Post Views: 1,041 Directors of Niger Insurance Plc, on Wednesday presented its audited financials for the year ended December 31, 2017, almost 90 days...
Directors of Niger Insurance Plc, on Wednesday presented its audited financials for the year ended December 31, 2017, almost 90 days after they ought to have filed it with the Nigerian Stock Exchange (NSE).
The highlight of the report was the zero dividend per share, following the company’s slip into full-year loss before and after tax, despite and underwriting profit and marginal growth in investment income, among others, after the N2.572bn change for “management expenses” for the year. The figure was however down by N2.827bn in the corresponding period of 2016.
According to the breakdown of the result, gross premium written climbed 44% up from N8.585bn to N5.962bn; unearned premium increased by N385.096m or 43.53% from N884.636m to N1.269bn, leaving gross premium income at N7.316bn, up from N5.077bn.
Reinsurance expenses jumped to N2.145bn from N422.367m, representing a growth of N1.723bn or 408%; resulting in net premium income of N5.17bn, up by 11.06% from N4.655bn. Fee and commission income rose by N46.578m or 218.11% to N67.933m from N21.355m; resulting in net underwriting income of N5.238bn, compared to N4.676bn in the prior year.
Claims expenses rose by N822m or 30.29% from N2.713bn to N3.535bn; changes in insurance contract liability resulted in a negative of N113.364m from a positive N78.478m; just as claims expenses recovered from reinsurance remained negative at N195.397m, compared to N99.071m. These brought net claim expenses to N3.226bn from N2.693bn.
Underwriting expenses dropped to N909.977m from N1.094bn, following which total underwriting expenses stood at N4.136bn, as against the previous N3.787bn.
Underwriting profit therefore rose to N1.101bn from N888.891m.
Investment income for the period rose marginally to N577.745m from N521.897m, profit on investment contract rose to N5.584m from N968,000; net fair value gains on investment property dropped to N37.5m from N1.625bn; other operating income improved to N79.843m from N64.541m.
According to the explanatory notes to the account, the bulk of the management expenses was the N1.106bn employees’ benefit expenses, which dropped marginally from N1.201bn; followed by N1.119bn in marketing and administration expenses, up from N1.172bn; while finance charges gulped N133.015m, as against N169.386m; and legal and professional fees, N118.654m, from N107.124m in 2016.
Further explanation of the employees’ benefit expenses showed that wages and salaries accounted for the lion’s share of N585.422m, a drop from N801.485m; ahead of the N409.986m for staff welfare and medical expenses, which soared by N212.92m, or 107.9% from N197.194m in 2016.
Depreciation and amortization dropped to N149.902m from N175.038m; resulting in net operating loss before tax of N920.126m, as against the prior year’s N99.045m profit. Information technology levy and income tax expense resulted in retained loss after tax transferred to reserve of N978.927m, compared to a N42.134m profit in the corresponding period of 2016.
This resulted in loss per share for the year of 12.65 kobo, as against the previous 0.54 kobo profit, even as Net assets per share fell to 1.01 kobo, from 1.12 each.
Also within the year, the company paid total claims of N3.535bn (including Surrender), up from N2.713bn; just as claims paid recovered from reinsurers rose to N324.74m from N114.61m.
Meanwhile, the directors have approved the disposal of landed properties (reclassified as non-current assets held for sale) located in South-West, Ikoyi and Ikeja, both in Lagos, and a mall located in Abuja, collectively valued at N6.387bn during the current financial year, following which estate agents have been commissioned.
The directors have also noted the pendency of a number of law suits arising from different areas of the company’s operation, “with claims estimated at about N381.731m, while assuring, based on legal opinion, that no liability will arise from these cases.”