 has reported an improved combined ratio of 73.33 percent in the third quarter of 2021 ){kind=link}
Custodian Investment Plc (a financial holding company) has reported an improved combined ratio of 73.33 percent in the third quarter of 2021 compared to 74.04 percent the previous year, according to MoneyCentral’s calculations.
At 73.33 percent, this quarter reflects a profitable income. It was made up of loss expenses of 39 percent compared to 42.52 percent from the same prior year period.
The combined ratio is typically expressed as a percentage. A ratio below 100 percent indicates that the company is making an underwriting profit, while a ratio above 100 percent means that it is paying out more money in claims that it is receiving from premiums.
The underwriting expenses were reported at 13.27 percent, slightly higher than Q3 2020’s 13.37 percent.
The company posted underwriting profit of N19.23 billion as at September 2021, and that is higher than 2020’s N16.05 billion.
However, net income dipped by 16.88 percent to N5.01 billion in September 2021 from N6.03 billion the previous year.
The reduction in net income was largely driven by N22.57 billion fair value loss on financial assets.
It paid N12.58 billion in claims in the period under review, which is 7.17 percent higher than 2020’s N11.74 billion.
Insurers in Africa’s largest are seeing mounting claims due to losses incurred during the protest against police brutality that resulted in the destruction of properties in major cities across the country.
Also, higher inflationary environment and currency volatility means the replacement cost of assets will go up, while the reopening of the economy will balloon motor vehicle claims as cars are back on the road.
While the headline inflation moderated for the 6th consecutive month to print at 16.63 percent for the month of September, it is still below the central bank’s target range of 6-9 percent.
To strengthen the balance sheet and underpin liquidity, the Shareholders of the company had authorised the board of directors of the company to raise the naira equivalent of up to $15m as additional capital through a convertible loan instrument.
Custodian Investment’s gross premium income increased by 26.72 percent to N58.09 billion in September 2021 from N45.84 billion the previous year.
A breakdown of gross premium written shows revenue from Non-Life Segment was up 5.73 percent to N25.05 billion m as at September 2021 while premium from Life Business increased by 18.44 percent to N25.84 billion as at September 2021.
About Custodian Investment
Custodian Investment Plc. is a leading Nigerian Investment Group with operations in the Other Financial Services Sector of the economy. The group has significant holding in companies and brands including Custodian and Allied Insurance Limited, Custodian Life Assurance Limited, Custodian Trustees, Crusader Sterling Pensions Limited and UPDC Plc. All these companies render best in class services in their respective spheres.
Custodian Investment Plc. is managed by a Board comprising thoroughbred professionals with proven track records in their various fields of endeavour, who bring broad and deep insights derived from several years of fruitful and eventful years of experience to bear on the direction of the Company.
Currently, with group-wide assets under management (AUM) in excess of $1.1 billion, the company remains committed to continuous improvement of its businesses, structures, systems and processes in order to keep ahead of the challenges of new growth, improving business prospects, transparency, and governance.