Universal Insurance, has posted N2.2b gross written premium in the first half of this year, a new mark for the company despite the pandemic recording 100 percent improvement over same period last year.
A review of the half year financial result of the company via issuers portal of the Nigerian Stock Exchange, revealed a whopping N2.2bn gross written premium in the first half of 2020 as against N1.2bn recorded within the same period in 2019. The result also show a profit after tax of N209m recovering from a loss position of N173m recorded within the same period in 2019.
Narrating the company’s result, the managing director, Ben Ujoatuonu, said Universal was rated among the top insurance firms in Nigeria in terms of effective communication with clients online during the pandemic as published by Alexa Rating Agency.
Ujoatuonu said the summary of the company’s audited financial statements for the year ended December 31, 2019, showed that the topline grew marginally and showed a recovery from a loss position of N47m in 2018 in profit after tax as against N65m in 2019.
The balance sheet also showed a significant improvement in performance as the non-life insurer strength by reducing its liabilities from N3.4b in 2018 down to N1.7b in 2019, implying that the company, in its bid to meet the recapitalisation agenda of the regulator, National Insurance Commission, i forging head- on to meet the statutory requirement long before the final whistle is blown.
He stated that by this performance, the company has achieved 71 percent of the first segment of its recapitalisation plans which is way above the 50% mark set by NAICOM come December 31, 2020.
The shareholders fund however, dropped from N9.4b to N8.3b in 2019 while the assets value decreased from N12.8b to N10b. The company recorded growth in gross written premium to N1.8b in 2019 from N1.6b in 2018.
“For 2019 our topline was better thn we had in 2018 even though it was marginal, but it showed levels of improvement from what we had in 2018.
“Our results for 2018 showed a loss of about N47m but we recorded N65m profit in 2019. Also, our balance sheet showed a significant reduction in our negative retained earnings. It moved from N2.1b in 2018 down to N1.7b in 2019. What this also means is that we have improved our capital as required by NAICOM in its recapitalisation programme,” he stated.
He said, “going by the 2019 audited accounts and considering the NAICOM capital computation, Universal Insurance Plc has met the first segment of the 50 percent of new capital by December 2020.
Ujoatuonu explained that the growth in gross written premium from N1.6b in 2018 to N1.8b in 2019 and its performance in the first half of the year were signs that it has launched itself on the path of growth.
