Anchor Insurance records N788 million income

Anchor insurance company Limited in the financial year ended December 31, 2009 posted grew its total income to N788.5 million as against N495.5 million in 2008, showing a 59 percent growth.

The company’s net premium earned however grew by 50.5 percent from N517 million in 2009 to N778 million in 2009, while its after tax stood at N55.6 million loss position in 2009 following huge provisions on investment loss and premium receivables.

However shareholders got a 15 kobo dividend paid from reserves of the company amounting to N33 million.

The chairman of the company’s board of directors, Michael Ntuk disclosed  this at its  Annual General Meeting (AGM) held at the Le Meridian Ibom hotel, Uyo.

Describing the company as one of the top 10 fastest growing insurance companies in the country, Ntuk said claims paid also grew by 100 percent from N41 million in 2008 to N97 million in 2009.

He said a post tax profit of N156.97 million recorded during the year ended December 2009 turned into a post tax loss of N55.6 million as a result of regulatory requirements which made a provision for an exceptional item to the tune of N212.6 million.

‘Going by the trends in the 2010 performance indicators we are certain that the position will be reversed substantially in our 2010 accounts. We crave your understanding in this regard while assuring you that the investment decisions were made in the best of the company and shareholders,’ he said.

Attributing the ‘’abysmally poor investment return” to the near collapse of the capital market in which the company made significant inroad shortly after the recapitalization exercise, the chairman also blamed it on investing in companies the company did not have any voice  in the control and management .

He said in the last two years, the company had written off over N350 million that would otherwise had added value to the shareholders’ fund and profitability of the company adding that in future  the company would focus on investment to expand the operations of its core business.

According to him, this was being pursued aggressively adding that it had resulted in  the establishment of six new branches and two agency offices in the last two years saying most of the branches had already turned in positive results.

The board chairman disclosed that  apart from expansion of its core business, the company was investing in ancillary and complimentary  firms to its business noting that  it has led to the birth of Statefarm Investments Company  limited , a firm specializing in various forms of leasing and equipment/LPOs financing, short term financing, asset management and financial consultancy.