May 19, 2020

Zenith General Insurance’s profit before tax rises 16% to N3.67bn

Zenith Bank remains resilient, PBT rises to N180bn in 9 months
Zenith General Insurance’s profit before tax rises 16% to N3.67bn

Zenith General Insurance Limited has recorded 16 percent increase in its profit before tax to N3.67  billion for the financial year ended 31 December 2019.

The company disclosed this in its financial statements for the full year ended December 31st  2019 released, yesterday.

A review of the results showed positive improvements on a year-on-year basis with profit before tax rising by 16 percent from N3.16 billion to N3.67 billion while profit after tax rose by 10 percent up from N2.79 billion to N3.06 billion. The company also maintained a robust balance sheet closing the year with total assets of N40.1 billion and a shareholders’ fund of N25.9 billion.

Gross premium grew by 17 percent year-on-year from N13.7 billion  to N16.1 billion, while there was a 46 percent growth in underwriting profit from N2.77 billion  to N4.06 billion. The company made substantial gains from reduced claim expenses and healthy growth in gross written premiums.

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Investment income showed an increase of two percent year on year, up from N3.55 billion  in 2018 to N3.63 billion  in 2019 despite lower yields on most investment classes in 2019.

Commenting on the financial results, the Managing Director/Chief Executive Officer, 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.”

He added that: “Our company has continued to maintain a very strong and healthy financial position with a growth of six percent year-on-year on total assets, and a four percent increase in shareholders’ funds.”