WAPIC Insurance Profits From Transformation

AFTER more than half a century of operation, recent strategic institutional actions are beginning to open a new phase in the history of Nigeria's oldest insurance company, Wapic Insurance. The firm which is arguably sub-Saharan Africa's strongest insurance franchise had operated at sub-optimal level for decades, and offered stakeholders lesser than they deserved as a result of unfair valuation of its stocks but this trend has been reversed by the ingenuity and vision of its new management team.

Analysts had attributed the dreary performance of the institution to a number of reasons which include weak brand image, unexciting offerings and quality of management. However, these issues were not considered seriously because of the limited level of competition amongst operators in the sector unlike its first cousin, banking. But Insurance Analysts are resolute in their views that the sector holds higher potential than the banking sector and could contribute more to the economy, if properly driven and managed.

Even, a particular school of thought believe that insurance companies may soon own banks, just the way it is in developed economies across the globe but anchored the possibility of this development on increased level of competition amongst operators, innovative offerings, visionary leadership and experienced board.

For analysts, the transformation of Wapic Insurance as a result of its coming under a new management implied a renaissance of the Nigerian insurance industry. This view is also validated by stakeholders' expectation from the new management under the watch of Aigboje Aig-Imoukhuede who chairs its board - which is to break away from the history of underperformance that previously characterised the organisation.

In less than two years, analysts' insights and permutations are crystallising into an interesting story for the Nigerian insurance industry and Wapic Insurance shareholders in particular. Operators are finding new meanings to insurance services as a result of increased level of competition prompted by the vision of the current leadership of the firm.

More importantly, the innovation the sector has witnessed since the transformation of Wapic Insurance has positively impacted perception insurance services in the West African sub-region and created a sense of pride for insurance professionals who now have a better appreciation of their roles and contribution to the development of the Nigerian economy.

Perhaps, this development might suggest that insurance operations, like in other parts of the world, is gradually occupying its rightful place in the Nigerian financial services sector but a more probable evidence is the recent rating of Nigeria's oldest insurance company, Wapic Insurance, after more than 50 years of operations, by AM Best, the global full-service credit rating agency dedicated to servicing the insurance company.

While this rating affirmed Wapic Insurance's financial strength and importance to the insurance industry in the West African sub-region, the rating could be noted as one of the immediate impacts of the company's transformation as a result of its acquisition by Access Bank Plc, and eventual repositioning for optimal performance under the watchful eyes of Aigboje Aig-Imoukhuede, a business leader reputed for his uncommon management acumen and an accomplished turnaround manager.

The rating agency which commenced operations in 1906, noted that " the financial strength rating (FSR) of B- and the issuer credit rating of "bb-" were assigned to Wapic Insurance Plc. The ratings were assigned a stable outlook". By this, Wapic Insurance becomes one of the only 3 insurance companies rated in Nigeria.