UnityKapital set to change corporate identity

Shareholders of UnityKapital Assurance Plc has mandated the management of the company to effect comprehensive restructuring, rebranding and change the name of the company to align with current realities, and enhance its competitiveness.

This is against the backdrop of shortfalls in its Premium Income, Net Income, Profit Before Tax, and Profit After Tax at the end of the company’s financial year ended December 31st, 2016

These were disclosed during the company’s 40th Annual General Meeting (AGM) held on Thursday, in Abuja.According to its annual report accounts, the Premium Income generated decreased by 23 per cent to N2.04billion against N2.65billion recorded in 2015, Net Premium fell by 25 per cent recording N1.6billion as against N2.1billion in 2015, Profit Before Tax decreased by 40 per cent from N441million in 2015 to N265million in 2016, and the Profit After Tax also fell by 40 per cent from N321million in 2015 to N192 million.

Despite the negative performance experienced in the year under review, the company recorded a marginal growth of nine per cent from N11.4billion in 2015 to N12.46billion in 2016, and declared a total dividend of N69.333million at N0.05 per share against N207.999million at N0.15 declared in 2015.

Also, the insurance liabilities decreased by 15 per cent from N856million in 2015 to N729million recorded in 2016, while operating cost reduced by 22 per cent from N1.6billion to N1.2billion in 2016. Also, shareholders funds rose 10 per cent from N9.4billion to N10.3billion due to revaluation of the company’s assets, while it settled claims of about N619.276million in 2016 against N406.875million in 2015.

The Managing Director, Polycarp Didam, explained that the resolve to rebrand and change the companyís name was informed by the need to meet the challenges of the time. He assured that it would not only be restricted to UnityKapital Assurance, but to all its subsidiaries to ensure growth and profitability for the interest of the shareholders.

Didam, who did not disclose the new brand name of the company, said however that in few monthsí time, there will be noticeable changes, adding that the company would continue to abide by the rules of the industry to avoid any fine or penalty due to infractions.

He noted that the company was affected by the downturn in the socio-economic economic sector just like any other company, and promised that the current financial year would be better.

Also, the company’s Chairman, Board of Directors, Thomas Etu, said the observed changes in the companyís management was necessitated by the need to inject new ideas, attract new investors for the progress and sustainability of the company for the overall interest of the stakeholders.