WAPIC, a multi-line insurance company has announced its audited financial results for the period ended December 31, 2019, with a gross written premium of N15.2 billion, a nine percent growth compared to same period in 2018.
The company paid N4.1bn in gross claims for the year. The gross claims to GWP ratio closed at 27 per cent as at December 2019, a reduction when compared with the 36 per cent recorded in 2018.
The group’s underwriting profit grew to N2.9bn, a commendable 36 per cent year-on-year growth from the N2.1bn recorded in the preceding period of 2018. The growth in premiums and decrease in net claims expense during the review period had a positive impact on this position.
The group experienced an 87 per cent decline in PBT to close at N24m. The drop in investment and other incomes, and the growth in underwriting and operating expenses for the period negatively affected the bottom-line position.
Commenting on the results at the company’s headquarters in Lagos, Yinka Adekoya, Managing Director of WAPIC Insurance, said: “WAPIC delivered a commendable performance in the financial year 2019 despite a sluggish macroeconomic and business landscape which didn’t pick up until the latter part of the year.
“With a combination of an intensified underwriting capacity expansion, and the focused execution of our business plans, the group’s GWP for the period grew by nine per cent year-on-year to close at N15.2bn; surpassing the average Nigerian insurance market growth rate.”
He noted that positive improvements were recorded in the group’s underwriting profit position for the period, which grew to N2.9bn, a commendable 37 per cent year-on-year growth from the N2.1bn recorded in the preceding period of 2018.
The group also recorded a Profit Before Tax of N23.4m from N187M and a Profit After Tax of N214m from N315m recorded in the previous year. Total assets grew by 1.3 per cent to N30.7bn from N30.4bn in 2018. Shareholders’ funds stood at 18.5bn for the period from N17.1bn in 2018.
He further said: “2019 was a challenging year for the company as we were only able to achieve marginal growth in our GWP. However, we expect that the disciplined execution of our transformation projects and other growth strategies will begin to yield the desired results from 2020. We will continue to deliver best-in-class customer experience offerings and the creation of sustainable value to all our stakeholders.”