Mr Shuaib Idris, Chairman of the Board of Directors, disclosed this at the inaugural Annual General Meeting (AGM) of the company, which became a holding company in November 2022.
Idris said that the amount translates to a dividend of five kobo per ordinary share of 50k, payable and subject to the appropriate withholding tax.
“Upon your approval of the proposed dividend, the bank accounts of qualifying shareholders who have updated their records with the Registrars shall be credited beginning from the end of this meeting.
“Our commitment to adequate returns on investments to our shareholders through consistent dividend payment remains firm, and we shall stay focused on that pathway,” he said.
On the company’s financial performance for the past year, the chairman stated that the firm’s insurance revenue rose by 32 per cent to N15.7 billion in 2023, from N11.9 billion recorded in 2022.
Idris said that the company’s total assets increased significantly to N26.2 billion, compared to N18.2 billion in 2022, indicating a 44 per cent increase.
He stated that the holding’s pre-tax profit also grew to N4.6 billion in 2023 from N983 million in 2022.
According to him, the total profit attributable to the company’s shareholders for the year under review stood at N3.8 billion, up from N547 million recorded in the previous year.
The chairman said that despite the odds in the year under review, the company was able to record significant improvements in key financial indicators during the 2023 financial year.
Idris noted that, like other years, factors impacting the company’s performance transcended the local scene, with some stemming from the international space.
“Major factors which greatly impacted the operations of companies in the Nigerian business environment during the year under review include instability in power supply and unprecedented devaluation of the Naira.
Other were sharp increases in prices of petroleum products, money and equities market and high inflation with its impact on the purchasing power of the populace,” he said.
Idris further stated that the Nigerian insurance industry, which is the primary industry of the holding’s major subsidiary, saw remarkable growth during the financial year, hitting the one trillion Naira mark in premium income for the first time in 2023.
He attributed some of the success to the increase in the premium rate for Third Party Motor Insurance from N5,000 to N15,000 by the National Insurance Commission (NAICOM), effective Jan. 1, 2023.
However, the chairman noted that inflationary trends and foreign exchange crises negatively impacted the disposable income of insurance buyers.
On the holding’s future outlook, Idris said that the company, though a non-operating holding company, would strive to effectively carry out its primary functions of maintaining control over its subsidiaries.
Idris disclosed that the company would also establish additional investments in diverse sectors where opportunities arise, protect the group’s assets, and provide strategic direction.
In his address, Mr Eddie Efekoha, the Group’s Chief Executive Officer (GCEO), said the group’s claims settlement in 2023 was N5.10 billion, compared to N4.47 billion in 2022.
Efekoha stated that the group remained committed to prompt claims settlement across health insurance, micro life assurance, and general business and special risk insurance.
“One of our major strategies remains the prompt payment of fully documented claims; hence, the amount expended on claims has risen significantly over the years as we fully meet our obligations.
“This has continued to endear us to our clients in retail, corporate, and brokerage. We have further simplified processes using technology to fast-track the claims,” he added. (NAN)(www.nannews.ng)
