Insurance: Zenith General’s profit before tax rises by 16% to N3.67bn

Zenith General Insurance Limited has released its full-year financial statements for the year ended 31 December, 2019.

Gross premium grew by 17 percent year-on-year from N13.7bn to N16.1bn, while there was a 46 percent growth in underwriting profit from N2.77bn to N4.06bn. The company made substantial gains from reduced claim expenses and healthy growth in gross written premiums.

A review of the results showed positive improvements on a year-on-year basis with profit before tax rising by 16 percent from N3.16bn to N3.67bn, while profit after tax rose by 10 percent from N2.79bn to N3.06bn.

The company also maintained a robust balance sheet closing the year with total assets of N40.1bn and a shareholders’ fund of N25.9bn.

Investment income showed an increase of 2 percent year-on-year, up from N3.55bn in 2018 to N3.63bn in 2019, despite lower yields on most investment classes in 2019.

“We are re-affirming our mission statement that Zenith General Insurance Ltd exists to ensure peace of mind and also create value to people in a world of uncertainties,” Kehinde Borisade, managing director/CEO, said.

“This is evident in our strong financial performance showing improvement across the board through increased premium income, underwriting profits and investment income despite the economic headwinds witnessed in various sectors of the economy.

We also ensured prompt settlement of claims with total claims payment of N3.8bn for the year and an average settlement turnaround time of three days,” Borisade said.

He said the company has continued to maintain a very strong and healthy financial position with a growth of 6 percent year-on-year on total assets and a 4 percent increase in shareholders’ funds.

“We also continue to strive to be the best in the insurance industry, maintaining the strongest solvency position and closing the year with a solvency ratio of 726 percent,” he said.

Zenith Insurance is one of Nigeria’s leading insurance institutions. The company is one of the first insurance companies to have met the recapitalisation requirements of the National Insurance Commission (NAICOM) by increasing its share capital from N3bn to N10bn.

Source: Business Day News

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