Cornerstone Insurance Plc has announced a final dividend of N0.28 kobo per share for the financial year ended December 31, 2025 despite a 69% fall in its pre-tax profit to N8.73 billion, down from N28.62 billion in FY2024.

The Company’s corporate actions announcement, dated June 17, 2026, sets a qualification date of July 2, 2026, with payment scheduled electronically on July 22, 2026, to shareholders who have completed e-dividend registration.

The register of members will close from Friday, July 3 to Monday, July 6, 2026. The company’s Annual General Meeting is scheduled for July 20, 2026, at Shell Hall, MUSON Centre, Onikan, Lagos.

What the numbers show:

Despite the headline profit decline, Cornerstone’s FY2025 results reveal a company whose core underwriting engine is firing on all cylinders — with the profit decline concentrated entirely in investment income, which collapsed 76.56% year-on-year to N8.39 billion from N35.81 billion in 2024.

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Key highlights (FY2025 vs FY2024):

  • Insurance revenue: N51.66 billion, +33.6% YoY
  • Insurance service expenses: N23.16 billion, -9.04% YoY
  • Net expenses from reinsurance contracts: 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
  • Pre-tax profit: N8.73 billion, -69% YoY
  • Post-tax profit: N11.76 billion, -54.6% YoY
  • Total assets: N141.03 billion, +16% YoY
  • Cash and cash equivalents: N24.17 billion, +0.5% YoY

More insights:

The contrast between the group’s underwriting performance and its investment result is the defining story of the FY2025 numbers.

  • The insurance service result surged 527.34% to N13.48 billion from just N2.15 billion in 2024, as premium growth combined with lower claims costs to deliver a significantly improved underwriting surplus.
  • Non-life insurance remained the largest revenue contributor at N29.21 billion, representing approximately 56.5% of group insurance revenue and growing 28.4% year-on-year.
  • Life insurance revenue rose 62.6% to N12.39 billion, contributing 24% of group revenue. Fin Insurance added N8.30 billion and Hilal Takaful contributed N1.75 billion.
  • Insurance service expenses fell to N23.16 billion from N25.46 billion, a meaningful improvement in cost efficiency that directly supported the underwriting turnaround.
  • Net insurance finance expenses also rose to N3.96 billion from N1.13 billion, adding further pressure to the bottom line.
  • On the balance sheet, total assets grew 16% to N141.03 billion, with financial assets rising to N88.42 billion from N76.37 billion. Insurance contract liabilities increased to N55.08 billion from N45.14 billion. Operating cash flow improved materially to N7.65 billion from N1.40 billion.

What you should know:

Cornerstone Insurance obtained approval to implement a holding company structure that will separate its life and general insurance operations, bringing its general insurance businesses — including Hilal Takaful Nigeria Limited — under a more focused operating framework.

  • The group’s FY2025 +527.34% increase in insurance service result of N13.48 billion year-on-year is significant.
  • This remarkable growth in the core underwriting business as opposed to one off N30.83 billion FX gain in FY2024.
  • The proposed N0.28 dividend per share of N0.50 par value represents a payout yield of approximately 4.7% based on the June 17 closing price of N5.90.

The company’s share price gained 9.26% to N5.90 on June 17, 2026, the day its audited results were released, from a previous close of N5.40, but closed flat on Thursday.

Year-to-date, however, the stock has declined 1.01% from its year-opening price of N5.96. With the 4.7% dividend yield and the strong underwriting recovery, the market may price the stock higher based on the improving fundamentals rather than the headline profit decline.