Adedapo Adesanya
By Adedapo Adesanya
Zenith General Insurance Limited recorded a 10 percent increase in its profit after tax, according to its full-year financial statements for the year ended December 31, 2019.
In the year under consideration, the insurer grew its net profit to N3.06 billion from N2.8 billion it recorded in the previous year.
A review of the results showed that the underwriting firm achieved a year-on-year 16 percent growth in the profit before tax, which rose to N3.7 billion from N3.2 billion.
According to the financial position of the company, it also maintained a robust balance sheet as it closed the year with total assets of N40.1 billion and a shareholders’ fund of N25.9 billion.
Also, Zenith General Insurance gross premium grew by 17 percent year-on-year to N16.1 billion compared to N13.7 billion published during the same period last year, while there was a 46 percent growth in underwriting profit from N2.8 billion to N4.06 billion.
The company noted that despite lower yields on most investment classes during the year under review, its investment income showed an increase of two percent year-on-year, up from N3.55 billion in 2018, to N3.63 billion.
Speaking on the result, the Chief Executive Officer, Zenith General Insurance, Mr Kehinde Borisade, said: “We are re-affirming our mission statement that Zenith General Insurance Limited exists to ensure peace of mind and also create value to people in a world of uncertainties.
“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 N3.8 billion for the year and an average settlement turnaround time of three days.”
“Our company has continued to maintain a very strong and healthy financial position with a growth of six per cent year-on-year on total assets, and a four per cent increase in shareholders’ funds,” he said further.
Looking ahead, Mr Borisade said the company will continue to strive to be the best in the insurance industry, adding that it was able to maintain the strongest solvency position, closing the year with a solvency ratio of 726 percent.
Zenith General Insurance Limited is also one of the first Insurance companies to have met the recapitalisation requirements of the National Insurance Commission (NAICOM) by recapitalising its share capital from N3 billion to N10 billion
