Cornerstone Insurance Achieves Remarkable Financial Performance in 2024
Cornerstone Insurance, a leading provider of life and non-life insurance services in Nigeria, has announced exceptional financial results for the 2024 fiscal year. The company’s profit after tax soared to N25.89 billion, representing an impressive 87.11% increase compared to N13.84 billion in the previous year. This remarkable achievement underscores the company’s robust financial health and strategic growth trajectory. The company’s success can be attributed to a combination of factors, including strong revenue growth, favorable foreign exchange gains, and effective management strategies.
Cornerstone’s insurance revenue witnessed a significant surge of 49.22%, reaching N38.67 billion. The non-life insurance segment emerged as the primary driver of this growth, contributing N30.99 billion to the total revenue. Annuity, group life, and credit life insurance policies also played a vital role in bolstering the company’s revenue streams. This diversified revenue base reflects Cornerstone’s ability to cater to a wide range of customer needs across various insurance segments.
A noteworthy contributor to Cornerstone’s profitability was the substantial net gain from foreign exchange, which amounted to N30.83 billion, a significant increase from N20.24 billion in the prior year. This gain stemmed primarily from the translation of foreign currency-denominated balances using the closing exchange rate, in accordance with IAS 21. The devaluation of the Nigerian naira against the dollar further amplified the positive impact on the company’s financial performance.
The remarkable financial outcomes align with the optimistic projections made by Cornerstone’s Managing Director/Chief Executive Officer, Stephen Alangbo. In July 2024, Alangbo expressed confidence in the company’s ability to surpass its 2023 performance, citing a strong growth trajectory and a dedicated team. He emphasized the company’s commitment to achieving unprecedented results and reiterated his belief in a bright future for Cornerstone.
As a testament to its financial strength and commitment to rewarding shareholders, Cornerstone’s board of directors proposed a dividend of N4.90 billion, equivalent to 27 kobo per ordinary share. This represents a significant increase compared to the N2.91 billion dividend, or 16 kobo per share, distributed in 2023. The higher dividend payout reflects the company’s robust profitability and its commitment to delivering value to its shareholders.
In the past year, Cornerstone demonstrated its commitment to compliance by paying N22.67 million in penalties to the National Pension Commission for contravention of pension liabilities. While this represents a cost to the company, it underscores Cornerstone’s dedication to upholding regulatory requirements and maintaining transparent financial practices. Overall, Cornerstone Insurance’s exceptional financial performance in 2024, coupled with its commitment to shareholder returns and regulatory compliance, positions the company for continued success and reinforces its position as a leading player in the Nigerian insurance industry.
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