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The underwriting performance of Universal Insurance Plc improved in 2023, with the insurer reporting improvement in full-year combined ratio.
Of course, the earnings growth was driven by best risk management risk practices as well as efficient cost control strategy that helped reduce expense ratio even amid a challenging operating environment.
The insurer saw net income or profit after tax (PAT) surge by 232.32 percent to N1.76 billion in December 2023, from N529.26 million as at December 2022.
Combined ratio improved to 88.34 percent in the period under review from 98.62 percent the previous year, according to MoneyCentral calculations.
That translates into positive real underwriting results of N853.06 million, as the insurer earned more in revenue than the claims it paid out.
Similarly, underwriting profit spiked by 152.23 percent to N3.23 billion, and interestingly, the firm has been maintaining a combined ratio below the 100 percent threshold since 2020 even amid the pandemic crisis that tipped the country into a recession.
It is noteworthy to note that the insurer unveiled a mobile application and a network platform to boost insurance penetration.
“As a digitally compliant entity, achieving true financial inclusion and broad insurance outreach necessitates making insurance accessible to all. Our goal is to ensure that insurance coverage reaches every corner of the nation at affordable rates,” said Benedict Ujoatuonu, Managing Director of Universal Insurance Plc.
“As Universal Insurance Plc expands its product offerings, the company envisions introducing additional products over time,” he said.
The company paid N774.28 million in claims to its customers, which represents a 28.30 increase from 2022’s N603.49 million.
Claims ratio rose to 10.71 percent in December 2023 from 14.42 percent the previous year.
Gross premium written (GPW) rose by 65.01 percent to N9.34 billion, from N5.66 billion the previous year.
Net premium income (NPI) increased by 72.72 percent to N7.22 billion in the period under review from N4.18 billion as at December 2022.
Brief of Universal Insurance Plc
Universal Insurance Plc is a Nigeria-based company that is engaged in the business of providing risk underwriting, related financial services and hospitality services to its customers.
The Company is engaged in the non-life insurance business, which includes motor, fire, general accident, workmen compensation, burglary, marine cargo, marine hull and aviation. Its products include auto insurance, all risks insurance, boiler and pressure vessels insurance, bond insurance, builders liability insurance burglary and house breaking insurance.
Others are contractors all risks insurance, employers liability insurance, agricultural insurance, erection all risks insurance, fidelity guarantee, fire and special perils, goods in transit, group personal accident insurance, health care professional indemnity and machinery breakdown, among others.
Its electronic retail products include accidental damage protection, kiddies’ personal accident insurance, shop insurance and school fees protection plan, among others.
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