GTAssurance releases half-year result
Guaranty Trust Assurance Plc has recorded another impressive performance in its Gross Premium Income (GPI) and Profit before Tax (PBT) for the six months period ended June 30th, 2011. GPI grew by 28 per cent to NGN6.1bn per cent to NGN713.6mn compared to NGN511.2mn in the corresponding period last year.
Commenting on the result, Mr. Tosin Runsewe, the chief client officer said: “This performance reflects the quality of our company’s business model which has consistently delivered growth rates above industry levels.” Having also achieved a combined ratio of 84 per cent, GTAssurance continues to record positive ratios along its key financial indicators. Net Premium Earned and Underwriting Profit grew by 27 per cent and 31 per cent respectively. Net claims incurred grew slightly by eight per cent while operating expenses remained relatively flat, rising by six per cent.
The institutional business division continued to contribute the larger income (GPI) to the company. It contributed 81 per cent to GPI whilst contribution to Net Earned premium was 65 per cent. Mr. Kunle Ahmed, head of the Institutional Business Division, noted that the division’s continual growth was fuelled by the patronage of insurance brokers and direct relationships they had forged with institutional clients. He said: “We remain focused towards building a company that conforms to international standards with emphasis on professionalism and value-added services.”
While commenting on the perform per cent growth in the gross premium income of the division, rising per cent growth in individual life insurance business during the period from NGN86.7mn to NGN207mn. “Our strategy of developing a wide and varied retail distribution network where our customers can have convenient access to our products and services continues to bear fruits. After ending FY 2010 with an underwriting profit of NGN511mn, the retail business division ended H1 2011 having already achieved 60 per cent of FY 2010 figures. On the company’s outlook for the second half of the year, Runsewe stated that the investment climate continued to be challenging.
The equities market had trended lower than expectation year to date, hence a larger proportion of their investment portfolio had been shifted into low risk asset classes. Nonetheless, the company’s development strategy was yielding results and the figures showed that they were on the right track. He explained that the company’s desire to explore other viable channels would not automatically compromise the services rendered to our existing channels.
In his words, “we shall remain focused on continually creating exceptional value to all our stakeholders and we will ensure that we continually delight our customers through superior service delivery.” Furthermore, he said that the launch of the new life insurance campaign on television and radio was expected to drive brand awareness whilst they increased penetration in the retail industry.
This article was originally posted on Africa Banking Network
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