The Managing Director of Coronation Insurance, Mr. Olamide Olajolo
By Favour Nnabugwu
Coronation Insurance has announced a gross premium income of N8.6 billion in the financial year ended December 31, 2021 compared to the N12.3 billion the company raked in the same period of 2020.
The underwriter witnessed the hike in prices of things generally and economic condition of the country which dwindled businesses even insurance was not left out
The company also posted a profit after tax at N689.6 million at the end of the year in 2021 far below N1.7billion it gained the previous year
The Chairman of underwriting firm, Mutiu Sunmonu, said this in a statement sent to the Nigerian Stock Exchange and Shareholders on the Group’s Audited Financial Results for the Year 2021.
He noted that the Net Underwriting Income was N9.66 billion, adding that N7.31 billion was paid as claims.
Sunmonu submitted that the firm also recorded a total underwriting profit of N1.25 billion, while the investment income stood at N1.51 billion.
He said the firm’s total assets stood at N39.80 billion, adding that a 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.
Though the gross written premium was valued at N14.14 billion in 2021 from N16.2billion generated in the same period of 2020
With reinsurance expenses valued at N3.8 billion, Net premium income stood at N5.3 billion in 2021 from N9.9billion recorded in 2020 while fees and commission income at N642 million in 2021 from N3.9 billion in 2020 drove the net underwriting income to N4.7 billion during the period from N3.9billion billion the year before.
The company paid N5.5billion as claims in 2021, a little below N5 6 billion paid in 2020 while the outstanding claims was N4.4 billion and claims expenses recoverable was N2.9 million in 2021 from N3 bilion in 2020. These reflected a net claims expenses at N1.4billion in the same year compared to previous year, the value for the same purpose amounted to N3 billion.
The claims paid in the year 2021 was put at N5.5 billion, a slight decrease from N5.6 billion in the previous year. However, this was more pronounced on other operating expenses which was valued at N1.4 billion against the N1.1 billion utilized for the same purpose last year as well as on underwriting expenses which were valued at N4.7billion against N3.9 billion the previous year.