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Investor Relations

Welcome to the investor relations page of Standard Alliance Insurance Plc website. SA Insurance Plc is a high profile, technology-driven and customer-oriented company ranking among the best and most respected insurance companies in Nigeria in terms of products and service delivery.

This section is designed to provide up to date news and information about the company, the latest financial results, events and activities to shareholders and potential Investors.

We hope you will find the information you need and gain a greater understanding of our commitment to achieving the highest sustainable shareholder value over the long term.

Chairman’s Statement
Chairman’s remarks about the company performance, goals and objectives in becoming the leading provider of Insurance, risk management and investment services in Africa.

Corporate Governance
Learn about SA Insurance Plc. directors, officers and key corporate documents that govern the management of our company

Corporate Governance Report

The Board is committed to best practices and procedures in corporate governance. Overseen by the Board of Directors, Standard Alliance Insurance Plc's corporate governance practices are constantly under review, in line with the dynamics of the business environment and guidelines of the regulatory bodies.
The corporate governance policies adopted by the Board of Directors are designed to ensure that the company's business is conducted in a fair, honest and transparent manner which conforms to high ethical standards.
The day to day running of the company is delegated to the Managing Director by the Board of Directors assisted by the management committee.

Responsibilities of the Board of Directors

The responsibility of the Board of Directors includes:
i.          Review corporate strategy, major plans of actions, risk policy, business
            plans, setting performance objectives, monitoring implementation and corporate
            performance and overseeing major capital expenditures and acquisitions.
ii.         Select, compensate, monitor and when necessary, replace key executives and
            oversee succession planning.
iii.        Monitor the effectiveness of the governance practices under which it operates and
            make changes as may be necessary.
iv.        Ensure the integrity of the companies' accounting and financial reporting systems,
            including the independent audit and that appropriate systems of control are in place,
            in particular, systems for monitoring risk, financial control and compliance with the law.
v.         Monitor and manage potential conflicts of interest of management, board members and
            shareholders,including misuse of corporate assets and abuse in related party
            transactions.
vi.        Supervise and monitor the execution of policies and providing direction for the
            management.
vii.       Monitor potential risks within the company including recognising and encouraging
            honest whistle blowing.
viii.      Oversee the process of disclosure and communication in the company.

The Board carries out some of the above responsibilities through the Board sub-committees whose terms of reference set out clearly their roles, responsibilities, scope of authority and procedures for reporting to the Board. Each committee is chaired by a Non Executive Director in compliance with principles of good corporate governance. The Audit Committee is chaired by a representative of the shareholders.

Sub Committees of the Board of Directors

The Board delegated some of its responsibilities to standing committees that consist of Executive and Non Executive Directors. These committees report to the Board of Directors on their activities and decisions, which are ratified by the full Board.
These committees are as follows:
THE INVESTMENT AND FINANCE COMMITTEE
This is a standing committee of the Board with the responsibility for investment. The Managing Director is a member of the Committee. The committee members are:
Mr Joshua Ayodele Ajayi                                            -     Chairman
Olorogun O'tega Emerhor, OON                                -     Member
Alh. Mohammed Hassan (Ciroman Keffi)                  -     Member (Deceased – Nov.
2011)
Mr. Thomas Imokhai                                                  -     Member
Mrs. Orerhime Emerhor-Iwuagwu                             -     Member
Its terms of reference include:
-           Ensure investment policies in place are documented, including placement limits.
-           Review existing investments and investment strategies

THE STRATEGY AND ESTABLISHMENT COMMITTEE
The Committee membership includes the Managing Director.
Dr. Ramsey Mowoe    , CON                           -           Chairman
Olorogun O'tega Emerhor, OON                    -           Member
Mr. Thomas Imokhai                                      -           Member
Brig. Gen. Dominic Oneya (Rtd)                     -           Member
Mrs. Orerhime Emerhor-Iwuagwu                 -           Member
Its terms of reference include:
-           Review capital and recurrent expenditure policies/processes.
-           Review of administration and general management practices.
-           Review entitlements and otherwise as they relate to board members and make
recommendations.
-           Any other matter that may be relevant in the improvement of strategy and
establishment process.
-           Enterprise risk management.

RISK AND REMUNERATION COMMITTEE
The Committee membership includes the Managing Director.
Brig. Gen. Dominic Oneya (Rtd)                     -     Chairman
Olorogun O'tega Emerhor, OON                    -     Member
Mr. Thomas Imokhai                                      -     Member
Mrs. Orerhime Emerhor-Iwuagwu                 -     Member
Mr Joshua Ayodele Ajayi                                -     Member

Its terms of reference include:
-           Review Directors compensations.
-           Review Executive Directors remuneration packages.
-           Enterprise risk management.

THE AUDIT COMMITTEE
The Audit Committee is made up of 6 (six) members, three representatives each of Shareholders and Directors. Its members are elected at the Annual General Meeting. The members of the committee are:
Mr Chuka Onwuchekwa                                 -     Chairman (Shareholder)
Mr. Matthew Esonanjor                                 -     Member   (Shareholder)
Mr. Ese Arueya                                               -     Member   (Shareholder)
Dr. Ramsey Mowoe    CON                            -     Member   (Director)
Brig. Gen. Dominic Oneya (Rtd)                     -     Member   (Director)
Alh. Mohammed Hassan (Ciroman Keffi)      -    Member   (Director) (Deceased –
Nov.2011)

In addition to its responsibility to review the scope, independence and objectivity of the audit, the Committee carries out all such matters as are reserved to it by the Companies and Allied Matters Act, CAP C20 Laws of the Federation of Nigeria, 2004. These include to:
- Review adequacy and effectiveness of the company's internal control policies prior to endorsement by the Board.
- Direct and supervise investigations into matters within the scope, such as
evaluation of internal controls, cases of employee, business partners and client
misconduct or conflict of interest.

