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Friday, January 27, 2023

FBN Insurance reinforces earnings capacity as profit jumps 36.98 percent

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FBN Insurance Limited stellar performance once again reinforces its strong earning capacity and robust capital base, which has put the insurer in a better stead to accommodate and sustain future growth.
It is also an indication of why Sanlam group is set to take over the firm in a previously announced deal.
For the year ended December 2019, the insurer’s net income spiked by 36.98 percent to N8.15 billion from N5.96 billion as at December 2018.
The growth in profit was largely driven by contribution from sundry products which are well accepted by customers across the country.
Return on average equity (ROAE) increased to 49.20 percent in December 2019 as against 49.10 percent the previous year; that means the company has utilized the resources of owners in generating higher profit.
The company credited the strong performance to a combination of factors such as continued penetration of the retail insurance space, strong cost optimisation culture, consistent and efficient service delivery across available touch points, exploitation of new service channels, disciplined risk management, and well-motivated workers.
Operating income (net of insurance claims) spiked by 33.36 percent to N22.87 billion in the period under review as against N17.07 billion as at December 2018.
Gross premium Written was up 46.96 percent to N44.94 billion in the period as against N30.61 billion as at December 2018.
FBN Insurance is meeting obligations to policy makers as claims ratio increased to 25.20 percent in December 2019 from 16.70 percent the previous year.
The insurer said the increase in the balance sheet components reveal business growth potentials for the Group franchise.
Total asset has increased by 52.90 percent to N19.83 billion in December 2019 from N13.33 billion the previous year while shareholders’ fund was up 48.80 percent to N117.03 billion in December 2019 from N76.56 billion the previous year.

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