Underwriting firm, Universal Insurance has recorded improvement in its third quarter 2019 performance, as against analysts speculation that the company would not be able to turn around its fortunes based on the half year results released at the end of June.
According to the financial statement filed with the Nigerian Stock Exchange (NSE) and made available to the media, the Company’s result shows that an increase in gross premium income by 91 percent to N1.541billion as the end of September 2019 from N808.698 million within the same period in 2018.
Also net premium income witnessed a leap to N1.095 billion from N620.198 million representing 77per cent increase in the period under review.
Given the technical capabilities of the underwriting house in the period of consideration, gross claims paid out dropped to N211 million from N255.424 million, representing a 17per cent drop.
Ben Ujoatuonu, managing director of the company noted that the reduction in claims payout was achieved due to the company’s ability to assess risks accepted effectively and efficiently.
He added that the company holds prompt claims settlement as priority and with delight attends to issues of genuine claims with dispatch.
The underwriting profit rose by 71per cent to N626.506 million in the third quarter of 2019 while investment income also marked up an increase of 38 per cent to N106.668 in the review period compared to N77.423 million the previous year.
Other growth indicators shown on the table are total assets of the Company which increased to N13.154billion in the third quarter results from N12.891billion and shareholders’ fund which also recorded a slight increase of 1 percent and stood at N9.541billion within the period under review.
“It is noteworthy to mention that Universal Insurance is one of the 44 underwriting firms given the ‘No Objection’ status by the National Insurance Commission to carry out its recapitalization plans”, Ujoatuonu added.
“The Company’s paid up share capital currently stands at about
N8 billion as a General Business underwriter and plans are ongoing to ensure that the company beats the June 30, 2020 deadline to capitalize to the prescribed N10 billion in the post recapitalization regime.
