Equity Assurance gross premium up by 17.60%

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By Alex C

Equity Assurance Plc has ended 2013 financial year with a 17.60 percent rise  in gross premium income as the insurer continues to tap into Nigeria’s growing economy. For the year ended December 2013, Equity Assurance’s  gross premium income surged to N4.61 billion compared with N3.92 billion in the same period of the corresponding year (Q3) 2013.

There was remarkable improvement in underwriting capacity as net premium income increased by 10.56 percent to N4.08 billion as against N3.69 billion the preceding year. Net premium income rose by 2.73 percent to N3.37 billion in the review period as against N3.28 billion the preceding year.

Net underwriting income jumped slightly  by 2.74 percent to N3.37 billion as against N3.28 billion the preceding year.

Despite enormous growth potential, the insurance sector contribution to the country’s Gross Domestic Product (GDP) is currently abysmal. In the last re-based GDP series, the insurance sector contributed 0.56 percent to the Nigeria economy.

Nigeria’s economy is expected to grow at 7 percent this year according to the data by the IMF.

The company’s total underwriting expenses were up by 4.79 percent to N1.75 billion in the review period while total operating expenses also spiked by 51.0 percent to N1.44 billion. As a result of the increased costs, the company recorded a loss after tax of N437.78 billion.

Total assets increased by 8.91 percent to N9.68 billion in Q3 2014 as against N8.95 billion in the same period of the corresponding year 2013. Equity Assurance Plc began the implementation of the NAICOM directive on “no premium no cover policy” from the 1 January, 2013. The policy aims to stimulate liquidity within the system by reducing the huge receivables being carried on the statement of financial position of insurance companies.

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