Standard Alliance Insurance Plc, a general underwriting company, has announced a profit before tax of N268m from a gross premium of N1.296bn written during its operations in the second quarter ending June 30, 2016.
According to the unaudited results recently released to the Nigerian Stock Exchange, the above profit was as against N606 million realised from a gross premium of N1.228 billion written during the corresponding period in 2015, representing a 55% decline from what was recorded under the period in comparison last year.
This development, according to Bode Akinboye, the company’s CEO, was as a result of the impact of the new foreign exchange regime, adding that the new regime accounted for the significant change of the profit before tax, not only from the first quarter performance but also in comparison with the same period of last year.
He explained further, “the unrealized foreign exchange loss of N443 million arose from the need to revalue the company’s dollar obligation in line with the material devaluation of the naira against the US dollar,” noting that “without this, we would have been looking at a profit before tax of well over N700 million.”
Also, the unaudited results showed that the Group gross revenues amounted to N2.671 billion as at June 30, 2016, indicating a rise by 6% compared to N2.52 billion during the corresponding period in 2015.
Total assets stood at N12.317 billion, indicating an increase of 5% over the N11.787 billion position as at December 2015 while shareholders’ fund rose by 3% to N4.93 billion as at June 30, 2016, solely on the back of internal capital generation.
According to Akinboye, “these results showed some remarkable recovery from the prior periods’ accounts where the company posted a positive underwriting profit but reported loss as a result of exceptional charges for diminution of investments.”
He attributed the performance to the fundamentals of the company, which he says remained strong in its area of core business, noting that because of the positive feat being achieved under the new management and board, the company has continued to win more clients.
He explained further “the company, like others in the financial services sector, has been operating under a debilitating investment climate,” noting however “the results showed our resilience and ability to ride the prevailing economic storm in the country.”
Disclosing that the company was currently undergoing expansion in its retail, e-business and digital transformation activities, Akinboye assured that “the company was quite hopeful of posting a much enviable result during the remaining period of the year as the economy begins to show visible signs of positive recovery.”
Modestus Anaesoronye
