By David Akinmola
Cornerstone Insurance Plc has joined the growing list of insurers strengthening earnings ahead of the industry’s recapitalization deadline, posting a profit after tax of N11.76 billion for the 2025 financial year, rewards shareholders with a dividend of 28 kobo per share despite a more challenging operating environment.
The performance comes at a critical period for the insurance industry, with operators strengthening their balance sheets, improving capital buffers and enhancing underwriting capacity to comply with the minimum capital requirements prescribed under the Nigeria Insurance Industry Reform Act (NIIRA) 2025 before the July 31 deadline.
Speaking at the company’s 34th yearly general meeting in Lagos, Acting Chairman, Cornerstone Insurance,Afolabi Balogun, said the insurer remained financially resilient despite persistent macroeconomic pressures, closing the 2025 financial year with total assets of N141.03 billion and sustained growth across its insurance businesses.
He said the board approved a dividend of 28 kobo ordinary share, reflecting confidence in the company’s finance position and its commitment to delivering value to shareholders while retaining sufficient capital to support future expansion.
The Managing Director of the insurer, Stephen Alagbo, explained that although profit before tax declined to N8.73 billion from N28.62 billion in 2024, the previous year’s earnings had been significantly inflated by N30.83 billion in foreign exchange revaluation gains following the naira devaluation.
He said the 2025 result therefore presents a more realistic assessment of the company’s operating performance.
The audited accounts showed that profit after tax stood at N11.76 billion, compared with N25.89 billion in the previous year, while shareholders’ funds rose by more than 20 per cent to N72.86 from N60.50 billion, reflecting stronger capital accumulation.
Total assets also increased by 16 per cent to N141.03 billion, positioning the company to pursue larger underwriting opportunities under the new regulatory capital regime.
The general insurance business remained the major earnings driver, with insurance revenue rising 28 per cent to N29.2 billion, accounting for nearly 70 per cent of the company’s total insurance revenue.
According to the insurer, the growth was supported by improved performance in the engineering, oil and gas, and motor insurance portfolios, driven by stronger underwriting discipline, better pricing strategies and prudent risk selection.
Its life assurance business also delivered improved results, generating N12.39 billion in insurance revenue on the back of increased group life business, stronger retail product penetration and improved policy persistency.
The company added that its investment portfolio continued to generate stable returns despite a volatile economic environment characterized by high interest rates and inflationary pressures.
National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, commended the board and management for sustaining profitability and maintaining dividend payments despite the challenging operating environment.
He urged the insurer to sustain shareholder engagement while maintaining its growth trajectory and strong corporate governance standards.
Insurance analysts said Cornerstone’s performance reflects a broader transition taking place across the industry as insurers increasingly depend on underwriting income, investment efficiency and operational discipline rather than exceptional foreign exchange gains that boosted earnings across the sector in 2024
They noted that with the implementation of NIIRA 2025 and higher minimum capital thresholds, investors are paying greater attention to the quality and sustainability of insurers’ earnings, capital adequacy and claims-paying capacity.
