The Board of Directors, Noor Takaful Limited-pioneer composite Takaful Insurance firm in Nigeria, has announced a sum of N4.97 billion as the gross contribution for the 2022 financial year.
The announcement is contained in the Annual Report and Accounts of the company, which was made available during the 6th Annual General Meeting of the company held in Lagos on October 18, 2023. The Board of Directors recommended the dividend payment of N46.84million at 3kobo per ordinary share.
A breakdown of the audited result approved by the regulator- NAICOM showed that the contribution of the insurance company for the financial year ended December 31, 2022, experienced a sharp growth, amounting to 36% compared to N3.66billion recorded in the corresponding period in 2021 while The Profit After Tax increased from N422.72million in 2021 to N478.049m in 2022.
The result also revealed that gross claims incurred by the Company rose from N1.97 billion in 2021, to 3.14 billion in 2022 with Family Takaful claims payout accounting for the huge proportion of the gross claim expenses. While Family Takaful Claims payout took N2.176 billion, the General Takaful Claims payout amounted to N961.42 million.
Further breakdown of the results showed that Investment Income grew from N151.26 million in 2021 to N204.55, while underwriting expenses rose by over 68% from N434.5 million in 2021 to N728.19 million in 2022, causing a dip in the gross contribution.
In his address, the Chairman,Noor Takaful Insurance Limited, Mr Muhtar Bakare, noted that the company maintained a strong financial position despite the challenges posed by the global economic dynamics. Our prudent risk management and disciplined underwriting practices have enabled us weather some of the worst of the storms of uncertainty. Despite the challenging operational landscape, the company’s strategic initiatives yielded encouraging results
He explained that the rise in gross contribution recorded by the company is largely as a result of the significant contribution of the Family Takaful business including its investment income, and growth in other income, which helped in ensuring improved profitability.
He noted that the company would continue to take bold decisions or measures that will ensure that it remains on the path of progress regardless of the difficult and challenging business environment.
“As a business, we will continue to make business decisions that would ensure returns on investment taking into cognizance the difficult macro-economic and political environment. Going forward, investment in technology to deepen Takaful penetration shall be core to our business operations. We are equally determined to take actions that would serve the best interest of our shareholders,” he said.
