Leadway Assurance Company Limited has announced profit after tax of N12.8 billion for the year ended December 2017.
The Insurer’s 2017 profit was higher than the N6.7 billion achieved in December 2016, representing a 91 percent growth in the period under review.
Chairman of the firm, Martin Agwai, who spoke at the company’s Annual General Meeting (AGM) in Lagos, disclosed that the insurer also improved its investment income last year by 60 percent, closing for the year at N17.3 billion in contrast to N10.8 billion it ended in 2016.
During the year, the firm said its claims expenses rose by 19 percent to N27 billion from N23 billion in 2016.
“Claims expense increased by 19 percent from N23 billion in 2016 to N27 billion in 2017 with annuity pay out of N14.7 billion, accounting for the largest proportion of this amount, followed by over N9 billion claims paid in general insurance,” the Chairman told shareholders at the meeting.
Mr Agwai disclosed that the increase in claims expense was compensated by benefits from its reinsurance arrangements and recoveries from salvage and subrogation.
According to him, last year, the company grew its total assets by 63.9 percent to N272 billion from N166 billion in 2016, while the group’s assets increased 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.
The Chairman said the board recommended a cash dividend of N1.75 billion, representing 18.67 kobo per share subject to withholding tax at the prevailing rate.
“The board recommends a non-cash dividend of N3.637 billion, which is dividend to be distributed to the shareholders of the company for capitalisation of a proposed vehicle to accommodate the non-insurance business of the group,” he added.