Distinguished shareholders, fellow Board members ,esteemed colleagues, and guests, It is with great honor and a deep sense of responsibility that I welcome you all to the 26th Annual General Meeting of Sterling Assurance Nigeria Limited. I am pleased to present to you the Company's performance for the financial year ended 31 December 2024, a year marked by resilience, strategic transformation, and cautious optimism in a challenging macroeconomic and regulatory environment. Before I proceed, I would like to state that this is the _irst time in nearly 20 years that we are holding this meeting without the presence of our esteemed former Chairman and major shareholder, Mr. Justin Olabode Emanuel who gave so much to sustain this company over the years. I would like to seek your

indulgence for a minute of silence in honour of this great man, who not only promoted businesses but nurtured men and women to greatness. May his gentle soul rest in everlasting peace.

OPERATING ENVIRONMENT

The operating landscape in 2024 remained dynamic, shaped by persistent inflationary pressures, currency volatility, and heightened regulatory scrutiny. Despite these headwinds, the Nigerian insurance sector continued to demonstrate resilience, underpinned by a growing awareness of risk management and digital adaptation. The Nigerian economy in 2024

experienced a mix of challenges and cautious optimism as policymakersgrappled with macroeconomic reforms, exchange rate instability, and inflationary pressures. These dynamics significantly shaped the operating

environment for insurers, affecting their financial performance, investment outcomes, and strategic positioning. The Nigeria Government continued to implement economic reforms aimed at stabilizing the macroeconomic

environment. The removal of fuel subsidies and exchange rate unification, though necessary, contributed to rising in_lation averaging over 28% and increased cost of living and currency depreciation. The naira _fluctuated against major currencies, impacting import- dependent sectors and eroding consumer purchasing power. The GDP growth was moderate, hovering around 3.1%, with oil production still below pre- pandemic levels. While the non-oil sector showed resilience-particularly in telecommunications, financial services, agriculture, high unemployment and poverty levels continued to weigh heavily on consumer demand and business confidence. The security challenge (kidnapping, banditry, cattle rustling, to mention just a few) which prevailed more in the north, and the low insurance penetration among others had negative impact on insurance industry performance.

FINANCIAL PERFORMANCE

In 2024, Sterling Assurance delivered commendable progress in its core business, recording an insurance revenue of  8.88 billion, representing a 76% growth compared to ?5.04 billion in 2023. This remarkable increase is indicative of our intensified market engagement, improved underwriting strategies, and strengthened client relationships.

However, the Company's insurance service expenses grew significantly to ?12.88 billion (2023: ?3.44 billion), largely due to actuarial adjustments as stipulated in IFRS 17, increased claims, and reserve strengthening. Consequently, the Company reported an insurance service loss of ?1.13 billion, compared to a positive result of ?640 million in the previous year. Nevertheless, strong investment performance and exchange gains provided a buffer. Net investment income rose by 78.8%, with foreign exchange income contributing ?2.14 billion. As a result, the Company achieved a profit before tax of ?170.2 million, albeit lower than the ?794.3 million recorded in 2023. After tax, net profits stood at ?24.4 million, and total comprehensive income closed at ?624.1 million, supported by fair value and property revaluation reserves.

BALANCE SHEET STRENGTH
Sterling Assurance remains financially strong with total assets doubling to ?16.07 billion (2023: ?8.92 billion), reflecting growth in reinsurance assets, financial investments, and cash reserves. Total equity increased by 10.3% to ?6.67 billion, driven by positive valuation movements and capital preservation initiatives. Notably, the Company continues to meet solvency requirements, maintains adequate technical reserves and a conservative investment portfolio, aligned with regulatory expectations and best practices.

CHANGE IN BOARD COMPOSITION
Since our last Annual General Meeting, Mr. Olusegun Adedeji Odubogun and Mr. Antonio Olayiwola Emanuel were appointed Directors of the company. Their appointments as Independent Director and Non-Executive Director were sent to our regulator (NAICOM) and I am glad to inform shareholders that approvals have been granted for their appointments. Our renewed executive team ably led by Mr. T. A. Olorunmakomi has continued to provide fresh perspectives and reinforced our strategic direction.

We maintained robust internal control systems, as affirmed by both the internal control assessments, and the external audit conducted by Messrs. T. A. Balogun & Co. Our internal control over _financial reporting was deemed effective as of 31 December 2024.

STRATEGIC OUTLOOK
While 2024 presented a tough operating climate, the insurance industry demonstrated adaptability. The long-term outlook remains cautiously optimistic, contingent on sustained economic reforms, improved regulatory stability, and strategic innovation across the sector. Looking ahead, our focuswill be on sustainable growth, leveraging technology to enhance customer experience, and expanding our market footprint. We will intensify efforts to achieve underwriting profitability, deepen reinsurance partnerships, and reinforce risk-based pricing frameworks.

APPRECIATION
On behalf of the Board, I extend heartfelt appreciation to our shareholders for their unwavering trust and to the management and staff for their dedication, and our esteemed clients and partners for their continued patronage. I also thank our regulators, particularly the National Insurance Commission(NAICOM), for their guidance and support. As we enter a new chapter, we remain committed to creating long-term value for all stakeholders and to playing a pivotal role in the growth and development of the Nigerian insurance industry.

Thank you and God bless you all.