CORNERSTONE INSURANCE : AUDITED FINANCIAL STATEMENT FOR 2022

Cornerstone Insurance Plc

ANNUAL REPORT

31 DECEMBER 2022

Contents
Page
Corporate Information	2
Consolidated Results at a Glance	4
Directors' Report	5
Corporate Governance Report	14
Risk Management Declaration	19
Report of the Statutory Audit Committee	20
Statement of Directors' Responsibilities	21
Statement of Corporate Responsibility	22
Independent Auditor's Report
Company Information and Accounting Policies	23
Critical Accounting Estimates and Judgment	51
Consolidated and Separate Statements of Financial Position	53
Consolidated and Separate Statements of Profit or Loss and other Comprehensive Income	54
Consolidated and Separate Statements of Changes in Equity	55
Consolidated and Separate Statements of Cash Flows	57
Life Business Revenue Account	58
Life Deposit Administration Revenue Account	59
Non-life Business Revenue Account	60
Segment Information	61
Notes to the Financial Statements	65
Other National Disclosures:
Value Added Statements	115
Financial Summary	116
Chain ladder table	118

1

Cornerstone Insurance Plc

Annual Report 31 December 2022

Corporate Information

Directors

Company SecretaryRegistered OfficeCorporate Head Office

Mr. Segun Adebanji Mr. Ganiyu Musa Mr. Steve Iwenjora Mr. Ekwunife Okoli

Mrs. Elizabeth Amadiume Dr. Ogechi Adeola

Mr. Chidiebere Nwokeocha Mr. Stephen Alangbo *Appointed on 1 July, 2022

PAC Solicitors

10, Canaanland Street, Off Whitesands Avenue, Lekki Phase 1,

Lagos.

Cornerstone Insurance Plc 136, Lewis Street,

Lagos Island Lagos.

Tel: [phone]

Website:www.cornerstone.com.ng

Cornerstone Insurance Plc

21, Water Corporation Drive, Victoria Island,

Lagos

Tel: [phone]

Website: www.cornerstone.com.ngE-mail:[e-mail]

Registrars

Lighthouse Registrars Limited,

2/4 Davies Street,

Marina,

Lagos.

Auditor

KPMG Professional Services KPMG Tower,

Bishop Aboyade Cole Street, Victoria Island,

P.M.B 40014, Falomo, Ikoyi, Lagos.

Website:www.kpmg.com/ng

Bankers

Access Bank Plc

First Bank of Nigeria Limited Standard Chartered Bank Limited Guaranty Trust Bank Plc

Wema Bank Plc

United Bank for Africa Plc Stanbic IBTC Bank Plc

First City Monument Bank Limited Heritage Bank Plc

Polaris Bank Limited Union Bank PlcChairman

Group Managing Director/CEO Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Executive Director

Executive Director*

2

Cornerstone Insurance Plc

Annual Report 31 December 2022

Zenith Bank Plc

Accion Microfinance Bank Ecobank

Fidelity Bank Plc

FSDH Merchant Bank Limited Keystone Bank

Sun Trust Bank Sterling Bank Plc

ActuaryProperty ValuersCustodian for Annuity FundLagos BranchesOther Branches

NAICOM Number TIN Number

O & A Hedge Actuarial Consulting Suite 21, 1st Floor, Motorways Center Alausa, Ikeja,

Lagos. FRC/2019/00000012909

Funsho Oladimeji & Company

4, Ikosi Road, Off Kudirat Abiola Way, Oregun, Ikeja,

Lagos. FRC/2012/0000000000109

John Odiba & Partners

29, Majia Plaza, Opposite Al-Ansar Centre for Comprehensive Education, Sahara Estate, Gwarimpa,

Abuja. FRC/2022/00000014211

Access Pension Fund Custodian Limited 18, Ahmadu Bello Way,

Victoria Island,

Lagos.

