Insurer records N9 billion half-year premium

Wapic Insurance Plc has posted a gross written premium with a 24 per cent increase to N8.7 billion in the second quarter of 2019, compared to N6.9 billion in the same period of 2018.

The underwriting company in its unaudited results for the period ended June 30, 2019, said this was buoyed by sustained leadership status in some major accounts, attainment of increased market share and enhanced capability to underwrite.

The Managing Director/Chief Executive Officer, Wapic Insurance, Mrs. Yinka Adekoya, who spoke to The Guardian said: “Our Group’s financial performance in the first half of the year is largely in line with our growth expectations and strategic aspirations.

“Despite the prevalent tepid economic conditions with Gross Domestic Product growing below market expectations at two per cent, we grew our gross written premium by 24 per cent year-on-year to N8.7 billion ahead of our growth rate target of 20 per cent.

“This influenced our profit before tax position, which grew at a double-digit growth rate of 67 per cent to N400m when compared to N241m reported in the H1 2018.

“Regulatory ratios remained above the required thresholds with our Solvency ratio at 168 per cent.

“As we continue to position the company for long-term success, we trust that our ongoing digitisation efforts and best-in-class customer experience offerings will open up new opportunities, which we believe will ensure the continued creation of sustainable value to all our stakeholders.

Within the first half of the year, precisely in May 2019, the National Insurance Commission announced a major increase across the board in the minimum paid-up share capital of insurance and reinsurance operators in the country.

“With this new minimum capital requirement, further consolidation of the Nigerian insurance sector is imminent, as some insurers may seek to merge or be acquired by bigger firms, in a bid to comply with the circular.

“There is absolutely no doubt that the new MCR will have a significant impact on the Nigerian insurance industry, given the country’s untapped vast potential in the insurance market space.

“For Wapic, our general insurance business is adequately capitalised for the new MCR, while measures are already in place for the life subsidiary to be fully capitalised before the June 2020 deadline.”