Cornerstone Insurance core business grows despite profit decline
Cornerstone Insurance posted a lower 2025 net profit due to the expiry of a naira devaluation windfall, but a 16 percent jump in total assets and strong premium growth demonstrate the resilience of its underlying underwriting operations.
Cornerstone Insurance Plc reported a net profit of N11.76 billion for 2025, down from N25.89 billion the previous year, as exceptional foreign exchange gains evaporated. Profit before tax fell to N8.73 billion from N28.62 billion in 2024. However, the Nigerian insurer grew its total assets by 16 percent to N141.03 billion and increased shareholders' funds to N72.86 billion.
Managing director Stephen Alangbo attributed the earnings decline entirely to the normalisation of currency-related gains. In 2024, the company's results were inflated by an exceptional N30.83 billion windfall from the naira devaluation. “Adjusting for this one-off effect, our underlying performance demonstrates sustained growth in core insurance operations,” Alangbo said.
The operational numbers support this claim. General Insurance revenue surged 28 percent to N29.2 billion, accounting for roughly 70 percent of total insurance revenue. Management credited the expansion to improved pricing discipline and tighter risk selection within its Engineering, Oil and Gas, and Motor segments.
The Life Assurance division provided further stability, generating N12.39 billion in revenue to make up the remaining 30 percent of the top line. This growth was driven by stronger Group Life sales, higher retail adoption, and better policy retention. Additionally, the company maintained stable investment income throughout a volatile year for broader financial markets.
Strengthening the balance sheet is a critical strategic move for Cornerstone ahead of shifting regulatory capital requirements in Nigeria. The expansion of shareholders' equity from N60.50 billion to N72.86 billion provides a substantial buffer against macroeconomic headwinds, including currency volatility and inflation.
The board's decision to pay a dividend of 28 kobo per share signals confidence in the company's cash generation and long-term trajectory. Speaking at the 34th Annual General Meeting in Lagos, acting chairman Afolabi Balogun noted the insurer remained financially resilient despite ongoing economic pressures.
Shareholder advocacy groups echoed this positive assessment. Moses Igbrude, national coordinator of the Independent Shareholders Association of Nigeria, commended management for sustaining value creation and maintaining dividend payments. He assured the company of continued shareholder support as it pursues its long-term growth strategy.
