Cornerstone Insurance Grows Revenue by 34%, Proposes 28 Kobo Dividend as HoldCo Plans Advance

Cornerstone Insurance Plc has reported strong financial performance for the 2025 financial year, posting double-digit growth in insurance revenue, a sharp increase in underwriting profitability and a stronger capital position as it advances plans to adopt a holding company structure.

In its audited results for the year ended December 31, 2025, the insurer reported insurance revenue of ₦51.6 billion, representing a 33.6 percent increase from ₦38.7 billion recorded in the previous year.

The company attributed the growth to continued expansion across its insurance businesses and sustained support from policyholders, brokers and corporate clients.

Insurance Service Result Jumps Over 500%

One of the standout features of the results was the significant improvement in the insurance service result, which surged by 527.3 percent to ₦13.5 billion from ₦2.2 billion in 2024.

The strong growth reflects improved underwriting performance, stronger operational execution and enhanced profitability across the company’s insurance operations.

Profit after tax stood at ₦11.7 billion for the financial year, reinforcing the company’s earnings capacity despite a challenging operating environment.

Management noted that the prior-year performance benefited from substantial foreign exchange-related valuation gains, creating a higher comparative base for earnings.

Shareholders’ Funds Rise to ₦71.9 Billion

Cornerstone also strengthened its balance sheet during the year as shareholders’ funds increased by 20.4 percent to ₦71.9 billion.

The insurer maintained a solvency margin surplus of ₦33.6 billion, significantly exceeding regulatory requirements and highlighting the company’s strong capital position.

The robust solvency level provides additional capacity for future business expansion while enhancing the company’s ability to absorb potential risks and meet policyholder obligations.

Board Proposes 28 Kobo Dividend

In recognition of the company’s performance and commitment to shareholder returns, the Board proposed a dividend of 28 kobo per ordinary share.

The proposed dividend will be presented to shareholders for approval at the company’s Annual General Meeting scheduled for July 2026.

If approved, the payout will continue Cornerstone’s track record of rewarding investors while maintaining adequate capital to support future growth initiatives.

Cornerstone Advances HoldCo Structure

Beyond its financial performance, the company announced progress toward implementing a holding company structure designed to separate its life insurance and general insurance operations.

The proposed restructuring aligns with regulatory developments within Nigeria’s insurance industry and ongoing efforts by regulators to encourage the separation of composite insurance businesses into dedicated life and non-life entities.

Under the proposed structure, Cornerstone intends to consolidate its general insurance businesses, including Hilal Takaful Nigeria Limited, under a more focused operational framework.

Management believes the transition will improve strategic flexibility, strengthen operational efficiency, enhance capital allocation and create a stronger platform for future growth.

Positioning for Long-Term Growth

The planned restructuring comes at a time when Nigeria’s insurance industry is undergoing significant transformation driven by recapitalisation efforts, regulatory reforms, technological innovation and rising demand for insurance solutions.

Cornerstone stated that combining its general insurance operations with its takaful business is expected to increase scale, broaden market reach and strengthen its competitive position within the sector.

The company also highlighted its longstanding commitment to customer service and claims settlement, which has helped sustain its market reputation over the past three decades.

Outlook

With strong revenue growth, improved underwriting profitability, a healthy capital position and a proposed holding company structure, Cornerstone Insurance appears positioned for its next phase of expansion.

Investors will closely monitor regulatory approvals for the restructuring plan, dividend approval and the company’s ability to sustain earnings growth as competition intensifies within Nigeria’s evolving insurance industry.