Sterling Assurance records gross premium of N1.82billion

Sterling Assurance Company has announced a gross premium income of N1.82billion for the financial year ended December 31, 2010.

The amount represented 12.72 percent increase from the N1.61 billion generated by the company in 2009.

Chief Olabode Emmanuel, Sterling Assurance Company Chairman at the 12th annual general meeting of the company in Lagos recently explained that the company endeavoured to strive in the year under review in spite of the diffcult operating environment but assured the insurer’s shareholders that the company had better news for them in the 2011 financial year.

According to him, “Mindful of shareholders’ expectations and forebearance, the board is recommending a token dividend of 2kobo per share of 50 kobo each subject to the appropriate withholding tax, on the result for the year ended 31st December, 2010″.

He however explained that Sterling Assurance’s investment income decreased by 39.24 percent from N361.75 million to N219.79 million as a result of the low returns on both money and capital invesment

The company’s profit before tax stood at N364.1million in the year under review from N327.9million representing 11 precent increase while the insurer’s profit after tax rose to N210.55million in 2010 from N198.80millin in 2009, a increase of 5.9 percent.

He said, “The Nigerian insurance industry continues to be as challenging as ever. Stiff competition, low level insurance awareness by the public and inadequate risk retention capapcity of the underwriting companies is some of the problems plaguing the industry. It is gratifying however, that the National Insurance Commission, NAICOM has continued to fortify its oversight responsibilities leading to a progressively improving market”

He expressed optimism, “It is hoped that an enabling environment for the profitable growth of the industry will emerge from these efforts”

“Our stragetic goal for the coming yeas is for the rapid growth of our company leveraging on our reputation in the industry and prompt and efficient service delivery, taking full advantage of our alliances”.

The company he stated had made some steps in the oil and gas business, adding that the company would do even better in 2011.