The insurance industry is not just about gloom and doom after all.
Custodian and Allied insurance, C & A PLC just released its unaudited result for Q1 2016 showing the company’s revenue for the quarter grew by 28% to NGN 8.2 billion at the end of the quarter compared to NGN 6.4 billion it earned in the same quarter last year.
The result is not perhaps unexpected as the company was bullish since the middle of last year till now spending more on advertising and marketing campaigns to rake in new premiums in investments and life-linked protection products. This is evident in its the growth in its gross premium from NGN 6.9 billion compared NGN 4.7 billion the company recorded in the same quarter last year. This is a percentage growth of 46.8%
Because of its widening market outreach, its risks underwriting activities, its claims ratio has increased as well. Its net claim for the quarter is NGN 2.9 billion compared to NGN 947 million it paid in the same quarter last year.
Increase in claims ratio is also a positive sign as customers will see the company as a credible risk manager. In a country where insurance companies are not only detached from the realities in a largely informal country, trust is the most scarce commodity in the insurance sector.
As a going concern, C & A PLC, the company’s net asset is about NGN 58 billion compared to its net liabilities put at NGN 30.9 billion. As a sign that the company is not totally shielded from Nigeria’s battered economy, impairment loss is fast rising more than ever. The company lost NGN 105 million compared to NGN 1.6 million last year. This is a growth of +6462%.
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