Coronation Insurance has kept its claims obligation right up in 2021 despite a dip in the gross premium income in 2021. The insurer paid claims of N5.5bn, slightly below N5.6bn in the previous year while its gross premium income was N8.6bn from the previous mark of N12.3bn.
The company attributed the dip to the challenging times of 2021 which affected insurance business and the performance of the company including the profit after tax closing at N689.6 million at the end of the year far below N1.7bn it gained the previous year. The gross written premium was N14.14 bn as against the N16.2bn generated in the same period of 2020
With reinsurance expenses valued at N3.8 bn, net premium income stood at N5.3 billion in 2021 as against N9.9bn recorded in 2020 while fees and commission was N642 million in 2021 from N3.9 bn in 2020 and this pushed up the net underwriting income to N4.7 bn during the period from N3.9bn the year before.
The company paid N5.5bn as claims in 2021, slightly down from N5.6 bn paid in 2020 while the outstanding claims was N4.4 bn and claims expenses recoverable was N2.9 million in 2021 from N3 bn in 2020.These reflected a net claims expenses at N1.4bn in the same year compared to previous year, the value for the same purpose amounted to N3 bn.
However, this was more pronounced on other operating expenses which was valued at N1.4 bn against the N1.1 bn utilized for the same purpose last year as well as on underwriting expenses of N4.7bn against N3.9 bn the previous year. The insurer’s total investment income and other income declined to N728 million from N801.9 million in 2020 as a result of a dip in investment income.