Cornerstone Insurance's profit for 2025 dropped by more than half, relative to 2024's level. This significant decline was largely due to the drying up of windfall income from foreign exchange gains.

The latest audited earnings report showed that post-tax profit fell by 54.6 per cent. Net gain from foreign exchange, a major driver of profit in 2024, shifted from a positive N30.8 billion to a negative position of -N6.1 billion in 2025.

Nigeria's currency reforms, including the devaluation of the naira, led to a 70 per cent slump in the local unit's value against the dollar between 2024 and 2025. This had previously boosted Nigerian banks and underwriters holding foreign currency-denominated securities when converted to naira.

Despite the profit decline, Cornerstone Insurance saw its insurance revenue rise to N51.7 billion in 2025, an increase of 33.6 per cent. This growth was primarily attributed to increased income from its non-life business.

Insurance service expense also eased by 9 per cent to N23.2 billion, which helped to boost the company's insurance service result. However, profit before tax stood at N8.5 billion in 2025, a notable decrease from N28.2 billion in 2024.

Business Unbundling Initiated

This month, Cornerstone Insurance announced the commencement of a process to split its general insurance and life insurance businesses into independent entities. This move aligns with the Nigeria Insurance Industry Reform Act 2025, which abolished the composite insurance business structure within the country's insurance industry.

Under the terms of this unbundling, eligible assets and existing policies of the general insurance business will be transferred to FIN Insurance Company Limited, an existing subsidiary of Cornerstone Insurance. Similarly, the eligible assets and policies of Cornerstone Insurance's life business will be transferred to Cornerstone Life Assurance Limited.