By Rosemary Iwunze
Cornerstone Insurance Plc has recorded a 34 percent increase in its gross premium written by 34 per cent to N17.53 billion for the financial year ended December 2020 from N13.1 billion in the previous year.
Addressing shareholders at the company’s annual general meeting in Lagos yesterday, Chairman of the Company, Mr. Segun Adebanji said that the financial performance can be attributed to focus on strengthening enterprise risk management framework over the past few years.
Adebanji said: “Premiums from life insurance grew from N3.84 billion in the previous year to N5.54 billion in 2020 and accounted for 31 per cent of gross premium written. The largest contributors to general business gross premium written were oil, gas & aviation, engineering & 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.
“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 parameters. Even though the overall ratio of claims to revenue has remained relatively stable, the effects of the Q4 2020 protests are clearly noticeable in our 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.”