By CHINEDU IBEABUCHI

International Health Management Services Ltd, IHMS has reported a N12 million profit after tax for its 2011 financial year.  The company is also rewarding its shareholders with a dividend of five kobo for every 50 kobo ordinary share.

Speaking at the company’s Annual General Meeting, AGM in Lagos, its chairman, Professor Theophilus Ogunbiyi said the company’s gross premium income grew from N974 million in 2010 to N991 million in 2011, a marginal increase of 1.7 per cent.

He said operating expenses increased from N952 million in 2010 to N970 million in 2011 due to increased cost of medical services.

Prof. Ogunbiyi said the company’s profit after tax of N12 million is a positive reflection of sustained efficiency of the company’s core HMO business.

He said the operating results reflected the high medical loss ratios that are typical of the health insurance industry, the impairments suffered from the residual impact of the global economic meltdown and the tough challenges that the company went through between 2007 and 2009. He assured the shareholders of continued growth and profitability of the company in the years ahead.

On the future of the company, he said, “the year under review posed formidable challenges for most health insurance operators, and indeed, the entire financial sector of the Nigerian economy. However, in terms of know-how and delivery capacity, the company has continued to maintain its position as one of the emerging leaders of the evolving Nigerian Health Insurance Industry. We shall continue to explore opportunities to diversify our operations by developing new products and improve our cost management.

“We look forward to a rewarding future as our company has put in place cutting-edge market expansion and product innovation initiatives, to take optimum advantage of the various macro-economic policies designed to broaden health insurance penetration.”

The shareholders during the AGM approved that the share capital of the company be increased from N250 million to N500 million by the creation of additional N250 million ordinary shares of N1 each dividend into two hundred fifty thousand ordinary shares of N1 each, with such new shares ranking pari passu in all respect with the existing shares in the company.

Also, the shareholders approved that 253,643,336 units of ordinary shares of N1 each from the authorised share capital of the company be offered for cash at par to shareholders registered in the books of the company as at 31st December 2011 by way of Rights in the ratio of their respective holdings.