NIC posts Shs2bn profit, eyes growth
NIC posts Shs2bn profit, eyes growth
KAMPALA – 29th September 2011
National Insurance Corporation Limited is optimistic about its growth prospects after taking significant steps to resolve the dispute with Makerere University over the Deposit Administration Plan scheme (Muk DAP), NIC Chairman Remi Olowude said yesterday.
Mr Olowude was speaking during NIC’s 10th Annual General Meeting in Kampala where he presented shareholders with the company’s Annual Report and Financial Statement for the year ended December 31, 2010.
The Corporation’s profit for the year was Shs2.023 billion, which the company is proposing to plough back as retained earnings.
“I am delighted to report that your company has remained on the growth trajectory,” Mr Olowude told shareholders. “Major strides recorded in the year under review include the enhancement of the efficiency of your company’s business processes to guarantee greater performance and profitability.”
NIC has sustained its enviable reputation of prompt settlement of claims. Last year it paid the Uganda Police Force Shs8.2 billion for a helicopter that crashed on March 8, 2011 in Bugiri, Eastern Uganda. NIC also paid Shs10 billion to beneficiaries of the Makerere DAP scheme, as agreed with the Government of Uganda, pending final valuation of the Fund balance by an independent Actuary.
“The final settlement of the MUK DAP claims is being worked out and it is hoped that all the outstanding issues relating to the MUK DAP will be satisfactorily resolved,” Mr Olowude said. “It is important to mention that so far, NIC has paid Shs15.7 billion to MUK DAP beneficiaries whilst only Shs13.2 billion was received as contribution throughout the Programme life.”
He added: “So far, NIC has demonstrated the principle of utmost good faith in the handling of every matter material to the MUK DAP. I have no doubt that NIC will emerge from the present situation stronger than ever, thus vindicating the company.”
NIC HIGHLIGHTS OF THE YEAR ENDING DECEMBER 31, 2010
Gross premium income was Shs9.023 billion, while Investment income rose by 15.4 percent from Shs1.345 billion in 2009 to Shs1.554 billion in 2010.
Underwriting results, before management expenses, stood at Shs4.729 billion, despite 30 percent drop in gross premium income, on the back of a sound underwriting policy.
Total claims payments rose 315 percent to Shs10.864 billion, showing proof of company’s financial strength. Settlements included a Non-life Insurance claim of Shs8.2 billion for a helicopter loss by the Ugandan Police, which was the biggest claim payment in the industry during the review period.
Funds and reserves for long term insurance business rose 68 percent to Shs1.008 billion, despite a 66 percent drop in gross premium income.
The total assets of the company grew by 10 percent to Shs73.325 billion in 2010 from Shs66.551 billion in 2009. Of particular note was the capital appreciation of the investment properties, which rose by Shs5.74 billion to Shs36.425billion, a 19 percent increase from 2009, which amounts to an increase of 19 percent.
Total equity of the company also increased to Shs21.007 billion in 2010, representing an increase of 5 percent.
NIC remains official insurer of the Ugandan senior national football team, The Cranes, as it provided insurance coverage for the Federation of Ugandan Football Associations (FUFA).
NIC also retained its unrivalled dominance of the game of Female Netball in the East African region in 2010, as the company’s Netball team retained the Regional championship trophy for the year.