The Board Chairperson of Aureol Insusrance Company Limited, Mrs. Yasmin Fofanah on Friday August 28, 2020 reported that the Company made Le 3.759 billion profit before tax for the period to 31st December 2019 as compared to its Le 3.737 Billion in the year 2018.
Fofanah made the disclosure during the Company’s 33rd Annual General Meeting (AGM) which was held virtually due to the current pandemic.
During the same meeting, she informed Company shareholders that amidst high incidence and severity of claims, coupled with declining insurance rates and market shares, the Company continues to deliver a very strong performance in the insurance industry.
She gave an overview of Sierra Leone’s Insurance Industry, during which she said it had been characterized by declining insurance rates and market shares and unhealthy competition which are primarily driven by the strong bargaining powers of buyers and slow growth which she added were a reflection of the overall economy.
She stated that the market struggled to generate consistent underwriting results due to the high incidence and severity of claims.
She informed the gathering that a new market conduct and business practice guidelines for the insurance industry will be introduced by the Sierra Leone Insurance Commission (SLICOM) very soon, and added that the details and timelines for the new measures were yet to be finalized by the industry. She said that SLICOM had also indicated that it intends to increase the minimum Paid-Up Capital and Statutory Deposits which each shareholder of companies in the insurance business must pay outright out of the total value of their shares to hold a share in an insurance company operating in Sierra Leone.
Reporting on the results of the company’s operation for the year 2019, she informed shareholders that the Gross Written Premium Income for the year to 31st December 2019 was Le 31.122 billion as compared to Le 9.142 billion for the corresponding period to 31st December 2018 which is an increase of 7%. Furthermore, claims paid for the year to 31 December 2019 was Le 11.655 billion as compared to Le 8.251 billion for the corresponding period to 31st December 2018 [An increase of 41%].
“Claims ratio for the period under review was 47% as compared to 37% for same the period to 31st December 2018. However, the Expense ratio for 12 months to 31st December 2019 was 49% as compared to 56% for the corresponding period to 31st December 2018,” she added. “The Company reported a Profit before tax for the period to 31st December 2019 of Le 3.759 billion as compared to Le 3.737 Billion for the period to 31st December 2018.”
She said, “Fellow shareholders, after a careful consideration of the results of operations and despite the very difficult operating environment, the board is pleased to recommend a dividend of Le 0.40 cents per share to all members of the Company as at 31st December 2019.”
The Chairperson underscored the fact that the company continues to provide a conducive working environment for members of staff to pursue their continuous professional development so that they will realize their full potential, while at the same time providing excellent customer service to its clients and contributing to the profit making.
In April 2019, the Managing Director Aureol Insurance Company, Mr. Raymond Macauley was elected President of the West African Insurance Companies Association (WAICA) during the Association’s Annual General Meeting held in Freetown Sierra Leone.
Mr Macauley was also appointed a member of the Governing Council of the West African Insurance Institute (WAI) In Banjul, the Gambia; and at its annual graduation ceremony in December 2019, the institute elevated him to its Society of Fellows. Mrs. Fofanah on behalf of the Board and shareholders congratulated wished good luck to Mrs. Marian Fudia Kargbo, who in October 2019 qualified as an Associate of the Chartered Insurance Institute in London (ACI). She also congratulated seven members of staff who successfully completed their examinations in the Insurance Foundation Course (IFC) awarded by the West African Insurance Institute (WAI).
In her concluding remarks, Mrs. Fofanah assured shareholders that in spite of the volatile and uncertain nature of Sierra Leone’s economy, which has been further aggravated by post balance sheet events especially the Covid 19 pandemic, they are optimistic that the economy would recover. She expressed hope that Aureol Insurance Company would benefit from both the individual and collective prosperity that the economic recovery which she predicted will bring.
She thanked all Shareholders, Loyal Customers, Agents, Brokers, Reinsurance Brokers, Reinsurers and Consulting Actuaries for their support and continued patronage, and promised that the Company would continue to render excellent service that will exceed their expectations. She continued: “this solid set of results highlights our staff’s ability and determination to contend with fluctuating market conditions and seize opportunities for growth.” She on behalf of her colleagues on the Board and shareholders expressed gratitude and appreciation to all members of staff for yet another successful year in spite of the very challenging environment.
On behalf of the board, she expressed condolence to the families of customers and shareholders who died during the period under review and prayed for a peaceful repose of their souls.
By Stephen V. Lansana
31/08/2020. ISSUE NO: 7898