Universal Insurance Plc has said despite the effect of the COVID-19 pandemic, it recorded a gross written premium of N2.2 billion for the first half of 2020.
According to the company, this represents over 100 per cent increase in premium as against N1.2 billion recorded within the same period in 2019 and the total income generated in the 2019 financial year.
A breakdown of the financial result also showed a profit after tax of N209 million for the period under review, recovering from a loss position of N173 million recorded within the same period in 2019.
In an interview with the Managing Director/ CEO of the company, Ben Ujoatuonu, revealed that Universal Insurance Plc was rated among the top insurance firms in Nigeria in terms of effective communication with clients online during the pandemic as published by Alexa Rating Agency.
Ujoatuonu, giving a summary of the company’s audited financial statements for the year ended December 31, 2019, said the topline grew marginally and showed a recovery from a loss position of N47 million in 2018 in profit after tax as against N65 million in 2019.
However, the company’s shareholders’ fund dropped from N9.4 billion in 2018 to N8.3 billion in 2019, while the assets value decreased from N12.8 billion in 2018 to N10 billion in 2019. The gross written premium increased to N1.8 billion in 2019 from N1.6 billion in 2018.
“For 2019, our topline was better than what we had in 2018 even though it was marginal, but it showed levels of improvement from what we had in 2018. Also, our balance sheet showed a significant reduction in our negative retained earnings. It moved from N2.1 billion in 2018 down to N1.7 billion in 2019. What this means is that we have improved our capital as required by the National Insurance Commission (NAICOM) for the recapitalisation programme.
“Universal Insurance Plc, going by its 2019 audited accounts and considering the NAICOM capital computation, has its capital in excess of N7.1 billion which is 71 per cent of the N10 billion capital requirement. This means we have met the first segment of the 50 per cent of the new capital due by December 2020”.
Ujoatuonu added that the growth in premium from N1.6 billion in 2018 to N1.8 billion in 2019 and, the company’s performance for the first half of the year, are signs that the firm has launched itself on to the path of growth.