National Insurance Company (NIC) has recovered from years of losses to post a 9 per cent growth in written premiums, growing to Shs22b in the period ended December 2020 from Shs20b in 2019.
Speaking during a virtual annual general meeting, Dr Alan Shonubi, the NIC chairman, said that whereas 2020 had proved to be one of the most volatile years for most businesses across the globe, NIC had managed to record a major turnaround of its bottom line from loss to profit making.
The insurer, Dr Shonubi said, posted Shs1.91b as profit after tax compared to a loss of Shs2.7b in 2019.
The performance, he said, was a result of strategic and consistent investments in automation and digitisation of different processes and services, which enabled the company to adapt to the current new normal to remain reliable and relevant.
Thus, Dr Shonubi said, the board, pending regulatory approvals, had proposed a bonus issue of one share for every two shares held by each shareholder as of June 17, 2021.
During the meeting the shareholders, among other resolutions, approved increase in the company’s authorised share capital from Shs10b to Shs13b and the consequential amendment of clause five of the Memorandum of Association to cover the new authorised share capital.
In his presentation, Mr Bayo Folayan, the NIC managing director, said the improvement in performance had been possible due to commitment to take up new challenges and innovations, among which included streamlining expenses leading to a 12 per cent reduction in management expenses to Shs12b from Shs13.7b in 2019.
Earnings per share, he said, had during the period, been reversed from -3.98 to 2.2 even as shareholder funds increased by 7 per cent from Shs33b in 2019 to Shs35b in 2020.
NIC has been struggling for more than five years to return to profitability burdened by a dispute with Makerere Univiersity staff over Shs26.88b.