‘N4.5bn claims: ENDSARS protest caused problems for insurance businesses’
The Endsars protest in Nigeria affected about 2000 insured business and led to the payment of N4billion claims out of a total of N4.5billion, according to the Chairman of Cornerstone Insurance Plc, Mr Segun Adebanji.
Adebanji who disclosed this in the company’s document for its upcoming 2020 annual general meeting (AGM) to be held in Lagos on July 27, said the looting that steamed from the protest against police brutality was challenging to the insurance industry as a whole.
He said that despite the challenging environment, the Gross Premium Written of Cornerstone Insurance and its subsidiaries (“Cornerstone Group”) for the year under review was N17.53 billion, representing an increase of 34% over the previous year of 2019.
He stated that, “Premiums from life insurance grew from N3.84 billion in the previous year to N5.54 billion in 2020 and accounted for 31% of Gross Premium Written. The largest contributors to General Business Gross Premium Written were (I) Oil, Gas & Aviation, (ii) Engineering & (iii)Motor classes, contributing N3.53 billion, N2.86 billion and N1.52 billion respectively.
“Our investment portfolios also yielded positive performance figures, driven mainly by the effect of changes in foreign exchange rates and also from sales of foreign currency denominated assets during the year. Investment and Treasury activities contributed N3.73 billion to overall revenue.
“The gross claims ratio for the year stood at 41% and has been relatively stable year on year since the Company put in place stricter risk acceptance parameters. Even though the overall ratio of claims to revenue has remained relatively stable, the effects of the Q4 2020 protests are clearly noticeable in our financial statements, as non-life gross claims incurred increased by 62% when compared with the previous year and gross claims from the fire class specifically rose by 85%, from N816 million in 2019 to N1.51 billion”.
He also noted that personnel and other operating costs dropped by close to 7% as Management executed remote working protocols and other measures to safeguard the welfare of staff. Our investment in a robust nationwide technology infrastructure over the years ensured that normal operations were carried out unabated. Consequently, our Group ended the year with a profit before tax of N1.76 billion.
Cornerstone Insurance Plc is reportedly the first insurance company in Nigeria to provide customers with an online platform for insurance transactions. Little wonder why Cornerstone Insurance Plc. was adjudged as the ‘Best use of Technology, Insurance Company, 2016, Nigerian Technology Awards. The company was incorporated on 26th July 1991 as a private limited liability company and became a Public Limited Liability, quoted on the Nigerian Stock Exchange in 1997.
