Cornerstone Insurance has grown its gross premium by 25 per cent during the 2016 financial period.
The Group Chairman of the company, Mr. Segun Adebanji, stated this during its Annual General Meeting in Lagos.
“Despite the harsh economic climate the company has sustained its growth trajectory by growing gross premium written by 25 per cent to N9.1bn from N7.3bn in 2015,” he said.
He said that sales to retail customers accounted for 25 per cent of the premium while special risks products to the oil and gas as well as engineering sectors contributed the second highest proportion at 23 per cent.
The chairman said the increased financial strength from the conclusion of the acquisition of Fin Insurance and their growing reputation as a credible partner was opening opportunity for leadership position on major transactions.
Adebanji said this had also provided support for its retail expansion.
He, however, explained that high claims, inflation and the security challenges in the North East and South- South zones of the country led to a significant deterioration in the claims experienced during the year under review.
“Gross claims for the year was N4.5bn, representing an increase of 61 per cent from the previous year of N2.8bn, driven largely by death claims from the group life, credit life and third party motor classes of insurance,” he said.
He said the board of directors and the management of the company had also put in place additional cost management and revenue enhancement measures to ensure a quick return to profitability.
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