Union Assurance office
Nnamdi Duru
Assurance Company Limited, one of the non-life risks underwriting companies in the country has recorded a 173.13 per cent improvement in its profit for the period ended December 31, 2012. The firm’s profit rose from N38.72 million as the end of 2010 to N105.82 million last year.
This information formed part of the contents of the company’s 2011 Annual Report unveiled at the 13th Annual General Meeting of the company held in Lagos recently.
Gross premium written by the company last year was N3.84 billion, a 19.25 per cent increase over the figure of the previous year which was N3.22 billion. Gross premium earned by the company within the same period rose to N2.61 billion up from the N2.20 billion recorded at the end of 2010 operations and an 18.61 per cent increase.
Premium earned by the company last year increased rose over the figure for the previous year by 33.92 per cent, going up from N1.73 billion in 2009 to N2.29 billion last year.
Also investment and other incomes raked in by the firm last year peaked at N244.71 million, a 14.92 per cent shortfall from the figure for the previous year which was N241.78 million.
Union Assurance last year incurred net claims worth N425.48 million and this translates to an 80.61 per cent increase when compared with the figure for the previous year which peaked at N235.54 million. This is an indication that the company surpassed the expectations of its customers last year.
Within the same period, the company’s underwriting profit peaked at N1.29 billion, a 22.86 per cent increase over the N1.05 million the company made in 2010.
Within the year under review, the company also raked in N241.78 million from its investments and other sources. This translates to a 51.85 per cent shortfall from the N502.15 million recorded in 2009.
The company also puts its profit before taxation at N143.69 million; a 14.92 per cent improvement on the N125.01 million profit recorded in the previous year. Its profit after taxation peaked at N105.81 million, which translates to 173.13 per cent improvement on the N38.74 million recorded in 2009.
The non-life risks underwriting company within the year under consideration maintained its share capital and share premium at N3.76 billion, N864.90 million respectively.
Its contingency reserve was increased to the tune of 18.96 per cent from N498.34 million in 2010 to N592.81 million last year, just as its accumulated deficit was reduced by 4.10 per cent from N276.40 million in the previous year to N265.06 million last year.
Also, its revaluation reserve was drawn down to the tune of 52.29 per cent from N183.0 million in the previous year to N87.31 million.
Shareholders’ interest in Union Assurance was grown marginally by 0.20 per cent, having been grown from N5.03 billion in the previous year to N5.04 billion last year.
The company also increased the balances in its insurance fund and deposit administration fund by 25.99 per cent and 63.23 per cent respectively. The former was raised from N2.27 billion in 2010 to N2.86 billion in 2011 while the latter was raised from N338.03 million in the previous year to N551.75 million last year.
Union Assurance last year reduced its short term investments by 22.62 per cent from N2.52 billion in 2010 to N1.95 billion last year and increased its long term investments by 23.46 per cent. This was grown from N1.62 billion in the previous year to N2 billion in 2011.
It also increased its investment in properties from N926.06 million in the previous year to N1 billion last years.
The firm’s total assets were grown to the tune of 4.27 per cent from N8.66 billion as at the end of 2010 accounting period to N9.03 billion at the end of last year. Earnings per share by the insurance firm rose by 171.15 per cent from 0.52 kobo per share in the previous year to 1.41 kobo per share last year.