Insurance

Coronation Insurance records N13.26bn gross written premium in Q3

Adekoya

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Chuks Udo Okonta

Coronation Insurance Plc. (NSE: Coronation, Bloomberg: Coronation:NL) (“Coronation” or “the Company”), a multi-line insurance company with headquarters in Nigeria has announced its unaudited financial results for the period ended 30th September, 2020, recoding a Written Premium (GWP) of N13.26 billion.

A statement by the firm stated that the Group recorded Gross Written Premium (GWP) of N13.26 billion a five per cent growth compared to same period in 2019. A feat the firm said it sustained by the attainment of leadership status on some major accounts and enhanced underwriting capabilities.

Net claims expenses of N2.4 billion was recorded as at September 2020. The net claims ratio closed at approximately 44 per cent as at Q3’20, an 11 per cent increase when compared with the 39 per cent net claims ratio recorded in Q3 of 2019.

The Group’s total underwriting profit grew to N2.67 billion as at Sept’20, a six per cent year-on-year growth from the N2.45 billion recorded in the preceding period of 2019, driven by the growth in premiums income and fees and commission income.

The Group closed with a Profit before Tax of N1.07 billion representing a YoY decline of two per cent. The key drivers of this position were increases in claims and operating expenses for the period.
The performance of the subsidiaries revealed that Gross Written Premium of Coronation Life Assurance Limited, increased by 40.9 per cent to N2.9 billion from N2.7 billion in the same period in 2019.

The Net claims expense decreased by 38 per cent to N617 million for the period, compared to N778 million recorded in the corresponding period of 2019.

The company’s underwriting result improved to N1 billion as at September 2020 from N352 million in the previous year. The upward trend could be attributable to reduction in claims expense and increase in fees and commission income for the period.

Reported PBT on a YoY basis increased by 134 per cent to close at N319M compared to N136m at same period in 2019, driven by improved underwriting position for the period.

For Wapic Insurance (Ghana) Limited. The Gross written premium for the Ghanaian subsidiary reduced by 12.4 per cent to N1.14 billion, from N1.3 billion recorded in the prior year.

Net claims expense for the period was N340m, a 2% increase from the Q3’2019 figure of N334 million.

The subsidiary grew its underwriting profit position by 45 per cent to N318 million from N219 million in Q3 2019. The company reversed it prior period’s loss position to close with a PBT of N122 million.

Commenting on the results at the Company’s headquarters in Lagos, the Managing Director Coronation Insurance Plc., Yinka Adekoya, said the business environment in Nigeria despite its prospects has been characterized by several challenges this year. Economic indicators as at September showed that Africa’s biggest economy dipped into its second recession in less than five years, negatively impacted by the crash in global oil prices and disruption in business activities brought on by the coronavirus pandemic.

She noted that the Group grew its premium figures by five per cent year on year to N13.3 billion, a commendable performance despite the prevailing conditions in the economy that may have impacted sign on of new business, renewal rate, installment payment of premium.

“Our underwriting profit position also experienced a nine per cent growth within the nine months period to N2.7 billion compared with the N2.5 billion recorded in the previous period of 2019, driven by the growth in our premium position and fees and commission income.

“We closed the financial period with a profit before tax of N1.1 billion representing a slight YoY reduction of two per cent from prior year. This was largely driven by an increase in net claims expense for the period at N2.4 billion a 10% increase when compared to the N2.2 billion recorded in the same period of 2019.

“Our Total asset went up by 31 per cent for the Group up from Dec. 2019 position to N40.2 billion, while Shareholders’ Funds stood at N24.4 billion for the period from N18.5 billion, as at Dec 2019. ROA and ROE stood at three per cent and four per cent respectively at the end of the period,” she said.

Adekoya posited that the firm remains relentless in its strategic growth targets as an organisation, adding that last month, it officially launched its Bancassurance partnership with Access Bank, this provides us with an opportunity of delivering unrivaled Bancassurance experience to our customers, she said.

“We sympathize with all the victims of the #EndSars protests who may have sustained injuries, lost loved ones, and properties as a result of the vandalizations. We reassure customers of our fast, efficient and customer-centric claims processing.

“We will continue to ensure adherence to the safety precautions against COVID-19 pandemic as an organisation. This is tailored towards the Company’s objectives in ensuring business continuity to: curb the transmission of the coronavirus strain among employees and other stakeholders; maintain all essential operations and services and minimize the possible disruptions to business activities,” she stated.

Coronation Insurance Plc., will hold a teleconference call for investors and analysts on today, Thursday, November 26, 2020 at 2pm Lagos Time with its senior management, to announce the unaudited financial results for the period ended September 30th, 2020. There will be an opportunity at the end of the call for management to take questions from investors and analysts.

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