Nigeria Insurance Nigeria plc’s third quarter (Q3) gross premium income has dropped 25.56 percent, as the company continues to formulate plans that will help consolidate its position in the market.
For the first nine months through September 2014, the Nigerian insurer’s gross premium income fell by 25.84 percent to N7.92 billion, from N10.64 billion the same period of the corresponding year (Q3) 2013.
Similarly, underwriting capacities were inefficient as net premium income (NPI) dropped by 21.65 percent to N7.56 billion, compared with N9.66 billion the preceding year.
Net underwriting income also shrank by 25.70 percent to N7.66 billion in the review period compared with N10.31 billion the preceding year, while gross premium written reduced by 20.68 percent to N8.28 billion.
The slow growth at the top-line level also expended to the bottom-line as profit before tax (PBT) dropped by 37.78 percent to N419.50 million in the review period as against N674.30 million the preceding year.
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Profit after tax (PAT) also reduced by 38.98 percent to N365.77 million compared with N599.47 million the preceding year.
It would be recalled that the Nigerian insurer had set a premium target of N16 billion in 2013, but this quarter’s slow growth in the company’s top-line levels are not in congruence with such projections.
There were improvements in the reduction of costs as management expenses were down by 53.81 percent to N2.12 billion, compared with N4.59 billion last year, while underwriting expenses reduced by 4.28 percent to N5.28 billion.
Total assets were down by 7.98 percent to N22.25 billion in the review period as against N24.18 billion the preceding year, while total equity reduced to N7.88 billion.
Established Yorkshire Insurance Company Limited in 1962, Niger Insurance is a composite insurance company quoted on the floor of the Nigerian Stock Exchange. It ranks among the first generation insurance companies standing on a very strong financial base, with assets in excess of N20 billion.
Niger Insurance can tap into the Nigerian rising middle-class only if it penetrates the market with innovative products.
Also, the new auto policy is expected to spur the growth of insurance companies. The company’s share price closed at N0.5 on the floor of the NSE, while market capitalisation was N3.86 billion.
BALA AUGIE
