HALF YEAR RESULTS: PRESTIGE ASSURANCE PLC.

Prestige Assurance PLC seems destined to navigate its way to more profit this financial year in spite of mines in today's terrain.

According to half year results released recently, Prestige Assurance had N282.3m profit before tax in its corner compared to only N81.8m profit at the same time last year.

Perhaps even more relevant was the fact that credit goes to almost superlative N215.9m profit recorded in the second quarter to June alone, as against the N23.2m loss on the same quarter previously.

The mines Prestige Assurance had to take in its stride during the first half include 5.7% rise in reinsurance to N804.9m at a time earned premium grew by only 0.2% to N1316.2m; 5.95% decrease in commission to N197.7m;92% dry up of income from other operations to N12.9m and 11.7% drop in investment income to N217.6m.

However, so many factors helped the company through it all. These were 81.8% dive in claims to N100.5m; 68.7% decrease in acquisition expenses to N60.4m and 64.1% down at N64.9m for maintenance costs.

In the end, total underwriting expenses decreased by 45.6% to 474.6m paving the way for N236.4m underwriting profit as against N109.7m underwriting loss by June 2015.

As if to help matters further, management expenses decreased by 2.47% to N201.5m and N16.9m profit was recorded on fair financial assets value.

Thus, from 8.8% drop in total income to N1761.3m, Prestige Assurance recorded 244.1% rise in profit before tax to N282.3m leading to 16% double digit profit margin compared to 4.24% by June 2015.

Performing at par with its second quarter achievement for the remaining months of the year should good guarantee a fine finish in this 2016 year.

PRESTIGE ASSURANCE PLC: Nm Half year.
                      2016.     2015
Total inc.     1761.3  1931.2
Premium     1316.2. 1313.6
Reinsurance 804.9.    761.5
Commission 197.7.   210.2
Claims           100.5   551.7
Acquisition      60.4   193.2
Maintenance. 64.9.   180.9
Investment    217.6.  246.3
Other inc          12.9.  161.1
Fair value gain 16.9 (9.37)
Management 201.5. 206.6
Profit b4 tax  282.3.   81.8
Margin %        16.0.   4.24

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