Noor Takaful Insurance sees premium up 64% to N4.97bn

Cynthia Ezekwe 

Noor Takaful Insurance Limited, one of Nigeria’s leading takaful insurance firms, has reported a gross premium income of N4.97 billion for the 2022 financial year, representing a 64 percent increase compared to the previous financial year.

The company, at its sixth annual general meeting (AGM) held in Lagos, also announced a 19 percent increase in total assets to N9.2 billion, driven by the strong performance of its retail and corporate segments.

A detailed analysis of the company’s audited financial results revealed that the contribution of the insurance company for the financial year ended December 31, 2022 increased significantly by 36 percent compared to N3.66 billion recorded in the corresponding period in 2021. Profit After Tax (PAT) increased from N422.72 million in 2021 to N478.049 million in 2022, representing a 14 percent increase.

The company’s investments increased by 13 percent from N7.9 billion to N8.9 billion, while net worth and shareholders’ funds grew by 13 percent to N4.2 billion and N3.5 billion, respectively.

The financials also revealed that the company paid N3.14 billion in gross claims in 2022, a significant increase from the N1.97 billion paid in 2021. The increase was driven by the growth in the company’s Family Takaful segment, which accounted for the majority of the gross claims paid. Family Takaful claims payout totaled N2.176 billion, while General Takaful Claims payout totaled N961.42 million.

The company’s management attributed the increase in claims to the expansion of its product offerings and the continued growth of its customer base.

The company’s investment income grew from N151.26 million in 2021 to N204.55 million in 2022, driven by the company’s expanded portfolio of investments. Underwriting expenses also increased significantly from N434.5 million in 2021 to N728.19 million in 2022, largely due to increased marketing and distribution costs. These factors led to a decrease in gross contribution, which fell from N1.9 billion in 2021 to N1.56 billion in 2022.

In his comments on the company’s financial results, Muhtar Bakare, chairman of Noor Takaful Insurance Limited, highlighted the company’s strong financial position in the face of challenging global economic conditions. He noted that the company had managed to weather the storm and had emerged stronger than ever before.

“Our prudent risk management and disciplined underwriting practices have enabled us to weather some of the worst of the storms of uncertainty. Despite the challenging operational landscape, the company’s strategic initiatives yielded encouraging results,’’ Bakare said.

The chairman assured that the company will continue to make strategic business decisions that will deliver value to its shareholders, even in the face of a challenging macroeconomic and political environment.

Bakare emphasised the importance of investing in technology to expand the reach of Takaful and said it is a core part of the company’s business operations. He added that the company is committed to taking actions that will benefit its shareholders.