Cornerstone Insurance Plc has announced its intention to unbundle its composite business structure, separating its life and general insurance portfolios into distinct corporate entities as a direct response to the Nigeria Insurance Industry Reform Act 2025.
- +Cornerstone Insurance splits under new Reform Act
The company made this known in a regulatory disclosure on the Nigerian Exchange Limited on Friday.
The company made this known in a regulatory disclosure on the Nigerian Exchange Limited on Friday.
The Reform Act 2025 abolished composite insurance structures in the country, mandating a strict legal separation between life and non-life insurance business operations.
Under the proposed restructuring framework, Cornerstone’s general insurance assets and existing policies will be fully transferred to its subsidiary, FIN Insurance Company Limited, while its life insurance business and portfolios will transition over to Cornerstone Life Assurance Limited.
The company stated, “This strategic separation ensures full compliance with the law while positioning our specialised arms for sharper market focus.
“Following the seamless implementation of the Scheme of Arrangement, both FIN Insurance and Cornerstone Life Assurance will operate as distinct, robust subsidiaries under the parent brand.”
The transition, which is being executed via a formal Scheme of Arrangement under the provisions of the Companies and Allied Matters Act 2020, requires regulatory, shareholder, and judicial approvals. Management expects the unbundling process to be completed within the third quarter of 2026.
The insurer, however, assured customers concerned about how the corporate shakeup might affect their coverage that operations would continue without disruption.
“All current policyholders are explicitly notified that the terms, conditions, and protections of their existing policies remain entirely valid and in force,” the corporate notice emphasised.
It added, “Further details of the Scheme will be transparently communicated to shareholders as the remaining regulatory and judicial approvals are secured.”
To maintain transparency throughout the transition, Cornerstone has opened its corporate books for review. Policyholders are invited to inspect the official Scheme documents without any administrative fees at the firm’s principal and branch offices from Friday, 12 June 2026 to Friday, 3 July 2026.
This structural unbundling is part of a wider industry shakeup triggered by the landmark NIIRA 2025. Designed to align Nigeria’s insurance market with global best practices, the Act mandates the separation of life and non-life entities to foster greater financial solvency.
Under parallel filings with the NGX, the listed parent entity will transition into a holding company structure tentatively named Cornerstone Holdings Plc, supervising its decoupled specialised subsidiaries alongside its Islamic insurance arm, Hilal Takaful Nigeria.
