Emolument and salaries for directors of Nigerian insurers have hit N3.66 billion in 2017, a 1.12 percent decline from N3.71 billion recorded the previous year.
That’s despite most firms recording an increase in net income amid after rising claims and underwriting expenses and weak investment income.
Net profit after tax of firms under our coverage increased by 18.36 percent to N45.50 billion from N38.53 billion recorded in 2016.
Companies such as ARM life, Law Union Rock, Prestige Assurance, FBHN insurance and AIICO led the chart as the firms with the highest growth in director’s emoluments for the period.
Meanwhile, Linkage Assurance, ARM life, Mutual Benefits, Prestige Assurance and Standard Assurance outperformed peers in income growth for the period.
BusinessDay analysis revealed that while some insurance companies recorded significant decline in their profit positions, however, compensation realised by directors improved significantly during the period.
Of 13 insurance companies analysed, four companies namely Continental reinsurance, AIICO insurance, Lasaco assurance and Niger Insurance recorded the worst performance as profit for the period declined by 21%, 87%, 30% and 457% respectively.
While Niger insurance led the chart as the worst performer during the period, director’s emolument during the period remained same at N59 million as no form of compensation was extended to directors.
Continental Reinsurance and Lasaco grew slightly emoluments to directors by 3.42 percent and 1.33 percent respectively.
However, AIICO insurance on the other hand despite an 87 percent decline in profit recorded the third highest growth in emoluments at 34.48 percent but lagging prestige assurance plc (71.24%). Emoluments for the period accounted for 15 percent of total profit of N1.28 billion.
Prestige Assurance recorded an impressive growth in profit after tax during the period after it its loss zone of N137 million to make a profit of N53.8 million in 2017. BusinessDay analysis revealed that director’s emolument for 2017 accounted for a whopping 78 percent of its profit declared.
Amongst companies that recorded impressive growth in their earnings however saw their director’s emoluments decline are Custodian & Allied insurance, Axa Mansard insurance and Standard Alliance insurance.
Custodian and Axa Mansard recorded a 37 percent and 2 percent growth in their profits respectively but director’s emolument declined by 2.68 percent and 58.41 percent respectively.
Meanwhile, directors at Standard Alliance saw their emoluments cut by 7.37 percent despite an impressive effort to pull the company from a loss of N1.34 billion in 2016 to a profit of N65.56 million in 2017.
