WAPIC, a multi-line insurance company has disclosed that its Gross Written Premium rose by 36 per cent to hit N7.1 billion.
The company which just released its audited financial results for the period ended 31st December, 2015 also announced that its underwriting profit increased by 12 per cent to N1.5billion driven mainly by a 33 per cent increase in underwriting income.
The company’s Profit Before Tax (PBT) came to N1.7billion as a result of the growth in the top line and returns from strategic investment in associated company.
It made N2.2billion pay out in claims which is a 100 per cent increase in the payout compared to full year (FY) in 2014. Gross claims ratio increased to 31 per cent in FY 2015 against 21 per cent in FY 2014, while Solvency Ratio for FY 2015 was 250 per cent which remains an industry benchmark.
It will be recalled that A.M. Best, a global rating agency reaffirmed the company’s financial strength rating (FSR) of B– and Issuer Credit Rating (ICR) of bb- on the strength of the company’s developing profile in the Nigerian insurance market and its solid risk-adjusted capitalization.
Other subsidiaries of the company like WAPIC Life Assurance Limited recorded 87 per cent increase in Gross Written Premium to close at N1.2billion in FY 2015.
Underwriting Profit increased by 373 per cent to N275.4million in FY 2015 against N58million in the corresponding period of 2014. It recorded a 71 per cent decrease in Profit before Tax (PBT) to close at N40millio in FY 2015 as a result of an increase in OPEX for the year, aligned with growth strategies. Claims increased by 22 per cent to N547.8million in FY 2015 from N448.3million in FY 2014.
Similarly, WAPIC Insurance Ghana Limited recorded Cedi weakness which led to decline in contribution from Ghana. Gross Written Premium of N667million was up by 24 per cent in FY 2015 against N536.8million in FY 2014.
Underwriting Profit reduced by 98 percent to N9m in FY 2015 as a result of claims paid following severe flooding. The company made an operating loss of N173million.
Commenting on the results, Yinka Adekoya, Managing Director WAPIC Insurance Plc., said, “Our full year results reflect the company’s commitment to delivering on its growth objectives for 2015.
The group reported improved profits in 2015 at 1.67billion (FY 2014: 59million), a record 2747 per cent increase from the prior year’s position and above industry averages. Gross Premiums increased by 36 per cent to N7.1bnillion from N5.2billion in 2014.
“This is indicative of the disciplined execution of our growth strategy across all business lines. Looking ahead in 2016, we shall continue our investments in customer experience, people development and operational alignment while sustaining emphasis on our priority products branding”.