Cornerstone Insurance Plc has released its unaudited financial results for the nine months ended September 30, 2026, reporting a pre-tax profit of N7.74 billion, representing a 6.93% decline from N8.32 billion in the corresponding period of 2025.
Despite the decline in pre-tax profit, insurance revenue increased by 16.70% to N43.31 billion from N37.11 billion, reflecting growth across its life and non-life insurance businesses.
However, the revenue growth did not translate into higher earnings, as profit after tax declined by 8.56% to N7.41 billion from N8.10 billion, while earnings per share fell by 8.89% to 41 kobo from 45 kobo.
In its earnings release, Cornerstone attributed revenue growth to increased contributions across its life and non-life insurance businesses, reflecting sustained demand from policyholders and business partners.
Management also highlighted its focus on deepening underwriting operations, strengthening capital, and implementing a proposed holding company structure.
Cornerstone Insurance’s nine-month results reflect stronger underwriting revenue and insurance service profitability, although increased reinsurance expenses, foreign exchange losses and insurance finance costs weighed on earnings.
However, net expenses from reinsurance contracts increased by 75.52% to N13.70 billion from N7.81 billion, absorbing part of the benefit from higher revenue and lower insurance service expenses.
Despite this increase, the insurance service results improved by 8.09% to N11.75 billion from N10.87 billion.
Investment return increased by 27.99% to N5.38 billion from N4.21 billion, driven partly by higher interest income.
However, foreign exchange losses widened significantly to N4.76 billion from N1.73 billion, reducing the overall contribution from investment activities.
Profitability faced further pressure from insurance finance expenses, which increased to N3.63 billion from N958.46 million.
These movements contributed to the decline in pre-tax profit to N7.74 billion, while profit after tax fell to N7.41 billion and earnings per share consequently declined to 41 kobo from 45 kobo.
On the balance sheet, total assets increased by 5.75% to N149.14 billion as of September 2026, from N141.03 billion at December 2025, supported by movements in the company’s investment portfolio, premium receivables and statutory deposits.
However, financial assets measured at fair value through profit or loss declined to N46.03 billion from N93.10 billion, while cash and cash equivalents fell to N14.97 billion from N24.17 billion.
Shareholders’ funds increased by 10.29% to N80.36 billion from N72.86 billion, which management attributed to retained earnings and favourable fair value movements in the investment portfolio.
Cornerstone Insurance shares closed at N4.55 on Friday, October 30, 2026, unchanged from the preceding trading session.
The stock has declined by 23.7% year-to-date from its opening price of N5.96, reflecting weaker share-price performance despite growth in insurance revenue.
