Cornerstone Insurance plc has announced a 48 percent growth in profit before tax for the financial year ended December 31, 2014, launching the company to a billion naira mark in profitability.
Commenting on the results, Ganiyu Musa, group managing director of the company, said despite the challenging operating environment, the company recorded profit before tax (PBT) of N1.39 billion in the financial year ended December 31, 2014, representing a 48 percent growth over its 2013 PBT of N940 million.
Its financial performance in 2014 is a reflection of the deliberate focus on profitable underwriting and investment performance, while cautiously pursuing topline growth. By leveraging its solid brand and growing suite of innovative products, the company aims to contribute to the transformation of the industry and position itself for market leadership.
According to Musa, “we are pleased that we have achieved the highest ever profit before tax (PBT), crossing the billion naira mark for the first time in our company’s history. The results reflect our continued focus to be the leading insurance-based financial services group by delivering value beyond expectations to our customers and shareholders.”
Other highlights of the company’s approved financial statements for 2014 show 60 percent growth in underwriting profit to N1.5 billion from N939 million in the previous year. Profit after tax (PAT) increased by 29 percent to N1.19 billion from N946 million. Claims paid in the year under review was over N1.2 billion.
Similarly, investment income grew by 129 percent from N792 million to N1.81 billion. Shareholders’ equity grew by 17 percent from N6.97 billion to N8.16 billion. Return on equity improved to 17 percent in 2014 from 14 percent in 2013. The company’s retained earnings moved from a negative of N491 million to a positive of N499 million during the year, and will be proposing a dividend for ratification by shareholders at the next annual general meeting.
Cornerstone Insurance is a composite insurance company that offers a wide range of products in both General and Life businesses including motor vehicle, aviation, marine, engineering all risks, asset protection, liability to third party, oil and gas, bancassurance products, group life, credit life, mortgage protection, term assurance, wealth creation products and Takaful (Islamic insurance).
As part of its strategy to support sustenance of economic development in Nigeria and increase penetration of insurance products and services, Cornerstone, in partnership with Airtel and Microensure launched Nigeria’s first truly innovative product that offers value rich insurance to subscribers of Airtel for free. To qualify for free life and hospital cash cover, Airtel subscribers should just dial *259# to register for free, the company said.
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