The Aureol Insurance Company (AIC) has recorded Le526 million profit after tax, shareholders were notified at the 21st annual general meeting Holden at the Bank of Sierra Leone Complex past Friday.
In his annual report to shareholders, the Chairman of the Board of Directors, Dr. Patrick Coker noted the figure when compared to that of the same period of last year, which was Le435m has increased by 21%.
As a result of the profit gained, shareholders were awarded a dividend of Le1.20 per shares to all members of the company as at 31st December last year, while revealing that “additional shares in the form of a bonus issue offering 2 bonus shares for every one share held at the company as at 31st December 2007.”
He went on to ask that, “the bonus shares be appropriated out of the share premium reserve to be holders of the ordinary shares in the capital of the company,” this he emphasized “is in anticipation of the impending increase in the capital requirement of Insurance Companies by the Sierra Leone Insurance Commission.”
Commenting on other achievements, he disclosed that, “investment and other income for the current period was Le492, 842 million as compared to Le281, 827 million an increase of 4.87 %.”
This growth, “in our investment returns was achieved by optimum utilization of funds in a very restricted market” he said.
Commenting on the results of the company’s operations, he disclosed that gross written premium for the year was Le7,430 billion as compared to Le5,466 billion for the preceding year, which was an increase of 36%.
He told shareholders that “this shows a significant improvement in your company’s performance,” while he indicated that claims incurred for the period under review was Le1,413 billion as compared to Le1, 413 billion for last year.
This, the Board Chairman said represents a claim ratio of 36% as compared to 32% for the corresponding year, observing that “the deterioration of the claims ratio was mainly due to the incidence and severity of medical and motor insurance claims.”
On the increase in authorized capital, he said that, “in anticipation of the statutory requirement instituted by the Ministry of Finance in conjunction with the Sierra Leone Insurance Commission, your Board has considered and approved plans which would require an increase in the authorized share capital from Le1 billion to Le5 billion by the creation of Le4 billion shares of Le1.00 each to rank pari passu with the existing shares.”
The resolution when eventually put to shareholders was unanimously endorsed as well as of retaining the services of two board members Yasmin Fofanah and Mrs. Nancy Nicolas.
By Samuel John