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Chuks Udo Okonta
Nigeria’s recently established reinsurer, FBS Reinsurance Limited (FBS Re) has recorded a sterling performance of N16.6 billion gross written premium, in its second year of operation.
In the Company’s 2022 financial report released at its 2nd Annual General Meeting (AGM) held in Abuja recently, FBS Re grew its gross written premium by 110 percent to N16.589 billion from N7.906 billion recorded in 2021.
Its underwriting profit also grew by 545 per cent from N813 million in 2021 to N5.244 billion, which according to the company was driven by prudent risk management and operating costs.
Chairman, Board of Directors Alhaji Bala Zakariyau, who announced the performance at its AGM, said FBS Re’s financial performance just in its second year of operation is a testament to the resilience of its applied business model.
He said despite environmental challenges, the company gained positive results in the critical areas of market share growth and profitability.
Zakariyau also disclosed that the company achieved an investment income of N1.050 billion in 2022 financial year, as against N275 million in 2021.
Profit after tax rose to N2.491billion, a 544 percent increase from N387 million achieved in 2021, the Chairman further said.
Zakariyau said, “I am particularly pleased to report that the results were achieved mainly by delivering better services to our cedants and brokers.
“We shall continue to keep our promises, as has been anointed in our name – ‘For Better Services’ and create sustainable value addition for all our stakeholders.
Territorial distribution of premium of the Company shows that Nigerian market contributed 69 percent of the total, followed by Ghana market with 17 percent, while Francophone and rest of Africa contributed 5 percent and 7 percent respectively.
The Chairman also hinted that FBS Re will be embarking on a guided expansion program into other markets and territories outside its traditional Anglophone Zones.
“This expansion will focus on Central, East and Southern African territories as we continue to study the North African markets.”
“Our risk appetite will determine the expansion initiative and ease of doing business in the selected territories. It will also be in line with the overall corporate objectives of sustainable profitability and delivery of better alternative services to African cedants.”
Zakariyau also noted that reinsurance is a capital-intensive business, accordingly the Board has prioritised raising adequate capital funding, to support the planned rapid market share growth.
FBS RE authorised and issued shares has been increased from N10 billion to N20 billion, and the Board has already commenced working with strategic investing partners to raise the needed additional capital.