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Insurer pays policyholders claims of N7.31 billion

By Guardian Nigeria
06 November 2022   |   12:21 am
The Policyholders of an underwriting firm, Coronation Insurance Plc have received a total of N7.31 billion as claims as of the end of 31st December 2021. This the insurer disclosed at its yearly general meeting held in Lagos, The firm presented with a lot of #EndSars claims which were within its retention limit and contractually…

The Policyholders of an underwriting firm, Coronation Insurance Plc have received a total of N7.31 billion as claims as of the end of 31st December 2021.

This the insurer disclosed at its yearly general meeting held in Lagos,

The firm presented with a lot of #EndSars claims which were within its retention limit and contractually bound to pay.

On financial performance, the Chairman of the Company, Mutiu Sunmonu, said underwriting income was N9.66 billion in 2021 while the gross Premium Written in the year under review was N14.13 billion.

Net underwriting income stood at N9.66 billion, total underwriting profit of N1.25 billion, and investment income stood at N1.51 billion.

Total assets stood at N39.80 billion while share capital of N11.99 billion; share premium of N4.61 billion; contingency reserves, N3.66 billion; other reserves, N1.75 billion and total equity, N21.59 billion were recorded in the year.

Addressing shareholders on the financial statement, the Managing Director/ Chief Executive Officer of the firm, Olamide Olajolo, said the Company fared better in the year under review as the difference between the GWP and GPI for the 2020 financial year is more than the difference in the figures for the 2021 financial year.

He however assured shareholders that the Company has since secured more profitable accounts to improve its financial performance.

“As part of the efforts to increase the GWP and GPI, the Company has identified and commenced strategic partnerships such as the Bancassurance Partnership with Access Bank Plc which accounts for 27% of the GWP for the 2021 Financial Year.”

On reinsurance expenses and claims in 2021, he said “we were presented with a lot of End Sars Claims which were within our retention limit and contractually bound to pay. Consequently, the Company had to review its Outstanding Claims Reserves (OCR) by almost a billion.

“We however want to assure our Shareholders that steps have been taken to protect the Company from further losses of this magnitude”.

He noted that the retention limits on various classes of policies have been reviewed. Also, we have developed further capacity within our Reinsurance Team to better improve our Reinsurance arrangements.

These efforts according to him have yielded positive results so far.

On product development, he said the company developed five new Products, three of which have been approved by the National Insurance Commission (NAICOM).

” We are committed to increasing the Company’s market share and overall profitability by capitalizing on various digital platforms to drive sales of our products as well as embarking on profitable investments.

On the composition of employees, he said: “We strive to ensure gender balance across every cadre of the Company. We assure our Shareholders that we are doing our best to ensure gender balance at the Top Management Level. we should be on the program I didn’t have time in Canada

Speaking further on unclaimed dividends he said ” to enable our shareholders to have access to information on unclaimed dividends, there is a link on the Company’s website where shareholders can view the list of unclaimed dividends.

On the regulatory environment, he said NAICOM has been supportive of the industry’s drive to deepen insurance penetration by providing the platform for web aggregators and micro insurers.

He noted the commission has also encouraged the use of digital platforms for the sale of Insurance, adding that they have taken advantage of this by entering strategic partnerships with various web aggregators and developing in-house platforms to ensure a seamless customer journey.