Cornerstone Insurance Plc has posted a strong performance for the 2024 financial year, recording a profit after tax (PAT) of N25.89 billion, a massive jump of 87.11 per cent compared to N13.84 billion recorded in 2023. This was disclosed in its audited annual report filed with the Nigerian Exchange Limited (NGX).
The insurance company, which offers both life and non-life policies to individuals and corporate clients, maintained its growth momentum in key business areas. It operates three subsidiaries: FIN Insurance Company Limited, Hilal Takaful Nigeria Limited (formerly Cornerstone Takaful Nigeria Limited), and Cornerstone Leasing & Investment Limited.
During the review period, insurance revenue grew significantly by 49.22 per cent, reaching N38.67 billion, up from the previous year. Of this, non-life insurance contributed the lion’s share, amounting to N30.99 billion. Other major revenue contributors included annuity plans, group life, and credit life insurance products.
Cornerstone also saw a substantial increase in its net foreign exchange gains, which rose to N30.83 billion in 2024, compared to N20.24 billion in 2023. The company attributed this increase to the sharp devaluation of the naira during the year, which impacted the value of foreign-denominated assets positively. According to the report, the gain stemmed from the revaluation of foreign balances in line with International Accounting Standard 21 (IAS 21), and also from sales of assets held in foreign currency.
The Managing Director and Chief Executive Officer, Mr. Stephen Alangbo, had earlier expressed confidence in the company’s upward trajectory. In a media briefing held in July 2024, Alangbo predicted a stronger 2024 performance, building on what he described as an “extraordinary” 2023 financial year.
“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,” he said.
Looking forward, Alangbo said the company would continue to aim high and promised shareholders better returns on investment. “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,” he added.
Staying true to that promise, the board of directors has now proposed a dividend payout of N4.90 billion to shareholders, which represents 27 kobo per ordinary share of 50 kobo each. This marks an increase from the N2.91 billion (16 kobo per share) paid out in 2023.
However, despite the strong financial performance, Cornerstone Insurance also reported a penalty payment of N22.67 million to the National Pension Commission (PenCom) for non-compliance with pension-related obligations. The penalty is among the highest the company has paid in recent years and is expected to prompt stricter internal compliance going forward.
Analysts say the combination of strong operational growth, rising FX gains, and steady revenue from insurance services has positioned Cornerstone Insurance as one of the top performers in Nigeria’s insurance sector for 2024.
Shareholders are expected to react positively to the result, especially with the improved dividend announcement and assurances from the management on continued growth and profitability.
As the Nigerian economy continues to adjust to currency devaluation, high inflation, and regulatory changes, Cornerstone’s result stands out as a testament to strategic planning, risk management, and customer-focused offerings in the insurance space.
