NIC to pay sh2b dividend
Sep 14, 2010
National Insurance Corporation will pay out over sh2b dividend to shareholders for the 2009 financial year. According to reports from the insurance firm, the dividend will be paid early next month.
By David Mugabe
National Insurance Corporation will pay out over sh2b dividend to shareholders for the 2009 financial year. According to reports from the insurance firm, the dividend will be paid early next month.
The recent insurer’s annual general meeting approved a sh5 dividend for each ordinary share. This is the same amount that was paid out in 2008. The company explained that although there was a rise in premiums, which was not reflected in the dividends, the profits were distributed in retained earnings as the company sought to cushion itself from future risks.
NIC has over 2,000 shareholders, holding 403 million ordinary shares. Announcing the decisions, NIC chairman, Remi Oluwude, said the firm was benefiting from an industry that was slowing getting more awareness from the public and robust growth in most of the key performance areas compared to 2008.
“People are getting more insurance-conscious,†said Oluwude. The insurer’s premium incomes grew by 3%, from sh13.7b in 2008 to sh14.1b in 2009. The annual report also indicates that shareholders’ funds grew by 20% to sh13.3b in 2009, from sh11.1b in 2008.
“However, due to the lingering impact of the global economic meltdown, fair value losses of sh867m in equity investments were recorded in 2009.
“This accounted for a decline of profits before taxes from sh5b in 2008 to sh4b in 2009,†said Oluwude. He also revealed that NIC would introduce an agriculture loan next year.
“Staring from January 2011, we will have crop and livestock insurance. In terms of livestock, if there is any loss of animals, we will pay claims to the farmers,†said Oluwude.
National Insurance Corporation will pay out over sh2b dividend to shareholders for the 2009 financial year. According to reports from the insurance firm, the dividend will be paid early next month.
The recent insurer’s annual general meeting approved a sh5 dividend for each ordinary share. This is the same amount that was paid out in 2008. The company explained that although there was a rise in premiums, which was not reflected in the dividends, the profits were distributed in retained earnings as the company sought to cushion itself from future risks.
NIC has over 2,000 shareholders, holding 403 million ordinary shares. Announcing the decisions, NIC chairman, Remi Oluwude, said the firm was benefiting from an industry that was slowing getting more awareness from the public and robust growth in most of the key performance areas compared to 2008.
“People are getting more insurance-conscious,†said Oluwude. The insurer’s premium incomes grew by 3%, from sh13.7b in 2008 to sh14.1b in 2009. The annual report also indicates that shareholders’ funds grew by 20% to sh13.3b in 2009, from sh11.1b in 2008.
“However, due to the lingering impact of the global economic meltdown, fair value losses of sh867m in equity investments were recorded in 2009.
“This accounted for a decline of profits before taxes from sh5b in 2008 to sh4b in 2009,†said Oluwude. He also revealed that NIC would introduce an agriculture loan next year.
“Staring from January 2011, we will have crop and livestock insurance. In terms of livestock, if there is any loss of animals, we will pay claims to the farmers,†said Oluwude.