Coronation Insurance’s total assets hits @ N39.80 bn as GWP records N14.13 bn in 2021

L- Managing Director/CEO, Coronation Insurance,Olamide Olajolo; Chairman Board of Directors, Mutiu Sunmonu and Company Secretary Mary Agha at the Annual general Meeting today
By Favour Nnabugwu
Coronation Insurance’s total assets stood at N39.80 billion as the the financial year ended December 31, 3021 with a Gross Premium Written (GPW) of 
N14.13 billion in the same year, 2021,
The company’s Chairman, Mr. Mutiu Sunmonu, said at the firm’s Annual General Meeting (AGM) of the company in Lagos,
Sunmonu informed the shareholders of the strides the firm has made and would continue to make in the deployment of technology, which is now the major driver of business growth.
Coronation Insurance’s Chairman said  that a share capital of N11.99 bn; share premium of N4.61 bn; contingency reserves, N3.66 bn; other reserves, N1.75 bn and total equity, N21.59 bn were recorded in the year.
He stated that the firm’s net underwriting income was N9.66 bn whilst he added that N7.31 bn was paid as claims.
Sunmonu informed that the firm also recorded a total underwriting profit of N1.25 bn, while the investment income stood at N1.51 bn.
Also speaking, the Managing Director, Mr. Olamide Olajolo, said although there was a decline in the company’s GWP and GPI when compared against the prior year figures, 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.
Olajolo submitted that the decline was attributed to the company’s decision to not underwrite some high-risk accounts which required huge reinsurance expenses and have high loss ratios.
He assured the 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 per cent of the GWP for the 2021 Financial Year,” he posited.
He affirmed that the decline in the fees and commissions earned in the year under review was a consequence of the firm’s decision not to underwrite the earlier referenced high-risk accounts.
He said the company has increased its collaboration on more profitable accounts in order to increase its fees and commissions.
On reinsurance and claims expenses, he said the firm in 2021, was presented with a lot of #EndSars claims which were within its 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.
“The retention limits on various classes of policies have been reviewed. Also, we have developed further capacity within our reinsurance team to better improve on our reinsurance arrangements. These efforts have yielded positive results so far,” he submitted.
He noted that in spite the outcome of the financial result in the year under review, the shareholders should be assured that the board and management are making concerted efforts to diversify the firm’s income.
The MD emphatically noted that aside the bancassurance partnership, the company had developed five poducts, 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 capitalising on various digital platforms to drive sales of our products as well as embarking on profitable investments,” he assured.
He said the increase in management expenses for the year under review was as a result of the costs incurred to ensure that the company provides a safe working environment following the COVID-19 pandemic, adding that although, inflation had really affected the company’s costs, the company has adopted a lot of cost rationalisation initiates from which it expects to see appreciable savings.
“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. Expenses: The increase in Management Expenses for the year under review is as a result of the costs incurred to ensure that the Company provides a safe working environment following the Covid-19 pandemic.”
He said that the firm strives to ensure gender balance across every cadre. “We assure our Shareholders that we are doing our best to ensure gender balance at the top management level,” he added.
He touched regulatory environment for which he said NAICOM has been supportive in the industry’s drive to deepen insurance penetration by providing the platform for web aggregators and micro insurers, stressing that NAICOM has also encouraged the use of digital platforms for the sale of insurance.
He maintained that the company has taken advantage of this by entering strategic partnerships with various web aggregators and developing in-house platforms to ensure a seamless customer journey.
He stated that to enable shareholders’ 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. “We enjoin all our Shareholders to visit the website to confirm the status of their unclaimed dividends.”
“The Company has increased its collaboration on more profitable accounts in order to increase its Fees and Commissions.Reinsurance Expenses, Claims Expenses v. Claims Expenses Recoverable:In 2021”
Coronation Insurance tasks SMEs to take insurance to mitigate losses

Managing Director of Coronation Insurance, Mr Olamde Olajolo


By Favour Nnabugwu



Coronation Insurance and Coronation Life Assurance Limited have tasked entrepreneurs to take insurance in order to mitigate their business and be able to access loan

The theme: Importance of Insurance for Small and Medium Enterprises (SMEs) focussed on the insurance requirements for growing businesses was held yesterday.

