Distinguished Shareholders, Ladies and Gentlemen,it is with great
pleasure that I welcome you all to the Thirty-fourth Annual General Meeting of Niger Insurance Plc,and present to you the
Annual Reports & Financial Statements of the company for the year ended 31st December,2003.
REVIEW OF THE BUSINESS ENVIRONMENT
The year 2003 was very challenging for insurance operators in Nigeria.The economic environment is still characterised
by high interest rate,low naira value unemployment,inflation rate and worsening foreign debt crisis.All these factors undoubtedly
have negative impact on capacity utilization with attendant weak consumer demand.
The expected growth in demand for insurance products was adversely affected by the fore-going scenario coupled with the
low disposable income of the general populace.However it is gratifying to note that the Federal Government is striving hard
to proffer solutions to the mirage of socio-economic problems through various economic reforms.
One of such steps already taken is the launching during 2003 of National Economic Empowerment and Development Strategy
(NEEDS).It is expected that NEEDS would consolidate the achivements so far recorded by the various agencies of government
involved in poverty alleviation and reduction programmes.Thus,it is hoped that this would in the long run translate into greater
employment generations,economically viable middle class and improved consumer demand.
An Insurance Act came into effect during 2003.The high expectation of the new Act to sanitize the market is yet to be
fully realized. I am pleased to inform you that your company as one of the leaders in the new Insurance Act especially as
it relates to capitalization.
RESULT
Gross premium in 2003 increased by 31% from N1.4billion to N1.9billion while net premium rose from N1.3billion to N1.7billion,
an increase of 32%.
Profit before taxation increased from 176million in 2002 to N192million in 2003 while profit after taxation also
increased from N155million to N171million in 2003.
CHANGES OF THE BOARD
Since the last Annual General Meeting,your Board has grown with the in-coming of Mrs.Amina Abubakar.
In line with the Articles of Association,she shall retire at this meeting and being eligible would seek re-election along
with Messrs Osunde and Uranta who are retiring by rotation.
DIVIDEND AND RECAPITALIZATION
The Board is pleased to recommend for your approval the sum of N120million as dividend payable to all shareholders at
the rate of 15k share held.
Furthermore,it is being proposed that the Authorized Share Capital of the company be increased from N500million to N750million.This
is to cater for future capital base expansion.
