National Insurance 2010 profits decline

Monday, 8th August, 2011

NATIONAL Insurance Corporation (NIC) finally released its full 2010 year results indicating a decline in profits from sh3.3b in 2009 to sh2.02b, the previous year.

The accounts were audited by Deloitte & Touché.

The insurer, which has suffered negative reports for failure to release the results in time as well as its disputes with the Makerere University staff over pension funds, also registered a drop in earnings per share from sh8 to sh5. Net premium earnings also fell from sh10.9b to sh8.2b.

Total equities and liabilities increased to sh73.3b from sh66.5b, while investment incomes also lowered to sh13.4b from sh14.2b in 2010.

In its September 28 annual general meeting notice, NIC has put forward a proposal to raise additional capital either through the secondary market or “as directors may deem fit.”

NIC is owned by Nigeria’s Industrial and General Insurance. No dividend was also declared

The board of the Uganda Securities Exchange was last week scheduled to meet to consider the reinstatement of NIC to trade on the stock exchange after the insurer was suspended for failure to publish audited year end results.

By David Mugabe: The New Vision Newspaper