The International Finance Corporation (IFC) has made history in Nigeria's insurance industry, with the investment of N1.792 billion about ($14 million) in Leadway Assurance Company Limited.

The Managing Director of Leadway Assurance, Mr. Oye Hassan-Odukale said this in Lagos recently at the 35th Annual General Meeting (AGM) of the company. "You will recall that during our last interactive session with the press, we informed you of IFC's intention to invest $14 million.
"Today we are happy to announce to you that the transaction has been concluded, and we are happy to make a public show of the documents of agreement to you," he said.

While presenting the nominee of IFC on the board of Leadway Assurance, Mr. Jeremy Rowse, Hassan-Odukale said that Rowse was bringing in over 24 years of experience in the insurance industry, particularly as a life insurance specialist to the board of directors of the company. On the financial performance of the company last year, the managing director said that despite the challenges, the company's gross premium income increased from N4.5 billion in 2005 to N5.7 billion in 2006, while the value of shareholders' funds increased from N4.8 billion in 2005 to N9.4 billion in 2006.

He added that the total assets of the company rose from N10.2 billion in 2005 to N16.4 billion in 2006. Also the claims incurred during the period increased by almost 100 per cent from N938.5 million to N1.8 billion, with total claims paid of N1, 001 billion. He added that insurance intermediaries and market watchers keenly followed the minimum capital reform within the insurance industry. According to him, the challenges, however, resulted in positive consolidation activities within the industry, which boast of strong and virile insurance companies.

His words, "on our part and as a result of our strategic policy to consistently strengthen our capital base, we were able to surpass the minimum capital requirement of N2 billion for life business and N3 billion for general business required by National Insurance Commission.

"We also combined our business strength with that of Atlantic Insurance Company Limited, a well managed medium-seized insurance company, which became part of Leadway." Hassan-Odukale stressed.
Also speaking, the Chairman of the company, Alhaji Hassan Hadejia said that the shareholders had been tremendously supportive in ensuring that the company was fully recapitalised to carry on general and life insurance business.

Specifically, he said that it was in appreciation of the shareholders' efforts that the board had recommended an interim dividend of 12.66 kobo per share for the 2006 financial year which translated to N500, 000, 000 (five hundred million naira) and had already been distributed.

Also as an addition, the board he said was recommending a final dividend of 2.53 kobo per 50 kobo ordinary share which translates to N100, 000, 000 (one hundred million naira), which brings the total dividend for the year 2006 to N600, 000,000 (six hundred million), both subject to withholding tax at prevailing rate.