Niger Insurance Plc released its 2013 FY results posting an 18% rise in Net Premium Income to N10.3billion (2012: N8.7billion). Underwriting profit also rose 36% to N4.75billion compared to N3.48billion the year before. However, the company posted a massive 39% rise in management expenses to N4.6billion (2012: N3.3billion). A closer look at the result suggest the company incurred over N3billion in employment benefit and expenses for the period. Drilling further shows a huge increase in staff retirement expense. It increased from N219million to N1.8billion.
The company posted a profit after tax of N627million compared to N776million posted in 2012. Niger Insurance shares remains amazingly stuck at 50kobo and has returned 0% YTD. This years profit produces an earnings per share of 8.1kobo thus giving a price earnings ratio of 6x. The company also proposed 3.5kobo (2012: 3 kobo) in dividends this year providing a yield of 7%. It’s unlikely though that the share price will move beyond 60kobo. Maybe after they announce their 2014 Q1 results.