The management of Niger Insurance plc has assured the esteemed shareholders of better returns on their investment in the years ahead.
The company’s Managing Director, Clinton Uranta, who gave this assurance during a chat with journalists in Lagos recently, stated that having witnessed a challenging year in 2009, things can only get better in the coming years.

Speaking on the results achieved by the firm in 2009, he said categorically “I think we have seen the worst this year, and by the grace of God, our figures will improve by the next accounting year.”

He explained that the regulatory authorities have introduced certain measures geared towards entrenching global best practice and good corporate governance in the nation’s insurance industry, noting that the high level provisioning which the authorities are asking companies to provide for are not making matters any better.

“Issues that hitherto were provided for in over a three years period, is now under compulsion that companies provide for them just in one accounting year,” Uranta said.

Taking Niger Insurance for instance, he said with the gross premium income recorded in 2009, naturally, the company should be able to make good profit through which shareholders could get good dividend and bonuses, adding that this provisioning and issues on revaluations, however, impacted negatively on the bottom line.

He further pointed out that the insurance outfit has always taken good care of its shareholders over the years and that it has also resolved to ensure that the shareholders always get good returns on their investment.

Due to the prevailing situation, he stated that when it is difficult to declare dividend, the shareholders should be able to at least fall back on their bonus which is as good as cash.

He stressed that “when bonus is awarded to you, you can trade on it, sell it off for cash and still retain your holding. You know, going by what companies are experiencing now, dividend is not the best to do at this time as falling back at bonus can help capital appreciation.”

The Niger Insurance boss also clarified that the insurance firm is always in good position to meet its obligation to policyholders in the area of claims payment notwithstanding the challenges in the operating environment.

He said “we have reinsurance and other securities spread all over the world, in America , London and they cover existing risks in line with terms of the agreement concerning treaties. In this case, they are compelled to assist when ever there is any claim beyond our retention capacity. That is a compulsion of the law as far as agreement on treaties is concerned.”