Sep 5 (Lagos) - Cornerstone Insurance Plc posted its 2011 full year audited financial results. For the Group, Gross premium underwritten increased to N 4.27 billion from N 4.02 billion in 2010. Commission earned increased to N 171 million in 2011 from N 131 million in 2010. Reinsurance costs increased to N 919 million in 2011 from N 605 million in 2010.
Claims paid in 2011 reduced to N 724 million from N 776 million in 2010. Underwriting expenses did not change much at N 577 million. Total expenses fell for the group to N 1.30 million in 2011 down from N 1.33 billion in 2010.
Profit after tax declined sharply to N 166 million in 2011 from N 399 million in 2010. Thats a decline of 58%. Total assets of the group stood at N 11.49 billion as at Dec 31 2011. Shareholders funds increased marginally to N 6.166 billion as at end of 2011.
CORNERSTONE plans to ask shareholders to approve a proposal to increase its share capital to N 10 billion from N 5 billion currently. 10 billion new shares worth 50 kobo each will be issued if the proposal is approved by the shareholders.
CORNERSTONE will not pay a dividend. Company's shares currently trade at 50 kobo per share at the Nigerian Stock Exchange in Lagos. The shares are in very low demand as there are days when no shares get traded. These shares have been at their lowest level for two years now. Going by these financial results, these shares will probably stay at 50 kobo in the short term. The Company's AGM will be held on Sep 28 in Onikan, Lagos.
reporting for easykobo.com on Wednesday, Sep 5 2012 from Lagos, Nigeria