Cornerstone Insurance is projecting a profit before tax of N4.82 billion for the first quarter (Q1) of 2026, supported by a stable environment, sustained investment income, and efficient service results.
According to the company’s disclosure on the Nigerian Exchange, the insurer posted an actual profit before tax of N1.86 billion in Q1 2025. The 2026 PBT projection, which is 158 percent higher than the Q1 2025 actual, signals management’s high expectations of profitability this year.
Insurance service expenses are forecast to surge to N10.49 billion in the reviewed period, compared with N7.45 billion in Q1 2025, an increase of 40.08 percent. Net expenses from reinsurance contracts held are estimated at N3.43 billion, resulting in an insurance service result of N5.02 billion, up from N3.27 billion in the corresponding period of 2025.
Insurance revenue for the period under review is expected to hit N18.94 billion, compared with N11.19 billion recorded in Q1 2025, reflecting improved underwriting activity and higher premium volumes across its insurance portfolio.
Investment income is forecast to remain strong at N2.43 billion, although this is slightly lower than the N2.50 billion recorded in Q1 2025. After accounting for insurance finance expenses of N199.15 million and reinsurance finance income of N72.67 million, the insurer’s financial result is expected to stand at N2.16 billion.
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Cornerstone Insurance expects to generate N3.13 billion in net cash from operating activities, supported by underwriting cash inflows and improved premium collection. Cash flow from investing activities is projected at N2.42 billion, while financing activities are expected to result in a net cash outflow of N236.22 million during the period
This is expected to lift the group’s cash and bank balances to N26.92 billion at the end of Q1 2026, from N20.79 billion at the beginning of the period, strengthening liquidity and balance sheet resilience.
Cornerstone Insurance, focusing heavily on the motor and general business segments, continues to benefit from strong capital adequacy and prudent risk management.
Investors are noticing the expected improvement in profitability; hence, the stock has gained 9.9 percent year-to-date as the insurer began the year with its share price at N5.96. That is a great start for the year for an insurance stock that ended 2025 at about 82 percent.