Cornerstone Insurance’s nine-month pre-tax profit declines 6.93% to N7.74 billion

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.

Key Highlights

• Insurance revenue: N43.31 billion (Up 16.70% YoY from N37.11 billion).
• Insurance service result: N11.75 billion (Up 8.09% YoY from N10.87 billion).
• Insurance service expenses: N17.86 billion (Down 3.13% YoY from N18.43 billion).
• Net reinsurance expenses: N13.70 billion (Up 75.52% YoY from N7.81 billion).
• Investment return: N5.38 billion (Up 27.99% YoY from N4.21 billion).
• Management expenses: N5.91 billion (Up 0.22% YoY from N5.90 billion).
• EPS: 41 kobo (Down 8.89% YoY from 45 kobo).
• Total assets: N149.14 billion (Up 5.75% from N141.03 billion at December 2025).
• Cash and cash equivalents: N14.97 billion (Down 38.06% from N24.17 billion).
• Shareholders’ funds: N80.36 billion (Up 10.29% from N72.86 billion).

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.

Driving the numbers

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.

• Insurance revenue increased by 16.70% to N43.31 billion from N37.11 billion, supported by contributions across its life and non-life businesses.
• The non-life segment remained the largest contributor, generating N32.84 billion, representing 75.83% of insurance revenue.
• Insurance service expenses declined by 3.13% to N17.86 billion from N18.43 billion, supporting the improvement in underwriting profitability.

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.

The company’s investment performance also provided some support.

Investment return increased by 27.99% to N5.38 billion from N4.21 billion, driven partly by higher interest income.

• Interest income increased by 125.78% to N6.64 billion from N2.94 billion, while net fair value gains rose to N3.11 billion from N2.67 billion.

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.

• Consequently, the net insurance and investment result declined to N13.50 billion from N14.12 billion, despite improvements in insurance service results and investment returns.
• Management expenses remained relatively stable at N5.91 billion, compared with N5.90 billion in the corresponding period of 2025.

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.

Balance Sheet

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.

• Financial assets measured at fair value through other comprehensive income increased to N41.10 billion from N12.51 billion, while statutory deposits doubled approximately to N4.20 billion.
• Premium receivables also increased to N2.30 billion from N754.41 million, reflecting higher outstanding amounts due from insurance business.

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.

Market reaction

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.