No Dividend For Cornerstone Insurance Shareholders, Despite N3bn 2018 Profit

Finally, directors of Cornerstone Insurance Plc, on Monday presented its audited financials for the year ended December 31, 2018, a major highlight of which was the return to profit.
When the shareholders assemble for their annual general meeting, payment of the dividend will still not however be among what the board would put before them for a vote. This is given the company’s continued negative retained earnings, even as it has dropped significantly from N4.098bn in the corresponding period of 2017 to N1.921bn.
Gross premium written rose 26% from N9.201bn in 2017 to N11.57bn; while gross premium income stood at N11.353bn from N9.18bn; following which net premium income stayed flat at N5.758b from N5.463bn; with other income dropping by 21% from N2.703bn in the prior year to N2.13bn. Total income, therefore, declined from N8.166bn to N7.889bn.
Gross claims incurred dropped to N4.64bn from N7.744bn; insurance claims recoveries from reinsurers rose to N2.204bn from N1.249bn, following which net claims expenses tumbled from N6.384bn to N2.436bn. Underwriting expenses stood at N1.751bn from N1.776bn; other expenses dropped by 88% at N416.831m, compared to the N3.432bn reported in the prior year.
Total benefits, claims and other expenses dropped 60% from N11.592bn to N4.604bn.
The company, therefore, reported profit before tax of N3.284bn as against the previous N3.426bn loss; while after-tax profit for the year came to N3.017bn as against the N3.362bn loss in 2017.

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