BY  ROSEMARY ONUOHA

Custodian and Allied Insurance Plc posted N13.7 billion as Gross Premium Income for the 2010 financial year against N5.3 billion which was recorded in the previous year.

The increase represents a growth of 160 per cent over what was recorded in 2009, according to the annual report that was made available at the company’s 16th annual general meeting in Lagos last week.

According to the Chairman of the company, Chief Ade Ojo, “This robust performance was a consequence of the strategic growth focus of the company since 2008 which has seen it making significant inroads in the oil and gas sector.”

According to the annual report, the performance for the year under review translated to a 17 per cent growth in Profit Before Tax of N2.37 billion from N2.02 billion in year 2009 while total assets grew by 11 per cent to N15.8 billion from N14.1 billion in 2009. Also, shareholders’ fund witnessed a growth of six per cent to N11.8 billion from N11.1 billion.

A total sum of N868, 144,297.70 has been recommended as dividend payment for the shareholders translating to 17 kobo for every 50 kobo ordinary share out of which 6 kobo has been paid as interim dividend during last financial year.

Chief Ade Ojo addressing the shareholders disclosed that in spite of the unpredictable economic situation in the country that has negatively affected virtually all companies in the financial services sector, Custodian and Allied Insurance was able to present a result that underscored the company’s commitment to be market leader.

Although, investment income suffered a decline of 38 per cent, dropping from N1.3 billion in 2009 to N798 million in 2010, this according to Chief Ade Ojo was due to the challenging investment climate that prevailed in 2010.

Chief Ade Ojo explained that the company during the year under review won the 2010 Nigerian Stock Exchange Pearl Awards for Sectorial Leadership Award (Insurance) and Highest Profit Margin Ratio award in the Market Excellence category.

He said further that the company, following the fulfillment of all regulatory requirements, the share buyback programmed approved at the 14th Annual General Meeting was concluded during the year under review stressed that at the expiration of the approval which lapsed on June 16th, 2010, the company had been able to buy back 37,924,787 shares which translated to a reduction in the issued and paid up share capital from N2,569,385,797 to N2,550,423,404.

In response, the shareholders commended the directors and the company’s management for a result they described as excellent performance considering the economic situation that has erupted the bottom-line of most insurance companies in Nigeria today. They also lauded the directors to have deemed it fit to declare dividends.

However, they disagreed over the remuneration of the auditors stressing that a downward review of the external auditors’ remuneration must be considered to further jerk up the company’s bottom line.