L-R: Ganiyu Musa, Group Managing Director/CEO; Chairman of the Board, Segun Adebanji; Chidinma Onwubere, Company Secretary.
BY NKECHI NAECHE- ESEZOBOR-The shareholders of Cornerstone Insurance Plc have given approval to a proposed plan to increase the company’s share capital from N7.5billion to N9.250billion. This is part of the resolutions that were reached during the insurance firm’s virtual 28th Annual General Meeting (AGM) held yesterday in Lagos.
L-R: Ganiyu Musa, Group Managing Director/CEO; Segun Adebanji, Chairman of the Board.
The Shareholders also approved the board’s proposed issuance of bonus shares to its shareholders. This is part of the insurer’s plans to meet its recapitalisation mandate.
Speaking at the virtual AGM the chairman of the company, Segun Adebanji, said that the bonus shares will be issued in the proportion of seven new shares for every thirty shares of fifty kobo each, already held by shareholders.
“The transfer of One Billion, Seven Hundred and Eighteen Million (₦1,718,000,000) from the Company’s share premium account to the share capital account by issuing bonus shares in the proportion of seven (7) new shares of fifty Kobo each for every thirty (30) existing shares of fifty kobo each, to achieve the Company’s recapitalization plan.”
Speaking further on its financial performance for 2019, the chairman said that despite the challenging operating environment the company was able to sustain growth in all its financial indices as its profit before tax rose by 22 from N3,284 billion in 2018 to N4,013 billion in 2019.
While the company’s profit after tax rose to N4,108 billion in 2019 when compared to N3.017 billion repotted in 2018; this representing a growth of 36 percent.
Gross premium written also appreciated by 13 percent from N11.570 billion in 2018 to N13.058 billion in 2019.
He said premium from life insurance accounted for 32 percent of GPW, an increase from 25 pert in the previous year. The largest contributor to general business gross premium written were bond, engineering and accident ( N2.12billion), oil and gas (N2.04billion) and motor (N1.36billion).
He said” our continued growth in special risk lines especially in the power, aviation and oil and gas sector, is a testament to the confidence our customers and partners have in our technical underwriting expertise which we will continue to strengthen,” he assured.
He further said that gross premium income also increase to N13.296 billion from N11.353billion in 2018; showing an increase of 17 percent.
