Out of the $58 million(N20.8 billion) Gross Premium income generated by pan-African reinsurance firm, WAICA Reinsurance Corporation Plc, generated $19 million(N6.8 billion) from the Nigerian insurance market.
The N6.8 billion generated from Nigeria translates to about 30 per cent of the entire gross premium income generated by the group. Moreover, it was also an improvement from the $12.4 million (N4.4 billion) it posted in its 2017 financial year end.
It generated, in 2018 financial year, $12,886,517 Premium Income in Ghana, $7 million in French market, $1,243,194 premium in Sierra Leone, $278,606 in Liberia, $234,159 in Gambia, $3.1 million Premium Income in Tunisia, $13.5 million from the Diaspora, while in Zimbabwean market, it made $304,621, even as, Kenyan insurance market paid $201,275 premium to WAICA Re.
Speaking at the 6th Annual General Meeting (AGM) of WAICA Re recently, its chairman, Mr. Kofi Duffuor, said there was a subdued gross premium growth of four per cent from $55.8 million in 2017 to $58.0 million in 2018 resulting from its decision to concentrate on profitable businesses and stop business dealings with some brokers who only add negatively to the company’s debt ratio by not paying premiums.
The growth, he said, was driven mainly by its Tunisia, Nigeria and Francophone markets which grew by134 per cent. 52 per cent and 51 per cent in that order. Strong growth, he said, was also recorded in Sierra Leone 50% and Liberia 33%. He pointed out that there was a negative growth in its Ghanaian and its Diaspora markets recording -6% and -39% respectively.
He said: “Our gross premium remained largely driven by Fire, Engineering and Accident classes, which accounted for a combined 72% of premium income in 2018. However, product risk is considered well contained given that exposure to high severity business lines remained very minimal.
“There are continuous efforts to grow other business lines as evidenced by the growth recorded in Special Risk (89%) and Marine and Aviation (55%) from 2017 to 2018. This helped Special Risk to contribute 13% to the 2018 gross premium whilst Marine and Aviation improved to 8%,” he pointed out.
The retention ratio of the firm, he said, reduced slightly by one percentage point from 93% in 2017 to 92% in 2018 driven by the increase in its oil and gas acceptances. Therefore, retroceded premium, according to him, rose from $3.7 million in 2017 to $4.5 million in 2018. After adjusting for unearned premium reserve, net earned premium increased by 7% from $49.2 million in 2017 to $52.6 million in 2018.
Claims Incurred, it said, fell by four per cent to $16.9 million in 2018 from the $17.5 million recorded in 2017 thus enabling the company to stay within its historical net incurred loss ratio of 32 per cent. The net commission expenses however, increased by 2% to $16.1 million in 2018 from $15.8 million in 2017, but its impact on the commission expense ratio rather fell to 30% from 32% in 2017, he stated.