Cornerstone Insurance Gross Written Premium Rise By 13%
Cornerstone Insurance Plc, Gross Written Premium, GPW, grew by 13 per cent to N13.05 billion in 2019.
Chairman of the firm Segun Adebanji, speaking at its 28th Annual General Meeting (AGM) in Lagos, stated that premiums from life insurance accounted for 32.5 per cent of the gross premium written, an increase of 25 per cent in the previous year.
According to him, the largest contributors to general business gross premium written were bonds, engineering & accident N2.12 billion; oil & gasN2.04 billion and motor N1.36 billion.
He said the company’s continued growth in special risk lines especially in the power, aviation, and oil and gas sectors was a testament to the confidence its customers and partners have in the firm’s technical underwriting expertise which it continued to strengthen.
Adebanji posited that the firm’s net claims ratio for the year under stood at 47 per cent and has been relatively stable since the company put in place stricter risk acceptance parameters, as competitive pressures have driven premium rates to uneconomic levels. Consequently, our company ended the year with a profit before tax of N4.01 billion, an increase of 22 per cent over the previous year, he added.
He maintained that the board of directors of the firm recommended the transfer of N1.72 billion from the company’s share premium account to the share capital account by issuing bonus shares in the proportion of seven new share of fifty kobo each for every 30 existing share of fifty kobo each, to achieve the company’s recapitalisation plan, a request which was granted by the shareholders.