Underwriting firm, Cornerstone Insurance in its first half of 2018 reported a net income growth of 134 percent against the same period in 2017
In the report made available to the Nigerian Stock Exchange, the company’s net income increased from negative earnings of N953 million H1of 2017 to a positive earnings of N322 million during the review period. This surge in earnings could be as a result of the increase in Gross premium written which increase by 27 percent from N5.5 billion in H1 2017 to N7.1 billion H1 2018 and the reduction of claims this year H1.
On further analysis showed that the insurance company had an increase in written premium, which was as a result of some additional income from annuity, which brought in N163 million to the company .
“A reflection of the significant focus placed on it by the company this year” as told to businessday analyst by mail from Cordelia Ekeocha, the company’s head of Marketing and corporate Communications. Also, the company’s Non-life Insurance and life premium in H1 2018 both had a 25 percent increase when compared to same period last year.
The company’s financials showed that although, the company’s insurance claims went up, the claims which it recovered from its reinsurance companies was enough to cover for it, making the company’s underwriting results (which reveals the efficiency of an insurer underwriting activities) go up by 766 percent, it rose from N81 million in H1 2017 to N698 million in H1 2018.
“The increase was occasioned by recoveries from reinsurance which was based on businesses ceded to the reinsurance companies that now has claims.
The company will continue to review her reinsurance placements in her portfolio to ensure optimization for sustainability of the line”.
Speaking about the performance of the company and the outlook for the year Ekeocha said that “the trajectory growth in the company’s profit is occasioned largely by the focus on profitable business across the retail and corporate segments which led to underwriting profit.
The company also gained on investment side as a result of strategic position it has earlier taken on some equities”. These, combined with the renewed focus on cost efficiencies led to the profit and these and more would be the focus of the company in 2018 and beyond in order to ensure the profit is sustained”.
