Cornerstone Insurance grows asset to N141bn despite tough operating environment

Cornerstone Insurance Plc delivered a resilient financial performance in 2025, growing its asset base to N141.03 billion and posting a net profit of N11.76 billion, as the insurer demonstrated the strength of its core underwriting business despite the challenging operating environment.

The company also rewarded shareholders with a dividend of 28 kobo per share, reflecting management’s confidence in its financial position and long-term growth prospects.

Speaking at the company’s 34th Annual General Meeting (AGM) in Lagos, Afolabi Balogun, acting chairman, said Cornerstone remained financially resilient despite prevailing macroeconomic headwinds, closing the year with a stronger balance sheet and healthy insurance revenue.

The company’s total assets rose by 16 percent to N141.03 billion from the previous year, while shareholders’ funds increased to N72.86 billion from N60.50 billion, strengthening its capital position ahead of evolving regulatory requirements.

Stephen Alangbo, managing director, attributed the lower earnings compared with the previous year to the normalisation of foreign exchange-related gains rather than any weakness in the insurer’s underlying operations.

Profit before tax stood at N8.73 billion, down from N28.62 billion recorded in 2024, while net profit declined to N11.76 billion from N25.89 billion. According to Alangbo, the 2024 performance had been significantly boosted by an exceptional foreign exchange gain of N30.83 billion arising from the naira devaluation.

“Adjusting for this one-off effect, our underlying performance demonstrates sustained growth in core insurance operations,” he said.

The insurer’s operating performance reflected continued momentum across its core businesses.

Its General Insurance business remained the primary revenue driver, with insurance revenue increasing by 28 percent to N29.2 billion, accounting for about 70 percent of the company’s total insurance revenue. Management attributed the growth to strong underwriting performance in the Engineering, Oil and Gas, and Motor insurance segments, supported by improved pricing discipline and tighter risk selection.

The Life Assurance business also recorded steady growth, generating N12.39 billion in insurance revenue and contributing approximately 30 percent of total insurance revenue. The performance was driven by stronger Group Life business, rising adoption of retail life products and improved policy retention.

Cornerstone also reported stable investment income despite volatility across the broader financial markets, providing additional support to earnings during the year.

Shareholders welcomed the company’s performance and dividend declaration, describing the result as a reflection of prudent management in a difficult business environment.

Moses Igbrude, national coordinator of the Independent Shareholders Association of Nigeria (ISAN), commended the board and management for sustaining value creation and maintaining dividend payments despite economic pressures.

He assured the company of shareholders’ continued support while calling for sustained engagement between management and the investing public as the insurer pursues its long-term growth strategy.