With 2018 Results, Insurance Firms Show Strength


Ebere Nwoji

Most insurance sector operators recorded positive results in their audited financial statements for  the year ended December 31,2018.

The development has been attributed to continued resilience in their business model as well as the growing financial discipline by their respective management.

As a result of this impressive performance, shareholders of few insurance firms that have so far announced their results would smile home as some have announced dividend pay-out.

For instance, the FBNInsurance in its recently released results recorded general growth across all indices in the 2018 financial year.

The results showed that the insurer’s profit before tax (PBT) in the year under review grew by 44 per cent, from N4.26 billion in 2017, to N6.13 billion in 2018; while the gross premium written (GPW) grew from N19.6 billion in 2017 to N26 billion in 2018, accounting for a 33 per cent increase.

While commenting on the financial statement, Managing Director/Chief Executive Officer, FBNInsurance,  Val Ojumah, attributed the performance of the company to the management  resilience in achieving the strategic aspiration of becoming the most profitable life insurance company in Nigeria.

“The 2018 result has not only moved us several steps towards this goal, it has also raised the bar for our performance in 2019. Given our track record of strong and sustainable growth, we are confident that FBNInsurance will wax stronger in 2019 despite the anticipated lull in economic activities due to political and electioneering activities”

Similarly, Custodian Investment Plc, formerly Custodian and Allied Plc, said in the year ended 31st December 2018 its financial performance was clearly strong.

According to the result, gross revenue for the year grew by 16.6 per cent to N50.2 billion, from N43.1 billion reported in 2017.

It said despite the challenging business environment in 2018, its profit before tax rose to N9.5 billion, from N8.9 billion posted in 2017.

The Managing Director, Custodian Insurance, Wole Oshin, said the company would continue to thrive in all sectors in which it operates as it will be guided by its vision to always exceed stakeholders’ expectations in the delivery of services to its esteemed clients, observance of high corporate governance standards and the recruitment and retention of highly skilled personnel while leveraging on innovation and bespoke technology for excellence.

Also, Continental Reinsurance said it closed 2018 financial year with top and bottom-line growth. The company posted Gross Premium Income of N34.19 billion in its full year result for the 2018 financial year. This showed 15 per cent growth from what it achieved in the previous year 2017.

Group Managing Directorof Dr Femi Oyetunji, said Continental Re, during the period grew its pre-tax profit by 22 per cent, while underwriting profit stood at N1.18 billion.

“Market and business-cycle insight are key.  It’s about deploying the right strategy and having the right operational balance.

“We have resources with deep local knowledge of the diverse environmental dynamics across Africa who marry their insights with strong technical capabilities to achieve sustainable positive outcomes in both our underwriting and asset management activities,” Oyetunji added.