Distinguished Shareholders

Ladies and Gentlemen

Our most distinguished Chairman of the Board, General Dr Yakubu Gowon,
has provided you with the details of your company’s outstanding performance
in 2007 and the dynamics of the operating environment in the year under review.
It is my pleasure to present an operational review of that exemplary achievement and to give an insight into our winning strategies to maximize shareholders’ value for the coming years. In 2007, your company achieved good results in our local and international operations. These results have moved us closer to our vision of becoming a formidable player in this business, not just in Nigeria but in the whole of Africa. In the course of the year, we consolidated our three-pronged growth strategy of, first, enhancing our financial strength; then, of organically growing and improving the content and quality of our local operations and, finally, increasing the pace of our strategic regional expansion and continental outreach. Our successes in these three areas have strengthened IGI for the challenge of delivering good returns to shareholders. What is more, your company remains resolutely committed to being a global best practice player; entrenching a culture of service excellence and creating wealth for our stakeholders at home and abroad.

INDUSTRY REVIEW
The year under review was as interesting (tasking, if you prefer) as it was professionally rewarding.The recapitalization exercise in the insurance industry ended in a gale of controversy that inexorably occasioned a change of leadership at the National Insurance Commission (NAICOM). The consolidation programme, however, has opened up a world of opportunities in the insurance sector. Indeed, analysts have pointed out, and we agree, that “the Nigerian insurance market is, in many respects, the next frontier in the Nigerian financial space.” It is further predicted that in just eight years away, that is, before 2016, the Nigerian insurance market would have grown from $650million in 2006 to $9.6 billion. We must not fail to grasp the importance of these observations and predictions which, restated in a layman’s language, means : Insurance is the next BIG thing! But the truth is: great opportunities will be meaningless if we cannot translate them to specificgains.The challenge for us is that business priorities must be refocused and there must be massive investments in human capital, information and communications technology (ICT). Post consolidation will exert pressure on companies, their people, and their business processes. And, more than ever before, organisations will require a higher degree of commitment from staff, just as increasingly discerning stakeholders and the insuring public will require good return on investment and sterling services from companies.

THE IGI RESPONSE
Our emergence as the most capitalised insurance company in the country has imposed enormous responsibilities on us all. We have evolved a strategy of never-ending thinking that compels us to always see and seize opportunities wherever we spot them. We also do not hesitate to take actions that are in the best interest of the insurance industry. That is why IGI is in court fighting to give legitimate expression to our long-standing but largely disregarded protests about the irregularities in the sale of NICON Insurance Plc by the Bureau of Public Enterprises (BPE). IGI is not a bad loser. But we find it completely unacceptable that illegality should stand in the face of clearly stated public policy on the enthronement of the rule of law in Nigeria. And we find it unacceptable that a former national icon should be allowed to go down with ignominy occasioned by gross mismanagement. We believe that our industry can do without this embarrassment and that industry actors, such as IGI, must consistently stand up to maintain the integrity of the financial services sector in Nigeria.

OPERATING RESULTS
In spite of the competition for dominance and relevance by operators during the recapitalisationexercise, I am glad to report that your company emerged as the strongest player onmost performance indices during the year under review. Highlights of the company’s performance have been succinctly captured in the Chairman’s Statement. What is critical is that they showed that IGI has maintained its tradition of strong earnings and high return on investment. Our N7.107 billion market income, which represents 18% growth in Gross Premium Income in 2007, is indicative of our consistency in recording double-digit growth over the years. In 2007, your company was able to retain more businesses. Our Reinsurance cession for the year dropped from N3.76 billion in 2006 to N2.69 billion in 2007, representing 28% reduction.

CLAIMS PAYMENT
Our record of claims payment, which is a key element of IGI’s reputation for the delivery of exceptional services, rose to a new high in 2007. We paid claims totaling N3.54 billion, or amassive 84% increase on the N1.92 billion paid in 2006. Our philosophy of Rapid Claims Payment System (RCPS) is built on the shortest response time for the settlement of verified claims. During the year under review, we sustained our 24-hour Customer Care service through dedicated telephone lines,which are open to policy holders for prompt enquiry and response. This customer-centric service will be enhanced in the coming years with the opening of Call Centres in our zonal offices to be manned 24-hours by trained relationship officers.

