Capital Express Assurance Company Limited, one of the life specialist companies in the country, has raked in premium income worth N2.82 billion in its financial year ended ended December 31, 2012.
This information formed part of the contents of the companyâ€™s 2012 Annual Report and Accounts approved by shareholders during the 12th Annual General Meeting of the company in Lagos recently.
Gross premium written by life office in 2012 was N2.82 billion, a 15.17 per cent shortfall from the N3.36 billion it made in 2011 just as its gross premium income for the previous year also fell short of the figure for 2011, falling from N4.06 billion to N2.87 billion.
Net premium earned by the firm in the same period peaked at N2.79 billion, a 7.0 per cent decrease in value compared to the N3.04 billion recorded in 2011.
In 2012, fees and commissions earned by the firm rose significantly to the tune of 83.16 per cent, going up from N45.25 million in 2011 to N82.88 million in 2012.
Gross claims expenses incurred by Capital Express in 2012 totaled N1.88 billion, a 75.70 per cent increase over the figure for 2011 which was N1.07 billion.
Equally, net claims expenses incurred by the firm rose by 77.14 per cent from N1.05 billion in 2011 to N1.86 billion the following year. This is an indication that customersâ€™ expectations were met and surpassed in 2012.
In the period under review, the companyâ€™s underwriting profit peaked at N335.13 million while investment income earned by the firm in the same year peaked at N116.05 million, a 78.79 per cent increase over the 2011 figure that was N64.91 million.
The life insurer in the year under consideration maintained its share capital at N2 billion and increased its statutory contingency reserve and asset revaluation reserve by 16.71 per cent and 161.43 per cent respectively.
Its contingency reserve was raised from N168.82 million in 2011 to N197.03 million in 2012 while its asset revaluation reserve was raised from N4.46 million in 2011 to N11.66 million in the previous year.
The company created an available for sale reserve worth N18.28 million even as its total equity fell by 19.53 per cent in 2012, having gone down from N2.56 billion in 2011 to N2.06 billion in 2012.
Capital Express reduced its insurance and investment contracts liabilities by15.68 per cent and 31.03 per cent respectively. The former was reduced from N2.36 billion in 2011 to N1.99 billion in 2012 and the latter was reduced from N953.47 million in 2011 to N657.59 million in 2012.
The firm reduced its financial assets by 82.36 per cent from N1.17 billion in 2011 to N296.31 million in 2012 and raised reinsurance assets by 325.77 per cent from N6.79 million in 2011 to N28.91 million the following year.
The life insurer also raised its investments in property by 32.30 per cent, increasing it from N1.41 billion in 2011 to N1.95 billion in the previous year. Its investment in property and equipment was also raised by 12.27 per cent from N468.40 million in 2011 to N525.88 million in 2012.
The insurerâ€™s total assets went down by 20.27 per cent from N6.02 billion as at the end of 2011 accounting period to N4.80 billion in 2012.
Meanwhile, the Chairman of the company, Otunba Ademola Adenuga has expressed hope for a better future, saying â€œthe year 2013 is expected to be a better year driven largely by a combination of fiscal and monetary consolidation and expected regulatory reforms.â€
He added: “The year 2013 is expected to be even more competitive as more companies are developing new ways and means of retaining and growing their business. However, the competitive landscape will present a number of opportunities, particularly from the newly approved licenses and possibility of new economic-driven mergers that will create mega entities in the industry.”