WAPIC INSURANCE INCOME MAZE

Trying to ascertain the total income of Wapic Insurance PLC in 2015 was like walking through a maze of crisscrossing streams.
Of course its core income was easy to ascertain. According to audited figures released this week, Its gross premium increased by 30.7% to N6148.8m from N4704.2m but as it turned out, that came to only about 60% of Wapic's estimated total income.
Down the road it is also easy to find fee and commission earned (up 32.9% to N429.8m from N323.4m); investment income ( down 5.42% to N1376.3m from N1455.2m) then it gets a bit tougher.
Looking closely you then find more income streams. Some come up with significant figures like net profit on financial assets which raked in N1124.8m compared to N0.17m loss in 2014; and other operating income ( up 5.46% to N390.1m from N369.9m).
Far less significant streams show up too like profit on investment contract (N6.18m in 2015); and net fair value of assets (N3.6m as against N14.7m loss previously)
However just when you thought the game was over, you stumble on share of profit from associated companies (N764.4m) and other little inflows of income.
At this point you give up and estimate total income for Wapic Insurance at N10243.88m in 2015 compared to N6859.56m for 2014 when some of the income streams subtracted through losses.
Time to pick out trends in expenses for the year. The obvious ones looked well under control with  reinsurance growing by only 0.06% to N2208.3m leading to 38.9% rise in net premium income; and although claims increased by 100% to N2179m from N1089.3m, claims recoverable jumped to N544.3m from N91.7m leading to only 27.9% increase in net underwriting expenses to N1228.9m from N960.8m.
In the end underwriting profit came to N1477.7m up 12.3% from N2014's N1315.8m.
After bringing in the different income streams net income came to N4371.5m compared to N3132.9m previously.
It was from this total operating expenses of N3468.2m, up 12.8% from N3074.4m was accounted for leaving Wapic with operating profit of N903.2m as against only N58.6m in 2014.
Finally, after providing for loss due to Naira depreciation and bringing in share of profit from associated companies and other items, the final profit before tax closed at N761.6m compared to only N21.1m in 2014.
From this the journey through the maze now made sense of sorts. It turned out that 2015 was a far better year for Wapic because it gained about N7.44 on each N100 income compared to only N0.31 in 2014. Done.
SO:
* Of course, it will help stakeholders a lot if insurance companies can state gross income incorporating all income streams BEFORE the dive into the maze.
* No doubt the gain is not high enough yet for directors to recommend dividend but at least it is worth hoping for.

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