor of the Nigeria stock exchange, while market capitalisation was N32.39 billion on the same day.
BALA AUGIE
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