The West African Reinsurance Corporation (WAICA Re) incurred net claims of $30.5 million in its 2020 financial year, which translated to 63 per cent increase from the $18.7 million it recorded in 2019.
The claims were incurred across most of the nine countries where it currently operates. The nine countries include; Nigeria, Ghana, Liberia, Kenya, Sierra Leone, Tunisia, The Gambia, Zimbabwe and Côte d’Ivoire.
Speaking at the 8th annual general meeting (AGM) of the reinsurance firm held virtually at the weekend, the group chairman, Kofi Duffuor, said that facultative claims contributed 59 per cent of the total claims paid whilst treaty claims was 41 per cent, stressing that, the net incurred loss ratio increased to 39 per cent in 2020 compared to 31 per cent in 2019.
Underpinned by increase in business volumes and increased claims reserve, he said the net claims incurred increased by 63 per cent to $30.5 million in 2020 from $18.7 million in 2019. Facultative claims contributed 59 per cent of total claims paid whilst treaty claims was 41 per cent. Consequently, the net incurred loss ratio increased to 39 per cent in 2020 compared to 31 per cent in 2019.
“Net commission expense rose to $23.5 million in 2020 from $17.6 million in 2019, representing 33 per cent growth largely as a direct function of growth in earnings.
Operating expenses, he said, decreased year-on-year by 4 per cent, given management efforts to reduce cost, hence, operating expenses fell to $17.1 million in 2020 from $18.2 million in 2019 even as expense ratio equally fell to 22 per cent in 2020 from 31 per cent in 2019.
Overall, combined ratio improved to 91 per cent in 2020 having fallen from 93 per cent in 2019, he pointed out.
Stressing that WAICA Re has continued to display a strong underwriting profitability because of sound underwriting and risk selection, he noted that technical profit grew from $23.2 million in 2019 to $26.2 million in 2020, representing a 13 per cent growth.
“Underwriting profit grew from $5.0 million in 2019 to $8.8 million in 2020, a growth rate of 77 per cent, whilst technical margin fell from 40 per cent in 2019 to 33 per cent in 2020. Underwriting margin improved from 9 per cent in 2019 to 11 per cent in 2020,” he pointed out.