*Pays N3.95bn net claims
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Chuks Udo Okonta
Cornerstone Insurance Plc and its subsidiaries (“Cornerstone Group” or “the Group”) in spite the challenging environment, posted a gross premium written of N17.53 billion in 2020, its Chairman, Segun Adebanji, has said.
He disclosed this today at the firm’s 29th Annual General Meeting (AGM) in Lagos, adding that the feat represented an increase of 34 per cent over the previous year.
He noted that premium from the life insurance grew from N3.84 billion in the previous year to N5.54 billion in 2020, which accounted for 31 per cent of the gross premium written and that the largest contributors to general business gross premium written were oil; gas; & aviation; engineering and motor classes contributing N3.53 billion, N2.86 billion and N1.52 billion respectively.
“Our investment portfolios also yielded positive performance figures, driven mainly by the effect of changes in foreign exchange rates and also from sales of foreign currency denominated assets during the year. Investment and Treasury activities contributed N3.73 billion to overall revenue,” he said.
According to him, the gross claims ratio for the year stood at 41 per cent and has been relatively stable year on year since the company put in place stricter risk acceptance meters. He added that the firm’s net claims payment stood at N3.95 billion.
He posited that though the overall ratio of claims to revenue has remained relatively stable, the effects of the Q4 2020 protests are clearly noticeable in the firm’s financial statements, as non-life gross claims incurred increased by 62 per cent, when compared with previous year and gross claims from the fire class specifically rose by 85 per cent, from N816 million in 2019 to N1.51 billion.
Adebanji maintained that personnel and other operating costs dropped by close to seven per cent as management executed remote working protocols and other measures to safeguard the welfare of staff. “Our investment in a robust nationwide technology infrastructure over the years ensured that normal operations were carried out unabated. Consequently, our group ended the year with a profit before tax of N1.76 billion,” he said.
He said the firm’s financial performance can be attributed to its focus on strengthening enterprise risk management frame works over the past few years.
Shareholders present at the event, lauded the firm’s board, management and staff for achieving giant strides in a year which COVID-19 affected most businesses and nations across the world.
Coordinator Emeritus, Independent Shareholders Association of Nigeria Sir. Sunny Nwosu, commended that firm whilst imploring it to sustain its strides as a frontline underwriter.
Other shareholders such as the National Coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie, shareholders activist Nona Awo also expressed their feelings and commendations at the event.
