Modestus Anaesoronye
Insurance companies closed the 2025 financial year with stronger top-line growth and resilient underwriting performance, but headline profitability was constrained by foreign exchange (FX) losses and rising claims costs.
An analysis of the audited results of 14 quoted insurers filed with NGX Limited shows that aggregate insurance revenue rose from N541.28 billion in 2024 to N655.02 billion in 2025, reflecting improved premium mobilisation and business expansion across life and non-life segments.
However, profit before tax (PBT) was largely flat. Combined PBT stood at N87.96 billion in 2025, compared with N87.55 billion in 2024, showing how macroeconomic pressures diluted the gains from core operations.
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Industry analysts attribute the muted profit growth primarily to currency volatility during the year, as the naira experienced sharp fluctuations. FX losses affected insurers through the revaluation of foreign currency-denominated assets and liabilities, volatility in investment income, and translation impacts on consolidated financial statements. Rising claims and reinsurance costs further weighed on margins.
Company-by-company performance reflects this broader trend, which Ayo Abiola said may affect dividend payout this year.
The 2025 results highlight a sector that remains fundamentally resilient, with strong premium growth and improving underwriting discipline, said Abiola, an insurance broker.
According to him, earnings volatility linked to currency movements and higher claims costs continues to distort headline profitability, masking underlying operational improvements across much of the industry.
At AXA Mansard Insurance Plc, revenue increased to N94.25 billion in 2025 from N84.44 billion in 2024. Yet PBT declined to N14.62 billion from N17.85 billion. Management explained that 2024 group earnings were boosted by a one-off FX gain of N27 billion, compared with an FX loss of N0.9 billion in 2025.
Excluding this non-recurring impact, adjusted PBT rose 46 per cent year-on-year to N6.98 billion, indicating stronger underlying performance, says Ngozi Ola-Israel, the chief financial officer at AXA Mansard Group.
AIICO Insurance Plc grew revenue to N137.66 billion in 2025 from N108.35 billion in 2024, while PBT improved to N19.88 billion from N15.92 billion. However, FX dynamics shifted sharply, with a N2.65 billion FX loss in 2025 compared with an N11 billion FX gain in 2024.
Cornerstone Insurance Plc posted revenue of N43.67 billion, up from N30.37 billion in 2024, but PBT fell significantly to N7.13 billion from N17.67 billion. The decline followed an FX loss of N1.9 billion in 2025 versus a substantial N20.24 billion FX gain in 2024.
At Mutual Benefits Assurance Plc, revenue rose to N50.29 billion from N37.58 billion, while PBT increased to N11.03 billion. The company recorded an FX loss of N515.25 million in 2025, compared with an FX gain of N4.23 billion in 2024.
Sunu Assurances Nigeria Plc reported revenue growth to N21.63 billion from N15.27 billion, but PBT declined to N2.15 billion from N4.28 billion, reflecting margin pressures.
LASACO Assurance Plc moved from a profit of N1.6 billion in 2024 to a loss of N2.98 billion in 2025, despite revenue rising to N29.98 billion from N22.82 billion.
Guinea Insurance Plc recorded modest revenue growth to N2.93 billion from N2.84 billion. Profitability was pressured by underwriting and reinsurance costs, although FX movements provided limited gains compared with the windfall effects recorded in 2024.
Sovereign Trust Insurance Plc grew revenue to N44.62 billion from N40.45 billion, but PBT declined sharply to N1.03 billion from N2.65 billion, reflecting higher underwriting and reinsurance expenses as well as FX-related pressures.
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Linkage Assurance Plc increased revenue to N27.59 billion from N22.23 billion. However, an FX loss of N745 million in 2025, compared with a N2.6 billion FX gain in 2024, contributed to a decline in PBT to N4.32 billion from N5.28 billion.
NEM Insurance Plc recorded one of the strongest revenue expansions, rising to N146.7 billion from N96.65 billion. Nevertheless, PBT fell to N27.92 billion from N33.52 billion due to FX pressures and higher operating costs.
Regency Alliance Insurance saw profit decline to N695 million from N2.50 billion, despite revenue growth to N9.60 billion from N7.3 billion.
For Veritas Kapital Assurance Plc, 2025 marked a recovery year. The company returned to profitability with N6.62 billion in PBT, compared with a loss of N628 million in 2024, even as revenue eased slightly to N22.58 billion from N23.31 billion.
Universal Insurance Plc delivered improved results, growing revenue to N20.96 billion from N13.76 billion. With limited FX exposure, PBT rose to N4.63 billion from N2.60 billion in 2024.
Coronation Insurance Plc increased revenue to N47.48 billion in 2025 from N35.91 billion in 2024, but PBT declined to N5.27 billion from N6.23 billion, largely reflecting FX-related adjustments.
Modestus Anaesoronye
Modestus Anaesoronye is a leading Nigerian financial journalist with over two decades of experience reporting on the insurance and pension sectors across Nigeria and West Africa. He has held key editorial positions at major national media outlets, including The Comet, The Nation, and Financial Standard, and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd.
A widely travelled reporter, he has covered industry developments in more than 14 countries across Africa and Asia.
Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies, including PensionScope and the Pension Fund Operators Association of Nigeria (PenOp), among others.
Source: Businessday.ng | Read the Full Story…
