By Rosemary Onuoha

Great Nigeria Insurance Plc (GNI) said it is set to embrace and explore the compulsory insurance initiative of the National Insurance Commission (NAICOM) because it regards the initiative as a key factor for growth.

The Chairman of the company, Mr. Segun Oloketuyi, who stated this at the company’s 46th annual general meeting in Lagos last week, noted that the company recognises the Local Content Act as a panacea for growth, adding “We will improve our involvement in the Oil and Gas Sector by ensuring compliance on all the requirements. We will also deepen our technical arms to ensure that our competency enhances our profitability.”

While briefing shareholders on the activities of the company for years 2005, 2006, 2007, 2008 and 2009, the Chairman said that investment income increased by 37 per cent which is N140,048 million in 2007 over year 2006 figure of N101,805 million and N106, 020 million in the year 2005, respectively.

Furthermore, the increase in profit before tax was tremendous in the sence that while a deficit figure of N519, 651 million was recorded in 2006, an impressive figure of N165,305 million was recorded  2007. However, year 2005 posted a lost before tax of N183, 589 million.

The chairman went on to state that compared with the high level increase in production figure, the management expenses in year 2007 reduced by 13 per cent over that of year 2006. And that of year 2005 was at N157,460 million respectively.

Also the claims incurred during the period under reviews, was N6,691 million (year: 2007) N92,229 million (year:2006) and N102, 842 million (year:2005) respectively.

Earnings per share (EPS) increased from negative 10 kobo to six kobo in the year 2007 that is 60 per cent increase. While that of year 2005 was at negative 20 kobo.

The Chairman stated that with the National Insurance Commissions directive for the recapitalization of the insurance industry, the company initiated a special placement of 2,327,485380 Ordinary Shares of 50 kobo each at N1.71kobo per share in 2006.

The 2006 special placement of 2,327,485,380 ordinary shares of 50 kobo each N1.71k per share was not concluded in the period under review, but the present management has gotten the approval of the Securities & Exchange Commission and the Nigeria Stock Exchange to list the shares in 2010/2011.