Shareholders excited as Cornerstone returns to path of growth

Shareholders of Cornerstone Insurance Plc have expressed their excitement over the company’s return to profitability, in spite of the difficult operating environment.

They said that moving the company from a loss position in 2017 to strong profitability in 2018 is an indication that a lot of work has been done by board and management.

From a N3.43 billion loss before tax in 2017, the company recorded a positive N3.28 billion profit before tax, while the profit after tax also grew by 190 percent, moving from a negative N3.36 billion to positive N3.02 billion at the end of 2018.

“The cumulative effects of the strategic focus on your Company’s key growth drivers resulted in a return to profitability, say’s Segun Adebanji, group chairman of Cornerstone Insurance Plc.

Adebanji who disclosed the performance of the company at its 27th Annual General Meeting held in Lagos announced a 26 percent increase in gross premium written (GWP) from N9.20 billion in 2017 to N11.57 billion in the review year.

Adebanji noted that the largest contributor to the result was the group life portfolio, which contributed N2.01 billion, that is 17 percent of total GWP.

“The entire Life Insurance portfolio recorded a growth of 48 percent from the previous year. This growth was driven by regulatory changes to Group Life Insurance pricing limits and the introduction of a new product targeted at retail segments. The Individual Life Insurance portfolio grew by 370 percent from the previous year’ N132 million to N621 million in 2018.”

This is as total assets of the company also grew by 19 percent, moving from N24.089 billion in 2017 to N28.712 billion in 2018, while the shareholders fund stood at N10.4 billion, having appreciated by 42 percent from N7.331 billion in 2017.

Meanwhile, the shareholders also gave the board the approval to raise additional capital of up to N10 billion to enable it meet the new minimum capital requirement set for underwriters by the National Insurance Commission (NAICOM).

Besides that, they also gave the directors approval to increase the authorized share capital of the company from N7.5 billion to N20 billion, by the creation of additional twenty five billion ordinary shares of 50 kobo each.

Adebanji speaking on the new minimum capital requirement said the Board of Directors has met to consider strategic options and a plan is in place to ensure that the company will continue to participate fully and actively in the industry after the June 2020 deadline.

 

Modestus Anaesoronye