Operators record improved performance on NSE
Amid the swoop on the Nigerian Stock Exchange (NSE) by at least 10 underwriting companies struggling for recognition from shareholders to enhance their recapitalization chances, Cornerstone Insurance Plc has taken a positive stand as it emerged among the best stocks traded in 2019.
Cornerstone Insurance Plc emerged with performing equity growth of 223.86 per cent, while tailing far behind as the only other listed insurer is Royal Exchange Assurance with 36.36 per cent growth performance.
For the current recapitalisation exercise, Cornerstone appears to have perfected its processes as recent revelations showed a stable capital outlook to meet the N18 billion target for composite business.
The Managing Director/Chief Executive Officer, Ganiyu Musa, said Cornerstone was in a comfortable financial position to scale through the exercise, saying that the disposal of one of its fixed assets had further increased the liquidity of the insurance company to meet and surpass the new capital position for its business.
Speaking on possible plans to acquire any company in the process, Musa said there were preliminary discussions with two or three underwriting companies to make Cornerstone brand a stronger one post-recapitalisation.
He, however, said getting any other company into its fold would be determined by certain factors including similarities in operational process.
The insurer came out of its loss position of N1.7 billion in 2017 to N1.8 billion profit in 2018, even as the 2019 profit outlook was already showing sign of higher profit from that of the previous year, judging from its 2019 third quarter report.
The company, he said, was fulfilling its civic obligation of paying genuine claims as and when due, investing in information technology to give customers the best and seamless services while working towards ensuring that shareholders get good returns on investments.
According to him, the fund pooled in the recapitalisation will enable operators undertake good underwriting, make good investment, deploy robust technology and develop human capital.
Also commenting, the Chief Operating Officer, InvestData Limited, Ambrose Omordion, said the ongoing insurance recapitalisation contributed to the growth posted by Cornerstone Insurance and Royal Exchange.
He noted that other factors that contributed to the growth posted by other stocks included new trend in technology, market sentiment, increased earnings capacity and market forces.