Q1 2021: Cornerstone Insurance grows profit 39% to N688m despite paying N1.63bn claim
Despite paying higher claims totaling N1.63 million in the first quarter of 2021, Cornerstone Insurance recorded double digits growth in bottomline during the three-month period.
Financial Statement seen by Business Metrics shows that the insurer has recorded total claim payout of N1.63 billion during the period, which is N325 million higher than the N1.3 paid in the comparative period of 2020.
The company improved profit for the year by a whole 38.5 percent, rising from the N475 million recorded for the first quarter last year to the N658 million it saw during the first quarter of 2021 while the profit before tax was valued at N688 million during the reviewed period against the N521 million during the same period of 2020.
As a group, total gross premium written grew, reaching N5.8 billion during the first three months of 2021.
The amount depicts a significant surge when compared with the N4.58 billion reported for the same period last year.
Similarly, the gross premium earned was valued at N5.57 billion against the N3.58 billion last year, leaving the unearned premium for the period under study to shrink as it closed at N254 million compared to N993 million last year.
Valued at N2.7 billion and N673 million, the reinsurance expenses as well as fees and commission income respectively depicts an uptick from the N1.88 billion and N338 million for the same period last year.
Net underwriting income however rose almost twice that which was recorded last year at it valued N3.49 billion in 2021 first quarter.
While the net claims expenses totaled N1.2 billion against the N1.01 billion last year, the net underwriting expenses amounted to N815 million from N524 million, causing the underwriting result to close at N1.49 billion compared to N223 million last year.
