General Information
Please find below our Chairman's Statement from our most recent Annual Report. A selection of financial results can be found by selecting from the right hand navigation menu.

For a full copy, please contact our Company Secretary.

Chairmans Statement

The Business and Political Environment

In 2003, Nigeria sustained its journey into democracy by returning the government to another term of office with a strong and decisive mandate. Despite a growing concern about electoral malpractices and political violence, Nigerians are proud of their hard won fundamental freedom guaranteed under a democratic government. In addition to increased freedom of expression and a vibrant press, dividends of democracy can also be measured by economic growth driven by investments in the oil, technology and services sectors.

The industry's re-capitalisation was concluded at the end of February 2004 as scheduled in line with the Insurance Act 2003. At the end of the exercise 15 insurance companies did not meet the deadline to increase their paid up capital to achieve the  minimum capital requirement.

Also, the insurance industry continued to witness declining infrastructure and increasing incidents of fraud related risks and subsequent loss ratios in fire and accidents classes of non-life business. This problem continued to be compounded by deleterious effects of rate cutting and outstanding receivables due from brokers and insureds. In order to strengthen the operations, the Company will continue to streamline its operations with emphasis on underwriting quality risks, ensuring prompt premium collection and keeping customers happy to the extent legally feasible.

2003 Performance

Gross premium declined by 20% from N1.068billion in 2002 to N855.2million in he current year. The decline is attributable to the  decision by management to either withdraw totally or significantly reduce its proportional participation in very volatile and claims-prone businesses (especially fire and accident), and focus on more profitable business lines (motor and marine). The benefits of this decision resulted into huge reduction in claims paid by 41%, from N701million in 2002 to N415million in the current year.

Despite the reduction in gross premium, underwriting profit improved significantly, from loss of N69.5million in 2002 to a profit of N24.5million in the current year.

Profit fro the year increased by 32% from N102million in the previous year to N135million in the current year.

It is worthy to note that the Company prepared Group financial statements for the first time for the year ended 31 December 2003, consolidating the results of Critical Rescue International (CRI), a wholly owned subsidiary. The Group achieved gross earnings of N1.2billion, profit before tax of N260.7million and profit after tax of N248.2million.

Outlook for 2003 & Beyond

The Pension bill has finally been passed by the appropriate arms of Government and it is envisaged that this will impact significantly on life and pension business in the industry. Let me assure you that UNIC is rightly positioned to take advantage of the opportunities that will arise from the implementation of the bill.

We anticipate that the face of the industry will change with the influx of top-rated banks into the insurance market and your Company is positioned to take advantage of the resulting opportunities.

The Company will continue to implement other aspects of the strategic plan, namely the growth of financial services, life insurance and health insurance.

Dividend Policy

The Group result and the Company achieved impressive results during the year, however, in 2001, bad debts of over N190million which was written off led to accumulated losses retained of N230million at the end of 2001 accounting year. Since 2002, the Company had continued to declare profits and at 2003 year end, the accumulated losses have drastically reduced to N40million which still made it impossible for the Company to declare dividend from current year profits. we are however confident that trends within the Company reveal strong growth, which will translate to a healthy dividend payout in the nearest future. We also believe that we can steadily grow the dividend payout in future years, from this base.


Management and Staff Matters

The good result for the year reflects largely the sustained effort, loyalty an commitment of the management team and staff. Their willingness to improve individual and team skills and to use those skills in driving the Company's objectives are commendable, and I am sure you have no objection to my extending our appreciation on you behalf to them.

Conclusion

Our primary gratitude is to Almighty God who has ensured continuous survival of the Company. Let me also use this occasion to express my gratitude to my colleagues on the Board for their invaluable contribution and support.

I also thank our numerous corporate and individual customers, brokers and agents, some of whom have been with us for decades, for their loyalty and continued patronage. UNIC will remain you insurer of FIRST Choice and continue to give the peace of mind which has been the hallmark of our operations.

Thank you for your attention.

Chief (Dr.) E.A.O. Shonekan, GCFR CBE
Chairman