Leadway Assurance Company Limited has grown a total assets by 63.9 per cent from N166bn in 2016 to N272bn in the 2017 financial year.
The group’s assets increased by 61.4 per cent from N176bn in 2016 to N284bn in 2017 due to additional investments in government debt securities, growth in reinsurance assets
It’s claims expenses rose by 19 per cent to N27bn in the 2017 financial period from N23bn in 2016.
Addressing shareholders at the firm’s annual general meeting in Lagos, the Chairman, Gen. Martin Agwai, stated:
“Claims expense increased by 19 per cent from N23bn in 2016 to N27bn in 2017 with annuity pay out of N14.7bn, accounting for the largest proportion of this amount, followed by over N9bn claims paid in general insurance,” he said.
He said that the increase in claims expense was compensated by benefits from its reinsurance arrangements and recoveries from salvage and subrogation.
Despite the challenging business environment, he said that investment income increased by 60 per cent from N10.8bn in 2016 to N17.3bn in 2017, translating to a profit after tax of 91 per cent from N6.7bn in 2016 to N12.8bn in 2017 for the parent company and an increase of 81.5 per cent from N7.6bn to N13.8bn for the group.
The chairman also revealed that the company’s assets rose by 63.9 per cent from N166bn in 2016 to N272bn in 2017, while the group’s assets increased by 61.4 per cent from N176bn in 2016 to N284bn in 2017 due to additional investments in government debt securities, growth in reinsurance assets
Agwai also said that the board recommended a cash dividend of N1.75bn, which translated to 18.67 kobo per share subject to withholding tax at the prevailing rate.
He also said, “The board recommends a non-cash dividend of N3.637bn, which is dividend to be distributed to the shareholders of the company for capitalisation of a proposed vehicle to accommodate the non-insurance business of the group.”
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