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Prestige Assurance targets N9billion gross premium income in 2021

Prestige Assurance targets N9billion gross premium income in 2021

Underwriting firm, Prestige Assurance Plc has projected a premium income of N9 billion in the year 2021 in line with its growth plans

Balla Swamy, managing director/CEO of the Company disclosed this during the facts behind the figure at the floor of the Nigerian Stock Exchange (NSE).

Swamy said that its gross premium income is projected to grow from N3.4 billion in 2017; N5.2billion in 2018; N6.6 billion in 2019; N7.5billion in 2020 and N9billion at the end of 2021.

He stressed that despite the harsh economic conditions faced with acute shortage of forex, the  Company still strive to record significant profit when compared with 2016 to 2015 and which is on the increase in 2017.

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According to him, the net premium of the company is projected to grow from 45 percent in 2017 to 60 percent by the end of 2021; while profit before tax will grow from N877million in 2017 to N3.078 billion by the end of 2021.

Profit after tax was also forecasts to grow from N567million in 2017 to N2.093billion by the end of 2021.

On risk retention he said the company’s risk retention stands at 42 percent as at third quarter ended September 2017 (Q3)when compared to 43 percent it reported in same period of 2016.

He maintained that company is technically viable to spread its assumption  risks with reinsurer which guarantee its continuous existence .

He also used the medium to call on federal government to facilitate ease of doing business, at least by amending the companies income Tax Act (CITATION) in relation to computation of insurance taxation, easy entry of foreign investment and provision of suitable environment that guarantees return on investment (ROI)..

At the current ratio, he explained that it’s company as at third quarter 2017 current ratio stands at 1.8 as against 1.9 reported in 2016, affirmed that the Prestige can confidently pay its liabilities without having recourse to borrow or disposal of assets. This he said is evidence in timely payment of claims.

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According to him asset turnover improved slightly in 2016 by 26 percent as against 22percent reported in 2017; this was possible as a result of the significant increases in premium income achieved while, management expenses ratio remains constant over the two years and on reduction now due to pragmatic and effective cost control measure took by the management.