Cornerstone Insurance Plc. (CORNERST) recorded an improvement in Gross Premium Written (GPW) (19.28% YoY to NGN20.92bn) in its 2021FY financial scorecard. The performance was mixed across the various business segments; while the non-life business advanced (+28.47% YoY), accounting for 72.48% of total GPW, the life business declined (3.20% YoY) due to a reduction in its annuity business. We also note a significant expansion in the Takaful insurance segment (103.93% YoY), given the increased acceptability of the ethical product. Meanwhile, CORNERST recorded a reduction in claims expenses (- 34.39% YoY) due to a decline in claims payout from the non-life business. Consequently, combined ratio improved to 49.77% (vs 64.01% in 2020FY), better than the industry peer average of 61.91%. This underpinned the firm’s underwriting efficiency, despite the rise in underwriting expenses (40.08% YoY) given increased cost of acquiring new business.
