Custodian Records N5.7bn Profit, Declares 20k Dividend


Ebere Nwoji
Custodian and Allied Insurance Plc in its business outing for the year ended December 31, 2015, raised its profit before tax (PBT) by 11.8 per cent, having grown its profit from N5.1 billion in 2014 to N5.7 in the 2015 financial year.

The company, in line with the above performance, announced a dividend of 20 kobo per share for shareholders.

Its assets stood at N57 billion with cash, its cash equivalents and financial assets component makes up more than N38 billion, or approximately 66 per cent of the total assets.

The underwriting firm’s gross revenue also increased by 19 per cent to N29.8 billion.

Announcing the result at the 21st annual general meeting of the company held in Lagos recently, the company’s chairman, Chief Michael Ade Oio said despite the tumultuous business environment in which the company operated in 2015, it did not only survive but thrived respectably.

According to him, the level of liquidity of Custodian and Allied Insurance, assures its customers of the company’s readiness to take advantage of whatever opportunities that may arise while at the same time, providing the safety that the clients and shareholders require in the highly volatile environment.

He said although there was a sudden drop in interest rates at the end of last year which negatively affected the present value of the company’s life insurance and future obligations in respect of its annuity portfolio, it is hoped that recovery will ensue when interest rates rebound and the need for the provision reverses.
“The revaluation of the portfolio required further financial provision which otherwise would have boosted our results for the year”.

Speaking on dividend, Oio, said following the commendable performance of the company and in line with its practice to regularly pay dividend to shareholders, it has declared a total dividend of 20 kobo per share for the financial year under review.

He noted that the national economic outlook for 2016 is challenging, considering the low crude oil price, dwindling external reserve and apathy of foreign direct and portfolio investors to Nigeria.
He urged the company’s management to continue to exhibit professionalism and ability to wax stronger in the face of adversity.

Also, he urge shareholders to encourage and support the company by patronising the its services and recommending them to their associates.