FBNInsurance Limited, a subsidiary of Sanlam Emerging Markets (Pty), said it grew its Profit After Tax (PAT) by 25 percent for the year ended December 31, 2020, from N7.9 billion it recorded in 2019 to N9.9 billion in 2020.
The company, announced this to its shareholders at its 2020 Annual General Meeting held in Lagos recently .
FBNInsurance Managing Director, Val Ojumah, analysing the company’s performance during the period said: “the net effect in equity was a growth of 22 percent from ₦19.5 billion to ₦23.8 billion in 2020.
“The company declared and approved dividend payment of 70 kobo per share for the year ended 31 December 2020. It is on record that FBNInsurance Limited has consistently paid dividend to its shareholders yearly in the last seven years”.
According to Ojumah, the company, achieved this despite the challenging operating environment in the country, adding that it is closing the year with positive results and prompt claims payment to customers.
He said further analysis of the company’s report showed that the group recorded an improvement in net premium income at 8 percent year-on-year growth from ₦39.2 billion to ₦42.5 billion in 2020, with total assets of the group increased by 47 percent from ₦116.0 billion to close at ₦170.0 billion as at 31 December 2020.
According to him, this growth was driven by the company’s investment strategy supported by the increase in premium written particularly from retail life and annuity.
He added that insurance and investment contract liabilities grew by 58 percent from ₦88.4 billion to ₦139.3 billion in 2020.
“We remain adaptable and responsive to the unfolding trends, modifying our plans and operations in a manner that would ensure that we achieved our strategic objectives. 2020 was a challenging year due to the outbreak of the novel Covid-19, but we witnessed an impressive growth along key metrics and across major lines during the financial year, Ojumah said.
Speaking further, he said the above performance was in line with the company’s corporate strategy.
“In 2020, we commenced the implementation of a revised three-year strategic plan for the 2020 – 2022 strategic cycle. Our strategic aspiration during this three-year horizon is to become the leading life insurance company based on gross premium.
“Having fulfilled our aspiration to become the most profitable life insurer in 2019, we are convinced that the next critical milestone for us is to become the number one life insurer by market share in Nigeria”.
On the quantum of claims paid by the company during the period under review, Ojumah said, “In 2020, we paid claims to the tune of N14.4bn as against N12.2bn paid in 2019 which represents a year-on-year growth of 18 percent.”.
He said this portrays the company’s unwavering commitment to its esteemed customers, adding that its strategy, remains providing financial security for clients and as always, will not rest on its oars to exceed customers’ and stakeholders’ expectations, because the company sees its customer as King.
On the recent divestment made by the company during the year ended 31 December 2020, Ojumah, explained that FBN Holdings, divested its 65 percent equity holding which was acquired by Sanlam Emerging Markets (Pty) Limited on 1st June 2020.
According to him, by this divestment, Sanlam Emerging Markets (Pty) Limited now has 100 percent equity in FBN Insurance Limited.
Also speaking on the results and outlook of the company, the Chairperson of the company, Mrs. Adenrele Kehinde said: “We are pleased with our 2020 financial year end results. We are grateful for the trust that our shareholders have in our ability to continue to grow the business. We will continue to ensure the growth trajectory is sustained in 2021 financial year. While we anticipate an improved economy, we shall deploy strategies aimed at optimising the inherent opportunities within the economy”.
According to her, a close review of FBNInsurance 2020 financial performance has once again demonstrated its solid footing amid a chaotic and unpredictable economic landscape.
She was optimistic that year 2021 will be the best so far for shareholders and esteemed customers in the history of FBNInsurance Limited.
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