…pays N7.31bn claims
As the nation’s insurance sector continues to assume a more positive aura, a few operators have also sustained their business outlook with figures that have contributed largely to the growth of the economy and confidence on the part of investors.
As a matter of concern for their investment, policyholders and shareholders, the commitment to ensure that all stakeholders are well taken care of has been uppermost in their decisions. Despite the harsh operating environment, the need to meet policyholders’ claims request is, no doubt, cheering.
Hence, with a boost in its assets and a significant growth in its underwriting income, Coronation Insurance Plc, once again, demonstrated its strength in the sector by paying out a total of N7.31 billion as claims for the year 2021 compared to N6.90 billion recorded in the preceding year.
According to the 2021 audited financial statement filed with the Nigerian Exchange Limited, last week, the insurance firm also posted a total asset growth to the tune of N39.9 billion for its 2021 compared to N39.72 billion recorded in the comparable period of 2020.
The financial statement was signed by the insurer’s Chairman, Mutiu Sunmonu and the Managing Director, Olamide Olajolo. According to the statement, the groups net underwriting income grew significantly to N9.66 billion against N9.46 billion recorded in the previous year.
While the underwriting expenses reduced to N2.7 1 billion as against N2.98 billon in 2020, the group’s gross premium written stood at N14.1 billion within the period. Sunmonu pointed out that the firm also recorded a total underwriting profit of N1.25 billion, while the investment income stood at N1.51 billion. He said that a share capital of N11.99 billion; share premium of N4.61 billion; contingency reserves, N3.66 billion; other reserves, N1.75 billion and total equity, N21.59 billion were recorded in the year.
With reinsurance expenses valued at N3.8 billion, Net premium income stood at N5.3 billion in 2021 from N9.9billion recorded in 2020 while fees and commission income at N642 million in 2021 from N3.9 billion in 2020 drove the net underwriting income to N4.7 billion during the period from N3.9 billion billion the year before.
Recall that the FY’20 consolidated and separate financial statements had shown the group recording 460.53 per cent increase in profit after tax from N214.327 million in 2019 to as much as N1.202 billion in 2020, as well as recording an outstanding performance from a loss position of (N308.98 million) in 2019 to a profit position of N215.492 million in 2020.
The financial statements also showed the company’s gross premium written increasing from N10.709 billion in 2019 to N11.636 billion in 2020, just as the group’s gross premium written appreciated from N15.201 billion in 2019 to N16.186 billion in 2020.
The report also showed that while total liability grew from N12.225 billion to N14.754 billion and total underwriting profit at N3.291 billion, investments and other operating income rose to N525.250 billion in 2020 against N4.317 billion in 2019.
In all, total claims paid rose by 69.5 per cent to N6.91 billion in 2020. Again, the group’s assets increased from N30.745 billion in 2019 to N39.723 billion in 2020 just as the company posted an increase of N21.556 billion to N28.153 billion in assets within the period.
As part of its commitment to ensure growth, Coronation Insurance had improved in core areas to realise the feat. This much was attested to by the Chairman, Mr. Sunmonu, when he said since joining the board, he had been impressed by the qualities of the organisation, including the digital maturity, size of investments the organisation had made in scaling its digital maturity over the last decade, governance and financial capacity as well as talent and potential within the organisation.
He also noted that the partnership between Access Bank and Coronation Insurance represented a major milestone for the Nigerian insurance industry. “Through the coming together of both organisations, new standards of quality and service delivery will be established within the industry,” he said.