• 1.) 136, Lewis Street, Lagos. Tel: [phone]

• 2.) 6, Adeniyi Jones Avenue, (Opp. Wahum) Ikeja, Lagos. Tel: [phone]

• 3.) Polysonic Mall (2nd floor), 42/44, Warehouse Road, Apapa, Lagos. Tel: [phone]

• 4.) 191, Herbert Macaulay Street, Yaba. Tel: [phone]

• 1.) 67, Aboderin Layout, Oni & Sons Area, Ring Road, Ibadan. Tel: [phone]

• 2.) 222, Aba/Portharcourt Road, Portharcourt, Rivers State. Tel: [phone]

• 3.) 34, Gana Street, Maitama, Abuja. Tel: [phone]

• 4.) 103, Hadejia Road, Fagge, Kano. Tel: [phone]

• 5.) Km 4, Refinery Road, Thomas House, Ekpan, Warri, Delta State.

Tel: [phone]

6.) Jay-Cee Plaza, Otiotio Road, Yenezue - Cene Yenegoa, Bayelsa State Tel. [phone]

RC No

RIC 008 00842273-0001 163170

3

Cornerstone Insurance Plc

Annual Report 31 December 2022

Consolidated Results at a Glance

In thousands of naira

As at 31 December	2022	2021	Change
Financial Position
Cash and cash equivalents	10,885,696	14,402,330	(3,516,634)
Financial assets	23,672,930	18,563,816	5,109,114
Trade receivables	607,342	300,788	306,554
Other receivables and prepayments	774,064	1,273,809	(499,744)
Reinsurance assets	7,710,640	9,369,713	(1,659,073)
Deferred acquisition cost	1,017,300	853,729	163,571
Investment in joint venture	510	510	-
Deferred tax assets	861,211	861,211	-
Investment property	680,000	625,000	55,000
Property and equipment	2,977,613	1,838,314	1,139,299
Intangible assets	6,266	11,805	(5,539)
Statutory deposit	1,200,000	1,200,000	-
Total assets	50,393,572	49,301,025	1,092,548
Insurance contract liabilities	19,545,226	19,736,834	(191,608)
Investment contract liabilities	3,817,583	3,735,317	82,266
Trade payables	2,623,056	2,739,704	(116,648)
Deferred commission income	644,536	981,777	(337,241)
Other payables and accruals	942,956	1,058,081	(115,125)
Income tax payable	462,899	475,575	(12,676)
Deferred tax liabilities	331,604	88,026	243,578
Employee benefit obligations	19,493	13,553	5,940
Total liabilities	28,387,353	28,828,867	(441,514)
Share capital	9,083,196	9,083,196	-	-
Share premium	183,165	183,165	-	-
Treasury shares	(67,130)	(67,130)	-	-
AFS Fair value reserve	280,901	387,889	(106,988)	(28)
Contingency reserve	5,559,616	4,735,167	824,449	17
Retained earnings	6,653,545	5,855,597	797,948	14
Shareholders' funds	21,693,293	20,177,884	1,515,409	8
Non-controlling interest	312,926	294,274
Total equity	22,006,219	20,472,158	1,534,061	7
Total liabilities and equity	50,393,572	49,301,025	1,092,547	2
Profit or Loss and Other Comprehensive Income
In thousands of naira
For the year ended 31 December	2022	2021	Change	%
Gross premium written	22,246,121	20,920,553	1,325,568	6
Gross premium income	21,677,723	17,792,619	3,885,104	22
Net premium income	8,869,471	8,666,266	203,205	2
Other income	5,753,011	4,660,706	1,092,305	23
Total income	14,622,482	13,326,972	1,295,510	10
Claim expenses (net)	(3,368,025)	(2,595,128)	(772,897)	30
Underwriting expenses	(3,763,925)	(3,048,827)	(715,098)	23
Other expenses	(4,571,754)	(3,942,010)	(629,744)	16
Total benefits, claims and other expenses	(11,703,704)	(9,585,965)	(2,117,739)	22
Profit before tax	2,918,778	3,741,007	(822,229)	(22)
Income tax (credits)/ expense	(302,457)	(202,639)	(99,818)	49
Profit for the year	2,547,041	3,535,935	(988,894)	(28)

%

(24)

28

102

(39)

(18)

19

0

0

9

62

(47) - 2

(1)

2

(4)

(34)

(11)

(3) -

44 (2)

4