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Wapic Pays out N1bn in Claims, Records over 200% Profit in 2014

Wapic Insurance Plc has announced its audited financial results for the year ended December 31, 2014 on March 24, 2015, revealing that the company paid out over N1 billon in claims and recorded over 200 per cent Profit After Tax (PAT).
The company is the first Insurance operator in the Industry to have its Audited Financial Statement’s approved by the National Insurance Commission (NAICOM) and the first listed Insurance Commission to have its financials approved and published by the Nigerian Stock Exchange.
For the period under review, the Company recorded a growth in Gross Written Premium (GWP) of 38 per cent from the corresponding period in 2013 with an increase from N3.76bn to N5.2bn. In the same vein, the underwriting profit increased by 1272 per cent to N1.24bn underpinned by improved risk selection and greater efficiency in managing Underwriting Expenses which dropped by 31 per cent relative to 2013. The Company’s profits improved significantly with a 214 per cent increase in Profit-After- Tax (PAT) to close at N236million over the N208million loss position recorded 2013.
The Company paid about N1.09bn in claims within the financial year. A significant percentage of these relate to current period transactions of 2013/2014. Having paid most of the outstanding legacy claims in 2013, the Company’s efforts at implementing a structured approached to risk selection and management have begun to yield results as Claims Ratio improved significantly closing at 34 per cent in 2014 compared to 80 per cent in previous year.
The Company’s Shareholders’ Funds of N14.2bn is up 0.15 per cent relative to 2013 position while Return on Equity (ROE) grew by 236% from corresponding period in preceding year. Wapic’s Solvency Ratio of 171 per cent is above regulatory levels and remains one of the highest in the industry.
Wapic is a first generation insurance Company in Nigeria having been in operation for over half a century. Recently, it became one of only three insurance companies in Nigeria with a risk rating following its accreditation of b- rating on financial strength by AM Best, a global risk rating company. All indications show that the company’s transformation agenda is on track while the elevated governance standard and commitment to performance for which the Chairman of the Board, Mr. Aigboje Aig-Imoukhuede is known for, is being brought to bear in steering the Company onto the path of sustainable growth.

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