By Patience Saghana
â€¦As Staco posts N4.4bn income in 2008
Efforts of the National Insurance Commission (NAICOM) at promoting quality and efficient insurance industry though competent supervision of the sector has been extolled by the Chairman of Staco Insurance Plc, Mr Dere Otubu just as the Staco Insurance posted a gross premium income of N4.4billion in 2008.
Otubu who said that the insurance industry is appreciative of the sanity and peace that now abound in the sector as a result of the commissionâ€™s effective supervision of the industry, commended the regulatory body for its vision.
Otubu said, â€œThe National Insurance Commission (NAICOM) has embarked on some positive steps in order to promote quality and efficiency of the industry, for the benefit of insurance consumers and the national economyâ€
He continued, â€œEarly in the year, NAICOM introduced the Code of Good Corporate Governance for the Insurance Industry in Nigeria . It is expected that the application of this code will certainly produce a first class insurance industry that would be as good as any of the best in the insurance worldâ€.
â€œThe insurance industry in year 2008 witnessed tremendous improvement following the recapitalization of the industry. It is noteworthy to mention that the consolidation exercise has started yielding dividends with an inspiring aggregate written premium income of N164.5 billion in the industry in 2008 as against gross premium of N100.6 billion in 2007â€.
He noted, â€œWe also look forward to having tremendous improvements in the practice of insurance in Nigeria bearing upon the review of Insurance Act being currently undertaken by NAICOM. The completion of the review is expected to strengthen the existing insurance laws in Nigeria in order to reposition the industry to attain the expected growth so as to contribute more significantly to the nationâ€™s GDPâ€.
Meanwhile, Staco Insurance at the financial year ended December 2008 posted a gross premium of N4.4billion as against N2.81 billion recorded in 2007 representing an increase of 55.87 percent increase. The Underwriting Profit grew by 35.48 percent from the N1.55 billion in 2007 to N2.10 billion. The Profit before tax of the company for 2008 stood at N623.5 million as against N868.2 million announced in 2007, a drop of 28.19 percent.
The drop in the profit of the company, Staco chairman attributed, â€œto the diminution in the value of our capital market investments and the provision for the outstanding premium in compliance with the National Insurance Commission guidelinesâ€.
However, the company in appreciation of the shareholders support in the last 12months recommended dividend payment of N96.6million, amounting to 2 kobo per ordinary share of fifty kobo each whilst the directors of the company also recommended a bonus share of one for every ten ordinary shares held N482.94million to the holders of the ordinary shares of the company on the register of members at the close of business on 24th July, 2009 in proportion in which they hold such shares respectively on that day.