Cornerstone pays N6.3b claims
01 October 2018 |
3:29 am
Cornerstone Insurance Plc has paid about N6.3 billion claims to policyholders who suffered insured risks in its 2017 financial year, a development that repositioned the customers to their financial positions before the incidents. Speaking at the 2017 yearly general meeting in Lagos yesterday, the company’s Chairman, Segun Adebanji, said the claims paid was N2.9 billion…
Cornerstone Insurance Plc management
Cornerstone Insurance Plc has paid about N6.3 billion claims to policyholders who suffered insured risks in its 2017 financial year, a development that repositioned the customers to their financial positions before the incidents.
Speaking at the 2017 yearly general meeting in Lagos yesterday, the company’s Chairman, Segun Adebanji, said the claims paid was N2.9 billion higher than N3.4 billion claims paid in the 2016 financial year.
Claims recovery, according to him, was N1.4 billion, against N1.2 billion in 2016, noting that sharp increase in claims expenses led to underwriting loss of N2 billion, compared to N696 million in 2016.
The net claims ratio for 2017, he stated, stood at 117 per cent, against 73 per cent for the previous year.
Also, the largest contributors to the claims figure were the oil and gas and motor insurance revenue accounts, which recorded net claims ratios of 536 per cent and 104 per cent respectively, mainly due to adverse development on certain claims and reserve strengthening.
As a result of management cost-cutting strategy, he said, operating expenses for the group remained flat at N3.5 billion.
Stating that the company’s Gross Premium Written(GPW) for the year under review was N7.9 billion, which was almost the same figure with the previous year, he stressed that the company tightened its risk acceptance parameters, as competitive pressures drove premium rates to uneconomic levels, even as certain regulatory bottlenecks have hampered the implementation of the company’s expansion plans in the retail and mass market segments.
Promising that necessary actions have been taken to realign the company’s risk portfolio away from the unprofitable accounts that led to heavy losses, he added that: “Where repricing has not been possible, we exited or reduced our exposure significantly.”
Related
4 hours ago
The Lagos Chamber of Commerce and Industry (LCCI) is deeply worried about the various economic headwinds confronting the stability of the Nigerian economy.
4 hours ago
Worried by the dwindling oil production and the need to drive investments in the nation’s oil and gas sector, the Federal Government, through the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has underscored the imperative of ramping up production as a pivotal strategy to ensure stability in the midstream and downstream sectors of the industry.
4 hours ago
The Nigerian Ports Authority (NPA) is awaiting the Debt Management Office's (DMO) final review and approval of Citibank's $700 million loan mandate, which will fund the rehabilitation of the Apapa and Tin-Can Island ports in Lagos.
1 day ago
A foreign investor at TLG Capitals, Isaac Marshall, has attributed the naira gain to the decision of the Central Bank of Nigeria (CBN) to clear the FX backlog. Nigeria's foreign exchange (FX) reserves have fallen to a six-year low, Marshall said in a statement on his LinkedIn account on Thursday. He stated that this decline…
1 day ago
Stakeholders in the insurance and pension industry have called on operators in the sectors to adopt artificial intelligence (AI) to drive business expansion in the country.
1 day ago
Though it does not have the power to regulate prices, the Federal Competition and Consumer Protection Commission (FCCPC) will deploy an existing legal framework to enforce fair competition and consumer protection provisions to achieve fair prices of commodities.
1 day ago
Inflation in Nigeria is reaching its peak now and will decelerate toward the middle of the year, Director-General of the Budget Office of the Federation, Ben Akabueze, has said.
1 day ago
Nigerian Breweries (NB) Plc has disclosed that the proposed N600 billion recapitalisation scheme by way of rights issue would settle N153 billion outstanding foreign exchange (FX) losses and part of its local bank debt facility.
1 day ago
The International Renewable Energy Agency (IRENA) is seeking a new approach to energy security amidst geopolitical concerns and a push from fossil fuels.
1 day ago
The Chartered Institute of Bankers of Nigeria (CIBN) 2024 yearly lecture, slated to take place on April 23, at the Civic Center, Victoria Island, Lagos, has its theme as "Improving Availability of Credit in the Nigerian Real Economy: The Critical Importance of Liquidity."
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.