Cornerstone Insurance has recorded 87.11 per cent in its profit after tax for the 2024 financial year, N25.89bn, compared to N13.84bn in the previous year.
This was revealed in its 2024 annual report filed with the Nigerian Exchange Limited.
The company provides both life and non-life insurance services for both corporate and individual customers. It has three subsidiaries – FIN Insurance Company Limited, Hilal Takaful Nigeria Limited (previously called Cornerstone Takaful Nigeria Limited) and Cornerstone Leasing & Investment Limited.
In the period under review, Cornerstone’s insurance revenue rose by 49.22 per cent to N38.67bn, with a majority of it coming from non-life insurance at N30.99bn. Other sources of revenue were annuity, group life and credit life insurance policies.
Net gain from foreign exchange appreciated to N30.83bn from N20.24bn. Cornerstone said that the “net exchange gain resulted from the translation of foreign currency-denominated balances of the entity using the closing rate as at the reporting date in line with IAS 21. The effect of changes in foreign exchange rates and also from sales of foreign currency-denominated assets during the year. A significant increase in foreign exchange is attributed to the devaluation of the Nigerian naira against the dollar during the year.”
The performance of the insurance company matched the projection of its Managing Director/Chief Executive Officer, Stephen Alangbo, who in July 2024 projected that the company was going to beat its 2023 record.
Speaking with journalists at the company’s head office, Alangbo said, “Our 2023 financial account was very good; we grew by about 40 per cent in our business. In profitability, we moved from N2.9bn in 2022 to N17bn at the end of 2023. It has been very wonderful; the team has worked tirelessly to ensure that the vision, dreams, and our goals are achieved.
“In the next year, I’m expecting an unprecedented result. I’m expecting a mind-blowing result. If in the last year, we were able to achieve N17bn and African Insurance Company of the Year, you can see the future is bright. As the leader of the team, with God’s help and hard work, we can achieve whatever we want to achieve, and that is the goal. For me, I believe we have a bright future.”
He also promised the shareholders improved returns on their investments, and the board of directors has proposed a dividend of N4.90bn, which is 27 kobo only per ordinary share of 50 kobo each for the year ending 31 December 2024, higher than N2.91bn at 16 kobo per share in 2023.
In the past year, Cornerstone paid the higher value of penalties to the National Pension Commission for contravention of pension liabilities at N22.67m.
