Cornerstone Insurance Announces 61% Growth in PAT, Proposes 5kobo Dividend For Shareholders
Mr. Ganiyu Musa, GMD, Cornerstone Insurance PLC
One of the leading provider of risk management services in Nigeria, Cornerstone Insurance Plc, has announced a dividend payment of 5 kobo per ordinary share of 50 kobo for the financial year ended December 31, 2021.
In a statement issued today by the underwriting firm stated that the firm recorded 61% growth in its Profit After Tax (PAT).
The dividend payment, according to the firm, will be subject to shareholders approval at the Annual General Meeting (AGM) slated for 26th July 2022.
The Group Financial Highlights show that Gross Premium Income rose to N20.9 billion from billion N17.5 billion recorded in the same period of 2020. This increase of 19% was as a result of superior value proposition and increased patronage from all the company’s institutional and retail customers.
The company’s Underwriting Result increased from N5.2 billion in December 2020: to N1.08 billion in 202. Growth of 381%, according to the firm was driven by focus on cost optimization and our conservative approach to underwriting.
Driven by strong revenue growth and improved operational efficiency, the firm’s Profit before Tax Increased by 69% to N3.7 billion in 2021 higher than N2.19 billion recorded in the same period of 2020 while Profit after Tax went up by 60% to N3.5 billion up from N2.19 billion announced in 2020.
The Company’s Balance Sheet for 2021 shows a Total Assets of N49.3 billion representing an increase of 13% over N43.8 billion recorded in 2020. The Growth, the firm stated, was driven largely by strong growth in turnover which dovetailed into growth in insurance funds.
The Shareholders’ Funds also grew to N20.17 billion in 2021 higher than N17.45 billion recorded in 2020.
Speaking on the results, Ganiyu Musa, the Group Managing Director, stated that the Company’s performance in 2021 was as a result of strict adherence to a well laid out long term growth strategy based on sound business principles and the core values of Integrity, Empathy, Professionalism, Innovation and Team Spirit.
According to him “We are indeed grateful to all our esteemed customers (Institutional, Retail and the Broking community) for their continuous patronage and for entrusting us with all their risk management needs. These, coupled with the ingenuity and resolve of our staff and our commitment to exceptional service delivery have made us one of the leaders in Nigeria’s Insurance industry”.
“As a team, the management and staff have continued to build a sustainable and profitable business on the platform of transparency, corporate governance, sound risk management practice and value creation for our customers. All these have culminated in the Company achieving a landmark result in its history, by earning Gross Premium Income in excess of N20 billion”.
Kehinde Olorundare, the Chief Financial Officer said: “The Board of Directors of the Company will propose to the Annual General Meeting on Tuesday, 26th July 2022 at 1:00p.m. the dividend of 5k (five kobo) per ordinary share of 50k (fifty kobo) each. Dividend will be paid to the duly mandated accounts of Members so entitled, whose names appear in the Register of Members”.
The AGM will be streamed live via the Company’s website. This will enable Members and other Stakeholders who will not attend the meeting physically at the Agip Recital Hall, Muson Centre, Onikan Lagos, observe the proceedings.
Cornerstone Insurance Plc was incorporated on 26 July 1991 as a private limited liability company and became a public limited liability company, quoted on the Nigerian Stock Exchange in 1997.
The organisation was established to conduct insurance business in a professional, ethical, and customer-focused manner. As part of its corporate brand strategy, the company implemented a re-branding exercise in 2008 to position Cornerstone as a leader in the industry, part of which was the unveiling of the new corporate identity for the company.
The Company is licensed and re-certified by the National Insurance Commission (NAICOM) to carry out both General and Life businesses. The classes of Insurance business, we currently underwrite Motor Vehicle, Aviation, Marine, Engineering All Risks, Asset Protection, Liability to Third Party, Oil & Gas, Group Life, Credit Life, Mortgage Protection, Term Assurance, Wealth Creation Products and Takaful (Islamic Insurance).
