Shareholders of the Reliance Insurance Trust Corporation (Ritcorp) have been awarded a dividend of Le1.50 cent per share after they were informed that the company recorded a profit after tax of Le1.038 billion for last year.
The profit recorded last year exceeded the 2005 figures which was Le980m.
In his statement to shareholders Chairman Mohamed Babatunde Cole noted that “the industry continued to experience increased operational expenses due to the severe shortages of electricity supply which impacted negatively on the profitability of the company.”
He went on, “gross premium income for the year was Le3.179billion as compared to Le2.841 billion for the previous years,” while underwriting profit before tax was Le949million as compared to Le852million in 2005.
Shareholders were notified by the statement that the “marginal increase in profitability is due to the increase in operation cost and stiff competition due to the emergence of new Insurance Companies in the market.”
Chairman Cole affirmed further that, “our management has promised to double up its efforts to improve on the income generation.”
On the present construction of Ritcorp’s new head office at Percival Street, shareholders were told that the sod turning took place on 25th May this year and the building is scheduled to be completed by December 2007.
Responding to questions from shareholders regarding the structure, Chairman Cole disclosed that the first phase is costing Le1.1 billion and they will tender again for the second phase.
Shareholders unanimously expressed their gratitude for the capital growth of the company, as well as regularizing the disparities between the chairman’s remuneration and that of the directors.
Rounding up the day’s activities, Chairman Cole assured shareholders that the company will continue to do well and that the low dividend was as a result of the construction of the new head office of the company at Percival Street.