Cornerstone Insurance Group has recorded a 20 percent growth in profit before tax for the financial year ended December 31, 2014, moving from N870.2 million in 2013 to N1.04 billion. This is as profit after tax also grew by 11 percent to N946.48 million from N860.36 million the previous year.
The underwriting firm, which has embarked on transformation in the last few years building capacity and remodelling insurance practice in Nigeria, has also paid a 0.02 kobo dividend, promising its shareholders greater future and value creation.
Announcing the performance at Company’s 23rd Annual General Meeting held in Lagos, Adedotun Sulaiman, Group Chairman said despite the challenging business environment, Cornerstone experienced modest growth in 2014.
“The financial performance in 2014 is a reflection of our deliberate focus on profitable underwriting and investment performance, while cautiously pursuing top-line growth”.
While the gross premium written stood at N5.21 billion, gross premium income inched 12 percent, moving from N4.62 billion in 2013 to N5.19 billion.
Underwriting profit also rose by 60 percent from N939 million to N1.50 billion, even as the Company met claims obligations to the tune of N1.23 billion in the year under review.
Other highlights of the result include a 12 percent growth in investment income to N999 million from N890 million in 2013. Shareholders equity appreciated by 12 percent from N6.90 billion in the previous year to N7.76 billion, while retained earnings moved from a negative N555 million in 2013 to N99 million in the year under review.
Shareholders who were excited about the turnaround in the Company commended the board and management, stating that the company after concluding its acquisition of Fin Insurance will be better positioned for increased shareholder value.
“We are happy that the board has kept its promise to reward shareholders, the future is bright for us and we will continue to encourage you, one of the shareholders said.
Sulaiman stated that going forward; the focus of the Company in 2015 will be on strategic priorities and delivering on growth targets. “We expect a more proactive stance from the Central Bank of Nigeria this year in ensuring currency stability, economic improvements and the continued development of growth sectors”.