CHAIRMAN’S STATEMENT

Distinguished shareholders, it is my privilege to welcome you to the Sixteenth Annual General Meeting of our company and present the company’s performance for the financial year ended December 31, 2011. There were several challenges during the year. Generally, businesses operated in a very unfriendly environment caused by inadequate infrastructure, insecurity and high cost of funds among others. Despite these, our company’s financial performance improved over that of the previous year.

The Global Economy

The real GDP growth in the global economy stood at 3.9% with developed countries growing at just 1.6% while emerging and developing economies grew at 6.3%. Unemployment remained a key problem facing the global economy during the financial year, and emerged a stumbling block to global recovery, principally in the Western world. Growth in the Euro-zone slowed considerably since the beginning of 2011 and the ever-simmering sovereign debt crisis heavily weighed on consumer and business confidence across Europe. Japan’s growth prospects were also weakened considerably by the nuclear crisis and the effects of the tsunami and earthquake, culminating in the downgrade of the country’s credit rating.
Generally, the failure of policymakers in developed economies to address unemployment and prevent sovereign debt distress and financial sector fragility from escalating posed the most acute risk for the global economy in the year under review; with renewed global recession being a possibility all year round.
The sub-Sahara African region was not significantly affected by the global economic crisis and growth continued to outperform advanced economies. The region grew at an estimated 5.2% in 2011; driven essentially by a recovery in commodity prices and exports during the year. In the Middle East and North Africa, political unrest and political instability were experienced in some countries which adversely affected the economies of the region.

Nigerian Economy

2011 saw the emergence of Dr. Goodluck Jonathan as the President of the country in a very free and fair election. This ongoing political stability in the country has been an important factor in the continuing high level of investor confidence enjoyed by the country. 2011 also saw the unveiling of the President’s transformation agenda. The agenda ranged from ports and agriculture reforms to the establishment of a Sovereign Wealth Fund, indicating the government’s readiness to create the enabling environment for sustainable economic growth.
The average crude oil price was consistently high and above the benchmark price of US$75 per barrel. There was also improved oil production, due mainly to the implementation of the amnesty and post-amnesty programmes of the Federal Government that severely reduced youth restiveness in the Niger Delta.
The high crude oil prices and the increased production subsequently had a positive effect on foreign reserves, averaging US$32.71 billion for the year.
Inflation, a key economic indicator, closed the year at 10.3% compared to 12.1% in January. Similarly, interest rate started the year at 6% and closed the year at 12%. The exchange rates between the Naira and the US Dollar fluctuated between =N=148.5 to =N=156.4 to the US Dollar.

Financial Results

The effects of the global economic recession continued to resonate across the globe and Nigeria, being a part of the global economy, was not left out. In spite of this and other economic challenges, your company was able to improve on its performance compared to 2010. The company generated a gross premium of =N=4.552 billion compared to =N=3.782 in 2010 representing an increase of 20%. Underwriting income also grew to =N=4.253 billion from the 2010 level of =N=3.541 billion. Underwriting profit stood at =N=2.791 compared to =N=1.754 recorded in 2010.
Distinguished shareholders, I am happy to inform you that your company returned to profitability in 2011. Profit after tax for the year stands at =N=223.6 million compared to a loss of =N=8.6 billion recorded in 2010. I am very confident that this trend will continue over the years.

Our People

Our staff have continued to show their skills and hard labour by producing this financial result in the face of difficult market conditions. On behalf of the Board of Directors, I would like to extend my appreciation to the staff of our Company for their dedication, tenacity and loyalty at all times. I wish to assure all staff that the company is committed to their professional development and improved welfare.

Future Outlook

The partial deregulation of the downstream sector of the oil and gas sector is expected to lead to an increase in the rate of inflation and consequently increase the cost of living in the country. The implementation of the minimum wage and the value of the Naira relative to other world currencies will also impact on the macro-economy of the country.
However, the planned reforms and deregulation being planned for the power and agricultural sectors will be implemented in 2012. The Petroleum Industry Bill is also expected to impact positively on the Nigerian economy and our company is strategically positioned to take full advantage of this to drive our business to greater heights.

Conclusion

Esteemed shareholders, the good results would not have been achieved were it not for the support we have received from our customers, brokers, shareholders, staff and all other business partners. We look forward to your continued support and patronage.
Finally, I want to say thank you to fellow Board members for their contributions, the management and staff for their loyalty, dedication and continued commitment to the growth of the company.
I thank you all, our esteemed shareholders, for attending the 16th Annual General Meeting of Standard Alliance Insurance Plc.

Thank you and may God bless you all.

Alhaji Aliyu Yahaya Sa’ad Statement was delivered on our 2011 accounts by our chairman, Alhaji Aliyu Yahaya Sa’ad, at the company’s 16th annual general meeting (AGM) held on December 20, 2012 at SA Event hall, Lekki scheme 1, Lekki, Lagos.

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