Benefits of recent recapitalization exercise in the insurance industry have started to show in the performance of companies, as International Energy Insurance, IEI, announces a profit after tax growth of 1,255 per cent in its six months operation in the current year.
In its six months result, the company recorded a gross premium income of N1.02 billion as against N273. 43 million posted at the same period in 2006. This shows a 73 per cent rise.
Underwriting profit also appreciated by 232 per cent, moving from N205.65 million in 2006 to N682.78 in the review period, while the operating profit stood at N445.05 million, a growth of 1,302 per cent.
Its profit before tax rose from N40.6 million in 2006 to N488.18, indicating a 1,102 per cent growth over the review period, while the profit after tax appreciated from just N30.64 million in 2006 to N414.95 million
The company’s balance sheet also got a boost during the same period. Total assets grew by 1.184 per cent to close at N12.47 billion over N970.92 million in the previous period. Shareholders fund displayed a similar characteristic, growing by 1,298 per cent from N803.76 million in 2006 to N11.23 billion.
The shareholders are optimistic that barring unforeseen circumstances, the results for the rest of the operation year would record a significant growth.
International Energy Insurance Company Limited emerged in June 2003, when a group of investor and management acquired 70 per cent equity of old Global Assurance Company Limited.
IEI has in this short period of existence, according to Jacob Erhabor, the managing director, experienced phenomenal growth in its business production and gained the confidence of the market as a result of its aggressive approach to business development and quest for improvement and innovation.
Compiled by BISI OLADAPO
