The Chairman of the company, Mr Ugochukwu Godson, disclosed that while presenting the audited financial statements for the fiscal year ended December 31, 2022, during the 65th annual general meeting of the company in Lagos.
“As an indication that the company fulfilled its obligations to policyholders by settling claims efficiently and effectively, claims expenses in 2022 amounted to N142m, which is a 194.63 per cent increase over the N48.2m recorded in 2021,” he said.
According to the report he presented, highlights of the report included gross premium written of N1.359bn which was 0.22 per cent increase over N1.356bn recorded in 2021; gross premium income rose from N1.34bn in 2021 to N1.39bn in 2022, indicating 3.73 per cent increase; net premium income increased to N960m in 2022, representing 9.18 per cent increase over N879m recorded in 2021.
“This growth was attributed to the company's expansion into new markets, as well as improved underwriting and risk management practices,” he said.
However, in order to deliver on its pursuit of sustainable success and growth, he said, the company evolved and implemented certain expansion plans.
The chairman said, “It is crucial to note that the company's expansion initiatives were vital, necessitating substantial upfront expenses such as increased operating costs, capital investments, and research and development expenditures.
“These factors had a temporary impact on the company's financial performance, leading to a notable increase in the loss after tax. Specifically, the loss after tax rose from N23.4m in 2021 to N64.7m in 2022, accounting for the significant surge of 176.50 per cent.”
Income tax expense in 2022, he said, was N7.9m, indicating 78.40 per cent compared to the N36.5m recorded in 2021, as a result of effective tax planning strategies implemented by the company.