Insurance looks to new investment portfolios

Sustainable investments that would create long term value and strengthen return on investment for shareholders are critical for stability of any insurance company that looks to the future.

This is hinged on the fact that payment of claims, which is a major priority of insurance companies would continue to come, particularly now that consumers are becoming more aware of their rights.

It is therefore appropriate that any insurance company that wants to play in the future would as matter of necessity strengthen its income base, expand investment portfolios to meet future obligations, while also meeting the expectation of its teaming shareholders.

These perhaps suggest why Anchor Insurance Company Limited is taking a bold step to construct a new commercial high-rise in Uyo Akaw Ibom State.

The project, recently approved by the board of directors will involve a multipurpose six-floor complex to boast of all modern facilities including banking hall at its ground floor and a restaurant at its pent house situate in a land of about 1500sqm.

It is expected that the built area will be about 700sqm, and a substantial part of the area will be used as the car park.

Estimated to be completed within one year, the project commissioning will coincide with the 25th anniversary of the Company scheduled for last quarter of 2014.

Adeduro Mayowa, managing director of the company said it’s going to be a landmark project in the heartland of Akwa Ibom capital, even as he commended the state government in the effort to transform the state. “Anchor Insurance like other informed investors, was just responding to the conducive investment environment being provided by the government.

Mayowa disclosed that the Board also approved the renovation of the old Anchor Insurance House at Aka Road, Uyo. The seven-floor building which used to be the tallest building in the capital currently houses United Bank for Africa plc and the Corporate Affairs Commission, Akwa Ibom State Zonal office.

According to him, the Company is set to let out more floors to boost its income from investment properties.

Adeduro, who joined the company in 2008 on a turnaround mission following a recruitment search by a leading human capital consulting firm in Lagos said that the company has been in consistent profitability since 2009 and had paid dividends consecutively for three years. “The turnaround mission in the company had been accomplished and now the company is on the trajectory of geometric growth.”

On the 2012 performance of the Company, Adeduro said that though approval was yet to be secured from the regulator, the shareholders should expect nothing less than improved performance already known with the company and even far better than its performance in 2011.

In the last three years, Anchor Insurance gross premium income has grown by over 100 percent, setting the company apart as a leading general insurance company in terms of annualised percentage growth rate and profitability.

On what accounted for the growth rate, including about 17 percent in General Business and 23 percent in Life Business, Adeduro said that the management realised that for a long time the company lacked focus, therefore the new management set a new agenda and obtained the approval of the board and the cooperation of entire staff to handle insurance creatively, leaping on Blue Ocean Strategy and Total Quality Management.

He said the new management adopted a different approach in jump-starting the turn-around rather than copying text books and some consultant’s models of retrenchment.

On future plans, Adeduro stated that more investors would be welcomed in the company soon, as the Board is considering a broad strategy of increasing the paid up share capital of the company to N5 billion and above.

As at 2011 financial year, authorised share capital of the company stood at N3 billion while the paid up share capital stood N2.45 billion, whereas the shareholders fund stands at N3.74 billion. The company now boasts of 17 branches in Nigeria and over 250 staff strength.