The Nigerian Liability Insurance Pool said it made an underwriting profit of N180.7m in the 2014 financial period.
The Chairman of the company, Mr. Richard Borokini, disclosed this during its fifth Annual General Meeting in Lagos.
“The pool’s underwriting profit for the same period stands at N180.7m (8.28 per cent increase from the 2013 figure), while the surplus profit is N184.13m (23.71 per cent increase above that recorded in the previous year),” he said.
He attributed the increase to the 20.81 per cent reduction in settled claims for the year under review, which fell from N353.4m in 2013 to N279.8m in 2014.
Borokini said the pool’s gross premium income stood at N845m in the period under review.
While giving a breakdown of the classes of income, he said motor insurance recorded N424.4m or 50.3 per cent of the total income; employers contingent liability, N170.1m or 20.15per cent; public/product liability professional indemnity, N227.5m or 26.9 per cent; while directors and officers’ liability recorded N22.04m or 2.61 per cent of the total income.
The NLIP chairman attributed the fall in total income to the Workmen Compensation Act that was repealed as well as the dearth of deep knowledge in products such as Owners’ and Builders’ Liability.
He noted that the reality of the effect of the full-blown implementation of the Employees’ Compensation Act of 2010 was becoming evident as the years rolled by.
“It is therefore noteworthy that though premium generated from this class of business has been substantially reduced, outstanding claims being settled are really on the decrease,” Borokini said.
As a result of the performance of the pool in the year under consideration, he said the board recommended a dividend of 86 kobo per share.
Borokini promised that the pool would continue to pursue the sustenance of the strategy through efficient investment in recruitment and training of its workforce