Cornerstone assures investors of robust returns
…As GPI rose by 25 % in 2016
Top underwriter, Cornerstone Insurance Plc, has disclosed of 25 per cent growth in its gross premium written for the financial year ended 31, December 2016. The Group Chairman, Segun Adebanji, who disclosed this at the Annual General Meeting (AGM) of the company, said gross premium written income grew from N7.3 billion in 2015 to N9.1 billion at the end of 2016.
He said sales to retail customers accounted for 25 per cent of the premiums while Special Risks products to the Oil & Gas and Engineering sectors contributed the second highest proportion at 23 per cent.
The Chairman said the increased financial strength from the conclusion of the acquisition of Fin insurance and their growing reputation as a credible partner is now opening the opportunity for leadership position on major transactions as well as provide support for retail expansion.
He however said that high claims, inflation and the security challenges in the North East and South-South zones of the country led to a significant deterioration in the claims experience during the year under review.
Gross claims rose by 61 per cent to N4.5 billion when compared to the previous year of N2.8 billion in 2015, which he attributed largely to death claims from the group life, credit life, and third party motor classes of insurance.
Adebanji also said the company had since carried out a comprehensive portfolio review and corrective actions to improve terms and conditions, and reduce participation or exit from the business as appropriate.
The group total asset grew to N21.44 billion in 2016 against N20.97 billion reported in same period of 2015, while net investment income increased by 98 per cent from N74 million in 2015 to N1.47 billion in 2016, mainly due to the consolidation of the investment income of the subsidiary.
He said unlisted equities portfolio suffered significant impairment while the financial commitment on its new head office building constrained the liquidity that would have benefited from attractive yields on short term instruments.