How much should you pay for Prestige?

PRESTIGE began operation as a Nigerian branch office of The New India Assurance Co. Limited in 1952. It was incorporated as a wholly-owned subsidiary of The New India Assurance Co. Limited in January, 1970 and named The New India Assurance Company (Nig.) Limited.

It enjoys the financial, research and technical support of The New India Assurance Co. Limited, an insurer established in 1919 with strong presence in Asia and Africa.  The experience of PRESTIGE in the Nigerian insurance sector spans over six decades.

Earnings growth has been unstable. And the company has been accumulating losses since 2012. The value of accumulated losses at the end 2017 financial year stood at NGN347.3 million (2016:NGN776.5 million, 2015:NGN991.9 million).  This halted dividend payment. Consequently, the management has succeeded in seeking approval to write off the accumulated losses in 2018 so as to pave way for payment of dividends to shareholders.

Company's performance has started getting better since 2016. Gross premium written profit improved by 7.6%, underwriting profit was NGN254.1 million compared to an underwriting loss of NGN422.3 million of 2015. Profit After Tax (PAT) was NGN222 million when compared to NGN145.3 million loss after tax of 2015.

Read full report in InvestmentFrontiers Magazine.