Coroation Insurance GWP Soars To N13.26bn In 2020 Q3 …. Holds teleconference call for Investors
By Ngozi Onyeakusi— Coronation Insurance Plc, a multi-line insurance company has recorded a Gross Wrtten Premium to the tune of N13.26bn for its unaudited financial results for the period ended 30th September, 2020.
This represents a growth rate of 5% when compared to the figure recorded in the same period in 2019. We sustained this consistent growth in premium by the attainment of leadership status on some major accounts and enhanced underwriting capabilities, said the firm.
According to statement the group’s total underwriting profit grew by 6 percent to N2.67billion year-on-year growth from the N2.45bn recorded in the preceding period of 2019, this the company said is driven by the growth in premiums income and fees and commission income.
The Group closed with a Profit before Tax of N1.07bn representing a YoY decline of 2%, adding that the key drivers of this position were increases in claims and operating expenses for the period.
Net claims expenses of N2.4bn was recorded as at Sept’2020, while net claims ratio closed at approximately 44% as at Q3’20, an 11% increase when compared with the 39% net claims ratio recorded in Q3 of 2019.
Gross Written Premium for the Life subsidiary increased by 40.9% to N2.9billion at the end of Q3, 2020 from N2.7b in the same period of 2019.
Profit before tax on a YoY basis for the life company increased by 134% to close at N319 million in the period under review compared to N136million at same period in 2019, driven by improved underwriting position for the period.
Net claims expense decreased by 38% to N617m for the period, compared to N778m recorded in the corresponding period of 2019.
The company’s underwriting result improved to N1bn as at September 2020 from N352m in the previous year. The upward trend could be attributable to reduction in claims expense and increase in fees and commission income for the period.
The company will today hold a teleconference call for investors and analysts with its senior management, to announce the unaudited financial results for the period ended September 30th, 2020.
Commenting on the results, Yinka Adekoya, Managing Director Coronation Insurance Plc., said: “The business environment in Nigeria despite its prospects has been characterized by several challenges this year. Economic indicators as at September showed that Africa’s biggest economy dipped into its second recession in less than five years, negatively impacted by the crash in global oil prices and disruption in business activities brought on by the coronavirus pandemic.
“We remain relentless in our strategic growth targets as an organisation. Last month, we officially launched our Bancassurance partnership with Access Bank, this provides us with an opportunity of delivering unrivaled Bancassurance experience to our customers.
In conclusion, we sympathize with all the victims of the #EndSars protests who may have sustained injuries, lost loved ones, and properties as a result of the vandalizations. We reassure customers of our fast, efficient and customer-centric claims processing. We will continue to ensure adherence to the safety precautions against COVID-19 pandemic as an organisation. This is tailored towards the Company’s objectives in ensuring business continuity to: curb the transmission of the coronavirus strain among employees and other stakeholders; maintain all essential operations and services and minimize the possible disruptions to business activities”, she said.
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