Cornerstone Insurance Plc strong solvency margin ratio instils confidence in the ability of the insurer to pay claims, meet future contingencies and business growth plans, bolstering investors’ confidence about financial stability.
The audited financial statement of the company for the year ended December 2025 shows it recorded a solvency margin ratio of 617 percent, according to MoneyCentral calculations.
Under the Nigeria Insurance Commission (NAICOM) Solvency II regime, a regulatory framework for the insurance industry, insurers must maintain a solvency capital requirement of at least 100 percent.
A higher ratio indicates the insurer has the financial strength to pay its claims and faces no threat of going concern.
The insurer is well capitalised, which gives it the leeway to meet the National Insurance Commission (NAICOM) new capital requirement needed to strengthen the sector’s financial capacity and ability to underwrite larger domestic risk.
Cornerstone is carrying out some restructuring such as separating its composite operations into distinct entities.
However, the insurer suffered a 54.61 percent drop in profit after tax (PAT) to N11.75 billion as at December 20265, caused by foreign exchange revaluation losses as there is gradual stability in the foreign exchange market.
In short, Cornerstone made N30.83 billion in foreign exchange gains in 2024, which compares with the loss of N6.12 billion it recorded this year.
Insurance service revenue was up 33.60 percent to N51.65 billion in December 2025 from N38.66 billion as at December 2024.
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