Cornerstone Insurance grows profit by 87%, pays 27k dividend

Underwriting firm Cornerstone Insurance Plc in the 2024 financial year recorded improved performance across all measurement indices, with profit before tax closing at N28.62 billion from N17.08 billion, indicating a 68 percent growth.

This is as profit after tax grew by 87 percent to close at N25.9 billion, from N13.84 billion in 2023.

Segun Adebanji, chairman of the board of directors, who disclosed this at Cornerstone Insurance Plc’s 33rd Annual General Meeting (AGM) held in Lagos said its insurance revenue in the 2024 financial year rose by 46 percent to N38.67 billion, as against N25.91 billion the previous year.

Adebanji said the company’s profit before tax rose to N28.6 billion, marking a 68 percent year-on-year growth, reflecting not only the company’s commitment to strategic execution but also the strength of its diversified portfolio and prudent risk management.

The performance, he said, was driven by growth across “Our core business lines, particularly in general business. The Engineering, Oil and Gas, and Motor Insurance portfolios delivered robust returns, contributing N6.11 billion, N5.24 billion, and N4.75 billion, respectively. “Our investment income also contributed significantly, owing to strategic asset allocation and a favourable yield environment.”

On outlook, he said, “Cornerstone Insurance is poised for continued growth. We intend to deepen our market penetration, especially in the retail and micro insurance segment. With a growing youth population and increasing digital inclusion, we see significant opportunities to design affordable, need-based products that align with the realities of everyday Nigerians.”

“With a growing youth population and increasing digital inclusion, we see significant opportunities to design affordable, need-based products that align with the realities of everyday Nigerians.

“We will also continue to invest in technology, improve customer engagement channels, and enhance our claims process through automation and AI. Our enterprise risk management framework will be further strengthened to anticipate emerging threats and capitalize on market shifts,” he said.

With a dividend payout of 27 kobo per share approved at the Meeting, shareholders expressed their appreciation to the board and management on the performance, while urging for continued performance in the coming years.

Sunny Nwosu, a shareholder, praised the company’s performance and noted this is the first time shareholders have received such a significant amount as a dividend, applauding the chairman for instilling integrity in the company and urging the board to maintain it, as integrity is vital to the insurance business.

Moses Igbrude also commended the firm’s performance and encouraged the board to utilize information technology to capitalize on insurance opportunities.

Stephen Alangbo, managing director/CEO of the company, gave a review of the firm’s operational performance for the 2024 financial year.

He said, “The past year was transformative, driven by strategic recalibration, operational rigour, and innovation. In navigating a complex business environment, we not only delivered strong financial results but also made major strides toward realising our vision of becoming the leading insurance-based financial services group in Nigeria.”

The company’s life business revenue increased by 46.1 percent to N7.6 billion, driven by growth in Group Life Assurance, new retail-focused products, and improved policy retention. New offerings like the C-REST Plan, Flexi Endowment, and Cornerstone life insurance plans helped enhance customer value and market competitiveness.

Meanwhile, the general business portfolio grew by 54.4 percent to N22.7 billion in 2024, accounting for 58.8 percent of total insurance revenue.