June 04, 2006/guardian
THE thirty sixth yearly general meeting of Crusader Insurance Nigeria Plc comes up on June 16, 2006 at Federal Palace Hotels, Ethiope Hall, Lagos.
A review of the company\'s financial performance in year 2005 showed a significant jump in major parameters. Gross premium income increased from N1,002,664,000 in 2004 to N1, 313,104,000 in 2005. Profit after taxation increased from N180, 596,000 in 2004 to N277, 783,000 in 2005.
The company also recorded significant growth in Total Assets from N4, 671,788,00 in 2004 to N7, 177,688,000 in 2005. The shareholders fund also increased from N667, 295,000 in 2004 to N1, 857,971,000 in 2005.
In view of the financial performance, the directors are proposing for shareholder\'s approval at the AGM, a dividend of 10 kobo per ordinary share of 50 kobo each. Also a special distribution in specie of the company\'s investment in an unquoted telecom company is being recommended for appropriation to shareholders whose names appear on the register of members at the close of business on June 2, 2006 in the proportion of shares held in the company on that date.
Being an unquoted investment, only the book value of N92, 797,000 is reflected in the accounts whereas the current market value is significantly in excess of the aforementioned sum of N92, 797,000. The market value of the investment will be realised for the benefit of shareholders whose names appear on the register of members on the aforementioned date (2/6/2006).
On the issue of recapitalisation, the strategy is for the company to acquire and or merge with suitable insurance companies and also do a public offer / rights issue of shares. The company has already appointed various professionals in respect of the proposed acquisition/merger and offer of shares.
As at date, the company has talked to some insurance companies for purposes of acquisition / merger. Crusader is optimistic of being able to meet the minimum capital base specified by NAICOM for its lines of insurance business.