Cornerstone Insurance Profit Surges 184.41% on FX Gains

Cornerstone Insurance Plc posted record profit on the back of foreign exchange revaluation gains as the insurer continues to benefit from improved economic activities.

For the first six months through June 2024, Cornerstone Insurance’s profit after tax (PAT) surged by 184.41 percent to N27.87 billion from N9.79 billion as at June 2023.

Net profit margin (NPM) rose to 164.52 percent in the period under review from 101.45 percent the previous year.

Analysis by MoneyCentral shows that profit figure is 1.64 times sales, a rare feat by a firm, as it indicates that the company is able to translate top line impressive performance into bottom-line (profit) growth.

Like its peer rival, Cornerstone is a beneficiary of the devaluation of the currency which led to windfall in the form of a 104.14 percent upsurge in foreign exchange revaluation gains to N27.60 billion as at June 2024.

Revenue spiked by 75.54 percent to N16.94 billion in the period under review from N9.65 billion as at June 2023.

The stellar performance means shareholders will be paid bumper dividends, but foreign exchange gains are a one-off event that do not recur at all times.