Cornerstone Insurance Plc has announced that its Gross Written Premium (GWP) rose by 25 per cent to N11.5 billion in the 2018 financial year.
Chairman of the company, Segun Adebanji, who disclosed this during the company’s 27th annual general meetings in Lagos recently, said the largest contributor to this result was the Group Life portfolio, which contributed N2.01 billion; 17 per cent of its Gross Written Premium.
Adebanji stated that despite the challenging market conditions, the company has continued to record growth in revenue.
He added that the entire life insurance portfolio recorded a growth of 48 per cent from the previous year and this growth was driven by regulatory changes to group life insurance pricing limits and the introduction of a new product targeted at retail segments.
The individual life insurance portfolio grew by 370 per cent from N132 million recorded in 2017 to N621 million in 2018.
The engineering, oil and gas product segments continued to dominate our general business portfolio with a combined contribution of 57 per cent at N4.13 billion, he noted.
Regarding claims payment, he said, “A review of our overly prudent claims, reserving methodology during the year saw our gross claims incurred for the year drop to N4.53 billion from N7.74 billion in the previous year, aligning more with the industry average”.
Speaking on the directive by National Insurance Commission (NAICOM), for insurance firm to recapitalise, he said, “in line with NAICOM’s mandate, the board of directors has met to consider the firm’s strategic options and a plan is in place to ensure that it continues to participate fully and actively in the industry after the June 2020 deadline”.