Jaiz Takaful Insurance Limited has said it grew its gross premium contribution written to N1.8 billion in 2021 financial year, representing a 93 per cent increase from N944 million recorded in 2020.
This was disclosed in the company’s Financial Report for 2021 approved by the board of directors during the Annual General Meeting (AGM) held via zoom on Thursday December 15,2022.
As a sign of solvency strength and commitment to fulfilling its obligations to the participants/customers, the Company paid a consolidated claim of N301.983 million in 2021, representing 44% increase from N201.262 million paid in the previous year 2020.
Further, the company grew the shareholders’ fund in the year under review as assets value rose from N1.455 billion in the 2020 financial year to N2.452 billion, representing 68 per cent increase in the year under review.
While Earnings Per Share rose from 6 Kobo in 2020 to 20 Kobo in 2021 financial year, the company’s Investment Income soared to N56.712 million, representing a 99 per cent increase in the year under review compared to N28.428 million recorded in the previous year 2020.
The claims, underwriting and management expenses ratios 19 per cent, 11 per cent and 20 per cent were respectively reported for 2021, showing significant drop from 21 per cent, 12 per cent and 29 per cent respectively recorded in the 2020 financial year.
While consolidated Profit After Tax (PAT) increased by 233 per cent from N151 million in 2020 to N503 million in 2021, surplus declared for the year under review was N305 million as participants who did not make any claim in the year under review would receive a projected surplus of N152 million, higher than N84.5 million distributed in 2020 financial year as part of core business objectives and model of Jaiz Takaful Insurance Limited.
The company’s liabilities increased by N459 million in 2021 as Participants’ reserve, comprising Takaful contract liabilities and Investment contracts liabilities, soared by N508 million due to the business growth and expansion in the year under review.
Commenting on enablers for the company’s growing profitability in 2021, the managing director/CEO of Jaiz Takaful Limited, Alh. Ibrahim Usman Shehu said: “We have embraced ICT for easy accessibility of our Takaful products by customers. We have improved our customer service efficiency such that at your comfort zone, you can reach us through our mobile App to place business or report a claim and we respond promptly.
On declined Company’s expense ratios, Alh. Shehu said: “Our ability to reduce costs in 2021 shows prudent underwriting. In the recent times, we have improved on our risk mitigation methods and did a thorough review of loss ratio analysis. We developed appropriate underwriting strategy so that we mitigate huge losses. We ensured that every risk presented is fairly and equitably assessed and rated so that it contributes fairly to the pool. In other words, we don’t endanger the risk fund.
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