In a renewed optimistic outlook, Cornerstone Insurance Plc has projected a rise in its Profit After Tax (PAT) figures to N537.4 million in the first Quarter of 2021 (Q1 2021), following a loss of N75.84 million it recorded in the third quarter of 2020 (Q3, 2020).
The disclosure is contained in a press release on the firm’s forecast, seen by Nairametrics.
Key highlights
The recent forecast for Q1 2021 when compared with the firm’s reported financial statements for Q3 2020 reveals:
- PAT is projected to hit N537.4 million in Q1 2021, +808.7%.
- Pre-tax profit is projected to hit N767.82 million from the loss of N94.3 million in Q3 2020, +914.3%.
- Net Earned premium in Q1, 2021 is expected to rise to N2.23 billion, up from N1.16 billion earned in Q3, 2020.
- Net claims incurred is expected to rise to N834.52 million, +18.4% when compared to Q3 2020 figures of N705 million.
Other key forecasts for Q1 2021 includes:
- Investment income expected to hit N432.7 million.
- Rise in Operating expenses to N901.5 million.
- Gross premium income projected at N6.2 billion.
- Commission incurred projected at N162.3 million.
- Net operating income expected to hit N1.8 billion.
- Taxation expected to be N230.3 million.
- Net cash generated from operating activities expected to hit N335.1 million.
Bottom line
The forecast is coming amid the negative impact of the coronavirus pandemic and the #EndSARS protests which negatively affected most businesses in Nigeria — a testament to this, is the dim in key financial metrics of the firm for Q3 2020.
A conservative forecast was expected by many, however, renewed optimism and news of the country exiting recession by the first quarter of 2021 could have influenced the positive outlook.
