Wapic Insurance Plc, yesterday, hit a 5 year low of N0.38. The stock had last week briefly touched N0.39 during intra-day trading. Year to date, the stock is down 24%.
The company has shown steady growth in the last five years. Gross premium written increased from N3.7 billion in 2013 to N9.8 billion in 2017. From a loss before tax of N629 million made in 2013, profits have steadily increased to N1.6 billion in 2017.
FY 2018 may be disappointing
Full-year 2018 results, however, may not meet last year’s performance. H1 2018 results released recently show that gross premium written increased from N5.8 billion in 2017 to N6.9 billion in 2018. Profit before tax, however, fell sharply from N518 million in 2017 to N240 million in 2018. Profit after tax also dropped from N395 million in 2017 to N61 million in 2018.
The drop was due to a sharp rise in total operating expenses from N1 billion in 2017 to N2 billion in 2018.
The share price may fall further
Bearish market sentiments and the poor results could lead to the company’s share price dipping further. Insurance stocks have been hard hit by the shift of the minimum price floor to N0.20 per share, with many of them dipping below N0.50.
About the company
Wapic Insurance was incorporated on 14 March 1958 as a private limited liability company under the name of West African Provincial Insurance Company Limited and was converted to a public limited liability company on the 31st day of August 1990 when the company’s shares were listed on the Nigerian Stock Exchange.
The company was issued a life insurance license by the National Insurance Commission (NAICOM) in the year 2000 and became a composite insurance business, offering general and life insurance until March 1st, 2007 when Wapic Life Assurance Limited was established as a wholly owned subsidiary.
The company became a subsidiary of Access Bank Plc in 2011 and was subsequently divested to enable compliance with CBN regulations. The shares were spun off to existing shareholders of Access Bank.
In addition to its Life Subsidiary – Wapic Life Assurance Limited, the company also has an International Subsidiary – Wapic Insurance (Ghana) Limited which was established on 21 January 2008, and an associate company, Coronation Merchant Bank Limited.
Aigboje Aig Imoukhuede, co-founder Access Bank is the controlling shareholder with a 44% stake.