Equity Assurance posts N310 million profit

Underwriting firm, Equity Assurance has declared a profit of over N310 million in its financial year ended 31st December 2014. This marks a significant growth from a financial loss position of N365 million in the previous year. This declaration was made at the Company’s 28thAnnual General Meeting which held at Equity Resort Hotel, Ijebu-Ode recently.

The financial statements reveal that the Group recorded a total premium income of N4.846 billion against N4.616billion recorded in the previous year. Despite challenging economic situations and the continuous enforcement of ‘No Premium, No Cover’ regulation, Equity Assurance was able to record a 5 percent growth above the previous year. The financial statements also reveal an improvement in the Company’s solvency.

The firm’s balance sheet position showed that shareholder’s funds increased by 4 percent to almost N4billion.

A major highlight of its Annual General Meeting which ultimately will provide strategic investors the opportunity to make equity investments  was the passing of the resolution to increase the Company’s authorized share capital from N7billion to N10 billion.

According to the Chairman, Adetutu Buraimo, the increase in authorized share capital is strategic as it further positions the Company for competitiveness in the African Insurance Industry.
The Board at the AGM reiterated its commitment to deliver return on investments to shareholders. This, the Company hopes to achieve by driving market penetration and expanding its frontiers in Retail.

“New products will be developed to serve the needs of the insuring public while more electronic distribution channels are being opened up to make its products more accessible to prospective policyholders.”

The Chairman of the Board added that the Company will further reinforce controls over capital and recurrent expenditure. He expressed optimism that the expansion of investment channels for the industry affords Equity Assurance more opportunities to deliver ROI to all stakeholders. In the year ahead, the company will continually seek growth opportunities for its businesses whilst making strategic investments in technology, business development and expansion as well as customer service delivery systems.

Group Managing Director, Ibidolapo Balogun commented that the company is at an advantage considering opportunities for cross-selling amongst all its subsidiaries. He added that the current financial year and the next few years will be a time of renaissance and consolidation for Equity Assurance Group.

He further stated that the Group despite all political, economic and socio-cultural factors will continue to build on the good corporate governance structures established over the years while seeking more opportunities for improving on its overall corporate performance.

The report presented to the shareholders also revealed that total claims paid within that period was N854 million.  In a statement ascribed to the Managing Director of Equity Assurance Ekpe Ukpabio, he mentioned that the Management is pursuing continuous improvement for its internal processes and deploying sound risk management principles to its advantage.

Equity Assurance Plc has continued to adhere and prepare its financial statements in line with the statutory International Financial Reporting Standards (IFRS) accounting system, Ukpabio stated.