Staco Insurance Plc has recorded an uptick in premium income in the third quarter of the year as the underwriting firm continues to be aggressive about payment of claims to policy holders.
For the first nine months through September 2015, Staco’s gross premium income increased by 11.22 percent to N5.25 billion as against N4.72 billion last year.
Meanwhile net premium income increased to N4.06 billion in 2015 from N3.82 billion the previous year.
The Nigeria insurer continues to pro-actively manage its underwriting portfolio, building on the strong underwriting performance in the first half of the year and intensifying claims payment.
Staco’s total claims in the period under review were N1.02 billion, a 22.40 percent increase from N835 million recorded last year.
Claims ratio moved to 25.51 percent in 2015 compared with 21.82 percent last year.
The company is profitable and of strong financial strength as combined ratio (CR) of 48.87 percent is below the 100 percent threshold.
As a result of the lower CR, increased solvency margins and premium growth, Staco recorded favorable underwriting results of N2.07 billion.
Net underwriting profit moved by 5.57 percent to N4.23 billion in 2015 as against N4.0 billion the previous year.
With economic growth slowing to 2.4 percent in the second quarter, Insurers in Africa largest oil producer may have premium crimped as higher unemployment and weak discretionary spending means more people will have less money to buy insurance.
As a result of the operating challenges, Staco’s bottom line took a hit as net income reduced by 21.57 percent.
Underwriting expenses were up by 12.02 percent to N964.0 million in 2015 as against N860.56 million last year.
Further analysis of financial statement of Staco shows total assets increased by 4.03 percent to N10.56 billion.
Staco’s share price closed at N0.50 on the floor of the exchange while market capitalization was N3.07 billion.
BALA AUGIE
