Gen.Yakubu Gowon, the Chairman, Industrial and General Insurance (IGI) Plc, announced on Friday in Lagos at the that the company recorded N10.5 billion Gross Premium in 2010 financial year, which ended Dec. 31.
Gowon disclosed this at the company’s 19th Annual General Meeting in Lagos.
He said that the amount represented 11 per cent of the N9.39 billion recorded in 2009.
He said that out of this amount the company made provisions for outstanding premiums and impaired values of some investments in some of its subsidiaries.
According to him, this resulted in a loss of N3.08 billion in 2010 as against N2.48 million loss recorded in 2009.
``The company achieved an increase of 11.6 per cent or N1.047 billion in Gross Premium from N9.394 billion in 2009 to N10.442 billion in 2010.
“However, in line with NAICOM’s guidelines, the company had to make huge provisions on outstanding premiums and impaired values of investment in some subsidiaries.
“These provisions resulted in a loss of N3.807 billion during the year under review, as against the N2.485 million loss recorded in 2009,” he said.
The chairman explained that the delay in holding the 2010 annual general meeting was due to problems it had receiving financial reports of its subsidiaries outside the country.
He said without getting their results it would be unable to consolidate the group’s account in compliance with Statements of Accounting Standards, issued by the Financial Reporting Council of Nigeria.
He, however, said that the worst was over as the company would hold its 2011 annual general meeting in October.
Gowon said that its subsidiaries outside Nigeria had made huge profits, which would result in payment of dividend in the 2011 financial year ended Dec. 31, 2010.
However, the shareholders expressed their disappointment over the non-payment of dividend in 2010.
One of them, Mr Sonny Nwosu, the National Coordinator, Independent Shareholders Association of Nigeria (ISAN), said that they were not happy with IGI's inability to pay dividend for 2010.
He said they were also not happy that the 2010 AGM was being held in 2012.
He urged the management to ensure that shareholders went home with some money in their pockets in 2011, as that was what their investments were meant for.
Mr Remi Olowude, the Executive Vice Chairman, said that the management understood the feelings of all the investors, adding that the company had overcome its teething problems of acquiring its subsidiaries.
He assured the shareholders that the 2011 AGM would be held earlier and that they would all go home smiling, as dividends would be paid.
According to him, all the board of directors and management staff are shareholders and are were more worried to get dividend on their investments.
IGI says it has insurance companies and banks in Gambia, Ghana, Rwanda and Uganda.