Cornerstone Insurance Plc has commenced a major corporate restructuring exercise to separate its life and general insurance operations in compliance with the provisions of the Nigerian Insurance Industry Reform Act 2025. Doing Business Guide
In a regulatory notification to the Nigerian Exchange Limited (NGX), the Insurance giant disclosed that the separation will be implemented through a Scheme of Arrangement involving Cornerstone Insurance Plc, its wholly owned subsidiary, Cornerstone Life Assurance Limited, and FIN Insurance Company Limited, in which it holds a 96.68% equity stake.
The restructuring, being undertaken under Section 711 of the Companies and Allied Matters Act (CAMA) 2020, will see Cornerstone Insurance transfer its life insurance assets, liabilities, and undertakings to Cornerstone Life Assurance, while its non-life insurance assets, liabilities, and operations will be transferred to FIN Insurance.
Upon completion of the transaction, the group is expected to adopt a holding company structure comprising Cornerstone Holdings Plc.
This entity will emerge from the renaming of Cornerstone Insurance Plc and remain listed on the Nigerian Exchange alongside Cornerstone Life Assurance Limited, Cornerstone General Insurance Limited (the renamed FIN Insurance Company Limited), and Hilal Takaful Nigeria Limited, the group’s Islamic insurance subsidiary.
The company noted that it has received a “No Objection” from the Securities and Exchange Commission (SEC) to proceed with the Scheme.
However, the transaction remains subject to approvals from shareholders of the affected entities at separate Court-Ordered Meetings, as well as final sanction by the Federal High Court.
According to the company, the detailed terms of the restructuring will be set out in the Scheme Document, which will be distributed to shareholders following the court’s approval to convene the required meetings.
The proposed restructuring comes at a pivotal period for Nigeria’s insurance industry, as operators intensify efforts to comply with the recapitalisation requirements of the Nigerian Insurance Industry Reform Act 2025 ahead of the July 2026 regulatory deadline.
The separation of Cornerstone Insurance’s life and non-life businesses is expected to position the group to comply with the new capital framework. Nigerian Exchange Updates
Cornerstone Insurance advised shareholders and the investing public to exercise caution when trading in the company’s shares pending the completion of the Scheme of Arrangement.