Shareholders of Coronation Insurance Plc have applauded the insurer for the transformation it is undergoing, expecting this development to transform into fortune for shareholders, investors and customers.
The shareholders, who spoke at the 62nd annual general meeting (AGM) of the underwriting firm in Lagos at the weekend, though were unhappy that the insurer failed to declare dividend, they took solace in the fact that Coronation Insurance is moving in the right direction, urging the management to leverage on its partnership with Access Bank to grow customer base and profit.
The national coordinator emeritus, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, while applauding the outstanding 2020 financial year performance, said, the shareholders would have been happier had the company deemed it fit to declare dividend, urging the management to take the matter of dividend very serious in future endeavour, especially, when the company’s performance is positive.
Similarly, the national chairman, Progressive Shareholders Association of Nigeria (PSAN), Mr Boniface Okezie, charged the insurer to leverage on its partnership with Access Bank to grow its risk business portfolio.
The company should be able to take advantage of the big customer size of the bank to sell insurance, he said.
Reacting to the concerns of shareholders, the chairman, Coronation Insurance, Mr Mutiu Sunmonu, assured shareholders that the ongoing transformation in Coronation Insurance in the last few years has already paved way for further growth in which the shareholders have and will continue to be the major beneficiary.
According to him, “one thing that is very common to all the shareholders who raised questions is about dividend pay, protection of the minority shareholders. I think the two things that are also salient is making sure that at the end of the day, existing shareholders derived maximum mileage for their investment in one form or the other.
“And if you look at what we are doing at Coronation Insurance in the two years and you observed how we have moved up in terms of ranking, I am sure that will give all our shareholders confidence that the trajectory is right and end goal is very clear in our mind. We must make sure that there is maximum value to our shareholders. I can assure you that we have our eyes on the board on that. I truly believe that we will not let you down.”
Earlier, the new managing director/CEO, Coronation Insurance, Mr Olamide Olajolo, equally assured that the firm’s partnership with Access Bank was poised to enhance growth of the firm. “Regarding our relationship with Access Bank, our partnership with the bank is very strong and is going on well. We are leveraging on its customers and developed digital channels to access all their customers.
very confident that, in the coming months, we will start seeing results of these efforts,” he stated.
The company’s profit before tax went up from N23.6million in 2019 to N1.15billion in 2020, while the profit after tax of the insurer also grew from N214.32million to N1.2billion within the period under review, even as Coronation Insurance group’s total underwriting profit also grew from N2.92billion in 2019 to N3.29 billion in the year under review.
The total underwriting expenses came down from N6.55 billion in 2019 to N6.18 billion in 2020; gross premium written rose to N16.19 billion from N15.2 billion achieved in 2019, while net premium income declined to N7.36 billion in 2020 from N7.81billion recorded in 2019. The group’s total assets appreciated from N30.75 billion in 2019 financial year to N39.72 billion in 2020.