Cornerstone Insurance Plc has posted a profit after tax (PAT) of N8.10 billion for the nine months ended August 2025, a 67 percent drop from the N24.50 billion it recorded in the same period last year.
Foreign exchange losses proved to be the major snag on the insurer’s earnings performance. The firm’s FX loss of N1.73 billion replaced a N24.19 billion gain of the prior year, wiping out most of the revaluation windfall from the 2024-naira depreciation. This shift in foreign-exchange position accounted for the steep drop in profitability, as interest income fell 38 percent to N2.94 billion.
Investment income also dropped from N28.39 billion a year earlier to N4.21 billion. However, investment revenue rose 39 percent to N37.11 billion, helped by higher gross written premiums and stronger risk retention under the new IFRS 17 accounting framework. Insurance service results more than tripled to N10.87 billion, a sign of healthier pricing discipline and claims management.
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Operating expenses, reflecting the combined impact of inflation, technology upgrades, and expansion in operational capacity, rose 25 percent to N5.80 billion.
The balance sheet was a positive outlook. Total assets, N121.50 billion last year, became N135.76 billion this year, an 11.7 percent increase, driven by higher reinsurance recoverables and investment holdings. Reinsurance contract assets surged to N22.42 billion from N12.83 billion, reflecting increased ceded risks and stronger counterparty recoveries.
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On the liability side, insurance contract obligations rose to N50.13 billion from N45.14 billion, in line with the expansion of policy coverage. Total equity fell to N60.50 billion from N67.88 billion, reflecting lower retained earnings of N32.83 billion and a reduction in fair-value reserves to N5.88 billion, following market adjustments in the company’s investment portfolio.
Cornerstone ended the period with a total asset base of N135.76 billion and liabilities of N67.88 billion, maintaining a positive solvency position despite the profit decline and rising operational costs.