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

Cornerstone Insurance Plc disclosed its unaudited financial results for the nine months ending September 30, 2026, revealing a decline in pre-tax profit by 6.93% to N7.74 billion, contrasting with N8.32 billion in the same period last year. Despite the decrease in pre-tax profit, insurance revenue rose by 16.70% to N43.31 billion from N37.11 billion.

This revenue growth was driven by enhanced contributions from both life and non-life insurance businesses, demonstrating consistent demand from policyholders and business partners. However, this rise in revenue did not result in higher earnings, as profit after tax decreased by 8.56% to N7.41 billion from N8.10 billion, and earnings per share dropped by 8.89% to 41 kobo from 45 kobo.

Insurance service revenue increased by 8.09% to N11.75 billion from N10.87 billion, while insurance service expenses fell by 3.13% to N17.86 billion from N18.43 billion. Notably, net reinsurance expenses surged by 75.52% to N13.70 billion from N7.81 billion, partially offsetting the positive impact of higher revenue and reduced insurance service expenses. Insurance finance expenses, which increased to N3.63 billion from N958.46 million, also contributed to the decline in pre-tax profit.

The company's total assets grew by 5.75% to N149.14 billion as of September 2026, up from N141.03 billion at the end of 2025. However, cash and cash equivalents declined by 38.06% to N14.97 billion from N24.17 billion, and shareholders' funds rose by 10.29% to N80.36 billion from N72.86 billion, largely due to retained earnings and favorable movements in the investment portfolio.

Cornerstone Insurance's shares ended trading at N4.55 on October 30, 2026, maintaining its price level from the previous day, but the stock had declined by 23.7% year-to-date, contrasting its robust growth in insurance revenue.