Insurance

Universal Insurance’s fortunes rebounds, grosses N1.541bn PI in Q3 2019

Ujoatuonu

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Chuks Udo Okonta

Fortunes of the Universal Insurance Plc has experienced a significant improvement in the Third
Quarter of the year 2019 as against analysts speculation that the company would not be able to
turn around its fortunes based on the half year results released at the stock exchange at the end of
June.

Interestingly, the analytics have been proved otherwise given the sterling performance of the
company in the Third Quarter of the year ended September 30 2019.

According to the financial statement filed with the Nigerian Stock Exchange (NSE) and made
available to the media, the Company’s results table shows that Universal Insurance recorded an
increase in Gross Premium Income by 91per cent to N1.541billion in Q3 2019 from N808.698
million within the same period in 2018.

Also Net Premium Income witnessed a leap to N1.095 billion from N620.198 million
representing 77 per cent increase in the period under review.

Given the technical capabilities of the underwriting house in the period of consideration, Gross
Claims paid out dropped to N211 million from N255.424 million, representing a 17per cent drop.
Mr Ben Ujoatuonu, the Managing Director of the company noted that the reduction in claims
payout was achieved due to the company’s ability to assess risks accepted effectively and
efficiently.

He added that the company holds dear claims settlement obligations and with delight attends to
issues of genuine claims with dispatch.

Similarly, Underwriting Expenses increased by 63per cent to N340.506 million in the third
quarter of 2019 from N208million in 2018, this however signifies a remarkable improvement on
the 604 per cent (N538.822 million) recorded in the second quarter of 2019.

The Underwriting
Profit rose by 71per cent to N626.506 million in the Third Quarter of 2019 while Investment
Income also marked up an increase of 38 per cent to N106.668 in Q3 2019 compared to N77.423
million in the Third Quarter of 2018.

Other growth indicators shown on the table are Total Assets of the Company which increased to
N13.154billion in the Third Quarter results from N12.891billion and Shareholders’ Fund which
recorded a slight increase of 1 per cent and stood at N9.541billion within the period under
Consideration.

“It is noteworthy to mention that Universal Insurance is one of the 44 underwriting firms given
the ‘No Objection’ status by the National Insurance Commission to carry out its recapitalization
plans”, Ujoatuonu added. “The Company’s Paid Up Share Capital currently stands at about
N8billion as a General Business underwriter and plans are ongoing to ensure that the Company beats the June 30 2020 deadline to capitalise to the prescribed N10 billion in the post recapitalisation regime.

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