NIC Holdings formerly National Insurance Corporation (NIC) has registered 132% growth in net profit. The father and mother of Insurance in Uganda was reportedly struggling a few years ago but
Management has since worked out a strategic plan that has revived the company. And the results have started trickling in.
According the group’s 2016 half year results, Net Profit increased by 132 percent to Ugx 4.4 billion, compared to Ugx 1.9 billion in the 2015.
Gross Premiums written increased by 47 percent to six billion from Ugx 4.1 billion in 2015. While Net operating income increased by 75.7 percent to Ugx 7.4 billion from Ugx4.2 billion last year. The increase is attributed to advancement in other incomes to Ugx 1.3 billion.
Net claims incurred reduced to Ugx 305.5 million up from Ugx 637.1 million last year.
Reinsurance costs surge from 397 million to Ugx 2.2 billion while Commission expenses increased to Ugx 1.1billion. On the other hand, underwriting expenses rose to Ugx 1.2 billion.
The growth in premium as well as the 2015 unearned income which were earned in 2016 largely accounted for the 132% growth in profit after tax for the period as at 30th June, 2016.
Similarly, Shareholders equity grew by 13% from Ugx. 33.437 billion as at 31 December 2015 to Ugx. 37.806 billion as at 30th June 2016. The net current assets of the group improved by 39.2%
Launch of new products
With the complete turnaround of the Company in the direction of consistent profit growth, management is now geared towards implementing the next growth phase involving the restructuring of business processes and improvement in the IT infrastructure.
With focus on new business areas, the Company says it will invest massively in staff training and technology to increase capacity and support efficient service delivery.
After the successful launch of boda boda riders policy, the Company also hopes to launch complementary general business products in the coming period focusing on the grassroots in support of the drive for financial inclusion and insurance penetration whilst retaining the competitive advantage as the most widely spread insurance company in the country.
The Company also plans to continue supporting Government’s efforts in youth and girl child development through sports in order to provide good foundation for the future generation of Ugandans.
In support of sport and more importantly inspiration to the She Cranes, NIC offered Travel Insurance cover to the team a package consisting of 50,000euros per individual and totaling to 800,000euros for the 16 member delegation for the Diamond Netball challenge in Durban South Africa which took place between
30th September to 6th October 2016.