Wapic’s merger synergy crystallises, gets B rating from AM Best

The Wapic Insurance Plc merger synergy has crystallised into strong financial performance as AM Best, a leading global insurance rating agency has ranked the Nigeria insurer “B”.

Analysts say Wapic is profiting from transformation, as it becomes only one of three rated insurance companies in Nigeria.

The rating grade assigned to Wapic Insurance underscores the company’s enhanced underwriting capabilities, performance and its strong enterprise risk management framework.

The rating also recognises Wapic’s respectable liquidity position and strong risk-adjusted capitalisation, underpinned by the firm’s improved assets quality. Stemmingfrom these, the company was assigned a stable outlook as its overall rating, the statement added.

For the first nine months through September 2014 Wapic Insurance recorded gross premium income of N3.52 billion. Its underwriting capacity was efficient, as it recorded net premium income of N2.87 billion.

It will be recalled that in order to place the company on a chosen competitive arena and increase its share of the market, the Nigeria Insurer consummated a merger with Intercontinental Properties Limited; a tactic which considerably enhanced its underwriting capacity and ranked it amongst the top five in Nigeria, across a number of key performance indicators.

“The company seeks to be a truly diversified financial services institution that provides protection against all forms of insurable risks to all customer segments and become one of the top 20 financial services institutions in Nigeria by 2017 as well as capture 15 percent market-share by 2019,” said the company in the press release.

Wapic recorded a profit before tax of N169.88 million in the period under review, while profit after tax stood at N123.51.The third quarter 2014 net income was N2.38 billion,while total underwriting profit stood at N1.37 billion.
“The company has a history of delivering efficient and transparent insurance solutions to discerning clients; a culture reflective of the strength and leadership which underpins the company’s foundation.
Recently, Wapic Insurance strengthened its corporate identity and introduced a new business model to facilitate provision of excellent service in a sustainable manner and help in redefining the business of insurance within the West Africa region,” said the company.