SA Insurance has announced a gross premium of N3.3 billion for the year ended 31 December, 2009, indicating an increase of N300 million or 10 percent over the N3 billion posted in 2008.

According to the audited results just released to the Nigerian Stock Exchange (NSE), whereas the company achieved N1.5 billion underwriting profit in 2008, it shot the stakes to N1.8 billion in 2009.  Similarly, the net premium written in 2009 rose to N2.9 billion up from N2.6 billion recorded in 2008.

The insurance firm also posted a profit before tax and exceptional item of N1 billion, which is, however, N500m or 33.3 percent lower than the profit before tax posted for the same period in 2008.

The result further indicated the company made full provision for an exceptional item relating to diminution of the investment assets, resulting in a loss after tax of N5.8 billion for the year.

Commenting on the results, the Managing Director, Mr. Tom Imokhai, said the “company, like others in the financial sector, just went through a very hostile year with a debilitating investment climate,” noting that “the results showed resilience and ability to ride the economic storm of the prior year.”

Imokhai explained that the board has opted to be pragmatic and decisive and to make full provision for inherent investment losses, stating that the company is quite hopeful of substantial recovery of some of the provisions as the economy begins to show visible signs of recovery in 2010.
He noted further that the company’s 1st, 2nd and 3rd quarter results already released to the Nigerian Stock Exchange show it was on the road to recovery.

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