Coronation Insurance posted a pre-tax profit of N2.6 billion in its recently published financial statement for the second quarter of 2024.
This represents a 5778.33% year-over-year increase from a pre-tax profit of N45.03 million reported in 2023.
Revenue from insurance also spiked by 112.06% year-over-year, from N7.2 billion in 2023 to N15.3 billion in 2024, as well as received premiums by 78.46% year-over-year.
Key highlights:
Insurance revenue: N15.3 billion, 112.06% YoY
Net expense: N6.7 billion, 160.98% YoY
Operating Income: N15.1 million, 108.33% YoY
Profit before tax: N2.6 billion, 5778.33% YoY
Total assets: N44.67 billion, 29.18% YoY
Total liabilities: N22.6 billion, 53.32% YoY
Cash flow from operations: N11.7 billion, 106.60% YoY
Premium received: N18.8 billion, 78.46% YoY
Commentary:
The company’s revenue rose by 112.06% year-over-year, from N7.2 billion in 2023 to N15.3 million in the second quarter of 2024.
A spike in net expenses was reported in the company’s income statement for the second quarter of 2024, as net expenses surged by 160.98% year-over-year to N6.7 billion.
The allocation of reinsurance premiums made up for most net expenses reported in the second quarter of 2024.
Notwithstanding, the company managed to make a pre-tax profit that increased by a whopping 5,778.33% year-over-year.
Hence, the pre-tax profit for the second quarter of 2024 spiked to N2.6 billion from N45.0 million recorded the previous year.
The growth in the pre-tax profit of Coronation Insurance reflects the company’s profitability and health, which is further strengthened by an increase in the total assets of the company.
In the second quarter of 2024, total assets climbed by 29.18% YoY to N44.6 billion from N33.5 billion recorded the previous year.
Net cash flow from the company’s operations also grew by 106.60% YoY, indicating that the company is making profits from core business operations when compared to the previous year.
According to the report on the cash flow statement of the company, the premium received from clients climbed to N18.8 billion.
This is a 78.46% year-over-year ascent from the reported premium received in 2023, which stood at a value of N10.5 billion.
According to a report released by the Nigerian Insurance Commission in the first quarter of 2024, the gross premium recorded for the insurance sector collectively stood at N470.7 billion in the first quarter of 2024.
Coronation Insurance is moderately riding a buyside trend as it trades at N0.77 per share in the Nigerian stock market, mirroring the buyside trend of the NSE insurance index.