GOODLIFE ASSURANCE COMPANY LTD.

Saheim Imoru

GOODLIFE ASSURANCE COMPANY LTD.

CHAIRMAN’S REPORT

Welcome to the Twentieth Annual General Meeting of Goodlife Assurance Company

Ltd. In spite of continuing economic recession and other problems in the insurance industry, I

am happy to tell you that your company has had a reasonably good year.

Profits for the Year

The unaudited results have been extremely encouraging with profit from operations

Reaching $18.2M compared to $14M or 29.7 per cent increase over the same period last year.

Premium income exceeded previous year-to-date by 19.2% which is largely a result of

the increase in new business and overseas expansion. This has also contributed to the increase in

operating expenses resulting from new business acquisition costs.

Associated Companies

Our associated company, NEWLIFE, continues to show excellent results. We expect this

trend to continue in the future providing we have no major problems for the remainder of this

year.

Problems in the Industry

Historically, the private insurance business has gone through cycles of profit and loss

keyed to ups and downs in the financial markets. When interest rates fall, investment diminishes

and the customer must rely more heavily on income from premiums. This we have done to a

large extent.
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GOODLIFE ASSURANCE COMPANY LTD.

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GOODLIFE ASSURANCE COMPANY LTD.

Our problems during this period were worsened by the trend toward more claims, more

more lawsuits and higher awards for damages. To settle these claims, insurers are having to pay

out far more than they had anticipated. To get “well” insurers are now boosting premiums or

refusing to write policies for types of insurance in which future claims may be hard to predict.

Conclusion

In conclusion, I take this opportunity to express the thanks of the board and the

shareholders to all members of staff for their hard work during the year.

Projects

The construction of the Towers Apartments and the Spanish Court Townhouses in well

advanced and it is expected that these projects will be completed by the end of the year.