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Custodian Investment Plc will be rewarding owners of the company from distributable income as the company continues to magnify earnings amid a challenging environment.
The investment firm will pay N3.23 billion to shareholders in 2022, according to MoneyCentral calculations.
According to a corporate action on the website of the Nigerian Exchange Limited, a final dividend of N0.55 kobo for every share of N0.50 each, subject to withholding tax will be paid to shareholders whose names appear in the Register of Members.
The absolute dividend of N3.23 billion was arrived at by multiplying N0.55 dividend per share by 5.88 billion to shares outstanding.
Custodian Investment has a strong capital base which paves the way for it to pay a dividend that allures investors to its stock price. It has shareholders’ funds of N72.68 billion as at December 2022, which is 12.97 percent higher than 2021’s N64.33 billion.
According to the 2022 audited financial statement of the investment firm which has interests in life and non-life insurance, pension fund administration, trusteeship and property holding companies, net income or profit after tax (PAT) increased by 9.73 percent to N11.16 billion as at December 2022 from N10.17 billion the previous year.
Gross revenue was up 20.21 percent to N103.45 billion in the period under review from N85.74 billion the previous year.
Insurance business thrives amid unfavorable underwriting environment
The Custodian Investment Insurance unit remains a cash cow which has been thriving even amid an unpredictably unfavorable underwriting environment.
The insurance unit’s gross premium written (GPW) spiked by 13.22 percent to N75.75 billion as at December 2022, thanks to innovative products that are attracting customers and clientele across a broad spectrum.
Gross premium income (GPI) followed the same growth trajectory as it was up 11.94 percent to N74.13 billion in the period under review from N66.22 billion as at December 2021.
A breakdown of the GPI figures shows revenue from the Non-Life segment was up 8.20 percent to N36.52 billion as at December 2022 from N33.75 billion.
Life insurance gross premium income increased by 15.80 percent to N37.60 billion as at December 2022.
The Insurance unit paid N22.65 billion as claims to policyholders, as it spent less on claims expenses in generating premium income.