FBS Reinsurance Limited (FBS Re) has recorded 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 N16.5 billion from N7.9 billion recorded in 2021.
Its underwriting profit also grew by 545 percent from N813 million in 2021 to N5.244 billion, which, according to the company, was driven by prudent risk management and operating costs.
The chairman of the firm, 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 the 2022 financial year, as against N275 million in 2021. Profit after tax rose to N2.491 billion, 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 the Nigerian market contributed 69 per cent of the total, followed by the Ghana market with 17 per cent, while Francophone and the rest of Africa contributed five per cent and seven per cent respectively.
The chairman also hinted that FBS Re will be embarking on a guided expansion programme into other markets and territories outside its traditional Anglophone Zones.
To him,“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 Africans.”
Zakariyau also noted that reinsurance is a capital-intensive business, and that 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 N10billion to N20 billion, and the board has already commenced working with strategic investing partners to raise the needed additional capital.
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