Standard Alliance Life Assurance Limited (SA Life) paid N2.78 billion claims to its policyholders in 2013 as against N2.65 billion paid in 2012, the company’s Chairman, O’tega Emerhor, said.
Out of this N2.78 billion claims, group life assurance business accounted for N1.62 billion while deposit administration withdrawal accounted for N1.16 billion.
Emerhor, who disclosed during the 14th Annual General Meeting of the company in Lagos recently, stated that the specialist life assurance firm achieved a gross premium income of N4.63 billion in 2013 compared to N4.3 billion it posted in 2012.
A breakdown of the gross production revealed that life premium income (group and individual life businesses) accounted for N3.45 billion while N1.18 billion came from investment-linked products.
The chairman, however, told the shareholders that the company recorded negative operating result of activities in 2013 compared with a profit position in 2012, saying “this was as a result of time apportionment principle applied in recording gross premium income in the year 2013.”
Emerhor informed that “the issue of insecurity challenge induced by the activities of the Boko Haram sect, escalating day in day out in the Northern region, was a permanent experience all through the year and our business offices in these areas were adversely affected.”
Despite the above challenges, he assured the shareholders that “we are strongly committed to pursuing strategies that will bring about optimum utilisation of resources and reducing costs,” noting that “as I mentioned in my address during last year’s AGM, all efforts are nearing conclusion stage to recapitalise, restructure and reposition your company in readiness to dominate the industry.”
He announced that the Board of Directors was currently working with some potential investors to achieve the above, stating that “we are hopeful that the exercise will be concluded before the year ends and therefore, enjoin you to pass the resolution in this regard.”
The company’s Managing Director, Austin Enajemo-Isire, explained that year 2013 was an eventful year in the industry, explaining that NAICOM’s enforcement of the “No Premium, No Cover” policy embedded in the Insurance Act 2003 and effective January 2013 was a significant plus for the insurance industry as it was expected to enhance cash-flows and improve operating investment abilities for insurers.
According to him, though the enforcement has created premium payment structure and teething timeline remittance challenges, he strongly believed that in the years ahead, the industry shall reap the benefit of the enforcement policy.
Source : Independent