THE management of Niger Insurance Plc has assured investors in the company of better days ahead saying they should be rest assured of better returns on their investment going forward.
Dr. Justus Uranta, managing director of the company, gave this assurance during a chat with journalists in Lagos recently, saying having witnessed a challenging year in 2010, things can only get better in coming years.
“I think we have seen the worst this year, and by the grace of God, our figures will improve by the next accounting year,” he said.
He explained why the company’s bottom-line was not as expected last year saying the insurance regulatory authorities; National Insurance Commission (Naicom) introduced stricter measures aimed at entrenching global best practice and good corporate governance in the industry.
This according to him, made it imperative for all the operators to make heavy provisions against foreseen and unforeseen losses.
“Issues that hitherto were provided for in over a three years period, is now under compulsion that companies provide for them just in one accounting year,” Uranta said.
He stated that with the gross premium income raked in by his organisation last year, naturally, the company should have recorded a commendable profit and paid significant dividends to shareholders adding that the measures referred to above unfortunately impacted negatively on the bottom line.
He also recalled that the insurance outfit has always taken good care of its shareholders over the years and that it has also resolved to ensure that the shareholders always get good returns on their investment.
“They have shown good understanding as well. Like I said earlier when the going gets tough, it is only the tough that gets going” and this is the time you will know whom your real friends are he said.
The Niger Insurance boss also clarified that the insurance firm in always in good position to meet its obligation to policyholders in the area of claims payment notwithstanding the challenges in the operating environment.
He said, “We have reinsurance and other securities spread all over the world, in America, London and they cover existing risks in line with terms of the agreement concerning treaties. In this case, they are compelled to assist whenever there is any claim beyond our retention capacity.
That is a compulsion of the law as far as agreement on treaties is concerned,” Uranta said.