Insurer records significant growth in outgoing year

Despite challenging operating environment in the country, underwriting companies in the nation’s insurance industry are beginning to attract more investors across continents through their third quarter of 2020 financial performance, in a bid to move the sector into a greater height.

Speaking to The Guardian on how operators could increase gross written premium in the industry, the Chief Executive Officer, AXA Mansard insurance, Kunle Ahmed, said the outstanding performance was predominantly driven by growth across all lines of business within the organisation.

Ahmed said in its unaudited third quarter financial report 2020, that Profit After Tax (PAT) of N5.67 billion, representing a 169 per cent growth for the third quarter ended September 30, 2020 as against N2.11 billion recorded for the same period in 2019.

The company also disclosed a gross written premium N39.46 billion, showing a 5 per cent increase from N37.43 billion in September 2019.

The net premium income of the company stood at N23.75 billion from N19.13 billion in 2019, indicating a 24 per cent increase while investment and other income increased by 64 percent to N6.56 billion from 3.98 billion.

Commenting on the results, the Chief Financial Officer Mrs. Ngozi Ola-Israel, said. “The business has remained resilient over the quarter delivering 63 per cent growth in underwriting profit and a remarkable 169 per cent growth in profits after tax. We remain committed to technical and operational excellence to enable us continue to deliver strong results.

“Operating expenses stood at N5.92 billion; six per cent increase from N5.58 billion in the corresponding while profit before tax increased by 192 percent to N7.06 billion from N2.42 billion recorded in 2019.

“Total assets is N102.17 billion up 11 per cent from N92.29 billion as at December 2019 while insurance liabilities stood at N30.77 billion up by 22 per cent from N25.16 billion as at December 2019.
Group Shareholders’ Funds recorded was N33.33 billion, a 32 per cent growth from N25.26 billion while insurance Shareholders’ Funds stood at N28.58 billion , up by 24 per cent from N23.09 billion as at December 2019.

“Return on Average Equity of 24 per cent as against 11 per cent in 2019, return on Average Asset of 7 per cent compared to 3 per cent in the previous year while earnings per share of 50.74k in September 2019: 18.37k.”