Coronation Insurance Plc has reported a remarkable year-on-year profit growth of 192% for the fiscal year 2023.
According to the group’s audited financial statement for 2023, its profit after tax soared to N1.82 billion, a significant turnaround from the net loss of N1.97 billion recorded at the end of the 2022 fiscal year.
During the fiscal year, the group’s insurance revenue hit N24.6 billion in FY 2023, representing a 34% increase from the N18.4 billion posted as at FYE 2022. The group’s investment income also hit N2.4 billion, marking a 74% growth from the N1.36 billion investment income posted in 2022.
Coronation’s net investment income hit N1.51 billion in FY 2023, representing an uptick of 227.8% from a net investment income of N461.9 million.
As of FYE 2023, the group posted a pre-tax profit of N2.22 billion, representing a 222% growth from the N1.82 billion pre-tax loss posted in FY 2022.
Key Highlights FY 2023 vs FY 2022
- Insurance revenue: N24.6 billion, +34% YoY
- Insurance service expenses: N17.3 billion, +46% YoY
- Insurance service result before reinsurance contracts held: N7.3 billion, +11% YoY
- Net expenses from reinsurance contracts held: N7.20 billion, +4% YoY
- Insurance service result: N87.1 million, +122% YoY
- Investment income: N2.36 billion, +74% YoY
- Net investment income: N1.51 billion, +228% YoY
- Net investment and insurance result: N1.1 billion, +390% YoY
- Other operating income: N3 billion, +58% YoY
- Profit before tax: N2.22 billion, +222% YoY
- Profit for the year: N1.82 billion, +192% YoY
- Total assets: N48.01 billion, +30.6% YoY
Commentary
- In 2023, most of the group’s insurance revenue came from its engineering insurance contracts, with N5.56 billion.
- It was followed by the N2.84 billion revenue from the oil and energy sector.
- During the year, the incurred claims hit N17.6 billion, marking an 11% increase from the N15.8 billion claims of 2022. With the claims on the Coronation’s Group Life policy hitting N3.26 billion.
- In 2023, Coronation Insurance accrued an interest income of N1.85 billion from fixed-income securities, representing a 369% growth from the N393.6 million accrued in 2022.
- During the year, the group enjoyed the high-interest operating environment, as it accrued an interest income of N147.4 million on some of its investment contracts, in contrast with N77.5 million as of FY 2022.
- During the year, Coronation Insurance generated an income of N505 million from the disposal of some of its financial assets.
- As it also posted a net foreign exchange gain of N1.79 billion, representing a 5.2% gain from the N1.7 billion net FX gain posted in 2022.
Coronation Insurance did not pay any dividends for FY 2023, as the group’s accumulated losses as at FYE 2023 were N1.76 billion, an improvement from N2.84 billion at the end of 2022.
At the close of the fiscal year, the company disbursed N26.75 million in penalties to regulators, including the Securities and Exchange Commission (SEC) and the National Insurance Commission (NAICOM). This marks an increase from the N19.1 million paid in penalties for 2022.
