Cornerstone Insurance Plc reported a more than half decline in its profit for 2025, relative to 2024 levels. This significant drop was primarily due to the cessation of windfall income from foreign exchange gains.

The latest audited earnings report revealed that post-tax profit fell by 54.6 per cent. This was largely influenced by a swing in net gain from foreign exchange, which moved from a positive N30.8 billion in 2024 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 initially provided a substantial boost to Nigerian banks and underwriters holding foreign currency-denominated securities.

Despite the profit decline, Cornerstone Insurance saw its insurance revenue rise to N51.7 billion during the period under review, marking a 33.6 per cent increase. This growth was attributed to increased income from its non-life business operations.

Furthermore, insurance service expense eased by 9 per cent to N23.2 billion, which positively impacted the company's insurance service result. However, profit before tax for 2025 stood at N8.5 billion, a considerable reduction from N28.2 billion recorded in 2024.

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

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.