Reliance Insurance Trust Corporation (Ritcorp) has recorded a profit of Le1.287 billion after tax for the year 2007, accounting for a 24 percent growth as against Le1.038 billion for the previous term.
Addressing the 20th annual general meeting of shareholders at the Archbishop Brosnaham Memorial Hall, Santanno House, Howe Street yesterday the Chairman of the Board, Mohamed Babatunde Cole, informed shareholders of a Le1.70 per share dividend to all members of the Company’s register as at 31st December 2007.
Commenting on the gross premium income for 2007, he disclosed that it has increased by 39% (Le4.409billion) as against Le3.179 billion in 2006, while noting that similarly underwriting profit before tax for 2007 also increased by 20% (Le1.138billion) as against Le949 billion for the period under review.
On the mandate from the Ministry of Finance regarding recapitalization in which all insurance companies in the country should increase their total paid up capital to Le1.2 billion as at the end of 2009 financial year, he spoke about the phase out plan in which at the end of 2008 financial year paid up capital should not be less than Le600 million.
However, the Chairman said, “in order to comply with this mandate, the Board of Directors has recommended a scrip issue of 2 bonus shares for every one bonus share held and a right issue of one share for every one existing share at Le5.00 per share to all members on record as at 31st July 2008.
The Chairman also “acknowledge the team spirit of management and staff in securing new businesses resulting from increased economic activities across the country, which contributed in improving (the) profitability and growth of the company”.
He disclosed that “staff development remains a fundamental part of our management policy and therefore we continue to provide training for our staff by sending them on workshops, seminars, conferences and assisting them in taking relevant external professional examinations.”
On the construction project of a new headquarter at Percival Street, he stated that the first phase of the project has not been completed as scheduled due to some constraints faced by the contractors, noting that, however, substantial progress has been made with the revised expected date of completion now set for the end of this month.
Shareholders unanimously reappointed Messers J.P.Koroma and I. M. Kabbay as directors, while they endorsed that the fees of the directors remain the same, as that of the auditors Panel Kerr Forster (PKF).
By Samuel John
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