Underwriting firm, Presitge Assurance Plc has increased its authorised share capital to N10 billion from initial N3 billion by the creation of additional fourteen billion ordinary shares of 50 kobo each. This is in line with the company’s determination to meet new minimum capital requirement set for underwriting companies in the industry.
The general insurer also got approval of its shareholders to raise capital by way most suitable to the company in line with the recapitalisation requirement of the National Insurance Commission (NAICOM).
The Company’s board of directors got the nod during its 49th Annual General Meeting held in Lagos.
Muftau Oyegunle, acting chairman of the Company said during the meeting that it’s no longer news that the industry regulator has increased the minimum capital requirement of the general insurance business to N10 billion, effective June 30, 2019. Meeting this capitalisation imperative is critical for our business, Oyegunle said.
Oyegunle stated that, “to this end, your board is examining various options to ensure that we meet the new requirements and remain a significant participant in the sector”.
“We shall continue working to ensure that we retain our brand name and identity as one with a penchant for quality.This in keeping with our commitment to firm regulatory compliance, vital to sustainable growth in this business environment”.
Looking at the Company’s performance during the 2018 financial year, Oyegunle noted that despite the challenging business environment, the company was able to underwrite healthy business volumes due to earnest enthusiasm and relentless effort of the management and staff, support from respected clients and shareholders and the valuable guidance and monitoring of the board.
“Your Company’s gross premium rose from N3.809 billion in 2017 to N4.792 billion, an increase of approximately 26 percent.”
The company also closed the year with an investment income of N365.36 million, as against N291.370 million in 2017, while profit for 2018 was N423.79 million as against N531.841 million in the previous year, attributing the increased underwriting expenses as a result of rising claims from business.
The shareholders also got a dividend payout of 3 kobo for every 50 kobo share.
The company also close the year with total assets of N13.02 billion from N11.775 billion in 2017.
Balla Swammy, managing director/CEO of the company in his speech at the meeting said the company was looking for more effective initiatives that will help diversify its portfolio mix that will eventually protect the quality of her business. “We are looking at sharpening strategy with a more focused approach to calculating risks and aligning with premium”.
He said the company’s objective of doing business remains, speedy settlement of claims. We believe that insurers must be seen as being in the business of indemnifying policyholders when misfortune strikes. Insurers have to pay valid claims quickly to the satisfaction of the clients, so that they continue their business without any interruption.
