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Wapic Insurance underwriting profit up 112% on increased premium

Wapic Insurance underwriting profit up 112% on increased premium

Wapic Insurance Nigeria Plc’s innovative product introduced with a view to increasing a share of the market has paid off an increase in premium income helped underpin underwriting performance.

Also, the Nigerian insurer’s investment across each business segment is driving strong growth in earnings.

For the first six months through June 2018, Wapic Insurance’s underwriting profit surged by 112.19 percent to N1.32 billion from N622.08 million the previous year. 

The growth in underwriting profit was largely driven by improvement in revenue as the firm continues to surmount the heads.

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Gross premium written (GPW) and gross premium income (GPI) increased by 18.16 percent and 19.52 percent to N6.96 billion and N5.45 billion in the period under review  from N5.89 billion  and N4.57 billion  as at June 2017.

Net premium income followed the same growth trajectory as it increased by 43.26 percent to N3.96 billion in June 2018 as against N2.76 billion as at June 2017.

A breakdown of Gross premium written (GPW) shows the revenue from Motor insurance grew by 68.68 percent to N1.19 billion while the Nigerian insurer generated N1.07 billion from individual life business.

Wapic Insurance’s good underwriting is a major driver of combined ratios.

Wapic insurance was founded in 1950 and listed on the Nigerian Stock Exchange (NSE) in 1998. The company has two subsidiaries Wapic Life insurance and Wapic insurance Ghana.

Chairman of the company, Aigboje Aig-Imoukhuede took a majority stake in the firm shortly after stepping down as MD of Access bank. Intercontinental bank which was acquired by Access bank had a majority stake in the insurance firm. Access bank had earlier spun off Wapic shares to its shareholders.