Cornerstone Group Announces 38% Growth In Top line To N30.6Bn In 2023
Cornerstone Insurance Group has announced a 38 per cent growth in its top line from N22.2 billion in 2022 to 30.6 billion for year ended 31st December 2023.
It also stated that following the implementation of the new International Financial Reporting Standard (IFRS 17), the Group reported an Insurance Revenue of N25.91 billion for the year under review, representing a robust growth of 26.5 per cent compared to N20.48 billion recorded in the same period of 2022.
Chairman of Cornerstone Insurance PLC, Mr. Segun Adebanji made these disclosures while addressing Shareholders at the Company’s 32nd Annual General meeting in Lagos yesterday.
Insurance Revenue from our life portfolio rose marginally by two per cent from N5.18 billion in the previous year to N5.28 billion in 2023, which accounted for 20 per cent of the total Insurance Revenue as the largest contributors to General Business Insurance.
He said Engineering, Oil and Gas and Motor classes contributed N4.48 billion, N3.49 billion and N2.51 billion respectively.
Mr. Adebanji said the Company concluded with a Profit Before Tax of N17.08 billion, which showed a remarkable rise over the stated IFRS 17 loss of N1.06 billion recorded in the previous year.
He said, “This significant increase was driven by gains attributable to our investment portfolios and underscores our strategic focus on profitability and sustainable growth, thereby reinforcing our strong financial position.”
Also speaking on the Company’s financial performance, the Group Managing Director/CEO, Stephen Alangbo, said “Life assurance business saw a marginal increase of 2% in our life business segment, rising from N5.18 billion in 2022 to N5.28 billion in 2023.
“With the development of new products aimed at the retail segments and strategic distribution alliances in the microinsurance space, we anticipated a significant growth trajectory in 2024.
“We are confident that these initiatives will drive substantial progress and enable us to capture a larger share of the life assurance market. Additionally, we have embarked on an expansion of our agency sales force, the effects of which will become increasingly evident in the coming years,” he stated.
On general insurance business, during the period under review, he said the Company achieved a 24%% growth from N11.84 billion in 2022 to N14.73 billion in 2023.
This growth, according to him, was predominantly driven by substantial gains in the Motor, Aviation, and Engineering businesses, which grew by 46%%, 34%, and 30% respectively.
He said “The impact of the increased premium rates on motor Insurance is evident in our financial results. Despite the increased rates, there is a noticeable market shift towards comprehensive insurance from 3rd party insurance among the insuring public.”
On its subsidiary, he said Fin Insurance, achieved a remarkable performance, generating N5.36billion in insurance revenue.
“This figure represents a 21% contribution to the Group’s overall insurance revenue and a substantial 77% growth compared to N3.03bn achieved in 2022.
“We will, however, continue to focus on optimizing operational efficiencies and leveraging our collective strengths to further drive growth. This strategic approach is expected to enhance our market presence and deliver increased value to our stakeholders.”
On the company’s future outlook, he said: “We remain steadfast in our vision of becoming the leading insurance-based financial services group. Our commitment to being a responsible and sustainable business that creates long-term value for all our stakeholders remains unwavering. We will continue to innovate, invest in our people, invest in technology, and operate with integrity while staying responsive to the evolving needs of our customers and communities.
“We are well positioned for any recapitalization measures the regulator may introduce. We believe that this will enhance our financial stability, expand our underwriting capacity, and allow us to invest in new technologies and innovative products. It will also help us attract top talent, deliver robust returns to shareholders, and support community development initiatives while ensuring we provide greater value to all our stakeholders,” he added.
