Wapic Insurance Assures Shareholders To Beat NAICOM’s Recapitalization Deadline, Grosses N13.9bn

L-R: MD/CEO, Wapic Insurance, Adeyinka Adekoya; Chairman, Aigboje Aig-Imoukhuede; Company Secretary, Mary Agha at the 60th Annual General Meeting of the Company held today in Lagos.

By LOVETH AZODO, Lagos

Wapic Insurance calmed the nerves of its shareholders when the Chairman, Wapic Insurance, Aigboje Aig-Imoukhuede announced that the company will not only meet the increased minimum paid-up share capital recently announced by the regulator, National Insurance Commission (NAICOM), but will outdo the minimum capital and hit the due date adding that the company closed 2018 with gross written premiums of N13.9bn.

Wapic Chairman who made this known at the company’s 60th Annual General Meeting (AGM) held on Monday, in Lagos stated that the company’s profit grew to N2.1bn in 2018 as against N1.5bn recorded in the previous year representing 40percent increase, attributing the glaring increase to premium growth and improved reinsurance techniques.

Recall, OPTIMUM TIMES reported that NAICOM recently announced a 400percent increase on the minimum paid-up share capital for each existing insurance company operating under the following classification: Life Insurance companies N2 billion to N8 billion; general business insurance companies N3 billion to N10 billion; composite business insurance companies N5 billion to N18 billion and reinsurance companies N10 billion to N20 billion with June 30, 2020 as recapitalization deadline.

Imoukhuede commended the regulator’s recapitalization move stating that it is for the sustainability of the industry “your company will not only qualify to run its businesses but will exceed the posted minimum capital for the business,” he assured.

On the company’s governance, he said “we have painstakingly assembled a team of highly qualified and reputable Non-Executive Directors to strengthen corporate governance. We take pride in being the first NSE listed company to establish a Board Technology Committee.”

Also speaking, the Managing Director/Chief Executive Officer, Wapic Insurance, Mrs. Adeyinka Adekoya stated that company recorded 6percent growth in total assets which stood at N30.4bn as against N28.6bn in 2017, however she mentioned that the group also recorded a profit before tax of N187m from N1.6bn and a profit after tax of N351m from N1.5bn recorded in the previous year.

According to her, although the company recorded a significant growth in the topline, the bottom line was adversely affected by increase in claims expense and other costs incurred on all the ongoing transformation projects.

In her optimism, Adekoya stated that the company expect payback on the efforts which will begin to reflect in its performance from 2019 and beyond.

“As we continue to position our company for long-term success, we believe that the ongoing transformation of our technical operations will help us achieve sustainable growth by managing operational risk, maximizing productivity and driving value for the company, wapic will continue to improve and emerge stronger than ever,” she said.