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WAPIC Insurance Pays N4.1bn Claims to Policyholders

Wapic Insurance Plc has paid N4.1 billion as gross claims to Policyholders who suffered insured risks in its 2019 financial year end.

The Gross claims to Gross Written Premium (GWP) ratio closed at 27 per cent as at December 2019, a reduction when compared to the 36 per cent recorded in 2018.

Similarly, the insurer recorded a Gross Written Premium of N15.2 billion, a nine percentage growth compared to same period in 2018 buoyed by attainment of leadership status on some major accounts and enhanced underwriting capabilities.

While the Group’s underwriting profit grew to N2.9 billion, a commendable 36 per cent year-on-year growth from the N2.1 billion recorded in the preceding period of 2018, Wapic Insurance said, the growth in premiums and decrease in net claims expense during the review period had a positive impact on this position.

 The Group equally experienced an 87 per cent decline in Profit Before Tax (PBT) to close at N24 Million, as the drop in investment and other income, as well as the growth in underwriting and operating expenses for the period negatively affected the bottom-line position.

Reacting to the financial performance, managing director, WAPIC Insurance Plc, Mrs. Yinka Adekoya, said, the insurer delivered a commendable performance in the financial year 2019 despite a sluggish macroeconomic and business landscape which didn’t pick up until the latter part of the year.

With a combination of an intensified underwriting capacity expansion, and the focused execution of its business plans, she stressed, the Group’s GWP for the period grew by nine per cent year-on-year to close at N15.2bn surpassing the average Nigerian insurance market growth rate.

“The Group also recorded  a Profit After Tax of N214M from N315M recorded in the previous year. Our Total assets grew by 1.3 per cent to N30.7bn from N30.4bn in 2018. Our Shareholders’ Funds stood at 18.5bn for the period from N17.1bn in 2018.

The year 2019 was a challenging year for the company as we were only able to achieve marginal growth in our Gross Written Premium. However, we expect that the disciplined execution of our transformation projects and other growth strategies will begin to yield the desired results from 2020,” she pointed out.

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