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N3.57bn FX Loss, Trading Gain Decline… Why Cornerstone Insurance’s Profit Dropped By 67%

February 20, 2026
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N3.57bn FX Loss, Trading Gain Decline... Why Cornerstone Insurance's Profit Dropped By 67%

In 2025, a 36.92 percent increase in Cornerstone Insurance Plc’s revenue was not enough to stop the company’s net income from crashing by 67.85 percent.

The revenue increased by double-digit from the N38.66 billion generated between January and December 2024 to N52.94 billion last year.

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Also, Cornerstone Insurance managed to keep its service expense low, as it decreased by 1.98 percent year-on-year, from N25.45 billion to N24.95 billion.

But the insurer recorded a 34.81 percent jump in net expenses from reinsurance contracts held, which grew from N11.06 billion in 2024 to N14.91 billion in 2025.

However, it had little or no impact on the company’s insurance service result, as it surged to N13.08 billion last year, from the N2.14 billion achieved in 2024, representing a 508.95 percent growth in profit from underwriting activities.

In addition, net trading gain plummeted by 98.36 percent to N28.92 million between the first quarter (Q1) and the fourth quarter (Q4) of 2025, below the N1.76 billion earned in 2024.

The impact of the decline was reduced by a 196.33 percent increase in other investment income, which grew from N432.68 million in 2024 to N1.28 billion the year before.

However, the bottom line was hurt by a N3.57 billion net foreign exchange (FX) loss last year, as Cornerstone Insurance failed to replicate the N30.83 billion net FX gain recorded in 2024.

Consequently, investment return crashed to N6.48 billion in 2025, compared to the previous year’s N35.81 billion, indicating an 81.89 percent decline.

Additionally, net finance expenses from insurance contracts issued further impacted the net profit, as the former surged by 201.47 percent year-on-year, from N481.3 million to N1.45 billion, while net finance income from reinsurance contracts held dropped by 33.95 percent, from N648.22 million to N428.10 million.

As a result, net insurance finance expenses grew to N1.87 billion in 2025, from N1.12 billion in 2024, reflecting a 66.36 percent increase, leading to the insurer’s net financial result dropping by 86.72 percent year-on-year, from N34.68 billion to N4.60 billion.

This plunged Cornerstone Insurance’s profit before tax (PBT) by 68.17 percent to N9.10 billion in 2025, falling short of the N28.61 billion recorded the year before.

With the pretax profit plunging, the company’s tax expense also crashed, dropping by 71.19 percent year-on-year to N785.15 million, from N2.72 billion.

This further reduced Cornerstone Insurance’s profit after tax (PAT) to N8.32 billion in 2025, compared to the previous year’s N25.89 billion, indicating a 67.85 percent decline.

For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: editor@primebusiness.africa and publisher@primebusiness.africa

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