WAPIC records N1.38bn underwriting profit in 9-months
WAPIC Insurance Plc, the Group, a multi-line insurance company has announced its unaudited financial results for the period ended 30th September, 2018, showing Gross Written Premium of N10.1 billion, a growth of 29 percent compared to same period in 2017.
WAPIC, yesterday November 8 at 2pm Nigerian time held a teleconference call for investors and analysts, with its senior management to announce the unaudited financial results for the period ended September 30th, 2018. And as usual, there was opportunity at the end of the call for management to take questions from investors and analysts.
According to the result, the Group made an underwriting profit of N1.38 billion, a 7 percent growth from the prior period’s position, while profit before Tax (PBT) declined by 50 percent to close at N475 million, negatively impacted by the drop in investment and other incomes, and the growth in net claims expenses for the period.
For the year to date, the Group paid N2.76 billion gross claims, a 21 percent increase in claims payout compared to 2017. Gross claims ratio decreased to 27 percent as at September 18 against 29 percent in the same period in 2017, driven by improved year-on-year top line performance .
The Company also got a AM Best financial strength rating (FSR): of C++ and Issuer Credit Rating (ICR): of b+, showing increased strength in capabilities to meet customer obligations.
Its subsidiaries continue to increase their value addition to the Group, with Wapic Life Assurance Ltd recording an 8 percent year-on-year increase in gross written premium to N1.5 billion from N1.4 billion in prior year, while gross claims paid increased by 18 percent to N836 m in Sept 2018, compared to N707 million in the corresponding period of 2017.
The Ghanaian subsidiary , Wapic Insurance Ghana Ltd grew its GWP position by 25 percent YoY to N1.39 billion compared to the same period in 2017. Wapic Ghana continued with its impressive performance stead to record an underwriting profit of N287million representing a 57 percent increase from September 2017. The subsidiary made a PBT of N24 million, a positive improvement from the loss position of N208 million recorded in the prior period.
Commenting on the result yesterday at the Company’s headquarters in Lagos, Yinka Adekoya, managing director WAPIC Insurance Plc., said: “Our nine months’ financial performance is reflective of the focused implementation of our growth objectives across all business lines. The group reported a commendable N10.1 billion in gross written premiums for the period, a 29 percent increase from the prior year’s position and significantly outperforming industry averages. Underwriting profit also followed in the same stead at a 7 percent year-on-year increase to N1.4 billion from N1.3 billion in 2017. This is indicative of the disciplined execution of our growth strategy, Adekoya said.
“Our ongoing digitization efforts and first-in-class customer experience offering will open up new opportunities which we believe will ensure the continued creation of sustainable value to all our stakeholders”.
Wapic Insurance Plc. (“Wapic” or “the Company”) is a leading West African multi-line insurance company providing solutions covering life, general and special risks. Established in 1958 and listed on the Nigerian Stock Exchange since 1990, Wapic’s mission is to transform into a diversified financial services institution, delivering value in a sustainable manner to her customers and stakeholders while playing a lead role in the transformation of the industry.
Modestus Anaesoronye