Cornerstone Insurance Plc has released its audited 2025 financial results for the year ended December 31, 2025, reporting pre-tax profit of N8.73 billion compared to N28.62 billion in FY 2024.
This represents a 69% YoY decline, as stronger underwriting performance was offset by a sharp fall in investment returns.
However, the company recorded stronger top-line performance, with insurance revenue growing by 34% YoY to N51.66 billion, compared to N38.67 billion reported in 2024.
Commenting on the results, the Board noted that the Group’s performance reflects the strength of the Cornerstone franchise, the dedication of its employees and business partners, and the continued trust of its customers and shareholders.
Building on this foundation, the Group said it is progressing plans to implement a holding company structure that will separate its life and general insurance operations while bringing together its general insurance businesses, including Hilal Takaful Nigeria Limited, under a more focused operating framework.
Key Highlights (2025 FY vs. 2024 FY)
- Insurance revenue: N51.66 billion, +33.6% YoY.
- Insurance service expenses: N23.16 billion, -9.04% YoY.
- Net expenses from reinsurance contracts held: N15.02 billion, +35.8% YoY.
- Insurance service result: N13.48 billion, +527.34% YoY.
- Investment return: N8.39 billion, -76.56% YoY.
- Management and other expenses: N13.14 billion, +0.65% YoY.
- Profit for the year: N11.76 billion, -54.6% YoY.
- Total assets: N141.03 billion. +16% YoY
- Cash balance: N24.17 billion, +0.5% YoY
Driving the numbers
Cornerstone profit decline was driven largely by the decline in investment income, despite the strong insurance revenue growth across the board.
- Non-life insurance remained the largest contributor, with revenue of N29.21 billion, representing about 56.5% of group insurance revenue and up 28.4% YoY from N22.75 billion.
- Life insurance revenue rose to N12.39 billion, contributing about 24.0% of group revenue and Up 62.6% YoY from N7.62 billion.
- Fin Insurance contributed N8.30 billion, while Hilal Takaful contributed N1.75 billion.
Another key positive driver was underwriting expenses, as insurance service expenses fell to N23.16 billion from N25.46 billion.
However, net expenses from reinsurance contracts increased to N15.02 billion from N11.06 billion.
Notwithstanding, insurance service results closed strongly at N13.48 billion from N2.15 billion.
- Investment return fell to N8.39 billion from N35.81 billion, while the group recorded a net foreign exchange loss of N6.13 billion compared with a N30.83 billion gain in 2024.
- Net insurance finance expenses also rose to N3.96 billion from N1.13 billion, and management expenses increased to N9.36 billion from N8.29 billion.
Balance sheet
On the balance sheet, total assets rose to N141.03 billion, supported by growth in financial assets and reinsurance contract assets.
- Financial assets increased to N88.42 billion from N76.37 billion, driven mainly by FVTPL assets, which rose to N46.03 billion from N22.43 billion.
- Insurance contract liabilities also increased to N55.08 billion from N45.14 billion, reflecting a larger book of insurance obligations.
The group’s liquidity position was broadly stable, with cash and cash equivalents at N24.17 billion compared with N24.06 billion a year earlier.
Operating cash flow improved materially to N7.65 billion from N1.40 billion, helped by stronger premium receipts, although claims paid and reinsurance premium payments also increased.
Market reaction
Following the release of its audited results on June 17, 2026, Cornerstone Insurance’s share price gained 9.3% to N5.90, from the previous day’s closing price of N5.40.
However, year-to-date, the stock has declined by 1.01%, compared to its year-opening price of N5.96.
