Chimara BygoldFor insurers, the fallout of the COVID-19 pandemic would be surge in health, travels and business interruption claims, following mounting pressure on sales from reduced business activity and less use of face-to-face channels.
But what policyholders do not joke with, despite these challenges, is the need for quick processing of claims.
An insurance claim is a formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or unexpected policy event.
After a disaster, the policyholder wants to get back to normal as soon as possible, and an insurance company wants that too. But this process takes a lot of time for most insurance companies, unmindful of the fact that here lies the basis for trust.
This is where the Management of Coronation Insurance hopes to play big.
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On Tuesday, March 3, 2020, WAPIC Insurance PLC (Coronation Insurance) listed 10,608,941,258 ordinary shares on the Daily Official List of The Nigerian Stock Exchange.
The additional shares arose from Wapic Insurance Plc’s Rights Issue of 15,613,194,623 ordinary shares of N0.50 kobo each at N0.38 per share, on the basis of seven (7) new ordinary shares for every six (6) ordinary shares held as at September 19, 2019, which was 67.95 per cent subscribed.
With the listing of the additional ordinary shares, the total issued and fully paid-up shares of Coronation Insurance Plc was increased from 13,382,738,248 to 23,991,679,506 ordinary shares of N0.50 kobo each
Financial Metrics
Coronation Insurance Plc released its Third quarter (Q3) 2021 unaudited results for the period ended September 30, 2021. The company made a Loss before tax of N685million and Loss after tax of N711million.
The company recorded a stream of declines as Gross Premium declined by 17per cent to N11billion from N13billion in the previous quarter. Net Assets declined by 7.7per cent from N24.97billion to N23.03billion.
The net assets of a company represent its total value and are calculated by subtracting liabilities from total assets.
Coronation Insurance Share Price Currently Stands at N0.49k. This is not surprising considering that it recorded a loss after tax in Q3,2021.
The stock price of a particular business also depends on Profit After Tax (PAT), as profit growth helps the increment of the stock price and vice versa.
Generally speaking, higher PAT determines the higher efficiency of the business, and lower PAT indicates average or below average operational efficiency of any business.
The company was not able to file its Audited Financial Statements for the year ended December 31, 2020 within the stipulated time of March 31, 2021 as required under the rules of The Nigerian Stock Exchange.
However, within the timeframe that it informed the market, the company finally released its Audited results for the period ended December 31, 2020.
Analysis of the groups audited financial results for the year ended 31 December 2020 show that Gross Premium Written (GPW), went up by 6.6 per cent to N16.2 billion from N15.2 billion.
Profit before tax grew by 4747 per cent to N1.1billion, while Coronation Insurance Plc recorded 460.8 per cent growth in Profit After Tax, Year-on-Year, (YoY), to N1.2 billion in 2020 from N214.327 million in 2019.
Financial analysts explained that the figure for PAT which is higher than PBT may have been as a result of rebate/cashback or refund given to the firm by tax authorities.
The company’s Net Assets grew by 35per cent from N18.5billion to N25billion.
Expectedly, the company’s claims payment in the year under review increased by 68.3 per cent to N6.9 billion from N4.1 billion the previous year. This some analysts attributed to the lingering effects of COVID-19 and claims arising from EndSARS protests that continued to weigh on most insurance companies.
The underwriting profit of the company rose by 13.8 percent to N3.3 billion from N2.9 billion while net income went up by 23.3 per cent to N5.3 billion from N4.3 billion.
Total assets increased by 29.3 per cent to N39.7 billion from N30.7 billion, an indication that the company remains solid and a strong player in the insurance sector.
Total assets are the complete accounting of all items of economic value that a business owns and its combined value.
Coronation Insurance reiterates that it remains relentless in its strategic growth targets as an organisation. This is even as the company through its bancassurance partnership with Access Bank, targets unrivalled bancassurance services.
Challenge to brace up
In this regard, the former president of Progressive Shareholders Association of Nigeria, Boniface Okezie, urged the company to leverage on its partnership with Access Bank to grow its business.
According to him, the company should be able to take advantage of the big customer size of the bank to sell insurance.
