The chairman of the company, Chief Adewale Teluwo, disclosed this during the firm’s 44th annual general meeting in Lagos.
He said the “no premium no cover” policy affected its profits but also helped in erasing outstanding debts of the company.
The policy, he noted, had totally erased outstanding debts from the books of insurance companies and noted that its full effect would be more pronounced in subsequent years.
The chairman said the investment income generated by the group was 62 per cent more than that of the preceding period, and that the contribution of the parent company to this income was 53.8 per cent.
Claims paid during the period, he said, rose by 4.6 per cent as a result of the big claims which occurred during the year under review, while that of the parent company was only three per cent more than that of 2012.
Teluwo said the claims ratios were 34.4 per cent and 35.9 per cent for the group and parent company, respectively.
The chairman said the group’s profit before tax for the year under review was N544 million, a decrease of 18.2 per cent from the preceding year; while that of the parent company was N506.9m, which showed a decline of 20.5 per cent over the previous year’s.
