The Management of Prestige Assurance Plc has released its profit forecast for the third quarter ending 30th September 2021.
Prestige Assurance projected N7.5 billion Turnover while Profit before tax was projected at N1.25 billion. Brand Spur observed that the underwriting company expects Tax at N250 million. Profit after tax was projected at N1 billion.
The Management of Prestige Assurance noted that the profit forecast is based on the following assumptions:
- There will be no serious Government restrictions of trade that will affect the insurance
business. - The company will not suffer any major catastrophe which will necessitate the reduction of an investment portfolio for claims payment.
- There will not be any considerable reduction in the level of interest rate.
- The capital Market activities will improve significantly from the bearish position to the bullish one.
- The country political climate shall be stable for carrying out business activities across the
nation. - The company will continue to deal with its present range of insurance policies.
- The company will enhance its present treaty arrangement due to recapitalization.
- The accounting policies will not change.
- The basis of taxation will not change materially.
- The company would maintain its present workforce and additional hands will be
employed to take care of increased business activities. - There will be vigorous effort to improve upon the present market share.
- A part of the Proceed from recapitalization will be invested in government gilts to
enhance investment income. - There shall be no protest, pandemic and another pandemonium that might affect
business transactions negatively.
Prestige Assurance Plc has planned for a new capital raise of N3.374 billion to enable it to meet capitalisation requirements of N10 billion set for companies in its category. This is despite that the exercise is on hold following a court order.
The underwriting company, which has completed a rights issue during the past year, is having about N6.62 billion capitalisation.
Prestige Assurance Plc has recorded a gross written premium of N7.01 billion as against N6.13 billion achieved in 2019.
According to the firm, net premium income increased from N3.206 billion in 2019 to N3.478 billion in 2020 while profit for the year increased to N678.3 billion as against N431.83 billion recorded in 2019 while shareholders’ funds stood at N12,403 billion, from 8,445 billion in 2019.