Cornerstone Insurance Plc said its gross premium rose by 15 per cent from N4.6bn in 2012 to N5.3bn in the 2013 financial period.
The Group Chairman of the company, Adedotun Sulaiman, disclosed this during the firm’s 22nd annual general meeting in Lagos on Friday.
“Cornerstone recorded an impressive performance in its 2013 financial year improving profit before tax by 60 per cent over the 2012 financial year, while gross premium rose by 15 per cent from N4.6bn in 2012 to N5.3bn in 2013,” he said.
He said its underwriting result dipped by 30 per cent from N1.2bn in 2012 to N866m in 2013, explaining that this was due to a 15 per cent increase in reinsurance expenses which grew from N1.6bn in 2012 to N1.9bn in 2013 and net claim expenses that went up by 18 per cent from N985m in 2012 to N1.1bn in 2013.
The company, he said, had a combination of robust investment performance and disciplined control of operating expenses which resulted in an increase in profit after tax from N544m to N870m.
He said it recorded 16 per cent growth in the total asset from N12bn to N14bn.
The group chairman observed that the nation’s insurance was fragmented and there was a need for a consolidation of the industry to fast track building scale and capacity.
“Our efforts in this direction have continued through 2013 and we have identified a company with complimentary attributes and values and at this meeting therefore ask for your approval to proceed with the business combination,” he said.
The shareholders, at the meeting, approved this proposal and gave their nod to the management which authorised the board to acquire 3.3 billion ordinary shares of Fin Insurance Company Limited, which would make Cornerstone 100 per cent ownership or as may be agreed by the board.
Sulaiman said that in addition to providing a significant boost in the balance sheet size of the enlarged Cornerstone, its partner, Fin Insurance, would create complimentary values in areas such as distribution channels, geographical spread and product opportunities, among others.
The Group Managing Director, Ganiyu Musa, said that Cornerstone would continue to build on the strength of its people with commitment to its core values including strong ethics and innovation to make the firm the insurer of choice.
In line with the company’s commitment to providing industry transforming solutions, he said Cornerstone, in partnership with Airtel Nigeria recently introduced a micro insurance product tagged Airtel Insurance, covered by Cornerstone.
“This is a truly innovative suite of products that provide life and hospitalisation insurance cover to all Airtel subscribers for free ,” he said.
Source: Punch
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