Insurance companies pool N44.15bn written premium amid pandemic

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Despite recesesion worries,  four operators in the nation’s insurance industry were able to pool about N44.15 billion Gross Written Premium (GWP) for insured risks.

The operators attributed the performance to growth across all lines of business in the market, even as stakeholders believe that one of the ways to drive industry penetration is through the underwriters’ financial strength.

The insurers had recently done a virtual 2019 Annual General Meeting (AGM), and they include; Wapic Insurance Plc, AXA Mansard Insurance Plc, Anchor Insurance Company Limited, and Linkage Assurance Plc.

Speaking on the performance development, the Managing Director, Wapic Insurance Plc Yinka Adekoya, described the growth as encouraging, and will continue to remain so, going forward.

As the firm grew its underwriting profit in the first half of 2020 by 58 per cent to N1.99 billion in 2020, up from the N1.26 billion recorded in the comparable period in 2019.

Adekoya revealed the underwriter’s profit before tax rose to N825 million in the period under review, representing a year-on-year growth of 106 per cent.

Announcing its unedited financial statement for the first half of 2020, he said key drivers of the result for the period under review included increases recorded in underwriting profit and total investment and other income within the period.

“Gross Written Premium of N9.3 billion, is an eight per cent growth compared to the same period in 2019. We sustained this consistent growth in premium by the attainment of leadership status on some major accounts, and enhanced underwriting capabilities.

“Wapic also paid a total of N1.6 billion in Gross claims for the year.

“The Gross claims to GWP ratio closed at 17 per cent as at half year 2020, a reduction when compared with the 28 per cent recorded in the first half of 2019,” he stated.

Analysis of AXA Mansard showed its financial results for the half year ended, June 30, 2020, grew profit after tax by 180 per cent translating to N4.4 billion from N1.6 billion recorded in June 2019.

The company grossed N30.54 billion in Gross Written Premiums up by four per cent from N29.36 billion in June 2019. Net Premium Income of N15.63 billion was up 29 per cent from N12.08 billion in June 2019. Investment and Other Income of N4.1 billion rose 44 per cent from 2.84 billion in June 2019.

Operating Expenses of N3.89 billion grew up to 10% in 2020 from N3.52 billion the corresponding year 2019, while profit after tax leaped upwards to N3.61 billion, up 154 per cent from N1.42 billion in June 2019.

Also their total assets increased to N101.72 billion or 10 per cent above the N92.28 billion recorded in December 2019, Insurance Liabilities of N33.84 billion was 34 per cent higher than the N25.16 billion achieved in December 2019.

The Managing Director, Anchor Insurance, Ebose Augustine, said the firm grossed a premium of N5.1 billion in 2020, just as it achieved N4.2 billion premium incomes as at the end of 2019.

On his part, Linkage Assurance Chairman, Joshua Fumudoh, while commenting on the performance, said despite the increasingly difficult operating environment, the insurance firm made appreciable progress on all fronts of its business activities.

He said the Company in the 2019 financial year, recorded a Gross Premium Written (GPW) of N6.52 billion up from N5.39billion in achieved in December 2018, a 21 per cent increase, while profit before tax (PBT) also increased from N134.70 million in 2018 to N1.34 billion, representing an 894 per cent increase.