Unity Kapital Assurance Plc recorded a gross premium of N868.74million in year 2010 as against the N1.34 billion which was generated in 2009.
The chairman of the Board of directors, Malam Bello Falalu revealed this at the 35th Annual General Meeting of the company held in Minna, Niger State yesterday.
He explained that the reason for the business performance was not unconnected with the economic milieu in which the country operated within the year under review, adding that the principal causes of the poor performance for the year were the reduction in premium earned and investment income.
Falalu stated that the insurance company made a paltry profit before tax of 6.5m against N335million in 2009 out of a budget of N1.45billion.
“Our economy operated in a domestic economy that is part of the global operating environment. The less than ideal international economic scenario had effects on the Nigerian economy. The external factors put pressure on the domestic economy. Slow growth internationally meant less demand for the commodities and services we had to offer our international trading partners,” he said.
Falalu further said the company paid claims of a total of N168million during the year under review as against N183million in 2009.
In the year under review, the net premium earned by the company was put at N745,018 million against 1.25billion made in 2009 with 40.53 per cent decrease, while the net claims incurred was N48.94million as against N201.87million in 2009 with 75.76 per cent decrease.
The profit before taxation in the year 2010 was N6.5million against N334.62 million in 2009 with 98.04 per cent decrease, while the profit after taxation was N190.234million in 2010 against N112.061 million in 2009 with 269.76 per cent increase.
The company’s underwriting profit in the year 2010 was N613.319million as against N892.668million in 2009 with 31.29per cent decrease, while taxation (company income and deferred) was N196.785million against N222.568million in 2009 with 11.58 per cent decrease.
On the future prospect of the company, he said, “We have plans to move into new areas of insurance as part of an overall blue-ocean growth strategy going forward. We continue to work on introducing Takaful as well as Micro Insurance. We also plan to introduce some other new products. We recently obtained NAICOM approval to market Overseas Travel Insurance,” he said.