By RITA OBODOECHINA

Standard Alliance life Assurance Limited, SA Life, says it plans to increase its capital base in order to be able to meet future obligations and drive growth.

The Chairman of the company, Mr. Olorogun O’tega Emerhor, stated this during the company’s 12th annual general meeting held in Lagos.

He said, “It will be a proactive measure to put plans in place to increase our authorized and paid up capital in the ensuing year in order to be able to meet future obligations and drive growth”

The Chairman said that with their strength, strategies and with the planned injection of additional capital, the company will be well positioned to carve unparallel nitch for its market place, adding that the resultant effect of this is a robust profitability and dividend consideration to stakeholders.

He noted that the company’s focus on aggressive marketing continues to pay off as reflected in the appreciable increase in gross premium written in the year.

Its gross premium income grew from N1.6billion in 2010 to N2.157 billion; this represents a growth of 30 per cent over the prior year 2010.

According to him, the company paid a total claim of N3.818 billion (group life N913.75 million, individual life N6.258 million and deposit administration N2.898 million.

He said,” our continued strategy to have balanced mix product sale equally affected our investment linked products sales, there was decline in growth from N4.155 billion in 2010 to N2.647 billion in 2011”

This represents 57 per cent reduction in 2011 over 2010 performance, there was also decline in interest and other investment income by N263.5 million which is 28 per cent and the continue provision for diminution in value of our investments.

However he said, notwithstanding the external operating constraints, the company reported operating profit for the year 2011 of N493.03 billion losses in 2010, arising from the prudent management expenses and underwriting expenses during the year.

He disclosed that the business and regulating environment will remain challenging in 2012 with the adoption of IFRS, ERM and Solvency  ll, adding that all this will increase cost operation.

However he said, “They are all welcome development that will ensure companies in Nigeria adopt international best practices thereby opening window for both local and foreign investors.

He assured shareholders that the management is unbeatable about impressive results by the company, in the coming years, as the company has fully provisioned for its impaired investments and as it continues with its prudent management and aggressive service marketing strategies.