Cornerstone Insurance Plc has projected a profit before tax (PBT) of N4.82 billion for the first quarter of 2026, reflecting strong expectations of improved profitability driven by stable operating conditions, sustained investment income and efficient service delivery.
The projection was disclosed in the company’s financial forecast filed with the Nigerian Exchange. Cornerstone reported an actual PBT of N1.86 billion in the first quarter of 2025, making the 2026 forecast a 158 per cent increase year-on-year.
Insurance service expenses are expected to rise to N10.49 billion in the period under review, up from N7.45 billion recorded in Q1 2025, representing a 40.08 per cent increase. Net expenses from reinsurance contracts held are projected at N3.43 billion, resulting in an insurance service result of N5.02 billion, compared with N3.27 billion in the corresponding period of 2025.
Insurance revenue is forecast to reach N18.94 billion in Q1 2026, significantly higher than the N11.19 billion posted in the same period last year. The growth is attributed to improved underwriting performance and higher premium volumes across the company’s insurance portfolio.
Investment income is expected to remain robust at N2.43 billion, slightly below the N2.50 billion recorded in Q1 2025. After accounting for insurance finance expenses of N199.15 million and reinsurance finance income of N72.67 million, Cornerstone’s financial result is projected at N2.16 billion.
The insurer also expects to generate net cash of N3.13 billion from operating activities, supported by stronger underwriting cash inflows and improved premium collection. Cash inflow from investing activities is projected at N2.42 billion, while financing activities are expected to result in a net cash outflow of N236.22 million.
As a result, the group’s cash and bank balances are forecast to increase to N26.92 billion at the end of Q1 2026, from N20.79 billion at the beginning of the period, further strengthening liquidity and balance sheet resilience.
Cornerstone Insurance, which has a strong focus on the motor and general insurance segments, continues to benefit from solid capital adequacy and prudent risk management practices.
Investor confidence appears to be improving, as the company’s stock has gained 9.9 per cent year-to-date, having opened the year at N5.96. The performance marks a positive start to 2026 for the insurer, following a strong rally of about 82 per cent by the end of 2025.
