Wapic Insurance Plc said it has recorded a sound financial report after its profitability grew by 214 per cent for the year ended December 31, 2014.
The company profits after tax improved significantly with a 214 per cent increase to close at N236 million over the N208 million loss position recorded 2013.
The company also recorded a growth in gross written premium (GWP) of 38 per cent from the corresponding period in 2013 with an increase from N3.76 billion to N5.2 billion.
Similarly, underwriting profit increased by 1,272 per cent to N1.24 billion underpinned by improved risk selection and greater efficiency in managing underwriting expenses which dropped by 31 per cent relative to 2013.
According to the company, we paid about N1.09 billion in claims within the financial year, a significant percentage of these relate to current period transactions of 2013/2014.
“Having paid most of the outstanding legacy claims in 2013, the company’s efforts at implementing a structured approached to risk selection and management have begun to yield results as claims ratio improved significantly, closing at 34 per cent in 2014 compared to 80 per cent in previous year,” Wapic said.
The company’s shareholders’ funds of N14.2 billion is up 0.15 per cent relative to 2013 position while Return on Equity (ROE) grew by 236 per cent from the corresponding period in the preceding year.
Wapic is a first generation insurance company in Nigeria having been in operation for over half a century. Recently, it became one of only three insurance companies in Nigeria with a risk rating following its accreditation of b- rating on financial strength by a global risk rating company, AM Best.