Law Union and Rock Insurance, a non-life risks underwriting firm recorded a 14 percent increase in premium income in its most recent quarter.
For the first nine months through September 2015, Law Union and Rock’s premium income increased to N2.0 billion as against N1.77 billion the previous year.
Gross premium income jumped by 12 percent to N2.93 billion as the company continues to introduce market driven products with a view to consolidating its share of the market.
Analysts say over 70 percent of the work force in Africa’s largest oil producer are in the informal sector.
Gross domestic product was 2.8 percent in the third of 2015, from a year ago, compared with 2.4 percent in the second quarter and 6.2 percent in the same period of 2014, the National Bureau of Statistics said on its website.
Despite the economic slowdown, Law Union and Rock made a leap forward in underwriting performance as a result of low combined ratio (CR) of 54.13 percent, a figure that is less than the 100 percent mark.
The low CR resulted in a positive real underwriting performance of N 915.12 million in the period under review. Underwriting profit increased by 59 percent to N1.08 billion in 2015 as against N686.33 million the preceding year.
The Nigeria insurer’s total net claims increases by 26 percent to N710 million while claims ratio fell to 25.86 percent in 2015 as against 40 percent, last year.
Further analysis of the financial statement of Law Union and Rock showed net income increased by 216 percent to N564.54 million in 2015 from N178.87 million last year.
Operating expenses jumped by 5 percent to N799.11 million.
Law Union and Rock’s share price closed at N0.53 on the floor of the exchange while market capitalization was N1.82 billion.
BALA AUGIE
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