The Oasis insurance Nigeria Plc, the Nigeria underwriter is on a growth trajectory as half year profit surged 318.5 percent fuelled by reduction in costs, analysis of financial statement reveals.
For the year first half year through June 2014, Oasis Insurance’s gross premium rose by 18 percent to N998.54 million from N846.14 million in the same period of the corresponding year (HY) 2013.
Oasis insurer was able to translate top line impressive performance to bottom line growth as profit before tax (PBT) surged by 318.5 percent to N281.71 million compared with N67.31 million as at HY 2013.
Profit after tax (PAT) followed the same growth trend as it spiked by 270.1 percent to N211.28 million from N57.06 million as at HY 2013.
The impressive performance is coming amid challenging operating environment as most Nigeria insurers in Africa largest economy are grappling with the regulations such as the No premium, No cover policy.
The new code of ethics made it mandatory, and no insurance policy would be renewed or issued last year, unless full premium was paid for the insurance cover.
Management and expenses and provision for doubtful accounts reduced by 38.70 percent to N146.51 million from N239.01 million as at HY 2013
Oasis has expanded its asset base as total assets increased by 13.1 percent to N4.52 billion in HY 2014 as against N4 billion as at HY 2013
Oasis Insurance Plc. was incorporated on 9th November 1992, and licensed under the insurance act 2003 to transact all classes of General Insurance.
The company was acquired by First Bank Nigeria FBN Life Assurance Limited a subsidiary of FBN holding Plc.
The Nigeria insurer has 8 billion shares outstanding with share holder’s fund of N3.40 billion as at June 2013.
Return on Average Equity (ROaE) was 8.09 percent while the Return on Average Assets stood at 6.2 percent in the review period.
The company’s share price closed at N0.50 –July 22nd 2014 on the floor of the Nigeria Stock Exchange while market capitalization was N4 billion.
BALA AUGIE
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