Insurers fortunes rebound in Q3 2019

Fortunes of some insurance operators have recorded significant increase in the third quarter (Q3) of 2019, against analysts’ projections that few of them would not be able to turn around, given their half-year results. Interestingly, the analysts in the industry have been proved otherwise given the sterling performance of the companies in Q3 ended September 30, 2019.

According to the financial statements filed with the Nigerian Stock Exchange (NSE), Universal Insurance recorded an increase in Gross Premium Income by 91per cent to N1.541billion in the period from N808.698 million in the same period in 2018. Also Net Premium Income witnessed a leap to N1.095 billion from N620.198 million, representing 77 percent increase in the period under review.

Given the technical capabilities of the underwriting house in the period of consideration, Gross Claims paid out dropped to N211 million from N255.424 million, representing a 17 per cent drop.The Managing Director of the company, Ben Ujoatuonu, noted that the reduction in claims payout was achieved due to the company’s ability to assess risks effectively and efficiently.

He added that the company holds dear claims settlement obligations and with delight attends to issues of genuine claims with dispatch.Similarly, Underwriting Expenses increased by 63 per cent to N340.506 million in the third quarter of 2019 from N208 million in 2018, this however, signifies a remarkable improvement on the 604 per cent (N538.822 million) recorded in the second quarter of 2019. The Underwriting Profit rose by 71per cent to N626.506 million in Q3 of 2019, while Investment Income also marked up an increase of 38 per cent to N106.668 in Q3 2019 compared to N77.423 million in the Third Quarter of 2018.