WAPIC INSURANCE: CREEPING THIN ICE.

Wapic Insurance PLC has been increasingly walking on thin ice this financial year especially in the quarter to September.
According to figures for the nine months to September released not too long ago in spite of fairly good growth in income, higher cost increase dragged Wapic into loss league in third quarter and very slim profit margin for the nine months.
Gross premium income had increased by 52.5% to N1619.6m from N1061.8m in the third quarter and by 24.3% to N4380.6m in nine months while reinsurance dropped by 8.09% in the third quarter but rose by 3.34% in nine months.
Much the same way fees and commission rose by 41% in third quarter to finish nine months 29% up at N316.1m just like other operating income up 42.1% third quarter to N53.3m and at N251.3m ended nine months many times the meagre N2.3m for nine months in 2014.
Investment income recorded modest 5.4% increase in third quarter that watered down to 2.14% in nine months to N1219.5m compared to N1194m at the same time in 2014.
All these resulted in N6185.7m total income for the nine months to September as against N5193.8m previously.
However, insurance claims rained down too heavily resulting in 174.5% rise from N673m previously to N1463.5m.
Then operating expenses increased by 30.3% to N2695m from N2069m under pressure from 39.6% growth recorded here in the third quarter alone.
Thus, the third quarter closed with N0.59m loss compared to a much higher N61.6m loss previously. When incorporated into nine months the table turned slightly as N108.3m profit before tax recorded in nine months to September was lower than N169.9m by the same time in 2014.
SO:
* This is hoping that the claims may not rain that heavily for Wapic to have a breather.
* If not take it that it will be a case of creeping lower profit margins come financial year end.

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