The Chairman of the company, Mutiu Sunmonu, during the firm’s 62nd virtual Annual General Meeting in Lagos said that the ongoing transformation in the company since the last few years had already paved way for further growth and turning over the benefits to the shareholders.”And if you look at what we are doing at Coronation Insurance in the two years and you observed how we have moved up in terms of ranking, I am sure that will give all our shareholders confidence that the trajectory is right and end goal is very clear in our mind. We must make sure that there is maximum value to our shareholders,” told shareholders.
Management
Coronation Insurance has in its board and management team, respected private sector leaders among whom is Mr. Mutiu Sunmonu CON.
He was appointed to the Board of Directors of Coronation Insurance PLC on January 30, 2019 and became the Chairman of the Board with effect from April 27, 2020.
Mr. Sunmonu is an Oil & Gas expert with a rich history of experience and performance both locally and internationally.
He retired from Shell Petroleum Development Company (SPDC) in 2015 after 36years of meritorious service. Until his retirement, Mr. Sunmonu was the Managing Director SPDC and Vice President Production Sub-Saharan Africa, as well as Country Chair of the Shell Companies in Nigeria, roles which he held concurrently from January 1, 2008 and January 1, 2010 respectively.
Mr. Mutiu Sunmonu holds a First Class degree in Mathematics and Computer Science from the University of Lagos and a Masters in Business Administration (MBA) from the Harvard Business School.
Also, Mr. Olamide Olajolo overseas daily activities of the company as the Managing Director.
Olajolo has about twenty-two (22) years’ experience in the Insurance industry cutting across insurance underwriting and sales. Mr. Olamide Olajolo was formerly the Managing Director/Chief Executive Officer of the Nigeria Liability Insurance Pool and the Vice President Business Development at Heirs Insurance Limited/Heirs Assurance Limited. Prior to these appointments, Mr. Olajolo spent sixteen (16) years at Zenith General Insurance Company Limited where he headed Technical Operations/Business Development first as General Manager from April 2004 – 2018 and then as Executive Director from January 2018 – January 2020.
Mr. Olamide Olajolo obtained a B.Sc (Hons) Insurance and Masters in Business Administration and Risk Management from the University of Lagos in 1997, 2010 and 2016 respectively.
He is a Fellow of the Chartered Insurance Institute of Nigeria and a Fellow of the Risk Managers Society of Nigeria.
Coronation Insurance Plc is a full-line insurance company engaging in underwriting general accident, fire, motor, engineering, marine insurance, aviation, oil and gas, and other special risks.
In September 2020, Wapic Insurance Plc, having passed the necessary Special Resolution in line with Section 31(3) of the Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria, 2004 and obtaining the approval of the Corporate Affairs Commission, changed its name to Coronation Insurance Plc.
Also, by virtue of Section 31 (5) of the Companies and Allied Matters Act, the Company received a new certificate of Incorporation by the Registrar General of the Commission evidencing the change of name.
It was on this basis that the company was said to have been founded on March 14, 1958 and is headquartered in Lagos, Nigeria. It has been listed on the Nigerian Stock Exchange since 1990.
Coronation Insurance operates through the General Business and Life Business segments. The General Business segment covers the protection of customers’ assets particularly their properties, both for personal and commercial business and indemnification of other parties that have suffered damage as a result of customers’ accidents.
The Life Business segment, on the other hand, handles the protection against risk of premature death, disability, critical illness, and other accidents.
Over the last half century, Coronation Insurance has garnered experience across Nigeria in risk management and underwriting, and assisting corporate entities and individuals with various classes of cover.
It operates two business lines; Coronation Life Assurance Limited which operates in Nigeria, and; a regional footprint in Ghana, Coronation Insurance (Ghana) Limited.
To bolster its ongoing repositioning and restructuring initiatives, Coronation Insurance merged with Intercontinental Properties Limited; a development, which appears ro enhance its underwriting capacity and help it compete among top insurance companies in Nigeria.
The firm seeks to float a diversified financial services institution that provides protection against all forms of insurable risks with a five-year aspiration to become one of the top three insurers in Nigeria by 2023.
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