Underwriting firm, Wapic Insurance plc has announced release of its audited financial results for the year ended December 31, 2014, showing a growth in Gross Written Premium (GWP) of 38 percent from the corresponding period in 2013, with an increase from N3.76 billion to N5.2 billion.
Underwriting profit increased by 1272 percent to N1.24 billion underpinned by improved risk selection and greater efficiency in managing underwriting expenses, which dropped by 31 percent relative to 2013.
The company’s profits improved significantly with a 214 percent, with increase in profit after tax (PAT) to close at N236 million over the N208 million loss position recorded in 2013. The company paid about N1.09 billion in claims within the financial year. A significant percentage of these relate to current period transactions of 2013/2014.
Having paid most of the outstanding legacy claims in 2013, the company’s efforts at implementing a structured approach to risk selection and management have begun to yield results as claims ratio improved significantly closing at 34 percent in 2014 compared with 80 percent in previous year. The company’s shareholders’ funds of N14.2 billion is up 0.15 percent relative to 2013 position, while return on equity grew by 236 percent from corresponding period in preceding year.
Wapic’s Solvency Ratio of 171 percent is above regulatory levels and remains one of the highest in the industry.
WAPIC is a first generation insurance company in Nigeria having been in operation for over half a century. Recently, it became one of only three insurance companies in Nigeria with a risk rating following its accreditation of b- rating on financial strength by AM Best, a global risk rating company.
All indications show that the company’s transformation agenda is on track while the elevated governance standard and commitment to performance for which the chairman of the board, Aigboje Aig-Imoukhuede is known, is being brought to bear in helping to steer it on the path of sustainable growth.
Modestus Anaesoronye
