Cornerstone Insurance Plc reported a 54.6 percent decline in post-tax profit for the 2025 financial year, driven by a sharp reversal in foreign exchange gains that had boosted earnings in the prior year. The company's audited financial results show that net foreign exchange gains swung from N30.8 billion in 2024 to a negative N6.1 billion in 2025, eroding profitability.
Profit and Revenue Highlights
Profit before tax dropped to N8.5 billion from N28.2 billion in 2024, while post-tax profit fell to N3.9 billion from N8.6 billion. Insurance revenue rose 33.6 percent to N51.7 billion, supported by strong performance in the non-life segment. Insurance service expenses declined 9 percent to N23.2 billion, improving the insurance service result.
Impact of Currency Reforms
The naira devaluation, part of Nigeria's sweeping currency reforms to attract foreign investors, caused the local currency to depreciate by about 70 percent against the U.S. dollar between 2024 and 2025. In 2024, insurers and banks holding foreign currency-denominated assets benefited from windfall gains when converting those assets to naira. However, in 2025, as the naira stabilized, those gains reversed, hitting Cornerstone's bottom line.
Business Restructuring
In line with the Nigeria Insurance Industry Reform Act 2025, which prohibits composite insurance licenses, Cornerstone Insurance announced the separation of its general insurance and life insurance businesses into independent entities. The general insurance assets and policies will be transferred to FIN Insurance Company Limited, a subsidiary, while life insurance assets and policies will go to Cornerstone Life Assurance Limited. The company stated that the unbundling will involve transferring eligible assets and existing policies to the respective entities.
