Cornerstone Insurance records N1.04b PBT

CORNERSTONE Insurance group has recorded a 20 per cent growth in profit before tax for the financial year ended December 31, 2014, moving from N870.2 million in 2013 to N1.04 billion.

The profit after tax also grew by 11 per cent to N946.48 million from N860.36 million the previous year.

The underwriting firm, which has embarked on transformation in the last few years building capacity and remodeling insurance practice in Nigeria, has also paid a 0.02 kobo dividend, promising its shareholders greater future and value creation.

Announcing the performance at company’s 23rd yearly general meeting held in Lagos, Adedotun Sulaiman, Group Chairman said despite the challenging business environment, Cornerstone experienced modest growth in 2014.
“The financial performance in 2014 is a reflection of our deliberate focus on profitable underwriting and investment performance, while cautiously pursuing top-line growth”.

While the gross premium written stood at N5.21 billion, gross premium income inched 12 percent, moving from N4.62 billion in 2013 to N5.19 billion.

Underwriting profit also rose by 60 percent from N939 million to N1.50 billion, even as the Company met claims obligations to the tune of N1.23 billion in the year under review.

Other highlights of the result include a 12 perc ent growth in investment income to N999 million from N890 million in 2013. Shareholders equity appreciated by 12 percent from N6.90 billion in the previous year to N7.76 billion, while retained earnings moved from a negative N555 million in 2013 to N99 million in the year under review.

Shareholders who were excited about the turnaround in the Company commended the board and management, stating that the company after concluding its acquisition of Fin Insurance will be better positioned for increased shareholder value.

“We are happy that the board has kept its promise to reward shareholders, the future is bright for us and we will continue to encourage you, one of the shareholders said.

Sulaiman stated that going forward; the focus of the Company in 2015 will be on strategic priorities and delivering on growth targets. “We expect a more proactive stance from the Central Bank of Nigeria this year in ensuring currency stability, economic improvements and the continued development of growth sectors”.

For Cornerstone Insurance, following your approval of the acquisition of FIN Insurance, our focus is to complete the integration of the enlarged company to create complimentary values in such areas as distribution channels, geographical spread and product opportunities among others, he said.
According to him, Cornerstone has continued to make progress in one of its value-rich mass market insurance products in partnership with Airtel and Macroensure.

“We will continue to leverage on technology to transform the way we serve our customers, simplify transaction processing across our value chain and implement cost effective models to deliver the desired business growth”.

For continued support on sustenance of economic developments in Nigeria and increased penetration of insurance product and services, the Company would continue to partner with relevant organisations to design affordable products for low and irregular income groups, and all literacy levels, the Chairman said.