INVESTMENT PORTFOLIO
IGI’s continental expansion programme gathered pace in 2007. We did not waver in our commitmentto our corporate vision of widening investment and trade partnerships in Africa in thespirit of the New Partnership for Africa’s Development (NEPAD) and the economic goals of the African Union (AU). We have strengthened our presence in Africa with our substantial investments in insurance and banking in Uganda, Ghana, Rwanda, Sierra Leone, Sudan and The Gambia. In Uganda, we achieved a massive turn around of the National Insurance Corporation (NIC). For the first time in the company’s 42-year history, NIC our subsidiary company and the face of IGI in East Africa, paid dividends after we acquired majority stake in the company and took over its management in 2005. Our performance managing NIC in the first year included increasing earnings per share by more that 900%. In 2006, NIC also paid the biggest ever insurance claim in East Africa, demonstrating the company’s financial strength and ability to meet the most challenging of our clients’ needs.Our success in the management of NIC yielded positive results, as it encouraged the Bank of Uganda and the Ugandan Government to grant IGI a licence to establish a new commercial bank in Uganda. We have consequently completed 100% acquisition of Commercial Microfinance Limited, a leading microfinance institution with nine branches and over 100,000 customers across the country. This will be our platform to kick-start commercial banking operations in Uganda as Global Trust Bank Uganda Limited, and augments our capabilities to target underserved banking populations in Uganda, including those living in rural areas and micro and small business enterprises. We are optimistic that the birth of Global Trust Bank will be mutually beneficial to the people and governments of Uganda, Nigeria, and other African countries where we establish banking operations. With the success of IGI’s operations in Uganda, your company was able to leverage our East African presence to acquire 35% of Societe Nouvelle d’Assurances du Rwanda (SONARWA), the largest insurance company in Rwanda. IGI has the option to acquire 51% of the company, and has been tasked with the management of the company by SONARWA shareholders. IGI is now the largest shareholder in this company, and is implementing plans to grow SONARWA’s business in Rwanda and regionally. The investments in the countries indicated are part of the IGI strategy to establish our presence in up to ten (10) African countries within the next few years.

HUMAN CAPITAL DEVELOPMENT
Our workforce remains our most valuable asset. The Staff has embraced the challenges of post-onsolidation with a tenacity of purpose, buoyed by IGI’s institutional support. Staff in all cadres were exposed to various training programmes designed to sharpen their competences and skills to be able to align their work ethic and output with the dynamics of the market. Combined, these developments have placed your company in a vantage position to take advantage of increased big-ticket underwriting and investment opportunities.

BRANCH EXPANSION
In 2007, we launched an ambitious branch expansion programme to increase our branch networkfrom the current 32 to 100 in five years. The programme is hinged the need to envelope our clients with our innovative products and services within clearly convenient Indeed, IGI is set to takeinsurance further to the grassroots as we implement our strategy of transforming from awholesaler of insurance products to being a retailer of insurance with extensive channel marketing outlets. During the period under review, we enhanced our international operations with the creationof IGI North America office, which, with the London office, serve as liaison to manage therelationship with our financial and technical partners across Europe and America.

CORPORATE SOCIAL RESPONSIBILITY
Our commitment to investing in the well-being of society remains steadfast. At home and abroad,we have continued to make significant contributions to improving social welfare and thequality of life as well as the development of knowledge. At the recently-concluded MTN African Cup of Nations (Ghana 2008), our reputation as Nigeria’s foremost sports-friendly financial servicesinstitution received continental recognition with our appointment as Official Insurers of the tournament. We have also retained our status as the Official Insurers of Nigeria’s five national football teams –Super Eagles, Super Falcons, Flying Eagles, Golden Eaglets and the Falconets. We shall sustain this enviable CSR status in the years ahead.

INFORMATION TECHNOLOGY
The company’s revamped Information Technology (IT) contributed significantly to our achievementsin 2007. Our newly introduced Rapid Claims Payment System, driven by the state-of-he-art modular Integrated Insurance Package that we acquired in 2006, has enhanced our response time. It has enabled us to deliver seamless services, especially in customer care and the payment of claims. We aim to quickly ensure total networking of local operations so as to raise the quality and speed of our service delivery.  We shall be implementing a robust Investor Relations Plan that is customised for the peculiar needs of our shareholders. The plan includes the creation of a Call Centre with dedicated personnel to handle shareholders’ enquiries and interface with them on behalf of the company. We believe that we are uniquely positioned for sustained leadership of the local industry and increased presence on the continent. Our only option is to LEAD in a corporate world where you “Lead, Follow or Get out of the Way.” For this reason, our expansion drive on the continent will gather momentum in the years ahead to fulfill our vision of being a global player. We remain committed to the spirit and letters of our Mission Statement, which include maximising customer satisfaction, increasing our market share and creating wealth for national development.

CONCLUSION
As we press forward, we will not rest on our oars. We also will continue to rely on the unwavering support of our shareholders and the commitment of our Staff to exceed the expectations of our clients. On behalf of the Executive Management, I commend our distinguished Board of Directors, Management and Staff for their steadfastness and contribution to the continued growth of our company. I also thank all our shareholders for their belief and trust in the company.

I thank you for your attention.

REMI OLOWUDE, OON
Executive Vice Chairman