CONERSTONE GETS NOD TO ACQUIRE FIN INSURANCE

The shareholders of Cornerstone Insurance Plc have authorised the board to acquire 3.3 billion ordinary shares of Fin Insurance Company Limited, which will make Cornerstone a sole owner of the insurance entity.

The resolution to this effect was unanimously passed by the shareholders during the 22nd Annual General Meeting of the company in Lagos recently.

Cornerstone Group Chairman, Adedotun Sulaiman, said the company believes strongly that the Nigerian insurance industry remains fragmented and there continues to be a need for consolidation of the industry to fast track building scale and capacity.

Sulaiman stated that “in addition to providing a significant boost in the balance sheet size of the enlarged Cornerstone, our partner, Fin Insurance Company Limited, creates complimentary values in such areas as distribution channels, geographical spread and product opportunities, among others.”

According to him, the company continues to make strides in the execution of its five year strategic plan particularly in the area of retail distribution and Islamic insurance using its Takaful window. “We are achieving this by forming value-adding and innovative partnerships and alliances across different sectors.”

The analysis of the financial statement presented at the yearly meeting showed that the company grew its Gross Premium by 15 per cent from N4.6 billion in 2012 to N5.3 billion in 2013. However, the company’s underwriting result decreased by 30 per cent from N1.2 billion in 2012 to N866 million in 2013. This was due to a 15 per cent increase in reinsurance expenses which grew from N1.6 billion in 2012 to N1.9 billion in 2013 and net claim expenses that went up by 18 per cent from N985 million in 2012 to N1.1 billion in 2013.

Its profit after tax increased from N544 million in 2012 to N870 million in 2013, while its total asset grew by 16 per cent from N12 billion to N14 billion during the same period under review.

Commenting, the Group Managing Director, Ganiyu Musa stated that “Cornerstone Insurance Plc will continue to build on the strength of the Cornerstone people and the commitment to her core values including strong ethics and innovation to make Cornerstone the insurance of choice in Nigeria”.

By Sola Alabadan