FBN Insurance said it has in the past three years successfully raised its Gross Written Premium from below N 2 billion to N10 billion in 2015.
Managing Director (MD) of the company, Val Ojumah who disclosed this at a media briefing in Lagos as part of activities to mark the company’s fifth anniversary celebration, said in 2012, Gross Written Premium of the company stood below N2 billion, while operating profit was within N200 million.
He said in N2014, Gross Written Premium of the Life business rose to N7.3 billion, while the operating profit stood at N 1 billion.
The firm’s return on equity also rose by 24 per cent. The company said this year, it is maintaining the same returns on equity, while its Gross Premium forecast is N10 billion for 2015.
According to the MD, the company aims at giving good returns on equity as well grow grass written premium.
“We are second in the industry in terms of efficiency, our operating cost, income ratio is one of the best in the industry, hovering around 22 to 25 per cent, while others in the industry is around 76 per cent”, he said.
“We have successfully been paying dividend to shareholders since 2012, this is achievable because of the commitment of the employees, stakeholders and the parent company, FBN and Sanlam Group. Together, we have been able to change the landscape on insurance in Nigeria and we are very proud of where we are and where we are going to”, he added.
Speaking on the company’s operating strategy in the competitive environment in Nigeria, Ojumah said: “As you are all aware, insurance is not really part of our culture in the country, this is something we are working together from the regulator and the operator. From my study, I know insurance is more important for the poor than for the rich. With penetration under one percent, you can understand why insurance can’t measure with their counterparts in banks and other lucrative sectors.
So, we are working to grow the business, to increase insurance awareness to the public and to make sure that the general population find the value in insurance.”
According to him, from day one, FBN Insurance recognised that the large proportion of Nigerian population don’t buy insurance and has come up with what it called penny products, that enables the ordinary person to buy insurance at just N2,000 .
He said the company did this even before the regulator came up with micro insurance policy.
“As a company, we recognised micro-insurance to this economy. That was equally the motivating force why we go into mobile insurance. As you are very much aware, there are more than 100 million mobile lines in Nigeria, and out of which many of these, belong to the low income group,
So, the easiest way to reach them is through mobile insurance, because large proportion of the populace fits into these products. This is growth area and an important area,” he said.
From findings on the company’s operational method, it was discovered that FBN has from its inception five years back and in accordance with is promise to the regulator before license was issued to it stood out in exploring opportunities in the retail segment of insurance business.”
Speaking at the signing ceremony, AGM Business Development of FBN, Mr. Supo Sogelola said the cover will give each member of the group a life cover to the tune of N1.5 million, adding that his company hopes to extend similar cover to the national body of the association.
According to Sogelola, with the cover, FBN is trying to have a greater penetration of insurance nationwide and is looking at the professional bodies in order to achieve success in the bid to ensure that every Nigerian has an insurance cover.