Sanlam General Insurance, on Wednesday, said it surpassed its 2023 revenue budget of N13.5 billion by 131 per cent and income by almost 100 per cent.
Mr Bode Opadokun, Managing Director of the insurance company, disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos.
Opadokun said that the underwriter’s 2023 financial result had yet to be released due to the directive of the regulator to present it in the International Financial Reporting Standard (IFRS 17) format.
The managing director who noted
that 2023 was a great year for the insurer, stated that the unaudited finacial report of the company for the year under review indicated an impressive performance.
“Although there were a lot of economic issues in the country last year, such as inflation, increase in business operation, among others.
“In all, we were able to weather the storm, just as we did during COVID-19 period,” he said.
According to him, the insurer is well prepared for the IFRS 17, as it is not a new model for the company.
BRANDPOWER reports that IFRS 17 is the newest IFRS standard for insurance contracts, which replaced IFRS 4 on Jan. 1, 2022.
IFRS 17 states which insurance contracts items should be on the balance and the profit and loss account of an insurance company; how to measure these items; how to present and disclose the information.
The financial standard is a big change for insurance companies globally, as data administration, financial presentation and actuarial calculations will need to change.
According to Opadokun, Sanlam has experts within its group who have been part of the team that have been providing support for it remotely on the finacial standard.
He said: “We will be among the first set of insurance companies that will turn out our result in the required IFRS 17 standard.
“IFRS 17 is a better way of reporting financial report because it gives the customers and investors a better view of the status of the company and help them to take firm decisions on the company.
“Many companies have gone under as a result of inadequate information provided to people. In today’s business, enterprise risk management is key and the reporting standard is a good development.”
On the 200 per cent upward review of premium on compulsory Third- Party Motor Insurance Policy by the National Insurance Commission (NAICOM), from N5,000 to N15,000 in Jan. 2023, Opadokun said the insurer experienced an increase on its revenue.
The managing director stated that the increase was not as high as expected because not all of its comprehensively insured vehicles were renewed.
According to him, some of the insurer’s customers also converted to third-party motor insurance policy due to their inability to continue to run the comprehensive motor insurance policy.
“Some customers also tried to reduce the value of their vehicle, which also impacted on the premium.
“Motor insurance has always been a challenge in terms of underwriting profit previously, but the increment in the amount of the policy, has helped insurers to meet with management expenses.
“Insurance cost of operation has skyrocketed, but the increment has helped insurers to improve their balance sheet size and profitability.
“Overall, Sanlam insurance followed the rule as required by the National Insurance Commission (NAICOM), which impacted positively on our business,” he said.
Opadokun further said that claim ratio for the underwriter’s motor insurance portfolio improved as a result of increase in the policy, which indicated a positive development for Sanlam and the insurance industry.
He stated that this year has started on a good note for the insurance company, while it aspires to be among the first leading five insurance companies in the industry ranking in terms of revenue.
