Lagos — Cornerstone Insurance Plc has established Islamic Insurance (Takaful) division to offer insurance products and services to the huge Moslem population in Nigeria, the chairman of the company, Adetokumbo Sulaiman, has said.

He said this at the 18th Annual General Meeting (AGM) of the firm for 2009 financial year ended 31st December, 2009 held in Lagos.

"In pursuance of growth, your company has established as Islamic Insurance (Takaful) division (Hala Takaful Nigeria) to offer insurance products and services to the huge Moslem segment of the insuring public.

Halal Takaful offers Family Takaful (Life Assurance) and General Takaful", he said, adding that the company has improved on its sales and distribution capacities to take advantage of retail insurance options.

"We are consolidating and expanding our agency networks, exploring bancassuarance and other strategic distribution alliances, developing simple and value based consumer insurance products to penetrate the market", he said.

Giving an insight into the financial performances of the company in 2009, the chairman said the firm recorded gross premium income of N3.7 billion with an underwriting profit of N1.4 billion.

This is as against gross premium income of N3.8 billion with an underwriting profit of N1.2 billion in 2008. Its profit before tax was N245 million in 2009 as against N748 million in 2008 and diminution was N585 million resulting in N378 million loss.

The managing director of the company, Livingston Magorimbo, noted that the life insurance businesses of Cornerstone grew by 136 percent last year.

He attributed the growth to product innovation, channel diversification and service excellence.