By Nse Anthony-Uko
(Sundiata Finance) – Standard Alliance Insurance Plc said, the company net profit rose by 133 per cent despite decline in its revenue for the first quarter ended March 31, 2017.
The company’s result on the Nigerian Stock Exchange (NSE) showed that profit before tax went up to N323.287 million, improving by 108.23 per cent from N155.248 million in the first quarter of 2016, while income tax rose to N52.379 million from N37105 million. Net profit rose by 133.04 per cent from N116.249 million in 2016, to N270.908 million, translating to Earning Per Share of 2.70 kobo, as against the previous 1.29 kobo.
Also, the result showed a 22.17 per cent drop in gross premium written to N1.002 billion from N1.287 billion in the corresponding first quarter of 2016. Unearned premium rose to N272.973 million from N165.423 million, bringing total revenue for the period to N1.274 billion, which represented a decline 12.24 per cent.
Reinsurance premium expenses for the period dropped to N164.906 million from N320.707 million, bringing net premium income to N1.11 billion from N1.13 billion. Fees and commission income fell from N41.059 million from N13.23 million, bringing net underwriting income to N1.12 billion from N1.17 billion.
Claims expenses fell to N311.97 million from N370.17 million, claims recoveries from reinsurance rose to N69.05 million from N54.39million, resulting in net claims expenses stood at N242.91 million from N315.78 million.
In February, 2017, Standard Alliance Insurance Plc, merged with its sister company, Standard Life Assurance, to become one big insurance company, underwriting life and non-life insurance businesses.
With the development, Standard Alliance is now a composite insurance firm underwriting both life and non-life business as a single entity.
The group managing director, of the company, Bode Akinboye explained that the merger was a deliberate and strategic decision by the boards of both companies to form a frontline composite insurance company which will play a leading role in the nation’s insurance sector with the ultimate goal of making the company the most preferred place to invest in.”
“The emergent composite company, means combined professional and result-oriented workforce. Standard Alliance Insurance Plc is now better poised to continue to provide more innovative products and deliver on its promises to all stakeholders”, he said. Standard Alliance Insurance in 2016, accorded Rating of BBB (NG), Outlook Stable By the Global Credit Rating (GCR).
Standard Alliance Profit Up 133%, Despite Drop In Revenue In Q1
By Nse Anthony-Uko