Cornerstone Insurance Plc, a Lagos-based provider of life and non-life insurance services, grew premium income by 13 percent to N6.1 billion in the first half of 2019, the highest in six years.
Meanwhile, bottom line otherwise known as net income rebounded to positive territory as the insurer gained N545.4 million in the second quarter of the year, after a net loss of N43.7 million in first quarter, to bring after-tax profit to N501.7 million in the first half period.
Net premium income of the insurer, however, slowed some 2 percent as reinsurance expenses grew faster than gross premium income.
Yet, net underwriting profit of Cornerstone rose 3.9 percent to N3.46 billion, thanks to receipts from fees & commission which surged 49 percent.
A breakdown of gross premium written revealed that the insurer realized N5.02 billion from non-life life segment, which accounted for 65 percent of total N7.71 billion total premium income.
Further breakdown based on service type showed the insurer earned N1.11 billion premium from general accident, trailed by N964 billion from oil & gas and N706 billion from motor insurance, with the three accounting for a combined 72 percent share.
Underwriting profit of Cornerstone appreciated to N1.06 billion in the review period, from N698.2 million last year, indicating a double-digit growth of 52 percent.
A dive into the company’s financing activities showed that borrowing costs were down by half, while proceeds from sale of foreign currency denominated assets nearly tripled to N11.1 million in the review period, from N4.3 million a year earlier.
Investment income attributable to shareholders fund trended upwards to N551.1 million from N420 million posted last year, thanks to spike in dividend income. Meanwhile interest income contracted some 5 percent to N354 million.
Meanwhile, shares of the insurer have remained flat at 22 kobo since last Monday (August 5), but have gained 10 percent since the start of the year.
The stock outperforms the insurance stock gauge and market benchmark index that has lost 15 and 12 percent respectively.
As at the period ended June 30, 2019 Cornerstone Insurance’s total assets stood at N32.1 billion, representing some 12 percent uptick over N28.7 billion posted last December.
A further look at the insurer’s balance sheet showed that about 42 percent of its total assets comprise financial assets valued at N13.7 billion. The insurer equally grew owners’ fund by a quarter to N12.8 billion from N10.2 billion last year.
The company is into life and non-life insurance business, and provides accident, sickness, motor life, burglary, equipment and life insurance products.
Israel Odubola
