Determined to attract investors across the globe into the nation’s insurance industry,Wapic Insurance Plc, has recorded impressive growth across key performance indicators for the period ended 31st March 2017.
The Group’s first quarter result released showed that Profit Before Tax (PBT) grew by 135%, from N163m recorded in 2016 to N384m in the period under review.
Similarly, the Group’s Gross Written Premium (GWP) increased by 25% over the previous year’s figure of N3,022m to N3,771m, which signals a departure from the erstwhile converse relationship between profitability and gross written premium in the company’s operations. In the recent past, Wapic insurance has had to pay out significant sums in the bid to set the institution free from legacy claims. This heralded Wapic’s emergence as a trusted customer experience leader, notwithstanding the resulting impact to profitability.
With the current trend, it is evident that the company has consolidated its position in the insurance industry as indicated by the efficiency of its business model, which has started creating the desired value for shareholders. This is further buttressed by the 23% growth in Net Underwriting Income, from N1159m in 2016 to N1428m recorded in 2017. In the same vein, Underwriting Profit rose by 19%, to N426m from the N358m posted for the corresponding period in 2016 to affirm the effectiveness of the Group’s operations.
Wapic Insurance continued its impressive growth trajectory across key performance metrics with an 8% boost in Total Assets, which now stands at N27, 896m from the previous figure of N25, 902m reported in the fourth quarter of 2016. Also, Shareholders Funds went-up marginally by 0.4%, over the previous year’s figure of N16, 556m to N16, 625m in Q1 2017, highlighting the renewed status of the company and its readiness to assume industry leadership.
“As Wapic Insurance continues its quest for leadership, operational efficiency; product innovation; channel utilization and capacity building will remain the focal points of our agenda”, enthused Yinka Adekoya, Managing Director, Wapic Insurance Plc.
Commenting on the company’s first quarter result she added that “Wapic Insurance has successfully settled legacy claims and is strategically positioned to compete in the sub-Saharan African insurance landscape. We are convinced that this positive trend in our profitability will continue, and will form the foundation of the transformation”.
At the subsidiary level, the sweeping transformation witnessed in key performance indicators at the Group level is yet to fully manifest as Wapic Life recorded a Gross Written Premiums of N534m in Q1 2017, a 25% decline from the corresponding period in 2016. Wapic Life also reported a Net Underwriting Income of N192m and a PBT of N10m compared with N25m from Q1 2016.
For Wapic Insurance Ghana, the subsidiary’s performance mirrors the efficiency the characterized that performance at the Group level, as PBT increased by 12%, from the N19m recorded in the first quarter of 2016 to N22m in 2017. Interestingly, this improved profitability and the 52% increase in Gross Written Premiums for the period, from last year’s figure of N230m to N351m in the current period is yet another demonstrated of the company’s potential to operate at optimal capacity.
Since the commencement of its transformation journey three years ago, Wapic Insurance has demonstrated exceptional commitment to best practice and international standards, particularly in the areas of corporate governance, capital adequacy and risk management. Unsurprisingly, the Groups boasts an AM Best financial strengthen rating of ‘C++’ and Issuer Credit Rating (ICR) of ‘b+’, which are valid testaments to its financial strength and risk rating.