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Wapic Insurance 106.85 percent growth in underwriting profit is an affirmation of improved efficiency of the insurer’s operation despite macroeconomic challenges.
The insurer will hold a teleconference call for investors and analysts on Tuesday, November 7, 2017 at 2pm Lagos Time (1pm London/ 3pm Johannesburg/ 9am New York) with its senior management, to announce the unaudited financial results for the period ended September 2017.
There will be an opportunity at the end of the call for management to take questions from investors and analysts.
For the first nine months through November 2017, Wapic Insurance’s underwriting profit moved to N7.81 billion as against N6.40 billion the previous year.
The Nigerian insurer is efficient as its combined ratio (CR) of 89.16 percent, lower than the 93.15 percent recorded last year, is less than the 100 percent threshold.
The CR is the combination of underwriting and claims expenses as a percentage of premium income.
Wapic Insurance has surmounted the economic downturn brought on by lower oil price and a severe dollar shortage as premium income continues to grow.
Gross premium written (GPW) spiked by 22.05 percent to N7.81 billion in the period under review from N6.40 billion as a September 2016.
The growth in revenue was underpinned by a 91.47 percent increase in Motor Insurance to N1.79 billion. The company realized N1.34 billion from Group Life.
Gross premium income and Net premium income increased by 31.15 percent and 34.25 percent to N7.28 billion and N4.38 billion respectively.
Wapic Insurance’s net claims expenses increased by 13.58 percent to N2.09 billion in September 2017 compared to N1.84 billion as at September 2016.
Claims ratios declined to 47.71 percent in the period under review as against 56.44 percent the previous year. This means company spent N47 in claims to generate every N100 in premium income.
Wapic Insurance has urged players in the industry to play a major role in indemnifying losses in the oil and gas sector to prevent the industry from being handicapped financially after any major loss.
Further analysis of the Nigerian insurer financial statement shows its cost control measures and technology optimization has paid off as total operating expenses reduced by 4.70 percent to N3.24 billion.
Going into the last quarter of the year, the insurer says it shall focus attention on emerging opportunities in the industry and the economy while consolidating on its technology optimization, cost reduction, retail deepening, branding and customer experience strategies.
Wapic Insurance Plc. (“Wapic” or “the Company”) is a leading West African multi-line insurance company providing solutions covering life, general and special risks. Established in 1958 and listed on the Nigerian Stock Exchange since 1978, Wapic’s mission is to transform into a diversified financial services institution, delivering value in a sustainable manner to her customers and stakeholders while playing a lead role in the transformation of the industry. With headquarters in Lagos, Nigeria, Wapic is organized into two core business segments, General and Life Insurance.
The Company has two wholly owned subsidiaries, Wapic Life Assurance Limited and Wapic Insurance (Ghana) Limited as well as an associated company, Coronation Merchant Bank Limited. Through a diverse portfolio of products and a commitment to providing the best customer experience possible, Wapic, with an AM Best Financial Strength rating of “C++” and an Issuer Credit rating of ‘b+”, has significantly enhanced its underwriting capacity placing it among the top five insurance companies in Nigeria by solvency and capital.
BALA AUGIE
