Jul 6, 2010 By Patience Saghana
Custodian and Allied Insurance plc has assured its shareholders that outstanding premium posted in the company’s accounts will not in any way affect its liquity or solvency.Wole Oshin, Managing Director, Custodian and Allied Insurance informed stakeholders that the company will ensure recovery of the premiums.
He declared that the board and management of the company is not unaware of the industry regulation on issues of outstanding premium, stating it has continually made provision for it in a manner that it does not affect its stability and solvency.The company as the end of 2009 financial year had an outstanding premium being businesses from companies, brokers and agents to the tune of N1.49 billion.
Oshin gave the assurance while responding to questions from shareholders at the company’s 15th Annual General Meeting in Lagos.He noted that while credit business cannot be completely avoided in insurance because of the nature of the business, the company is watching its back. ”Let me assure you that if what happened in the bank where the regulator demanded total provisioning by banks happen in insurance, your company will stand without problem”.
He said the company has the backing of world class reinsurers including Munic Re and Africa Re, so its expanding risk profile does not pose any serious threat on the reserve and stability of the company.Chairman of the company, Chief Michael Ade Ojo, in his remark assured the shareholders that the board and management are working very had to position the company for greatness, stating that its target in the market is to become the number one.According to him, what board and management want from the shareholders is their support and encouragement, assuring that a lot of strategies are in place to make the company the best in all standards.
The company, despite the harsh operating climate in 2009, recorded a gross premium income of N5.28 billion as against N4.10 billion in 2008, showing a growth of 29 percent.Its profit before tax grew by 9 percent from N1.85 billion in the previous year to N2.019 billion in 2009 while profit after tax stood at N1.89 billion, a growth of 25 percent from N1.56 billion in 2008.Total asset of the company rose by 19 percent to N14.16 billion from N11.94 billion in 2008 while the shareholders fund moved to N11.14 billion at the end of 2009.