Cornerstone Insurance Plc said its claims payment rose by N2.9bn from N3.4bn in the 2016 financial period to N6.3bn in 2017.
The Chairman of the company, Mr Segun Adebanji, disclosed this during the firm’s annual general meeting in Lagos.
He said, “The largest contributors to the claims figures were the oil & gas and motor insurance revenue accounts, which recorded net claims ratios of 536 per cent and 104 per cent, respectively, mainly due to adverse development on certain claims and reserve strengthening in general.”
Adebanji stated that the company’s gross premium written for the year under review was N7.9bn which was almost the same figure with the previous year.
The chairman said the firm tightened its risk acceptance parameters as competitive pressures had driven premium rates to uneconomic levels, even as certain regulatory bottlenecks hampered the implementation of the company’s expansion plans in the retail and mass market segments.
While promising that necessary actions had been taken to realign the company’s risk portfolio away from the unprofitable accounts that led to heavy losses, he said, “Where re-pricing has not been possible, we exited or reduced our exposure significantly.”
Notwithstanding the significant regulatory bottlenecks, he said that the company would continue to intensify its efforts to increase the proportion of its revenue sourced from retail segments which had traditionally been more profitable.