IN spite of the harsh business environment and falling stock prices, International Energy Insurance Plc has announced a gross premium income of N3.022 billion for the year ended December 31, 2008. This represents a moderate growth of 13.3 per cent over N2.668 billion recorded the previous year. Besides, the company plans to raise additional N40 billion for growth expansion for five years.

Underwriting and profit before taxes profit grew by 33.6 per cent and 60.6 per cent respectively over last financial year’s performance. Also, the company’s total assets stood at N16.498 billion as at December 2008 representing a growth of 32 per cent over last financial year’s size of N12.464 billion. Shareholders’ funds witnessed a growth of eight per cent from N10.872 billion to N11.748 billion.

The chairman of the company, Sir Pat Sule Nduka Ugboma, addressing shareholders at the 38th yearly general meeting of the company held at Metropolitan Hotel, Calabar, Cross River State, said 2008 was a year of business structure definition, strengthening of the market recognition of the IEI franchise as well as spreading the company’s reach beyond the local space.

He told shareholders “clearly, the company’s performance is indicative of its growing franchise in its flagship business and other major service offerings. The commitment of the board and management to value creation is also demonstrated as the company attained fair growth in all key financial indices despite the boisterous impact of the economic spikes.”

He explained that as the company is set to drive value into the long term through the implementation of the outlined growth initiatives, we see a huge need for capital and the need to plough back a larger portion of our profit into the business. The board of directors, he said, is recommending a dividend of five kobo per share and a bonus of one for every six held by the shareholders.

Said he: “The intent of our transformation into an integrated financial services group is to enable us establish the appropriate platform for operating in the market place. Our strategies are clear, bold and focused on value-based risk management, widening of our market, mind and wallet share in core businesses. We will continue to develop our insurance business as well as build on our competitive edge in identified and mutually reinforcing opportunities in the market place.”

On the future outlook, Ugboma told shareholders: “Your board and management are exploiting the best option available to raise additional N40 billion. The additional fund is required to make a strategic acquisition and working capital to fund our growth plan for five years ending 2013. Besides, your company is positioning itself to secure a foothold in the insurance business within the country and the African region. To this end, we have commenced exploratory activities in most African countries, including Sao Tome & Principe and Cote d’Ivoire. The effort in Cote d’Ivoire has reached an advanced stage as we hope to open IEI, Cote d’Ivoire for business shortly.”

The group Managing Director, Mr. Ifie Sekibo, told The Guardian “IEI has transformed from a unit company to a financial institution with other subsidiaries in asset management, mortgage banking, pension fund administration and strategic investments in other sectors and business. In 2008, IEI Company Limited, Ghana was established and two new branches were also added to the branch network in Nigeria to increase the number of branches to 14.”

According to him “we are committed to our vision of being a global financial institution, beginning with profitable business presence in the West African sub-region land the rest of Africa through organic growth or acquisition of strategically compatible brands.”

lso, the Managing Director, IEI Insurance, Mr. Jacob Erhabor, said that the reason for bringing this year’s AGM to the Cross River State capital was in furtherance of the company’s objectives of bringing insurance services to all nooks and grannies of this country and for the good business relationship the company enjoys with the Cross River State government and business community in the state.

On the performance of the company, he said: “It was particularly bad year for every business organisation and ours was not an exception, in spite of all that the fact that we still recorded profit and have reward for our shareholders both in dividend and bonus, it is encouraging but it could have been better but for the crash in the capital market. Investment climate was exceedingly difficult, what saved us was that we recorded a good underwriting profit. We believe that we have the right calibre of human capital that will rise up to the challenges and create value for all stakeholders”, he said.