The virtual seminar was widely attended by a host of participants from the insurance sector and Coronation small business clients Gbenga Ismail, Vice President of The Lagos Chamber of Commerce and Industry, set the scene by highlighting the significance of Nigeria’s 40 million SMEs for the growth, development and future security of the Nigerian economy.

In addition to noting that Nigeria had lost 2 million SMEs to the Covid-19 pandemic, Ismail also reported that most new SMEs struggled to achieve scale quickly enough to realise the opportunities for which they were created. Irregular and delayed payments was also critical hurdle.

The result was that most new SMEs failed within 18 months of start-up. Despite 90 percent of SMEs currently not paying tax, SMEs represented a huge potential to drive economic inclusion, broaden prosperity and power the future growth of the Nigerian economy.

As such, Ismail argued that it was critical to provide SMEs with the support to ensure survival in the first critical years. Insurance represented a key financial cushion to manage shocks and build financial resilience in the first years of SME growth. With only 0.5 percent of Nigerian SMEs insured, compare with 54 percent globally, the country should focus squarely on developing an insurance environment more accommodating of and appealing to SMEs.

With this challenge in mind an expert panel, consisting of Adebowale Adesona, Executive Director, Technical, Coronation Life Assurance Ltd., Louis Alozie, Country Manager, Wordplay, and Ayo Olojede, Head of Emerging Business, Africa Access Bank Plc. was expertly moderated by Wole Famurewa, CNBC’s West Africa Markets Editor.

There was no doubt that Nigerian SMEs faced risk. Damage to business property and vehicles, legal liability and general product, key persons and goods-in-transit risks cost SMEs dearly. Just insuring a few of these basic risks could save Nigerian SMEs billions annually and improve survival rates significantly.

Since not all SMEs we exposed to all risks, however, it was important for SMEs to consult insurance professionals to identify only those risks that were critical to the survival of their business. Insuring only one to two key risks didn’t cost a lot but could make a significant contribution to survival and growth rates.

It would also help SMEs to understand the difference between external risks, like flood and fire, and internal risks, usually arising from the people SMEs employed or the systems they used. While technology, for example, was a great leveller for SMEs, helping them compete effectively with the big guys, it also exposed them to cybercrime and other information security risks.

Knowing your customer processes were also important in helping SMEs identify and mitigate client risk. Seeking the right advise on people processes and systems could also help manage fraud or employee risk – often by simply training staff to correctly understand and observe basic internet security protocol. While providing staff basic life or income cover, for example, sounded expensive this was relatively cheap, improved trust and performance and prevented SMEs being saddled with unexpected support obligations in the event of the death or injury of an employee.

Coronation Insurance is working with Access Bank, for example, to develop Business Protection Bundles including basic fire, flood, and limited liability cover as well as limited employee life insurance – providing three years’ annual income – to enable Nigerian SMEs to affordably cover the basics of successfully operating their businesses.

More generally, Nigeria needed to look to the experience of other markets that had developed successful SME insurance ecosystems where government coordinated policy and legislation in tandem with the insurance industry and large and small businesses. While some of this involved compulsory insurance, costs were minimal as it was so widespread.

In addition, embedded insurance, included in the price of products purchased, for example, provided a painless method to spread the use of insurance and address trust deficits. From an SME perspective, the panel concurred that insurance was an investment in yourself.

By spending a little money each month, even a small farmer could mitigate risk, ensuring that he was placed in the position that he or she was in before the fire, gale or flood. Being able to insulate yourself from business-destroying events the routinely wipe out SMEs was a critical first step in Nigeria building a deeper and more effective insurance culture able to support broader and higher levels of economic growth.