Wapic Insurance Records N368m Profit Before Tax in Six Months

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By Ebere Nwoji

Wapic Insurance Plc, one of the licensed insurance companies in Nigeria, has announced profit before tax (PBT) of N368million in its unaudited financial report for the period ended June 30th,2016.

This represents 238 percent growth in the company’s PBT for the period compared to N109million it achieved in the corresponding period of 2015.

Wapic Insurance, highlighting its other financial performance for the period under review, said its Gross Written Premium grew N4.5billion, showing 12 percent rise from the corresponding period in 2015.

 The company, however, said its Underwriting Profit went down by 68 percent to stand at N267million for the period, a situation which it blamed on increased claims expenses experienced by the company for the period.

According to other financial highlights released to the public by the company; total claims paid by the company for the period stood at N1.22billion, representing 110 percent increase from the corresponding period figure in 2015, just as the company’s Gross claims ratio experience for the period increased by 27 percent compared to what it was in 2015.

Similarly, its subsidiary, Wapic Insurance Life within the same period increased its Grossed Premium by 40 percent to close at N947million, in the period under review, an achievement which the company’s management attributed to successful prioritisation of the group life products.

Underwriting Profit however went down by 137percent to a loss of N63million, against N169million recordedin the corresponding period of 2015.

 The company made an operating loss of N233million, representing a 231 percent decline from the first half 2015 position.

The management explained that this was a result of the increased claims experience for the period especially in the group life product.

“Claims increased by 100 percent, to N306million in first half 2016 from N153million in first half 2015.

 The company’s offshore subsidiary, Wapic Insurance, Ghana, within the period under review, recorded Gross Written Premium of N425million, up by 29 percent against 2015 corresponding period figure of N330million.

According to the company, within the period, Underwriting Profit, declined by 126 percent to a loss of -N19million with an operating loss of N282million in the period under review

Total claims paid within the period stood at N236million, representing a 144percent increase from first half 2015 figure.

 Commenting on the results, Managing Director WAPIC Insurance Plc., Yinka Adekoya said:“Our half year result reflects our company’s unwavering commitment to its growth objectives. Despite the challenging economic conditions in the first half of the year, the Group’s gross premiums grew by 12 percent to N4.5billion  and recorded pre-tax profits of N368million , showing 238 increase from last year’s figure.”

Continuing , he said: “As an organisation, we are focused on strengthening our sales activities by delivering on our customer experience promises, leveraging on our priority products, improving cost optimisation and articulating our brand. We remain committed to deepening retail channels and achieving growth targets for the second half of the year.”

 He said at the International level, Wapic Insurance is a  company of no mean repute having clinched  AM Best financial strength rating (FSR): of B-  in risk rating category and Issuer Credit Rating (ICR): of bb-.

Meanwhile, the company said it will hold a teleconference call for investors and analysts on tomorrow (August 9), at 2pm Lagos Time (1pm London/ 3pm Johannesburg/ 9am NewYork) with its senior management, to announce the unaudited financial results for the period ended June 30th, 2016. It added: “There will be an opportunity at the end of the call for management to take questions from investors and analysts.”