Leadway Assurance Limited, the largest insurer by premium income and asset has recorded a surge in full year profit, thanks to contributions from investment income and gains in fair value asset.
For the year ended December 2017, Leadway Assurance’s net income surged by 82.45 percent to N13.83 billion from N7.58 billion the previous year.
The growth in profit was largely driven by 61.05 percent year on year increase in investment income and net fair value gain on assets of N7.47 billion that help make up for the underwriting loss in the period under review.
Leadway Assurance has yielded returns higher than the risk free rate of return, the market rate of return and the inflation rate respectively as return on equity (ROE) increased to 25.0 percent in December 2017 from 19.52 percent the previous year.
However, the Underwriting firm recorded an underwriting loss of N10.41 billion in the period under review despite a double digit growth in premium income.insurance