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Leadway Group in the financial year ended December 31, 2017 recorded a Profit Before Tax of N15.10 billion, as against N8.79 billion in 2016, indicating 71.8 percent, while the Profit After Tax also appreciated remarkably by 82 percent, moving from N7.59 billion in 2016 to N13.84 billion at the close of business in 31 December 2017.
Martin Luther Agwai, retired general and chairman Leadway Assurance Company Limited disclosed the figures at the Company’s 46th Annual General Meeting held in Lagos.
Agwai said the group recorded a 60 percent increase in Gross Premium Written (GPW) from N52.7 billion in 2016 to N84.18 billion in 2017. This increase in GPW he said is largely attributable to the significant growth of its annuity business and positive impact of the decrease yields of treasury securities which resulted in significant fair value gains and investment income in her portfolio of treasury assets.
According to him, the net underwriting income increased also significantly by 68 percent from N43.1 billion in 2016 to N72.5 billion in 2017, mainly due to increase in annuity premium and the prior year’s premium earned in the current year for general business specialty line.
He also stated despite the harsh economic environment, the Company grew its investment income by 60 percent from N10.8billion in 2016 to N17.3billion in 2017, which translates to a significant increase in profit after tax for the year by 91 percent from N6.7billion in 2016 to N12.8billion in 2017 for the parent company and an increase of 81.5 percent from N7.6 billion to N13.8billion for the group.
The company committed to meeting its obligations to customers during the review period, incurred claims expenses rising by 19 percent from N23billion in 2016 to N27billion in 2017 with annuity pay out of N14.7billion accounting for the largest proportion of this amount, followed by over N9billion claims paid in General Insurance.
From the profit achieved in 2017, the shareholders of the company got dividend payout of N1.75billion which translates to 18.67 kobo per share, and a bonus issue of N N3.637billion.
“Total assets of the Company grew by 63.9 percent from N166 billion in 2016 to N272billion in 2017 while the Group’s assets increase by 61.4 percent from N176 billion in 2016 to N284 billion in 2017 due to additional investments in Government debt securities, growth in reinsurance assets and investment properties.”
Focused on business expansion and maintaining competitiveness in the market, the firm said it has increased its authorized capital from N5 billion to 10 billion.
“Due to business exigencies, particularly for our company to be able to competitively engage in business expansion, without the anxiety of inadequate paid up capital required for measuring the capability and capacity of our company to underwrite business and in order to strategically position ourselves at a vantage and leadership point among other operators, it has become imperative for us to increase the Authrorised and paid up capital. This, among other things, would also put us in the state of readiness for the implementation of transition to the Risk Based Capital model proposed by the regulator. As such, you will be voting for us to increase our authorized share capital from N5billion to N10billion.
In view of this, shareholders approved to capitalize a sum of N5,317,550,202.00 out of a combination of the Share Premium Account and the Retained profit for 2017 and to distribute to shareholders by creating additional 9 (Nine) shares for every 8 (Eight) shares held.
Going into the future, Agwai said “While the impact of the recovery of the economy remains mixed for most, we are optimistic that the gains of exiting of the economy from the throes of recession will continue apace as we navigate the issues and challenges that 2018 may bring.
“On our part, we are enthusiastically encouraged to leverage on our brand and strategic initiatives to increase insurance awareness, create risk products tailored to every segment of consumer needs with the connotation of hope and happiness, rather than negativity, towards rejuvenating insurance as a need and necessity.”
“We are motivated by the implementation of the strategy of our company to remain the vanguard in market share and profitability through digitization, diversification of our business portfolio and domination of the market.”
We are improving our value proposition to our customers and committed to progressively eliminate 50 percent time spent on processes and alternately focus on anticipated and appreciated value add to our customers to deliver unbeatable service delivery, Agwai stated.
Oye Hassan-Odukale, managing director of the Company said it is glaring that our company has continued to deepen activities in the insurance market by opening up new distribution channels and consolidating on existing businesses, thereby sustaining market leadership.
“we closed the year surpassing our GWP target of N67.3 billion, with the bulk of pour income now coming from pension annuities”
Oye said this comes with a large pecuniary responsibility to those who have entrusted their financial future to us and require us to be ever more conservative in our financial standing.
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