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Business News

See the “score card” as insurance firms hurriedly release H1 2019 results

As July was drawing to a close, many listed companies on the NSE were in a rush to file their H1 2019 unaudited financial statements. Among them were about eighteen insurance firms.

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Insurance Firms

As July was drawing to a close, many listed companies on the Nigerian Stock Exchange were in a rush to file their half-year 2019 unaudited financial statements. Among them were insurance firms, nearly twenty of whom disclosed their financial performances for the past two quarters of the year.

Just in case you are wondering why this is a big deal, quoted insurance companies in Nigeria are “notorious” for late filing of their financial statements. For this very reason, many of them have constantly been fined.

[READ: NSE to sanction Fidelity Bank, others for late filing of reports]

 Earlier this year, some insurance firms blamed the IFRS (i.e., the International Financial Reporting Standard 6 & 4) for the delay in the filing of their full-year 2018 results. According to the insurance firms, more time was needed in order to enable them successfully implement the IFRS which was recently mandated by the National Insurance Commission, NAICOM. To this end, therefore, they sought for an extension of the time required of them to file their results, a request that was obliged by the NSE.

Going by their timely compliance this time around, it is safe to assume that the insurance companies have finally gotten used to the new reporting standard. But how well did they perform financially in H1 2019? This is the one million question because it is one thing for a company to hurriedly release its financial statements, and another thing for the said financial statements to be impressive. This is why we have compiled and analysed the results and shall hereby compare them.

The Score Card: Out of about twenty-three insurance companies that are listed on the Nigerian Stock Exchange, eighteen released their H1 2019 results while five cited a number of excuses for their delay. The sum of N102.1 billion was earned in gross premium by these companies.

The top five performers: In terms of profit, the top five best-performing Nigerian insurance companies in H1 2019 are:

  • AIICO Insurance Plc
  • NEM Insurance Plc
  • Mutual Benefits Assurance Plc
  • AXA Mansard Plc
  • Africa Prudential Plc

The worst performers: So far, the worst performing insurance companies (in terms of half-year 2019 profit/loss), in no particular order, are:

  1. African Alliance Insurance Plc and
  2. SUNU Assurance Nigeria Plc

The Breakdown

AIICO Insurance Plc earned a gross premium of N23.3 billion to emerge the highest-earning. The company’s profit before tax for the period stood at N3.1 billion while the profit after tax stood at N2.9. The insurance company was incorporated on July 14th 1970 and has a market capitalisation of N4.4 billion on the Nigerian bourse.

AIICO Insurance Plc

AIICO Insurance’s CEO, Edwin Egbiti, and other company officials during an AGM

NEM Insurance Plc earned a gross premium of N10.6 billion to come second on this list. Its profit before tax for the period under consideration stood at N1.9 billion, even as profit after tax stood at N1.6 billion. The company has been listed on the NSE since September 1990 following its incorporation in April 1970. It has a market capitalisation of N11.3 billion.

Mutual Benefits Assurance Plc came in third, having earned a gross premium of N8.2 billion in H1 2019. The company’s profit before tax for the period is N1.8 billion, even as profit after tax stood at N1.4 billion. The company has a market capitalisation of N2.4 billion.

[READ: NAICOM urged to extend deadline for recapitalisation of Insurance firms]

AXA Mansard Insurance Plc recorded a gross premium income of N19.6 billion. However, difference operating costs (including reinsurance expenses valued at N7.5 billion) saw it recording a profit before tax of N1.5 billion and a profit after tax of N1.4 billion. Mansard remains highly-capitalised at N17.3 billion.

Africa Prudential Plc: This company’s gross premium earned in H1 2019 is N2 billion. Profit before tax is N1.2 billion while profit after tax is N1 billion.

Jaiz bank

It should be noted that African Alliance Insurance Plc’s gross premium income stood at N2.9 billion. The company only ceded N23.4 million worth of insurance premium to reinsurance. It then recorded a loss before tax of N2.1 billion and a loss after tax of N2.3 billion.

In the same vein, SUNU Assurance Nigeria Plc earned a gross premium of N1.4 billion and incurred reinsurance expenses of N314.7 million. Loss before tax stood at N146.2 million while loss after tax stood at N174.4 million.

[READ: Is this company quietly planning its exit from the NSE?]

The Other Details

Continental Reinsurance Plc recorded an insurance premium revenue of N19.7 billion. Its profit before tax stood at N1.1 billion even as profit after tax stood at N864.3 million.

Cornerstone Insurance Plc’s gross premium income for the period under review stood at N6 billion. Profit before tax stood at N557.5 million, while profit after tax stood at N501.7 million.

LASACO Assurance Plc recorded gross premium earned of N5.4 billion, profit before tax of N639.9 million, and a profit after tax of N479.4 million.

For Consolidated Hallmark Insurance Plc, the gross premium earned stood at N4.4 billion, profit before tax at N426.5 million, and profit after tax at N332.3 million.

Regency Alliance Insurance Plc recorded a gross premium income of N2.1 billion, profit before tax of N396 million, and a profit after tax of N317.2 million.

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WAPIC Insurance Plc earned a gross premium of N3.8 billion, with profit before tax standing at N299.4 million, just as profit after tax stood at N 185.4 million.

Linkage Assurance Plc’s H1 gross premium income stood at N1.5 billion. Profit before tax is N190.7 million, even as profit after tax is N133.5 million.

 Law Union and Rock Insurance Plc recorded gross premium earned of N2.3 billion, profit after tax of N120.8 million and a profit after tax of N102.7 million.

Lastly, Veritas Kapital Assurance Plc earned a gross premium of N1.4 billion with a profit before tax of N162.5 million and a profit after tax of N60.9 million.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Spotlight Stories

Tip Jar, Twitter’s new giveaway feature that lets users send money to you

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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US Elections: Twitter, Facebook suspend several news accounts

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”

The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.

Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.

Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

Hotflex

Twitter has tested several features and more will be rolled out soon.

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Business

Customs Apapa Command generates revenue of N65.4 billion in April

This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

What Ibrahim Yusuf is saying

“This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

What you should know

Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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