The Gross Premium Written (GPW) of Cornerstone Insurance Group rose by 34 per cent to N17.53 billion in its 2020 financial year.
Similarly, premiums from life insurance grew from N3.84billion in the previous year to N5.54 billion in 2020 and accounted for 31 per cent of Gross Premium Written.
Speaking at the 29th annual general meeting (AGM) of Cornerstone Insurance group in Lagos yesterday, its chairman, Mr. Segun Adebanji, stated that the largest contributors to general business GOW were; oil, gas and aviation, engineering and motor classes which contributed N3.53billion, N2.86billion and N1.52 billion respectively.
According to him, “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 the overall revenue.”
The gross claims ratio for the year, he said, stood at 41 per cent and has been relatively stable year-on-year since the company put in place stricter risk acceptance parameters.
Even though the overall ratio of claims to revenue has remained relatively stable, he stressed that 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 the previous year and gross claims from the fire class specifically rose by 85 per cent, from N816 million in 2019 to N1.51 billion.
“Personnel and other operating costs dropped by close to 7 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 declared.
“While 2021 may not be a year for expansion, it is a year in which we are discovering new strengths and capabilities as the world embraces new ways of working and communicating through technology,” he promised.