Cornerstone Insurance Reports Growth in Net Income as Combined Ratio Hits 153.96%

Cornerstone Insurance Plc reported a Q4 net income of N15.70 billion, up a massive 518.11 percent compared with the same period of 2022.

The firm’s combined ratio declined to 153.96 percent in December 2022, from 190.05 percent the previous year, according to MoneyCentral calculations.

The combined ratio is a measure of profitability used by an insurance company to gauge how well it is performing in its daily operations. The combined ratio is typically expressed as a percentage. A ratio below 100 percent indicates that the company is making an underwriting profit, while a ratio above 100 percent means that it is paying out more money in claims that it is receiving from premiums.

Elsewhere, gross premium written (GPW) increased 26.71 percent to N27.46 billion in the period under review from N21.67m billion the previous year.

Net premium income followed the same growth trajectory as it jumped by 15.57 percent to N10.24 billion from N8.86 billion as at December 2022.

A breakdown of revenue figures shows premium from Life Insurance spiked by 43.78 percent to N23.13 billion while premium from non-life was up 9.46 percent to N5.32 billion as at December 2023.

The company intends to build a process where that underpins claims payment and improve confidence in the process and it intends to use the latest technology to accelerate payment to policyholders.

For the year ended December 2023, Cornerstone Insurance has paid N5.71 billion in claims, which is 69.94 percent higher than 2022’s N3.36 billion.

The company targeted at revolutionising insurance in Nigeria by providing innovative products that meet the needs of the people, simplifying claims payment process as well as making insurance accessible through technology.

“Cornerstone is a peculiar organisation. To get to the leadership position in our industry comes with a lot of expectations, knowing fully well that Cornerstone is here to revolutionise insurance in its entirety.

“We are coming with a lot of vision aimed at meeting the expectations of the people. One of our key agenda is to build people. “We want to build people who are professionals aiming at becoming top leaders in the industry, this we do in ensuring that our work force are exposed to relevant trainings and are well informed with the happenings in the industry, ” said Stephen Alangbo, managing director of Cornerstone Insurance Plc.