Distinguished Shareholders
  Ladies and Gentlemen
   I am very delighted to welcome you all to the 16th Annual General Meeting       (AGM) of your company and also to present for your adoption, the company’s Annual Report and Financial Statements for the year ended December 31, 2007. This Meeting is historic as it is the first since we became a public company as reflected in your company’s new name. I am therefore particularly pleased to acknowledge the presence and to welcome on board our new shareholders who are attending our AGM for the first time following our highly successful Private Placement exercise. I assure you all that you have taken a very wise, value- adding investment decision. I am equally pleased to report that Industrial And General Insurance Plc recorded a remarkable performance in 2007 in spite of the highly challenging operating environment. We have sustained our leadership position in the industry by consolidating our strength as a foremost niche player and remaining resolute in our commitment to being the premier insurance company driven by excellence. The year 2007 witnessed a further strengthening of our financial capacity and accelerated implementation of our strategic business expansion in Africa. These, as well as fresh initiatives in product innovation and value creation, have propelled us further towards our goal of becoming a global player operating global best practices. Before I proceed to unveil the details of your company’s immensely satisfactory performance in 2007, permit me to present a review of the operating environment during
the period under review.

OPERATING ENVIRONMENT
For Nigeria, 2007 was a watershed year on the political front. The nation witnessed the first transition of power from a civilian government to another civilian administration. The electoral process was, however, marked by significant flaws which resulted in some post- transition problems. The volatile situation in the Niger Delta region intensified in spite of deliberate official steps to curb the violent activities in the area. According to the Central Bank of Nigeria (CBN) Nigeria’s overall Gross Domestic Product (GDP) valued at current market prices stood at N22.7 trillion in 2007, as against N18.5 trillion in 2006. Whilst the economy still depended largely on revenues from crude oil, growth patterns in 2007 saw the non-oil sector upstaging the oil sector. The non-oil sector recorded a GDP growth of 9.8% in 2007 as against the 8.59% increase achieved by the sector in 2006. On the other hand, the GDP growth of the Oil sector dropped from 5.1% recorded in 2006 to 4.51% in 2007. Happily, the economy achieved the projected single digit inflation figure in 2007. The year-on-year inflation figure stood at 6.6% while the 12-month average was 5.4%. The CBN stated that Nigeria’s external reserves in 2007 rose to USD $52billion, a 15 percent increase on the 2006 figure of $45billion. The Naira value appreciated by 8.07%, 8.03% and 7.55% in relation to the US dollar at the inter-bank market, official market and the parallel market respectively in 2007. This was due largely to the steep increases in the international price of crude oil. Inter-bank interest rates were, according to official figures, generally lower in 2007 but still recorded a wide spread of 7.9% when compared with the average lending rates and the average deposit rate. The equity segment of the Nigerian financial market recorded a huge boost with a capitalized market of N10.1trillion ($84.16 billion) which represents a 147% increase over 2006 figures. The All-Share Index also gained 74.73% in Naira and 82.76% in US$. The nation’s total external debt, according to the Debt Management Office (DMO) was $3.39billion in 2007,representing a marginal decrease from the $3.54 billion recorded in 2006.

THE INSURANCE INDUSTRY
In 2007, major events in the Nigerian insurance industry centred around the recapitalization and consolidation programme for the sector which was scheduled to end on February 28, 2007 but was prolonged by unforeseen developments arising from the handling of the exercise. At the expiration of the deadline, the National Insurance Commission (NAICOM), the industry’s regulator, announced that a total of 69 insurance companies comprising 43 general and 26 life as well as two (2) reinsurance companies had met the new recapitalization requirements of N2 billion for Life companies, N3 billion for General business companies and N10 billion for reinsurers. The two companies, Industrial And General Insurance Plc and IGI Life Insurance Plc,(into which your company was restructured for the consolidation exercise) were duly recertified by NAICOM at this stage. However, following the dissatisfaction of the industry over certain aspects of the NAICOM implementation of the recapitalisation programme, which eventually led to various litigations, the Federal Government decided to set up a Presidential/Technical Committee to review the NAICOM report. The review produced a tidier competitive landscape as NAICOM and the Finance Ministry late in 2007, named 49 companies that were permitted to operate insurance business in Nigeria. NAICOM also reversed the earlier directive for companies to separate their Life and General businesses. Your company was duly recertified again as a composite business operator. A majorgain for the insurance industry from the recapitalization is increased level of awareness about insurance business in Nigeria, especially amongst investors who had generally shunned insurance stocks in the past. Insurance stocks quickly became the toast of capital market activities post-consolidation and this resulted in significant capital gains by most insurance stocks. From the 22 insurance companies with a total market value of N28.94 billion on the Nigerian Stock Exchange’s Daily Official List in August 2005, insurance companies listed on the exchange increased to 25 by the end of February 2007, whilst their market value had increased phenomenally to N91.9 billion. Other significant gains from the consolidation exercise and the resulting increase in financial strength include increased underwriting and risk retention capacity for the industry. This, expectedly, will boost premium growth as the industry becomes better positioned to leverage the immense earning opportunities from the Government’s Local Content Policy for the Oil and Gas sector. Already, NAICOM has projected that the industry’s gross premium income will hit N450billion by 2010 up from N49.3 billion in 2005. In 2007, your company focused on concluding its private placement exercise, handled by the Joint Issuing houses – Messrs IBTC Chartered Bank and Vetiva Capital Management Limited. I am pleased to inform you that the placement was hugely successful and oversubscribed with investors injecting an excess of N15.8 billion in IGI. The result of the placement was a satisfying endorsement of IGI’s performance, profitability, corporate culture and growth prospects. The proceeds of the placement are already being used to create stakeholder value in line with the growth and expansion programme outlined in the placement brochure. Once again, I thank all those who have placed their trust in the company.

