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Standard Alliance Insurance said it has paid N8.2 billion as claims between 2015 and first quarter of 2017 to holders of the company’s policy products, just as it said that plans are underway to raise capital from the capital market.
Addressing the stock market community on Tuesday during the company’s Fact Behind the Figures, the Chief Executive Officer, Mr. Bode Akinboye said as a major turnaround and yearning for a brighter future, there is need for the company to offset the backload of claims so as to chat a new course for the company in the sector.
Specifically, the inherited claims accruing to subscribers of the company’s products showed that Non-Life outstanding claims was N2.1 billion while Life products claims was N6.1 billion respectively.
On capital raising, Akinboye who said the company is projecting to pay dividend beginning from 2019 financial year ending, noted that funds to be raised by way of Equity and Right Issue will help significantly to wipe out the company’s negative reserve.
“With a negative reserve of N13 billion, after the raising of capital the company will still be left with a reserve of N2 billion, hence the projection on payment of dividend to be considered on 2019 financial year .
According to him, “As a major leap from where we are coming from, the company Gross Premium rose from a loss position of N4.3 billion in 2016 full year to positive position of N3.15 billion in half year in 2017. While total assets for the full year in 2016 stood at N13 billion to half year of N13.6 billion in 2017. PAT for the half year 2017 was N356 million.
On strategic initiatives to grow its business, Akinboye said the company will embark on successful launch of product-Salary Protection Insurance Scheme (SPIS), set up of Strategic digital channels and platforms to roll out health insurance products with Unisure.
“Implementation of digital transformation initiatives; capital investments on new underwriting and business management softwares. Expand retail market reach by increasing agency capacity to 500 agent by 2019. Design of new product-yield based Agric Insurance”, he added.
On the 5-year projection for the company, Akinboye reiterated that why globally the bedrock of success of the insurance sector remains compulsory insurance, said the company is poised towards growing its Gross Premium Income to N13.34billion in 2021.
He said the five-year outlook which started in 2016-2021, will see the company’s operating income climbing to N7 billion, Profit After Taxation increasing to N2.4 billion even as Earning Per Share (EPS) and Dividend Per Share (DPS) appreciating to 33kobo and 15 kobo respectively in 2021.
