By Alex C
Leadway Assurance Company limited posted a 146 percent increase in underwriting profit from N2.2 billion in 2012 to N5.5 billion in 2013 in its audited financials for the year ended December 2013.
While the company recorded a 13 percent growth in gross premium written from N36.9 billion in 2012 to N41.7 billion in 2013, this was driven by significant rise in premiums written under life business, almost doubling by 75 per cent from N9.5 billion in 2012 to N16.7 billion in 2013.
Net underwriting income marginally increased by seven percent from N14.5 billion in 2012 to N15.6 billion in 2013, due to the volume of reinsurance purchased under the specialty line within general business.
Mallam Umar Yahaya, Chairman of the company, at the 42nd yearly general meeting of the company held in Lagos, said as there were no significant losses in 2013, the year was also remarkable in terms of claim incurred, which went down marginally by 18 percent from N8.3 billion in 2012 to N6.8 billion in 2013.
Overall, net underwriting expenses reduced by 19 per cent from N12.2 billion to N9.9 billion in 2013, resulting in 146 per cent increase in underwriting profit from N2.2 billion in 2012 to N5.5 billion in 2013.
According to him, within a virile regulatory environment which enabled premium cash flow, investment income increased by 80 per cent from N3.1 billion in 2012 to N5.5 billion in 2013, translating to a significant increase in profit after tax for the year by 155 per cent from N673.5 million in 2012 to N1.7 billion in 2013.
There were some write offs during the year with the resultant effect of a loss of n989.1 million in our life business this year compared with profit of N435.8 million for 2012.