By Rosemary Onuoha
Cornerstone Insurance Plc has grown its gross premium written for the 2018 financial year by 26 percent to N11.6 billion from N9.2 billion recorded in 2018.
Announcing this to shareholders at the company’s annual general meeting in Lagos, Chairman of the company, Mr Segun Adebanji said that Cornerstone recorded the growth in revenue, despite challenging market conditions.
Adebanji said that the largest contributor to the result was the group life portfolio which contributed N2.01 billion (17 percent of total GWP).
He said, “The entire life insurance portfolio recorded a growth of 48 percent from the previous year. This growth was driven by regulatory changes to group life insurance pricing limits and the introduction of a new product targeted at retail segments. The individual life insurance portfolio grew by 370 percent from the previous year at N621 million from N132 million in 2017.
“The engineering, oil & gas product segments continued to dominate our general business portfolio with a combined contribution of 57 percent of general business premiums (N4.13 billion), giving credence to the emergence of Cornerstone Insurance as a leading special risks underwriter.
“A review of our overly prudent claims reserving methodology during the year saw our gross claims incurred for the year dropped to N4.53 billion from N7.74 billion in the previous year, aligning more with the industry average.
“In accordance with the provisions of IFRS 11, the completion of our Head Office building which had been represented as a non-earning asset in our accounts unlocked some value and contributed N2.31 billion to the Group’s profit. Nonetheless, the Board of Directors and management did not relent on the cost control measures put in place in the previous year and our efforts reduced operating and personnel expenses by 13 percent from N3.09 billion in 2017 to N2.69 billion in 2018.
“The cumulative effects of the strategic focus on your company’s key growth drivers resulted in a return to profitability in 2018. Profit before tax for the year 2018 stood at N2.66 billion after a period of losses.”