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FY’18: Niger Insurance grows profit to N593.8m

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Insurance, IICC

By Cynthia Alo

Niger Insurance Plc, has said that it recorded an operating profit of  N593.8 million for the year ended December 2018 against the loss of N978.9 million recorded  in 2017 .

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Chairman of the company, Mr. Stephen Dike,  disclosed this during the  49th Annual General Meeting (AGM) of the company held  in Lagos. He said   that this is a slight improvement when compared with the loss made in the previous  year.

He said that the company recorded Gross Premium Written (GPW) of N4.5 billion and Grow Premium Income of N5.2 billion in 2018.

According to him, the performance is below the insurance company’s target of achieving growth in excess of the rate of inflation.

He explained that the board of the company in 2017, as part of restructuring its assets to enhance liquidity, approved the sale of some real estate properties.

“However, the sale of these properties worth N6.4 billion was not concluded within the past two years and as a result the assets were reclassified.

“The properties were valued at the lower of carrying and fair market value less cost of sale.

“Nonetheless, with the renewed support of reputable agents, the management is optimistic that the sale will be concluded within the next financial year,” he said.

On the recapitalization process, the chairman said that the company is exploring several means of raising its capital to N15billion as mandated by the National Insurance Commission (NAICOM)  saying: ”We have engaged Chapel Hill Denham and Mainstream Bank Capital Limited as financial advisers, to assist it in developing a viable strategic blueprint for the successful recapitalisation of the company.

”Also, we are exploring an optimal mix of funding options, including right issues, private placement, merger and or acquisition.”

“We are also exploring capital restructuring through stock merge or reverse share split to create headroom for the recapitalisation,” he added.

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The chairman said that the board is in discussion with potential investors who will not only bring in capital but also technical expertise.

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