Wapic Insurance plc, one of Nigeria’s oldest and most capitalised insurance companies, has announced the release of its 2013 audited financial results, being the fourth insurance company to receive approval of its 2013 International Financial Reporting Standards (IFRS) compliant accounts.
A review of the numbers reflects an institution that is executing a transformation agenda and laying the foundation for sustainable growth. In the period under review, the company grew its total assets by 76 percent from N12.68 billion in 2012, to N22.30 billion in 2013. Similarly, its shareholders’ funds increased significantly up from N7.62 billion in the preceding year to N14.18 billion in 2013. The figures also show that Wapic maintains the second highest solvency ratio in the industry, standing at 473 percent as of December 31, 2012. Further review showed that the company kept its commitment on claims settlement as its claim ratio doubled from 43 percent in 2012, to 80 percent in 2013. However, the results also indicate a 10 percent drop in Wapic’s gross written premium (revenue) from N4.17 billion in 2012, to N3.76 billion in 2013.
Its expenses and provisions increased by 26 percent, growing from N2.23 billion in 2012, to N2.80 billion in the year under review; again, this is a reflection of the capabilities being built within the company for timely settlement of claims. The combined effect of these was a N208 million loss position for the company, the company disclosed.
Analysts opined that this seeming decline in top-line performance is not uncommon among companies undergoing the type of holistic transformation that Wapic has embarked upon. An analyst hinted that “Wapic’s records are clean and the premium collections reflect actual cash-in-bank, which conforms to NAICOM’s premium policy. Indeed, it would appear that the company is repositioned and set for transformative growth in coming years, especially given its increased adequacy levels and robust balance sheet.”
Ashish Desai, managing director of the company, stated that “the past year has been a transformative one for Wapic and we are proud of the determination with which we have fundamentally restructured the business. Wapic is now more than ever positioned to deliver on all fronts. To achieve this, we have cleared out all legacy accounting issues, incurred necessary one-off costs and significantly increased our investment in our capital (both human and financial), governance and branding. We are confident that these will begin to reflect positively on our operating performance as from 2014.
“We have re-calibrated our operating model and have articulated unique value propositions targeted at growing relationships across all segments of the economy. We acquired requisite IT capabilities to enhance operational efficiency and support our multichannel strategy; and also remodelled our sales force.
“Our customers remain at the heart of our business and we will continue to adapt to changing market trends to meet their evolving needs. In this regard, we are redefining our products, services and systems and have introduced effective controls and outstanding people.”
Desai further stated that “we have also moved forward to make Wapic an industry leader in compliance, corporate governance and human capital with one of the most robust balance sheets in the Nigerian insurance sector. These achievements lay the foundation for our turnaround and most importantly to a dynamic and sustainable growth trajectory that is founded on the highest ethical and operational standards. All these will ensure that we deliver value to all stakeholders as we commence a new phase in our company’s history”.
You would recall that at the 2012 annual general meeting held on August 22, 2013, the board and management had communicated to the shareholders that the new Wapic would not only become a reference point for financial performance but also for the highest standards in corporate governance and ethics; tenets, which are the hallmark of the board legacy.
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