Cornerstone Insurance splits under new Reform Act

Cornerstone Insurance Plc is initiating a significant restructuring, unbundling its composite business to create distinct entities for its life and general insurance portfolios. This strategic move is a direct response to the Nigeria Insurance Industry Reform Act 2025, which mandates a clear legal separation between life and non-life insurance operations.

Under the proposed framework, Cornerstone's general insurance assets and existing policies will be transferred to its subsidiary, FIN Insurance Company Limited. Concurrently, its life insurance business and portfolios will transition to Cornerstone Life Assurance Limited. The company emphasizes that this separation will enable its specialized arms to achieve a sharper market focus while ensuring full compliance with the new legislation.

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This strategic separation ensures full compliance with the law while positioning our specialised arms for sharper market focus.

The restructuring process, executed through a formal Scheme of Arrangement, requires approvals from regulators, shareholders, and the judiciary. Management anticipates the unbundling to be finalized by the third quarter of 2026. Cornerstone assured policyholders that their existing coverage terms and conditions will remain valid and unaffected by the corporate changes.

Following the separation, the listed parent entity is expected to operate as a holding company, tentatively named Cornerstone Holdings Plc. This holding company will oversee its specialized subsidiaries, including FIN Insurance, Cornerstone Life Assurance, and its Islamic insurance arm, Hilal Takaful Nigeria. Policyholders have the opportunity to inspect the official Scheme documents at the firm's offices between June 12 and July 3, 2026.

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All current policyholders are explicitly notified that the terms, conditions, and protections of their existing policies remain entirely valid and in force.