June 23, 2009

Custodian nets N1.5bn profit in 2008

By Ifeanyi Ugwuadu
Custodian & Allied In surance Plc have announced a profit after tax of over N1.5 billion in its 2008 financial results. This is contained in its current annual reports released last week at the Annual General meeting.  Of the total net profit, about N840million or 17kobo per share was paid out as dividend to shareholders.

Chairman of the board of directors, Chief Michael Ade-Ojo was delighted at the outcome of the 2008 operations and attributed to quality board, management and staff of the company. “We could not have achieved this laudable performance without the support of a very capable board consisting of some of the finest individuals in their respective fields,” he stated at the AGM.

Gross premium income grew 51% at N4.1billion from N2.7billion in the previous year. Investment income defied the capital market crash and also increased surprisingly by 100% at N1.2billion against the 2007 result of N627million. For several insurers, a significant decline in investment income during the last half of 2008 financial year had resulted in substantial writedowns and subsequent negative profits.

Shareholders funds rose 100% to an excess of N10billion during the year under review while total assets more than doubled at nearly N12billion from the 2007 position of N5.6billion. Overall, the performance of the company was remarkable in all parameters considering a net asset position of over N10billion.

The chairman expressed delight at the year’s result and declared, “the result before you today affirm our strong position in the industry.” Furthermore, he stated that the acceptance of the company’s brand “and operational efficiency remains strong.” He therefore, pledged greater commitment to the company’s “goal of delivering world class , cost effective, value adding services to our diverse and numerous clients.”

During the year claims incurred rose to N847million from the preceding year’s position of N564millionwhile underwriting expenses equally rose to N725.8million from the 2007 record of N514.5million. Motor still remained the highest income earner for the company generating about 30% of the gross premium during the year.  Fire came closest at N786.4million compared to motor’s N1.1billion.

The company’s foray in energy insurance paid of handsomely with N684.5million recorded premium income coming closely to marine portfolio which ranked 3rd in the company’s premium generation basket.