NIIRA: Cornerstone Insurance begins split of Life and General Insurance businesses

Cornerstone Insurance Plc has commenced a major corporate restructuring exercise aimed at separating its life and non-life insurance operations in compliance with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The development was disclosed in a notice dated June 10, 2026, signed by the company’s secretary, PAC Solicitors, and submitted to the Nigerian Exchange (NGX).

Under the proposed restructuring, Cornerstone Insurance will transfer its life insurance assets, liabilities, and business operations to its wholly owned subsidiary, Cornerstone Life Assurance Limited.

Its general insurance business, including related assets and liabilities, will be transferred to FIN Insurance Company Limited, in which the company holds a 96.68% equity stake.

What they are saying

According to the notice, the separation will be implemented through a Scheme of Arrangement in accordance with Section 711 of the Companies and Allied Matters Act (CAMA) 2020.

• “Cornerstone Insurance Plc hereby notifies Nigerian Exchange Limited and its esteemed stakeholders that, pursuant to the provisions of the Nigerian Insurance Industry Reform Act 2025, the Company has commenced the process for the separation of its composite operations under which the general and life insurance businesses are operated.” 

Cornerstone also disclosed that it has already received a “No Objection” from the Securities and Exchange Commission (SEC), a key regulatory milestone for the transaction.

Get up to speed  

The move follows the enactment of the Nigerian Insurance Industry Reform Act 2025, which mandates composite insurers to separate their life and non-life insurance businesses into distinct legal entities.

Founded in 1991 and licensed by the National Insurance Commission (NAICOM) to operate both life and general insurance businesses, Cornerstone Insurance has been one of Nigeria’s leading composite insurers.

The company is widely recognised as the first insurer in Nigeria to introduce regulator-approved general and family takaful products, as well as one of the pioneers of digital insurance services through its online insurance transaction platform.

More insights

Upon completion of the restructuring, the group is expected to operate under a new holding company structure comprising:

• Cornerstone Holdings Plc – the renamed parent company, which will remain listed on the NGX.
• Cornerstone Life Assurance Limited – responsible for life insurance operations.
• Cornerstone General Insurance Limited – the renamed FIN Insurance Company Limited, which will oversee non-life insurance operations.
• Hilal Takaful Nigeria Limited – the group’s takaful (Islamic insurance) business.

The company noted that the transaction remains subject to shareholder approval at separate court-ordered meetings for the affected entities, as well as final sanction by the Federal High Court.

A detailed Scheme Document outlining the full terms and conditions of the restructuring will be distributed to shareholders after the court authorises the meetings.

Pending completion of the process, Cornerstone advised investors to exercise caution when trading the company’s shares.

What you should know  

The restructuring comes against the backdrop of improved financial performance by the insurer.

• Cornerstone Insurance reported a 29.9% increase in revenue to N12.65 billion in the third quarter of 2025, compared to N9.74 billion recorded in the corresponding period of the previous year.
• Profit before tax surged by 970.2% to N1.40 billion, while profit after tax rebounded from a loss of N2.23 billion to a profit of N2.11 billion.

The company attributed the performance to stronger underwriting results, improved claims management, and disciplined operational execution. During the period, it paid N9.96 billion in claims, recorded N529 million in net investment income, and maintained total assets of N135.76 billion with shareholders’ funds of N67.88 billion.

The insurer also posted an investment yield of 4.18%, return on assets of 1.56%, and return on equity of 3.11%, underscoring its ongoing operational recovery and financial stability.