Surge In Group Life Business Bolster Niger Insurer’s Premium Income

(Sundiata Finance) – A surge in group life business has shored up the premium income of Niger Insurance Plc for the half year-ended June 2017, propelling it 467.94 per cent to N4.43 billion. The Nigerian insurer had restructured its investment by reclassifying some investment properties to non-current assets held for sale.
An efficient underwriting performance, buoyed by favourable combined ratios, means the board of directors or stewards of the firm are steadfast in their primary objective of maximizing the value of shareholders.
For the six months through June 2017, the company’s gross premium written spiked by 86.70 per cent to N6.18 billion from N3.31 billion for the corresponding period of June 2016.
Similarly, gross premium income surged by 86.58 per cent to N6.12 billion despite 410.08 per cent rise in reinsurance expenses. Net premium income was up 47.61 percent to N4.34 billion in the period under review, from N2.94 billion the previous year.
There are positive prognoses for Niger Insurance and other firms whose have life business make up larger chunk of revenue segment as It is expected that the life business will be in an upward trajectory.
The Nigerian life insurance market is projected to more than double from N86.3bn in 2014 to N195bn in 2019, in terms of gross written premium, according to research available at Timetric’s Insurance Intelligence Center (IIC).
Experts are of the view that the country’s favourable demographics and the introduction of policies by government to bolster penetration could help deepen penetration and place the sector on a global competitive scale.
National insurance Commission (NAICOM) has introduced the ‘No Premium No Cover Policy’ though which it aims to increase the revenue of operators in the industry.
Niger Insurance has an efficient underwriting capacity as underwriting profit grew by 13.14 percent to N1.45 billion as against N1.21 billion the previous year.
The company’s total claims expenses were up 80.83 per cent to N2.17 billion in the period under review while claims ratios increased to 50 per cent in June 2017 as against 40.93 per cent the previous year.
Analysts say a flurry of claims payment by insurers since mid-2016 will help bolster sector credibility. It will encourage people to take up more cover since they are certain of getting paid as at when due.
Niger Insurance’s net margins moved to 7.72 per cent in June 2017 from 6.04 per cent the previous year despite an uptick in underwriting, reinsurance and operating expenses.
The Nigerian insurer’s solvency margin of N8.40 billion is high, more than doubles the regulatory requirement of N3.0 billion.
The company said it has restructured its investment by reclassifying some investment properties to non-current assets held for sale. With the reclassification, it said, investment properties valued at N6.39 billion has been earmarked for disposal in 2017.
The aim of the strategy is to improve liquidity, increase investment income and add more value to shareholder’s wealth. (BusinessDay)

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