Cornerstone Insurance Plc has reported a 21.58 percent in underwriting profit in the first nine months even amid an unfavorable underwriting environment.
Of course, the insurer is benefitting from the institution of rigorous cost control measures and branch optimisation exercises targeted at improving the efficiency and profitability of its operations.]
For the first nine months through September 2022, Cornerstone Insurance posted underwriting profit of N4 billion from a profit position of N3.29 billion as at September 2021.
While the combined ratio of 109.62 percent as at September 22 is higher than the 100 percent internationally accepted benchmark, it is still below 2021’s 114.28 percent.
Cornerstone Insurance has tightened its risk acceptance parameters as competitive pressures have driven premium rates to uneconomic levels.
“At Cornerstone Insurance Plc, one of our core values is empathy and this is reflected in the quality of our service delivery to our customers at all times. Our customers are the reason we are in business, to this end, we focus on delivering quality service at all times,” said the company.
“We engage our customers and utilise feedback received to constantly improve on our service delivery, product offerings and distribution channels, adds the company.
The insurer paid N2.36 billion in claims to policyholders as at September 2022, which is 0.42 percent lower than 2021’s N2.37 billion.
Claims ratio reduced to 30.95 percent in the period under review from 38.12 percent as at September 2021.
As a result of an increase in fair value loss on financial assets, Cornerstone Insurance’s net income or profit after tax (PAT) dipped by 36.95 percent to N964.62 million as at September 2022.
The company’s innovative products are making an inroad into the Nigerian market with acceptance from customers as net premium income was up 22.79 percent to N7.64 billion.