Niger Insurance remains efficient as underwriting profit jumps

Niger Insurance Plc has remained efficient amid a tough and unpredictable macroeconomic environment as the insurer recorded a jump in underwriting profit.

For the year ended December 2017, Niger Insurance’s underwriting profit increased by 23.74 percent to N1.10 billion. It was N888.89 million as at March 2017.

An increase in premium income and favourable combined ratio helped underpin Niger insurance’s underwriting capacity in sector freight with challenges.

Niger insurance recorded a real underwriting performance of N1.95 billion as at December 2017.

The real underwriting performance is arrived by deducting the combined ratio from 1 and then multiplying the result by the net premium income.

Niger Insurance’s diversified product portfolio has paid off as revenue spiked amid uncertainties surrounding the socio and macro-economic environment.

Gross premium written (GPW) increased by 43.95 percent to N8.58 billion in December 2017 from N5.96 billion the previous year.

Gross premium income (GPI) moved by 44.18 percent to N7.31 billion from N5.07 billion the previous year.

Net premium income (NPI) increased by 11.16 percent to N2.14 billion in the period under review despite a 406.96 percent in reinsurance expenses to N2.14 billion in the period under review.

Niger Insurance has an efficient asset allocation as evidenced in growth in investment income.

Investment income increased by 10.71 percent to N577.74 million in December 2017 from N521.89 million the previous year. The Nigerian insurer made N202.10 million from rental income on investment properties.

The company had said during its Annual General Meeting in 2016 that it had restructured its investment by reclassifying some investment properties to non-current assets held for sale, adding that as a result, investment properties valued at N6.39 billion has been earmarked for disposal in 2017.

Insurance firms invest in short term government securities, bonds, equity and real estate with a view to underpin profitability and add value to shareholders wealth. Niger Insurance total net claims expenses increased by 19.70 percent to N3.22 billion in December 2017 as against N2.69 billion as at December 2016.