Prestige Assurance Plc has said the huge single claim of over N725million it paid to Dana Airline, to a large extent adversely affected its profitability for the year ended December 31, 2015.
Prestige Assurance, was the lead insurer for Dana Airline which air craft crashed few years back, killing its passengers and crew members.
The company, along other co insurers took the responsibility of compensating relatives of the crash victims and the ground victims.
The company, which completed the claims settlement from the crash last year, put total claims it paid at N725 million.
At the meeting, the company assured its shareholders that it has brought everything concerning the Dana Air claims under control as it announced gross premium of N2.4430533billion for the period.
Profit Before Tax of the company for the period stood at N20.339577million while loss incurred after tax stood at N145.295000million.
Announcing this at the 46th annual general meeting of the company held in Lagos, Prestige Assurance Chairman, Hasan Usman, said the quantum of loss after tax incurred was due to the peculiarity of the tax laws guiding insurance companies where in tax is levied against premium earned and not profit made.
He said the company’s underwriting expenses stood at N1.733977000 during the period under review while result from operating activities of the company stood at N39.577000.
Hassan, said though the competitive environment in Nigeria will be as challenging as ever, especially with the entrance of international giants into the Nigerian market, the situation presents opportunity to upgrade insurance practice in Nigeria and is good for its operations because of the rare competitive strength it had built for itself over the years as one of the oldest and most experienced operators in the Nigerian market.
“Our unmatched depth of knowledge of the Nigerian market and very strong international links gives us cause to believe that we are well poised to tap into areas of opportunity in the Nigerian market with our market winning products and services”, said Usman.
He said as part of the company’s strategy to achieve its target of being one of the top three insurance companies in Nigeria, the strategic business unit E business unit and Ikeja branch office have been opened and is fully operational even as he said that the company has got plans to open more branches with the intention of acquiring more market share of the insurance industry.
Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd
The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.
The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.
The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.
The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.
Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.
The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.
Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins
Oil Prices Recover from 4 Percent Decline as Joe Biden Wins
Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.
This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.
Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.
On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.
“Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”
The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.
“There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.
“Either you’re crimping energy demand or consumption behavior.”
Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020
Revenue of OPEC Members to Drop to 18 Year Low in 2020
The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.
EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.
“If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.
The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.
It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.
It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.
“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”
Alibaba Merchants Sell $40B in First Half Hour of Singles Day 2020, More than 2019 Event Full Sales
COVID-19 Vaccine: Crude Oil Extends Gain to $48 Per Barrel on Wednesday
MTN Nigeria, Gameloft Partner to Increase Access to Variety of Exciting Games
Business2 months ago
Npower News on Permanency for Batch A, B
Forex2 months ago
Naira Improves Against Global Counterparts on Black Market
Business1 month ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
Forex3 months ago
Zenith Bank Joins Other Banks to Cap International Spend Limit at $100/Month
Cryptocurrency2 months ago
Bitcoin Gains 1.67 Percent to $11,050 Per Coin Amid Liquidity Issue
Business3 months ago
Again, UBA Reduces International Spending Limit on Naira Card as Forex Scarcity Persists
Business3 months ago
FG Approves Stipends for Exited N-Power Beneficiaries
Stock Market3 months ago
Zenith Bank Declares 30 Kobo Interim Dividend for H1 2020