Cornerstone records N1.4 billion underwriting profit in 2009


-Declares share diminutive loss


By Peter OBIORA investadvocate

Sept 20 2010 07.29 GMT





Lagos–Insurance Giants Cornerstone Insurance Plc (Cornerstone) has recorded a N1.435 billion underwriting profit in its year 2009 Financial Year End (FYE), as the company declared a share diminutive loss.


Mr. Adedotun Sulaiman, Group Chairman of the Company in his statement at its 18th Annual General Meeting (AGM) held Friday September 17 2010 in Lagos Nigeria informed shareholders that the company increased its underwriting profit from N1.228 billion in year 2008 to N1.435 billion in the Audited Year Ended December 31 2009; indicating an increase of 17 percent (17%) in the review period.


“However, contrary to general expectations that the Nigerian Stock Exchange (NSE) would rally by the second quarter (Q2) of year 2009, the Market decline continued throughout the year and, in fact, it was further compounded by the Central Bank of Nigeria’s (CBN’s) Audit Reports and bailout of Banks during the period” he said.


Sulaiman affirmed that Cornerstone suffered further losses due to diminution in the Capital Market value of the company’s investments.


“Accordingly, your company suffered further losses due to diminution in the Market value of our investments” the Group Chairman noted.


He confirmed that the provision for diminution of N585 million in year 2009 compared to N1.1 billion in year 2008 resulted in N378 million Loss After Tax (LAT).


In moving forward, the Group Chairman informed shareholders that in line with Cornerstone’s determination to provide world class insurance services, the company has concluded its technical partnership arrangements with TA Holdings of Zimbabwe, a company with a Pan African vision. “TA Holdings currently has insurance operations in Zimbabwe, Botswana and Uganda” he affirmed.


He further informed investors of the company that a new Managing Director/Chief Executive Officer (MD/CEO), Mr. Livingstone Magorimbo who resumed in office February 01 2010 has brought his wealth of strong professional experience and international exposure to the Insurance Company, “which will no doubt strengthen the Cornerstone’s leadership. This partnership is expected to yield significant results in the years ahead” he said.


As part of strategies to bring the company back to profitability, Sulaiman said that sales, distribution and product development capabilities are being strengthened as Cornerstone extend its frontiers to the retail segment of the insurance market.


“Accordingly, we are consolidating and expecting our Agency networks, exploring bancassurance and other strategic distribution alliances and developing simple and value-based consumer insurance products to penetrate the market. We are also deepening our relationship with Brokers to ensure a more mutually beneficial relationship” the Group Chairman affirmed.


He also confirmed to shareholders, that in pursuance of growth, Cornerstone has established an Islamic Insurance (Takaful) division (Halal Takaful Nigeria) to offer insurance products and services to the huge Muslim segment of the insuring public.


“Halal Takaful offer family (Life Assurance) and general Takaful. We have secured the necessary approvals from National Insurance Commission (NAICOM) for our Shariah complaint products” he said.








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