Cornerstone Insurance Plc,said it has started reaping the gains of a number of steps it took to reverse its loss performance in 2017 business year especially the institution of rigorous cost control measures and branch optimisation exercise targeted at improving the efficiency and profitability of its operations.
The company said evidence of this is shown on the impressive performance in its unaudited account for half year 2018.
Cornerstone Insurance chairman Segun Adebanji, who disclosed this while addressing shareholders at the 26th Annual General Meeting of the company held in Lagos said for the financial year endedDecember 31, 2017, the company recorded a gross premium of N7.9 billion almost the same figure achieved in the previous year.
He said claims ration foe the year stood at 117percentas against 73 percent for the previous year.
He said the largest contributors to the claims figures were Oil and Gas and Motor insurance revenue account, which recorded net claims ratios of 536 percent and 104 percents, respectively.
He attributed this to adverse development on certain claims and reserve strengthening in general.
The strict cost management regime introduced by the board of directors and management during the year yielded some success as management expenses reduced by 5 percent for the company despite inflation pressures,”
According to him, Cornerstone Insurance also tightened it’s risk acceptance parameters as competitive pressures have driven premium rates to uneconomic levels.
Speaking on the Tier base solvency recapitalisation, Managing Director/ Chief Executive Officer, Cornerstone Insurance, Mr. Ganiyu Musa said “some of the steps that will be taken by the company towards indication of the tier to operate in between now and October 1st,would require the board to come back to the shareholders to be fully involved as required by the law.
He assured that the board is doing everything possible to ensure that the recent development doesn’t have a significant negative impact in the operations of the company while they await for additional directives from the regulator.