By Nnamdi Duru, 06.27.2010
Guaranty Trust Assurance Plc (GTAssur) has recorded a 30 per cent growth in its premium income for the year ended December 31, 2009. The figure rose from N4.14 billion the previous year to N5.38 billion by the end of the last year.
Financial Controller of the company, Mrs. Rashidat Adebisi who disclosed, added that the financial report has since been approved by shareholders at the 2010 Annual General Meeting held in Lagos last week.GTAssur declared a final dividend per share of 9k (an interim dividend of 5k was paid in December 2009), representing the declared dividend per share to shareholders for the financial year ended 2009.
According to her, highlights of the financial report showed that underwriting profit recorded by the risk underwriting group rose from N867 million in the previous year to N1.06 billion last year.She stated that profit before tax recorded by the firm last year was N1.31 billion at the end of the last financial year. Within the period under review, the company also increased its insurance fund by 71 per cent, from N932 million in 2008 to N1.6 billion in 2009.Claims incurred by the company also rose from N585 million to N947 million, a 38 percent improvement on customers' expectations.
Commenting on the report, Adebisi noted: “Despite the harsh economic and operating environment, a combination of good value proposition to our customers, cost optimisation, stricter credit policies and excellent investment management ensured we delivered superior value to our stakeholders”.Presenting a sectoral analysis on the financial performance of the group's underwriting business, the Deputy General Manager (Institutional Business Division), Mr. Kunle Ahmed said: “The institutional business division also grew its business during the year under review, while the corporate business group grew by a modest 30 per cent, the energy and special risk group grew by 68 per cent”.
“The growth recorded in the Division is due amongst others to the support of the brokers and institutional customers, the strong financials of the company and partnership with credible reinsurers in the arrangement of reinsurance facilities. GTAssur is positioned for sustained growth and profitability,” he added.The company prides itself as having the highest risk rating in the country's insurance industry, an Aa- risk rating awarded to it by Agusto & Co last year. This, the management said was achieved by continuous building of its retail business.
GTAssur has established a wide distribution network using the bancassurance model and this contributed significantly to the company's growth.GTAssur is a composite company with NAICOM underwriting all classes of insurance and risk management business while also offering advisory, investment and consultancy services. It was borne out of the desire by its promoters to create an insurance company capable of providing world class risk management solutions to discerning consumers in Nigeria and beyond.