Union Assurance Company Limited grew its premium income to N1.327 billion for the financial year ended December 31, 2006. The amount represents a 43 per cent increase over the N931.31 million it earned in 2005.

Its profit before tax also grew to N229.90 million as against theN155.75 million made the previous year while profit after tax shot up by 38.72 per cent from N109.16 million to N151.43 million.

The Chairperson of the company, Lady Eme Ufot Ekaette, who was represented by the Managing Director, Union Bank of Nigeria Plc, Mr. Barth Ebong, told shareholders at the eighth general meeting held in Lagos that the company’s performance was commendable, in view of its age in the market.
Lady Ufot described the company’s premium collection rate as high compared with the average in the industry.

Said she: "The premium retained increased from N653.14 million in 2005 to N976.64 million in 2006, representing over 50 per cent increase. The increase was due to the rise in written premium and retention capacity. Total claims moved from N170.16 million in 2005 to N244.35 million, representing an increase of 44 per cent.

"There was a major loss claim settled on a marine hull incident during the year. The company will continue to be faithful to its avowed commitment to settle genuine claims promptly.
"The total assets grew from N1.424 billion in 2005 to N2.295 billion, an increase of 61 per cent. The increase was partially due to the proceeds of rights issue and private placement in the last quarter of the year, reflected in the accounts as deposit for shares.
"Shareholders’ funds hit the N1 billion mark, from N706.46 million in 2005 to N1.189 billion due to the recapitalisation."

On the future prospects of the company, Lady Ufot said: "I am happy to announce the overwhelming success of our rights issue and private placement as we now have a shareholders’ fund in excess of N5 billion.

"Consequently, we have been re-certified by the National Insurance Commission (NAICOM) to transact both general and life businesses, thus making the acquisition of a life insurance company unnecessary.”