13 August 2007
opinion
Lagos — There is no gain saying that Niger Insurance Plc stands out as the insurance company to beat. One needs to be at the company's 37th annual general meeting which held in Enugu, Nigeria's coal city last week for the person to begin to appreciate what Niger insurance now means to the investing public whether local or foreign.
Is it not a popular saying in Nigeria that when the going gets tough, the tough gets going. That is the Niger Insurance option. Again, one recalls with passion the remarks from The ladder of saint Augustine that "the heights by great men reach and kept were not attained by sudden flight. But they, while their companions slept, were toiling upward in the night"
It is on record today that Niger insurance plc is one of the very few insurance companies which benefited most from the consolidation and recapitalization exercises embarked upon by insurance institutions in the country.
The big deal was that Niger Insurance is just the only company which never went into any form of merger or acquisition arrangement for it to cross the hurdles posed by the recapitalization project. This fit among other determinants has helped in fortifying the company while still allowing it to retain and continue with its business culture undiluted by the cross-breeding of institutional frameworks. Thus the company was able to concentrate on achieving set goals in the midst of the 2006 distractions and confusing signals.
The 2006 business year was indeed described as a very turbulent period for insurance companies in Nigeria not with the troubles the distractions and pains of recapitalization and consolidation.
It was therefore not surprising to see that many of the insurance firms have found themselves in such tight positions that they can neither pay dividend to their shareholders nor appropriate same into the payment of bonus shares as compensatory deal. Those which have the strength to break even were seen giving mere handouts in form of dividends.
All these were not meant for hybrid companies like Niger Insurance as the company broke the roof top last week to announce a mouth watering dividends payment of N474.1 million which translated to a 15 kobo payment for every 50 kobo ordinary share.
"The board also hereby recommend for your approval a bonus issue of N395.084 million to be utilized in the allotment of 790,167,329 ordinary shares of 50 kobo to members in the proportion of one new share for every four ordinary shares held by the shareholders registered in the company's books as at July 27, 2007", the chairman of Niger insurance Plc Alhaji Bala Zakariya'u had told the cheering shareholders.
Investigations conducted by Champion Insurance revealed that Niger Insurance plc's allocation of the total of N843.174 million to shareholders as dividends and bonus stand as the highest that any insurance firm has given out in one swoop.
Yet, the managing director and chief executive officer of the company Dr. Justus Clinton Uranta said last week that for Niger Insurance, the best is yet to come.
He had told newsmen that Niger is on the crest towards raising its share capital to an all time high of N8 billion. This, the company intends to accomplish by the first half of next year.
It was therefore not surprising that the shareholders who, after tasting the juicy 2006 dividend and bonuses were quick at approving the proposal for an increase in the company's authorized capital even as the board was given the mandate to explore all and every available vehicles for the realization of the set target.
With N5 billion already in the box as paid up capital, Mr. Uranta had revealed that Niger insurance intends to raise the difference through the revaluation of its assets as well as the capital market from which no less than one billion naira would be mopped up.
Success, they say, is never known to be an orphan. The investing public appears to be waiting in the wings for the Niger Insurance share offer. Already, a corporate investor in the range of Afribank Nigerian plc is currently discussing investment deal with Niger Insurance. There is another foreign investor said to have been locking in the corner waiting for an invitation to plough into the Niger vault. These are said to be signs, attributes and landmarks which usually trail successful institutions like Niger Insurance.
"We view the future with optimism and have re-positioned the company to take full advantages of the emerging opportunities. It is my pleasure to report to you that the proceeds from the concluded rights issue is being utilized in accordance with the undertaking in the rights circular", the chairman of the company Alhaji Zakariya'u had informed.
It was perhaps the good trading results which the company accomplished last year that have continued to act as the much needed tonic for propelling it further ahead.
The chairman had disclosed that Niger Insurance in 2007 recorded a gross [premium income of N3.14 billion. This, he said represented an increase of 36 per cent when compared with the N2.31 billion achieved in 2005.
"Similarly, the profit before tax rose by 135 per cent from N312.67 million in the year 2005 to N734.2 million in 2006. The profit after tax also recorded an increase of 106 per cent from N280.04 million to N575.82 million," the chairman further revealed.
"Our policy on claims payment administration is that we must always put smiles on the faces of the unfortunate insureds who suffer losses. We have a very smooth claims payment mechanism which ensures that within a very reasonable time, all the genuine claims were attended to the cheques sent to clients," Mr. Uranta had volunteered.
But one of the shareholders, Mr. Boniface Okezie said that the strength of Niger lies in its wide spread branch network, a fit which he said has enabled the company to maintain closer touches with its clients.
It was therefore no wonder that the company had exploited the opportunity of its 37th annual general meeting to commission its new branch office which is located at 176 Ogui Road, Enugu.
Niger Insurance Plc's mission which is to be a customer oriented provider of superior insurance services, using well motivated employees and technology in a conducive working environment, thereby creating long term value for shareholders through sustained returns on investment can as well be taken as an accomplished task.
Be the first to Write a Comment!
Copyright © 2007 Daily Champion. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
