From Ngozi Onyeakusi, Lagos
Cornerstone Insurance Plc has settled claims worth N6.3 billion to policyholders for the financial year ended 31st December, 2017.
This, represents N2.9 billion higher than N3.4 billion claims paid in its 2016 financial year.
The chairman of the company, Segun Adebanji, who spoke at the firm’s annual general meeting, said Claim recovery, was N1.4 billion as against N1.2 billion in 2016, noting that sharp increase in Claim expenses led to Underwriting loss of N2 billion compared to underwriting profit of N696 million of 2016.
Moving forward he assured that necessary actions have been taken to realign the company’s risk portfolio away from the unprofitable accounts that led to heavy losses, he added that: “Where repricing has not been possible, we exited or reduced our exposure significantly.”
Notwithstanding the significant regulatory bottlenecks, he said the insurer will continue to intensify its efforts to increase the proportion of its revenue sourced from retail segments which have traditionally been more profitable.
“The construction of our Head Office building is progressing satisfactorily and is due for completion before the end of 2018. While this has been a non-earning asset on our books for some time now, it is expected to start yielding income when the lettable spaces become available for rent upon completion.”
The Group Managing Director, Ganiyu Musa, at the event also informed shareholders on some of the efforts made by the company to comply with the Tier-Based Minimum Solvency Capital (TBMSC) policy of the National Insurance Commission (NAICOM). According to him the board had indicated the tier the company will operate in the TBMSC regime.
He told the shareholders that parts of the resolutions adopted by the board, is to approach them for fund to enable the firm meet the minimum solvency capital required for the tier adopted.