Crystalife Assurance Plc Headoffice

By Nnamdi Duru

Specialist life insurer, Crystalife Assurance Plc has returned to profitability from its loss position of the previous year.  The company declared N202.29 million profit from its operations in the last financial year ended December 31, 2011, transforming the N97.47 million loss it suffered in 2010.

This information formed part of the contents of the company’s 2011 Annual Report unveiled at the 14th Annual General Meeting of the company in Lagos recently.

Direct premium raked in by the company last year peaked at N2.44 billion, a 26.42 per cent increase when compared to the N1.93 billion recorded in the 2010 financial year.

Gross premium recorded by the life insurer last year was N2.29 billion, an 18.65 per cent improvement over the N1.93 billion recorded in the previous year just as net premium written by the company last year rose above the figure for the previous year by 7.82 per cent.  This rose from N1.79 billion in 2010 to N1.93 billion last year.

The firm also in commission to the tune of N81.01 million, a 129.10 per cent improvement over the N35.36 million recorded in 2010.  In the same manner, investment income raked in by the company rose by 66.26 per cent from N44.70 million in 2010 to N74.32 million in 2011.
Crystalife Assurance also incurred claims to the tune of N820.54 million last year, a 25.29 per cent improvement in customers’ expectations met and surpassed. In the previous year, claims incurred by the group totaled N654.90 million.

The company also earned N36.07 million income from its life funds that were invested wisely last year as against the N23.14 million recorded in the previous year, a 55.88 per cent increase over the figure for the previous year.

Within the same period, the life insurer’s accretion to life insurance fund peaked at N589.24 million, a 21.63 per cent improvement on the N484.44 million made in 2010.
Total investments income recorded by the life office last year rose by 235.48 per cent when compared to the figure for the previous year, it rose from N61.78 million in 2010 to N207.26 million last year.

Also N68.44 million profit was recorded from its deposit administration activity as against the N626,000 recorded in the previous year, a 10,833.39 percent appreciation in figure while shareholders’ share of valuation of surplus peaked at N315.51 million, an 89.94 per cent increase over the N166.11 million recorded in 2010.

Also another N43.78 million was raked in by the firm from other sources, a 948.88 per cent increase over the figure for the previous year which was N4.17 million.

Crystalife Assurance puts its profit before taxation and IT development levy at N227.08 million, a 406.70 per cent increase when compared with the N74.04 million loss suffered in 2010.
The profit after taxation and IT development levy made by the firm peaked at N224.81 million as against the N74.04 million loss it suffered in the previous year while the profit after taxation declared by the firm last year was N202.29 million, reversing the N97.47 million loss it suffered in 2010.

The life risks underwriting company within the year under consideration maintained its share capital, capital reserve and revaluation reserve at N2.89 billion, 10 million and 159.26 million respectively.  It drew down the balance in its share premium account marginally by 0.12 per cent from N803.43 million in 2010 to N802.44 million last year.

The balance in the firm’s contingency reserve was increased by 23.11 per cent from N99.03 million in 2010 to N121.92 million last year.

Shareholders’ interest in the company was grown marginally to the tune of 6.67 per cent, going up from N3 billion in 2010 to N3.20 billion in 2011.

The company also increased the balance in its deposit administration fund slightly by 0.43 per cent from N633.71 million in 2010 to N 636.46 million in 2011 while its life fund was raised by 27.43 per cent from N1.13 billion in the previous year to N1.44 billion last year.
Crystalife Assurance last year increased its short term investments 21.49 per cent and investment in properties by 39.47 per cent but reduced its long term investments by 22.83 per cent.

Short term investments owned by the firm was increased from N2.28 billion in 2010 to N2.77 billion last year, investments in properties were upped from N403.65 million in the previous year to N562.98 million last year while long term investment was reduced from N1.01 billion in 2010 to N781.65 million in 2011.

The firm’s assets were grown to the tune of 16.36 per cent from N4.95 billion as at the end of 2010 accounting period to N5.76 billion by the end of last year.
Earnings per share by the insurance firm rose by 250 per cent from 2 kobo loss per share in the previous year to 3 kobo profit per share last year