Operators anticipate better financial year end
By Rosemary Onuoha
THE insurance industry in the first half, H’1, of 2018 witnessed marginal decline in profit occasioned by declining purchasing power of Nigerians coupled with increasing cost of living and cost of doing business. Analysts who spoke revealed that as cost of doing business continues to mount, topline tends not to be growing at the same rate, putting pressure on the bottom-line. Analysis of financial performance of the sector in the H’1 of 2018 show that profit after tax fell by 4.2 percent to N15.9 billion against N16.6 billion recorded in the corresponding period of 2017. Operators are, however, hopeful that the sector could witness more underwriting activities going forward if the economy sustains its exit from recession. Although, many companies have been forced to re-jig and overhaul staff strength as part of measures to beat down cost, the industry operators anticipate that the sector will witness increased profit at the end of the financial year. Companies’ performance Analysis of industry performance shows that Sun Assurance suffered the highest loss in the period under review, increasing its losses by a whopping 263.4 percent to -N622.9 million against -N171.4 million loss recorded in the corresponding period of 2017. Universal Insurance, however, improved on its bottomline reducing its loss by 106.2 percent to -N17.8 million from a loss of -N287.3 million. Profit decliners With a 90.4 percent drop, Royal Exchange Assurance’s profit stood at N19.5 million against N203.3 million at the corresponding period last year. Linkage Assurance profit declined by 78.5 percent to N493.8 million from the N2.3 billion recorded in the previous year. Axa Mansard profit fell by 46.6 percent to N748.1 million against N1.4 billion. Guinea Insurance profit declined by 40.7 percent to N56.6 million against N95.5 million of the corresponding year. While Veritas Kapital’s profit fell by 73.2 percent to N65.5 million from N244.7 million, even as Regency Alliance profit declined by 30.8 percent to N284.8 million against N411.7 million. Other decliners Standard Alliance profit declined by 24.9 percent to N284.9million as against N379.8 million. Great Nigeria Insurance profit fell by 21.4 percent to N251.2 million against N319.7 million. Mutual Benefits declined by 15.8 percent to N653.6 million against N776.5 million. Custodian Investment profit dipped by 2.6 percent to N3.7 billion against N3.8 billion while Lasaco Assurance profit declined by 1.3 percent to N382.5 million against N387.5 million. Silver liners However, despite […]