Coronation Insurance Premium Income Rises 32.90% as Combined Ratio Improves

Coronation Insurance Plc has seen its total amount of generated gross premium income (GPI) grow 32.90 percent as the insurer spent less on operating expenses to generate revenue.

Gross premium income increased to N9.29 billion in June 2022 from N6.99 billion as at June 2021.

Net premium income followed the same growth trajectory as it was up 23.86 percent to N5.71 billion as at June 2022.

The insurer noted that the growth was driven primarily by growth across product lines, maintaining solid premium retention levels, and the relaxation of the lockdown policy that spurred renewals and business activities.

Gross written premium (GWP) for the quarter was N11.51 billion in June 2022, a 38.50 percent increase from N8.31 billion from the same period last year.

Analysts say the insurers have recovered from the coronavirus pandemic crisis as policyholders are able to renew contracts.

Nigeria’s Gross Domestic Product (GDP) grew by 3.11% (year-on-year) in real terms in the first quarter of 2022, indicating the sixth consecutive quarter of positive growth by the Nigerian economy.

Despite the inflationary pressures, spiraling diesel prices, and currency volatility, Coronation Insurance combined ratio, though lower than the 1oo percent benchmark, improved to 106.38 percent in June 2022 from 153.95 percent the previous year.

It posted an underwriting profit of N3.52 billion as at June 2022, which represents a 294.64 percent surge from 2021’s N892.04 million.

The insurer is efficient and the cost measures put in place by management and board of directors has paid off as total expense ratio reduces to 81.36 percent in June 2022 from 91.10 percent the previous year.

It paid out N1.42 billion in claims to policyholders, which is 50.51 percent reduction from 2021’s N2.89 billion.

The Nigerian insurer saw net income rise by 23.28 percent to N490.47 million in the period under review from N397.84 million the previous year.