OPERATING RESULTS
Distinguished shareholders, I am pleased to inform you that in spite of the challenging operating environment, your company recorded excellent results in all major financial indicators and sustainedits leadership position in terms of financial strength, profitability and resilience. The company recorded a growth rate of 18% in Gross Premium Income from N6.046 billion in 2006 to N7.107 billion in 2007. In terms of contribution by classes of business, General business accounted for 20.1% and income of N1.14 billion; Special Risks contributed 56.28% and generated N3.99 billion whilst Life business brought in N1.68 billion from the 23.6% of the company’s business in 2007. There was a 28% reduction in the Reinsurance cession for the year as a result of the ability of the company to retain more businesses to the net account. Re-insurance for the year dropped to N2.69 billion in 2007 from N3.76 billion in 2006. The company’s investment and other income grew by 148% to N2.617 billion from N1.056 billion recorded in 2006. This was as a result of the availability of fresh funds from the private placement which were channeled into different investment outlets. Profit before taxation rose by 180% to N2.73 billion from N975.64 million in 2006. The company’s Total Assets grew by 131% to N34.043 billion from N14.75 billion in 2006 largely due to proceeds from the private placement. Our investment portfolio increased by 147% in 2007 to N23.52 billion from N9.516 billion in 2006. Distinguished shareholders, I am glad to announce that dividend payment, your Board has recommended a total dividend of N1.74 billion for the year ended December 31, 2007, as against a payout of N519.05 million in 2006. This translates to a cash distribution of 15 kobo per 50 kobo share on the 11,761,353,129 units of shares registered in our books as at 31 December, 2007.

FUTURE PROSPECTS
Distinguished Ladies and Gentlemen, our performance in 2007 has underpinned our resolve toconsolidate our leadership position in the Nigerian market whilst establishing bold footprints on the African continent. We shall stride into our 17th year resolutely committed to maintaining our position as a niche player and pacesetter in the provision of professional, customer – centric services and Nigeria’s Insurance Ambassadors in Africa through the intensification of our regional expansion initiative. Our vision to become a complete financial services provider and global player will be driven in the years ahead by strategic initiatives in product innovation, creative deployment of the latest Information Technology, a strengthening of our financial capacity and enhancement of our human capital resources across the continent to sharpen our competitive edge.

CONCLUSION
Esteemed Shareholders, the splendid results recorded by IGI in 2007 were achieved through theloyalty, dedication and commitment of your Board, Management and Staff as well as the nvaluable support from you all, shareholders, as owners of the company. I wish to express my sincere appreciation and gratitude to you all. My appreciation also goes to our esteemed customers, brokers and agents whose contributions to our operations and success have been our main strength. We cherish their loyalty and support and will continue to earn their trust through prompt and efficient delivery of quality services. On behalf of the Board and Management, may I express my appreciation to every member of our Board of Directors as well as the Staff of IGI for their contributions to the success achieved in 2007. I thank you all, our esteemed shareholders, for attending this 16th Annual General Meeting of IGI Plc. May God bless you all and may He continue to prosper our company. Amen.

General Dr. Yakubu Gowon, GCFR, Ph.D, psc, jssc.
CHAIRMAN