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The introduction of innovative products that are increasingly making an inroad into the Nigerian marker has added impetus to the premium income of Coronation Insurance Plc.
It is noteworthy that the focus and market penetration strategies rolled out by the owners and managers of the company paid off as there were improvements in the revenue of each business segment.
For the first nine months through September 2022, Coronation Insurance’s gross written premium (GWP) spiked by 40.23 percent to N15.51 billion from N11.06 billion as at September 2021.
A breakdown of GPW shows gross premium from Group Life oil and gas stood at N2.82 billion, which is 46.11 percent higher than 2021’s N1.93 billion.
Revenue or GPW from Motor Segment or Business was up 8.82 percent to N1.85 in the period under review from N1.70 billion as at September 2021.
Gross premium written from Engineering Segment increased by 36.86 percent to N2.82 billion as at September 2022.
Fire and Burglary Business saw an 89.62 percent uptick in growth premium to N1.83 billion in September 2022 from N965.05 million the previous year. Revenue from Marine surged 150.52 percent to N1.60 billion in the period under review from N614.14 million.
Analysts attribute the growth in revenue to the strategic partnerships such as the Bancassurance Partnership the composite insurer entered with Access Bank Plc.
Apart from its bancassurance partnership, the company had developed five products, three of which had been approved by the National Insurance Commission.
“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,” said Olamide Olajolo, Managing Director, Coronation Insurance Plc.
Gross written premium from Bancassurance stood at N1.11 billion in September, which represents a 75.12 percent increase from 2021’s N633 million.
There have been concerted efforts by the regulator to deepen insurance penetration and magnify its contribution to the economy.
The Nigerian insurance industry continues to lag peers with low insurance penetration (Gross Premium Written/GDP) of 0.34% in 2019 (2018: 0.33%) compared with South Africa (13.4%), Morocco (3.9%), Kenya (2.3%) and Egypt (0.6%).
In ranking terms, the Nigerian insurance industry underperformed peers, contributing 0.02% to world premiums and ranked 81st (previously 71st) out of the 88 countries profiled by the Swiss Re Institute in 2021.
Coronation insurance paid N2.19 billion claims to policyholders in the third quarter of the year, which is 49.76 percent lower than 2021’s N4.24 billion the previous year.
Claims ratio reduced to 25.96 percent in the period under review from 64.01 percent the previous year.
Coronation Insurance will be paying shareholders a dividend this year as it posted a net income of N606.89 million from a loss of N711.15 million the previous year.
The insurer’s underwriting profit surged by 358.71 percent to N5 billion, thanks to a reduction in expense ratio and an upsurge in revenue,