By Alex C
Oasis Insurance plc third quarter (Q3) profit rises by 113.9 percent as the Nigerian insurer continues to grow through its market penetrating products, analysis of the financial statement shows. The impressive result beats analysts estimate, given the environmental challenges bedeviling the industry.
For the nine months through September 2014, Oasis pretax profit surged by 113.9 percent to N238.94 million, from N111.72 million the same period of the corresponding year (Q3) 2013. The company also recorded impressive result at the top-line level as gross premium written increased by 13.70 percent to N1.31 billion, as against N1.15 billion the preceding year.
Africa’s largest economy – Nigeria – is reeling out policies that will put firms like Oasis on the trajectory of growth. One such policy is the ‘No premium No Cover policy,’ the new code of ethics made it mandatory, and no insurance policy would be renewed or issued last year, unless full premium was paid for the insurance cover.
Analysts are upbeat about the sector as the new auto policy is expected to drive growth of Nigeria insurers.
Oasis’s management expenses and provisions for doubtful accounts were up by 50 percent to N282.79 million in Q3 2014, from N188.54 million the preceding year. The company’s balance sheet witnessed an increase of 15.74 percent in total assets to N4.62 billion in September 2014, from N4.06 billion in corresponding period of last year.
The growth in balance sheet was due to an increase in financial assets that witnessed a 79.18 percent rise to N1.722 billion from N961.17 million, a sign that the company has a strong assets base.
Oasis Insurance plc was incorporated on November 9, 1992, and licensed under the Insurance Act 2003, to transact all classes of General Insurance. The company was acquired by First Bank Nigeria FBN Life Assurance Limited, a subsidiary of FBN Holding plc.