FBNInsurance Limited, closed 2020 performance with positive results, declaring gross written premium of N47.1bn and improvement in net premium income at 8% year-on-year growth from N39.2bn to N42.5bn.
Speaking at the AGM held in Lagos recently, the managing director/chief executive officer, FBNInsurance Limited, Val Ojumah, (pictured) content with the positive results despite the challenging environment, said the company made prompt claims payment to customers to the tune of N14.4bn as against N12.2bn in previous year.
Total assets of the group increased by 47% from ₦116.0 bn to close at ₦170.0 bn as at 31 December 2020. This growth was driven by the company’s investment strategy supported by the increase in premium written particularly from retail life and annuity. Insurance and investment contract liabilities also grew by 58% from ₦88.4 bn to ₦139.3 bn in 2020.
Further analysis show that the company achieved 25% growth in its profit after tax (PAT) in 2020, translating to N9.9 bn as against N7.9 bn recorded in 2019. The net effect in equity was a growth of 22% from ₦19.5 bn to ₦23.8 bn. According to the company, shareholders earned a dividend payment of 70k per share. FBNInsurance Limited has consistently paid a dividend to its shareholders yearly in the last 7 years.
Mr. Ojumah, while reviewing the company’s performance in line with the revised 3-year strategic plan for 2020-2023 strategic cycle, said: “we remain adaptable and responsive to the unfolding trends, modifying our plans and operations in a manner that would ensure that we achieved our strategic objectives. 2020 was a challenging year due to the outbreak of the novel coronavirus, but we witnessed an impressive growth along with key metrics and across major lines during the financial year.”
He said the strategic aspiration during this three-year horizon is to become the leading life insurance company based on gross premium. Picking out corporate strides, he said FBNInsurance fulfilled the aspiration to become the most profitable life insurer in 2019, and “we are convinced that the next critical milestone for us is to become the number one life insurer by market share in Nigeria.”
“In 2020, we paid claims to the tune of N14.4bn as against N12.2bn paid in 2019 which represents a year-on-year growth of 18%. This portrays our unwavering commitment to our esteemed customers. Our strategy, therefore, remains to provide financial security for our clients and as always, we will not rest on our oars to exceed our customers’ and stakeholders’ expectations, because to us, the customer is king,” Ojumah reiterated.
During the year ended 31 December 2020, FBN Holdings Plc divested its 65% equity holding which was acquired by Sanlam Emerging Markets (Pty) Limited on 1st June 2020. By this divestment, Sanlam Emerging Markets (Pty) Limited now has 100% equity in FBN Insurance Limited. This leaves the company with surplus knowledge, experience and technical expertise of its owner, Sanlam Emerging Markets (Pty) Limited is one of the biggest internationally active insurance groups in the world and have been creating value for stakeholders for more than 100 years, with business presence across 33 countries in Africa as well as USA, Malaysia, Australia, the UK and India.
Commenting on the results and outlook of the company, the chairperson of the company, Mrs. Adenrele Kehinde remarked: “We are pleased with our 2020 financial year-end results. We are grateful for the trust that our shareholders have in our ability to continue to grow the business. We will continue to ensure the growth trajectory is sustained in the 2021 financial year. While we anticipate an improved economy, we shall deploy strategies aimed at optimizing the inherent opportunities within the economy. A close review of our 2020 financial performance has once again demonstrated FBNInsurance’s solid footing amid a chaotic and unpredictable economic landscape. We are quite optimistic that the year 2021 will be the best so far for our shareholders and esteemed customers in the history of FBNInsurance Limited”.