Shareholders of Cornerstone Insurance Plc have advised the board of directors to exercise caution and avoid incidents that may lead to paying penalties to regulators.
The advice was given during the company’s 33rd Annual General Meeting (AGM), where the shareholders also approved the payment of 27 kobo dividend for the financial year ended December 31, 2024.
However, some shareholders expressed concerns about the sustainability of the company’s current performance, citing the significant contribution of foreign exchange gains to the company’s profit during the period.
Responding to the shareholders’ questions, Chairman of the company, Mr. Segun Adebanji, said, “We are ready to face the future with confidence,” while noting that other suggestions are well taken.
They asked the board to outline its plan in case there are no more foreign exchange gains in the future.
The shareholders also seek to know the company’s preparedness for the projected $1 trillion economy by the federal government, which may require insurance companies to raise fresh capital.
They sought assurance from the board that the company is gearing up to meet the challenges and opportunities that come with this economic growth.
The board needs to demonstrate its ability to navigate the complexities of the insurance industry in a volatile economic environment,” a shareholder said.
The shareholders’ concerns highlight the need for Cornerstone Insurance Plc to develop a robust strategy to sustain its performance and meet the evolving demands of the industry.
