Unity Kapital Posts N70m Profit



From James Emejo in Abuja, 08.24.2010 


Unity Kapital Assurance Plc has declared a profit after tax (PAT) of N70.74 million for the year ended 31st December, 2009. The result however, felt short of the N98.46 million profits it announced the previous year.


The company, which merged with Global Commerce, General Assurance Company  Limited and Inter-Continental Assurance Company Limited in 2005, has not paid  dividend to its shareholders because of the huge liabilities it incurred in the  process.


But speaking yesterday at the company’s 34th Annual General Meeting in Abuja, the Chairman, Unity Kapital Assurance Plc, Mallam Falalu Bello, assured shareholders  that it will begin payment of dividends next year. The shareholders however, approved as bonus the payment of one new share for every 19 shares registered in members’ name at the close of business on August 9, 2010.The company recorded a gross premium income of N1.11 billion as against N906.71million the previous year. 


Although this figure is considered low in view of what other insurance companies  have announced lately, Bello said it could be explained by the prudence in which  the company is run.He said while appropriation premium is charged for all covers, credit control  measures are applied strictly – leaving the company with an underwriting profit of  N892.67 million – a feat allegedly unmatched yet by any insurance company in the  country.


The company’s profit after tax stood was N333.67 million as against N193.28 million in the  previous year. That was an improvement of N140.39 million or 73 per cent.  An accumulated loss of N54.38 million, which it brought forward is said to have been  fully absorbed leaving it however, with a retained earnings of N17.32 million.Its paid-up capital base remained N6.18 billion. 


The chairman said the company was able to settle claims amounting to N183.84 million in the period under review. This indicates an increase of N30.81 million over the N152.03 million posted in 2008.He added that the company has implemented robust application packages in terms of information technology to support core operations and thereby boosting its bottom-line.





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