Impressed by the performance recorded at the end of 2006 financial year, the management of Standard Alliance Insurance Plc (SA) has announced N5.4 billion as the company's shareholder's fund.

It has also recorded N1.67 billion as total gross premium income compared to N1.27 billion in 2005, representing an increase of 31 per cent. While, profit before tax stood at N300.6 million against N235 million in 2005, with 27 per cent growth, the total asset of the company was N3.27 billion compared to N2.37 billion in 2005 representing a growth of 37 per cent.

The Chairman of the company, Alhaji Aliyu Yahaya Sa'ad, addressing shareholders at the company's yearly general meeting said, "I am happy to report that our company returned another impressive result in 2006 consistent with our track record."

According to him, " indeed year 2006 witnessed the last lap of the recapitalisation exercise and reforms in the insurance sector and it is gratifying to note that at the end of the exercise our company emerged with two licences to carry out general insurance through Standard Alliance Insurance and Life Assurance through Standard Alliance Life having achieved shareholder's fund of N5.4 billion at the conclusion of the exercise."

Speaking at the eleventh yearly general meeting of the company recently in Lagos, Sa'ad said, "the economic development both at the global and domestic fronts impacted on our company's operation and despite the challenges posed, we are happy to note that year 2006 ended well for the company through improved financial performance as well as enhanced industry and clients rating."

He told them that the board was recommending a bonus issue of N86.7 billion for allotting shares of 173,484, 450 units on the basis of one new share for every 20 held.
According to the chairman, "this we believe will enable the company to conserve fund in view of the fact that funds raised during the recapitalisation exercise is still being held in the Escrow Account and more so in view of the additional cash flow requirements for the new pubic offer."

On the way forward, he said, that the board was taking proactive measures to shore up the share capital of the company voluntarily in view of the recent developments in the banking sectors, where most banks are now targeting capital base in excess of N100 billion.
"We have therefore considered it appropriate at this time to embark on capital raising exercise to place us ahead of our other competitors and also enable us to properly position each of our subsidiaries for better performance," he added.

He also said their target is to have shareholders' fund in excess of N20 billion in order to properly position the company and all the subsidiaries for enhanced performance.
Speaking also at the meeting, the Group Managing Director of the company, Mr. Bode Akinboye said that the total claims paid was N248.47 million compared to N241.7 million in 2005, while investment income achieved in year 2006 was N76 million compared to N41.5 million in 2005.

According to him, "we have rebranded the group to reposition us as a clear leader and dominant player in sector, our brand new logo has provided great excitement in the insurance sector in particular and the financial services industry in general.