UnityKapital Assurance plc, an underwriting company in Africa largest economy Nigeria, has recorded a small increase in net premium income (NPI), analysis of the financial statement shows.
For the first six months through June 2014, the company’s net premium income (NPI) increased by 1 percent to N1.34 billion from N1.33 billion the same period of the corresponding year (Q2) 2013.
However, the top-line performance was not that slow in all entirety as gross premium moved by 16 percent to N2 billion as against N1.73 billion the preceding year.
UnityKapital’s bottom line also suffered slow growth as profit after tax (PAT) fell by 31 percent to N181.17 million compared with N264.64 million the preceding year. Similarly, underwriting profit dropped by 10 percent to N817.54 million from N905.66 million.
The dwindling performance of company at the bottom line could be attributable to a 13 percent drop in net claims incurred to N147.42 million and a 6 percent reduction in management and provision for doubtful expenses to N892.40 million.
It should be noted that the insurer intends intensifying its share of the Nigerian insurance market by kick starting the Takaful Insurance in the first quarter of last year.
UnityKapital’s total assets were up by 5.22 percent to N11.28 billion in the period under review compared with N10.72 billion last year, while total equity increased slightly by 1.18 percent to N9.38 billion.
In order to expand its capital base, place it business on a chosen competitive arena, the company consummated equity acquisitions in Health Care Security Limited, an NHIS registered Health Management Organisation, and Future Unity Glanvills Pensions Limited (FUG Pensions), which is a recognised Pension Funds Administrator.
Analysts are saying that the future of the Nigerian insurance sector is unflinching as growth is expected to be driven by the motor vehicle insurance and the ‘No premium No cover’ policy of NAICOM. Additionally, the rising middle-class and the country’s growing population mean a lot of people will have to be insured in the near future.
Inspite of the aforementioned opportunities, the Nigerian insurance sector’s contribution to the economy has over the years been abysmal as it contributed less than 1 percent to the country’s N80.22 trillion 2014 GDP.
BALA AUGIE
No comments:
Post a Comment