Coronation Insurance experienced a turnaround in its financial performance, going from a loss of N2.6 billion in the previous financial year to an after-tax profit of N1.3 billion at the end of the 2022 financial year.
This information was disclosed in its unaudited report as of the end of December 2022.
The company’s unaudited report at the end of December 2022 shows a strong final quarter for the risk underwriter, during which it raked in over N738 million, or 55 percent of the closing profit figure for the year.
The fourth quarter saw a big turnaround from a loss of about N1.9 billion in the same period in 2021, which created much of the loss position for the company in that year.
The company’s improved financial performance was driven by growth in revenue and declining costs. Net underwriting income increased by 25% to N12 billion, with a significant reduction in claims and underwriting expenses, which resulted in a big leap in underwriting profit from N1.2 billion to N6.3 billion. The same massive growth pattern was repeated on the investment side of the company’s operations during the final quarter. Total investment and other income multiplied three times to N1.4 billion quarter-on-quarter in the final quarter.
The investment arm of the business also experienced growth, with a rise in other income and total investment and other income. Total investment and other income multiplied three times to N1.4 billion quarter-on-quarter in the final quarter. This resulted in net income growth of more than two and a half times to nearly N10 billion and an operating profit of N3.5 billion, which was enough to absorb a share of an associated loss of almost N2 billion.
The company’s earnings per share improved from a negative 11 kobo in 2021 to 5.6 kobo in 2022. The company’s full-year position follows a pattern of improving revenue supported by declining costs, leaving plenty of room for improvement.
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