February 15, (THEWILL) — Cornerstone Insurance Plc experienced a substantial decline in post-tax profits amounting to N17.57 billion based on the company’s unaudited financial results for the year ended December 31, 2025. Having reported an after-tax profit of N8.32 billion during this period, compared to N25.89 billion achieved in the prior year, the figures represent a decrease of 67.8 percent.
This profit reduction was primarily caused by the normalisation of foreign exchange transactions, which effectively ended the earnings surge of the preceding period. The insurance Group recorded a considerable net gain of N30.83 billion from foreign exchange in 2024, which fell to N3.57 billion in 2025, indicating a decline of 88.4 percent.
Despite the Group experiencing a revenue increase of N14.27 billion, rising from N38.66 billion in 2024 to N52.94 billion during the review period, which equates to a 37 percent growth, the significant drop in earnings adversely affected several key elements of the report. These elements include the total comprehensive income for the year, which fell sharply to N15.43 billion in 2025 from N29.47 billion the previous year. This marks a decline of N14.04 billion or 26.5 percent after considering the equity investment in FVOCI (fair value through other comprehensive income) of N7.14 billion and net changes of N3.58 billion for 2025 and 2024 respectively.
Furthermore, both basic and diluted earnings per share experienced a dramatic decrease, dropping from 142 kobo to 46 kobo between 2024 and 2025, representing a reduction of 67.6 percent.
On the balance sheet, the Group’s total assets increased to N104.2 billion during the reporting period, up from N86.08 billion in 2024, representing a 21 percent rise fueled by reinsurance and diverse categories of financial assets. Insurance contract liabilities also grew to N47.92 billion from N37.83 billion in 2024, reflecting the increasing confidence of clients in the 34-year-old insurance company and effective deployment of technology. Cash and cash equivalent dropped marginally to N22.14 billion during the review period from N24 billion recorded in 2024.
With over one million customer base, Cornerstone Insurance Plc has aggressively adopted digital technology to modernise its operations and enhance customer experience in Nigeria’s insurance sector. These innovations have led to significant improvements in operational efficiency, faster claim settlements, and enhanced customer experience, with the company winning awards for its technology deployment in 2025.
Cornerstone Group has shown a growing trend in dividend payouts over the last three years (2022–2024 financial years), with a significant increase in the most recent declaration. The firm paid 27 kobo per ordinary share for 2024, 16 kobo per ordinary share for 2023, and 22 kobo per ordinary share for 2022 financial years. The increase in dividends correlates with strong profit growth before now.
The underwriter currently has a capital base of over N9 billion. Under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed on July 31, 2025, insurance companies face significantly higher minimum capital requirements to be met by July 30, 2026. The new minimum capital base is: N10 billion for life, N15 billion for non-life, N25 billion for composite, and N35 billion for reinsurance. The National Insurance Commission (NAICOM) is tasked with enforcing these regulations to improve the stability and capacity of the insurance industry.
Commenting on the unaudited financial results, the Group Managing Director and Chief Executive Officer of Cornerstone Insurance Plc, Mr. Stephen Alangbo, described the company’s performance as a “clear indication of Cornerstone’s commitment to excellence and long-term value creation.”
Alangbo noted that despite complexities within the Nigerian operating environment, the company maintained a consistent, disciplined approach to underwriting. This reflected in the 44 percent increase in revenue to N43.7 billion, attributed to improved customer experience, digital transformation, and strong support from stakeholders.
Alangbo emphasised that the results reflect “a long-term commitment to professionalism, resilience, and service quality,” driven by operational efficiency and investments in technology. The 2025 results also showed an impressive 353 percent growth in insurance service results, rising to N10.7 billion, which the management team highlighted as a result of effective cost management and sound risk controls.
Alangbo emphasised that the company will continue to explore growth opportunities, invest in innovation, and deepen its market presence to sustain its upward trajectory.
The firm’s market capitalisation is N108 billion. Data from the Nigerian Exchange Limited (NGX) showed that Cornerstone closed its last trading day (Friday, February 13, 2026) at N6.38 per share, recording a 10 percent gain over its previous closing price of N5.80. The stock began the year with a share price of N5.96 and has since gained 7.05 percent on that price valuation.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
