The Company said in the current years, a combination of stiffer competition, the entry of big players from abroad acquiring local companies, ongoing recapitalization in the industry, the sudden deterioration of the economic outlook and an unstable environment of interest rates will define the operating environment for the business.
Adedoyin Salami, chairman of Prestige Assurance Plc who reviewed the operating environment during the Company’s 50th Annual General Meeting said all of these heighten the importance of implementing initiatives to improve our positioning in the market place.
He said the Company has issued a bonus of two (2) new shares for every eleven (11) shares during the 2019 business year, stating that this will help with the process of recapitalizing Prestige.
According to him, with the amendment in the recapitalisation timetable by the National Insurance Commission(NAICOM) “we must attain N5 billion by the end of this year and complete the recapitalization by the 2021 deadline. Your Board and Management will continue to work towards ensuring we complete the process well before the deadlines”.
Salami however appealed to shareholders to participate fully in her forthcoming Rights Issue which will open shortly, as this will ensure that we complete recapitalization of Prestige Assurance ahead of schedule.
Disclosing the financials to the shareholders, Salami said the Company as at the end of 31st December 2019 grew its gross premium written to N6.129 billion from N4.792 billion in 2018, indicating a 27.88 percent increase.
From the revenue, the company recorded a 1.9 percent increase in profit for the year, moving from N423.795 million in 2018 to N431.83 million in 2019.
Salami said the modest improvement in profitability compared to the previous year was the result of the combined effects of increased claims expenses and reduction in investment income, as interest rates dropped during 2019.
Total Assets grew also by a marginal 1.2 percent from N13.021 billion in 2018 to N13.18 billion in 2019.
Looking into the future, he said the Company’s objective is to continue to demonstrate her efficiency and credibility to clients by extending services of the utmost quality to them, advising on prudent underwriting in relation to the insurance requirements of the client and making prompt settlement of genuine and verifiable claims.
But also asserting ourselves into the critical role off being comprehensive risk managers and advisors as underwriters should aspire to be.” Whatever the conditions of the evolving business environment, our objective remains unchanged, and our commitment to it, unwavering, Salami stated.
