Cornerstone Insurance: Shareholders frown on losses, no dividend payout


-Advise Board to step up

By Yakubu LAAH investadvocate

Sept 17 2010 16.40 GMT



Lagos–Shareholders of Cornerstone Insurance Plc (Cornerstone) at the company’s 18th Annual General Meeting (AGM) held Friday September 17 2010 in Lagos Nigeria frowned on the three (3) years consecutive losses posted by the company and no dividend payout to investors in the review period.



Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigerian (ISAN) on behalf of shareholders affirmed that it is not a good idea for investors of the company not to reap returns on their investments; while advising the Board of Directors (BOD) and Management to step up and bring the company back to profitability and ensure dividend payment.


“It is actually very painful not to have a return on your investment in the last three years; the Board and Management should get their acts together to ensure that they declare profit and pay dividend to its existing and potential shareholders” he said.



In the same vein, he advised the company to seize the opportunity of  the recent signing into law the building control Bill by the Lagos State Government aimed at enforcing the compulsory Builders Liability Insurance Policy “This is an additional business for insurance companies and Cornerstone Insurance should take advantage of that” the ISAN Leader said.



As earlier reported, Cornerstone Insurance declared N442.965 million loss in year 2009 Audited result.



The Insurance Company’s loss increased by -5.6 percent (-5.6%) from a loss of N419.460 in year 2008 to N442.965 million in the Audited Report for the period ended December 31 2009.



In his address to shareholders of the company, Adedotun Sulaiman, Group Chairman of the Cornerstone Group affirmed that the company suffered further losses due to diminution in the market value of the Cornerstones investments.



“This provision for diminution of N585 million in 2009, compared to N1.1 billion in 2008 resulted in N378 million Loss After Tax (LAT)” Sulaiman said.




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