UnityKapital Assurance Nigeria Plc has reported a significant increase in its revenue and profitability thanks to contributions from the oil and gas business as the company continues to develop competences in all business segments.
The company is one of the few NSE 15 insurance firms with an enviable financial strength as evidenced by strong margins, favourable liquidity position, efficient underwriting performance and robust cash and cash equivalent.
For the first six months through June 2017, UnityKapital’s gross premium written increased by 28.90 percent to N1.65 billion as against N1.28 billion the previous year.
Similarly, net underwriting profit grew by 11.40 percent to N944.02 million while underwriting income moved by 37.65 percent to N959.08 million as at June 2016.
The significant increase at the top line (revenue) was due to 55.38 percent uptick in premium income from the oil and gas business, which makes up 59.36 percent of N1.65 billion group revenue.
Unity Kapital Assurace performance has been impressive since it appointed Olatunji Oluyemi last year as managing director and chief executive officer subject to approvals from the National Insurance Commission (NAICOM).
Oluyemi said he will focus on moving the company to the next growth phase given its solid earnings and robust asset base.
The insurer’s underwriting profits were up 37.65 percent to N474.76 million, which means the company has an efficient underwriting capacity. Net income in the period under review increased by 49.36 percent to N244.69 million while pre-tax profit rose by 60 percent to N301.01 million.
The company was able to translate top line impressive performance to bottom line growth as net margins increased to 25.92 percent in June 2017 from 18.92 percent at as June 2016.
Return on Equity (ROE) increased to 2.36 percent in June 2017 from 1.69 percent recorded in June 2016, which means the insurer has utilized shareholders resources in generating higher profit.
Unity Kapital has settled a total claim of N198.67 million in the second quarter of 2017 which underlines its commitment to prompt settlement.
A breakdown of the figures shows that oil and gas- insurance tops the list with total claim settlement of N83 million, followed by motor insurance with N54.41 million.
Other classes of claim paid within the period under review include fire with a total of N33.35 million, general accident claims paid amounting to N18 million, Engineering are N17.10 million, with aviation claims being N4.20 million.
The company said it has resolved to improve its claims paying process so as to bolster investor confidence in its operations.
Unity Kapital’s solvency margin of N10.35 billion, is higher than the N3 billion average set by the National
Insurance Commission (NICON). The company has a total asset of N11.97 billion while insurance asserts stood at N196.62 million.
BALA AUGIE
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
