Universal Insurance post strong PAT in 2020 as profit surges 1645% to N1.1bn amid pandemic
AMID ALL THE ODDS THAT surrounded 2020 financial year, Universal Insurance Plc improved its profit after tax for the year by 1645 per cent to N1.1 billion from N65 million recorded in 2019. This was contained in the financial report signed on behalf of the board of directors and filed with The Nigerian Stock Exchange.
The statement which includes the fourth quarter management account for the period ended 31st December 2020, shows that the gross premiums written increased by 80 percent to N3.3 billion in 2020 from N1.87 billion the previous year, while the gross premiums earned also rose at the same pace from N1.79 billion to N3.2 billion during the same period
In a similar vein, the net insurance premium income jumped to N648 million in 2020 from N410 million in 2019, representing 87.3 percent jump, while the total underwritten income was N2.7 billion in 2020 compared to the N1.4 billion recorded the previous year, which indicates an 86 percent rise.
Meanwhile, despite robust revenues recorded in 2020, the insurance firm recorded minimal increase in claim expenses for the same period compared to the previous year, which helped boost the profit recorded by the firm for the fiscal year.
While claim expenses totaled N428 million in 2020, representing only 5.6 percent rise from the N405 million recorded the previous year, the claim expenses recovery from reinsurance reduced from N216 million in 2019 to N72 million in 2020 and the net insurance benefits and claims improved by 87 per cent in 2020 to post N165 million
In addition, while the total underwriting expenses posted N1.1 billion in 2020 as against the previous year’s N674 million, the total expenses reduced drastically by 77 percent from N1 billion in 2019 to N238 billion in 2020.
Furthermore, the investment income in 2020 totaled N201 million, which marks a 63 per cent surge, compared to the N123 million the previous year. Also, the net income skyrocketed by N692 million, a 96 percent rise in 2020.
Meanwhile, rising from negative trend which it recorded the previous year, the profit before tax moved upward reaching N1.2 billion, which marks a significant turn for the firm.
Recent development emanating from the company and its leadership shows that the insurance provider has implemented schemes to expand customers reach part of which is the recent Okada Personal Assurance & Safety Scheme (Okada Pass) directed towards ensuring the safety of bike riders and their passengers in Nigeria.