Determined to regain confidence in the nation’s insurance industry, underwriters are beginning to explore digital avenues to aid the performance of their gross written premium at the end of their financial year in the country.
Speaking to The Guardian on how operators could increase it gross written premium in the industry, the Managing Director/Chief Executive Officer, AllCO Insurance, Babatunde Fajemirokun, said the outstanding performance was predominantly driven by growth across all lines of business within the organisation.
Fajemirokun said the gross written premiums for the year ended December 31, 2019, increased 33 per cent to N50.1billion from N37.7 billion in 2018.
According to him, profit before tax (PBT) soared to N6.2 billion, an increment of 78 per cent compared to the N3.5 billon achieved in 2018. Profit after tax (PAT) also grew by 88 per cent to N5.9 billion, compared to N3.2 billion in 2018. Basic earnings per share (EPS) increased by 89 per cent from 44k in 2018 to 83k in 2019.
Fajemirokun said: “Over the course of 2019, we undertook a thorough review of our businesses with a clear aspiration to attain market leadership through profitable growth”. Stemming from the progress made so far, it is my belief that we are on course and have the right strategy in place to deliver even more sterling performance in the years ahead.”
In accordance with our commitment to the fulfilment of our obligations to our clients, gross claims grew by 6 per cent from N29.0 billion in 2018 to N30.6 billion in 2019. From this amount, about 75 per cent was for benefits and claims payment in our Life business with the remaining 25 per cent incurred in the Non-Life business.
The Group, however, experienced an underwriting loss of N6.34 billion in 2019. This was predominantly driven by the increase in life technical reserves (change in life funds) in the Life business.
The Non-Life business achieved N2.4 billion underwriting profit in 2019. This increase in life technical reserves is based on significant growth in new business, the impact of changes in yields on federal government securities and assumption changes such as mortality, withdrawal experiences, policy expenses and increased inflation.
