Ahead Industry Shake-up, 15 Others Declare 45% Drop in PBT to N78.77bn

Kayode Tokede 

On the back of the drive by insurance companies to meet the proposed minimum capital thresholds and hike in insurance service expenses, 15 listed insurance companies on the Nigerian Exchange Limited (NGX) declared N78.77 billion profit before tax in nine months of 2025, a decline of 45 per cent from N143.5 billion declared in nine months of 2024.

Also, the 15 companies posted N68.84 billion profit after tax during the period, about 45.9 per cent drop from N127.31billion in nine months of 2024.

Out of the 15 insurance companies, AIICO Insurance Plc, Veritas Kapital Assurance Plc, NEM Insurance Plc, and Universal Insurance Plc posted growth in profit before tax during the period.   

Specifically, AIICO Insurance declared N15.25 billion profit before tax in nine months of 2025, about 10.7 per cent increase over N13.78 billion in 2024, while Veritas Kapital Assurance posted a profit before tax of N4.88 billion, an increase of 64 per cent from N2.98 billion in 2024.

NEM Insurance announced N23.77 billion profit before tax, up by 52 per cent from N15.71 billion in 2024 while Universal Insurance reported N1.13 billion profit before tax in nine months of 2025, a significant increase of 87.3 per cent from N602.98 million in nine months of 2024.

LASACO Assurance Plc was the only company that  declared a loss of N404.22million in nine months of 2025 from N2.27 billion reported in 2024.  

The rising cost pressure, particularly from insurance service expenses and reinsurance costs impacted on  LASACO Assurance  profit generation in the period under review.  

The three major players in the insurance sector, AXA Mansard Insurance, Consolidated Hallmark Holdings, and Cornerstone Insurance, declared decline in profit before tax in nine months of 2025.

For instance, AXA Mansard Insurance announced N6.1 billion profit before tax during the period under consideration, about 82.3 per cent drop from N34.48 billion recorded in 2024, while Cornerstone Insurance posted N8.32 billion profit before tax, a decline of 68.7 per cent from N26.59 billion reported in nine months of 2024.

In addition, Cornerstone Insurance disclosed a profit before tax of N8.3 billion, a drop of 68.73 per cent from N26.59 billion declared in nine months  of 2024.

Despite challenges posed by the macroeconomic environment, THISDAY can report that, the 15 insurance companies generated N605.46 billion insurance revenue in nine months of 2025,  representing an increase of 34 per cent over N451.33 billion reported in 2024.

AXA Mansard Insurance led the chart as the highest  listed insurance company with insurance revenue , followed by  NEM Insurance.

As  AXA Mansard Insurance declared N120.53 billion insurance revenue 2025, about 23 per cent growth from N98.24 billion in 2024, NEM Insurance saw its insurance revenue at N107.44 billion, representingg an increase of 55 per cent from N69.5 billion in 2024.

Meanwhile, insurance companies’ major indicator on NGX continued to responded to the federal government’s new law requiring companies to raise fresh capital and making insurance for property and other assets mandatory.

This significant growth has outpaced the broader market, with the NGX All-Share Index rising by  71.47 per cent Year-till-Date as of October 31, 2025.

The new law is expected to transform the insurance industry, increasing insurance penetration and attracting strategic and foreign investors.

Capital market analysts noted that the Insurance sector in particular is expected to remain in focus, given its reform-driven outlook and recent price momentum.

Speaking on the reform, CardinalStone said, “In our view, these reforms are expected to reshape the competitive landscape of the industry, with the recapitalisation directive likely to pose challenges for the relatively smaller operators, given the existing market fragmentation amidst other structural bottlenecks.

“Hence, we could see a wave of industry consolidation through mergers and acquisitions, as less-capitalised firms seek to meet the new thresholds within the stipulated time frame. Insurers would be required to comply with the new capital requirements within 12 months of the law’s commencement, as stipulated by the National Assembly. However, we expect further regulatory guidance on implementation timelines, qualifying capital, and transitional provisions.”

In a different report, analysts  at Afrinvest Research stated that the global insurance industry in 2024 recorded its strongest topline performance in over a decade, with total premiums growing by 5.2 per cent y/y to $7.8 trillion, according to Swiss Re.

“This marked a significant recovery from the slower 2.3 per cent growth in 2023. The non-life segment expanded by 4.7 per cent y/y, benefitting from firm pricing and increased demand for protection in health, property, and cyber insurance. Meanwhile, the life insurance segment rebounded, growing 6.1per cent y/y, as the higher rate environment supported annuity products and long-term savings instruments,” the report explained.

The report noted that beyond premium expansion, the industry experienced notable structural transformation. The InsurTech sector grew by 8.5per cent to $28.1billion, buoyed by increased adoption of embedded insurance, AI-driven underwriting, and digital distribution models.

“Meanwhile, the cyber insurance segment grew to $15.3 billion, supported by a 40 per cent increase in SME uptake, as global businesses sought protection from mounting digital threats. Despite these gains, protection gaps remain large as cyber losses stood at $945 billion in 2024, with nearly 90 per cent uninsured,” the report stated.

Despite 2024’s strong performance, analysts at Afrivest  Research noted that the outlook for 2025 appears more cautious.

“Global premium growth is forecast to slow to two per cent, reflecting heightened macroeconomic uncertainties, policy instability in advanced markets, and a broader global economic slowdown.

“In Nigeria, the insurance industry continued to perform strongly after hitting the N1.0 trillion mark in Gross Premium Written (GPW) in 2023, with GPW rising by 55.8 per cent  y/y to N1.6 trillion.

“The non-life segment dominated (N808.4 billion, 68.9 per cent of GPW), driven by strong uptake in oil & gas, fire, and motor classes. The surge in premium was primarily underpinned by regulatory enforcement of compulsory insurance, inflation-driven repricing, and naira depreciation following FX liberalisation (which revalued foreign currency premiums).

“Despite sector-wide structural challenges, underwriting performance improved significantly. Industry-wide insurance revenue (proxied by AIICO, CONHALLP, CORNERST, MANSARD, NEM, and WAPIC) rose 66.3 per cent y/y to N455.5 billion, while total Insurance Service Result soared by 152.6 per cent y/y to N36.3billion.

“Underwriting margins improved by 2.7ppts to eight per cent, and sector Return on Average Assets (ROAA) and Return on Average Equity (ROAE) averaged 24.6per cent and 53.7per cent, respectively, highlighting operational efficiency and stronger balance sheet deployment.

“Meanwhile, the long-overdue recapitalisation directive regained momentum. Following the passage of the Nigeria Insurance Industry Reform Bill 2024 by the National Assembly, and NAICOM’s release of its risk-based capital exposure draft, the stage is now set for an industry shake-up. Under the proposed minimum capital thresholds, a wave of mergers, equity injections, and asset revaluations is expected to follow,” the report disclosed.