Mansard Insurance, 14 Others Pre-tax Profits Drop By 29%

With increasing operating expenses, a combined 15 listed insurance companies on the Nigerian Exchange Limited (NGX) have reported a 29 per cent drop in profit before tax in their unaudited results for the full year ended December 31, 2025.

The 15 insurance companies posted N110.47 billion profit before tax in 2025 unaudited results and accounts, about a 29 per cent drop from the N157.7 billion posted in 2024 unaudited results and accounts.

The insurance companies’ 2025 accounts showed mixed performances, with AIICO Insurance, Mutual Benefits Assurance, and Universal Insurance reporting significant increases in profit before tax.

In the year under review, AIICO Insurance declared N18.98 billion profit before tax in 2025, nearly a 20 per cent increase over the N15.8 Billion reported in 2024.

Mutual Benefits Assurance announced N21.54billion profit before tax in 2025, representing an increase of 78.9per cent from N12.04billion in 2024, while Universal Insurance reported N4.6 billion profit before tax in 2025, a significant increase of 131.2per cent from N1.99 billion in 2024.

Further findings showed that Lasaco Assurance was the only company to report a loss before tax in 2025, while Veritas Kapital Assurance moved from a loss position in 2024 to profit generation in 2025.

For instance, Lasaco in 2025 announced a loss before tax of N2.98 billion, compared with a profit before tax of N1.63 billion in 2024, while Veritas Kapital Assurance recorded a loss before tax of N6.63 billion in 2025, up from a loss of N627 million in 2024.

The rising cost pressure, particularly from insurance service expenses and reinsurance costs, impacted Lasaco Assurance’s profit generation in 2025.

Other major players in the insurance sector: AXA Mansard Insurance, Cornerstone Insurance, Coronation Insurance, Guinea Insurance, International Energy Insurance, Linkage Assurance, NEM Insurance, Prestige Assurance, Regency Assurance and Sunu Assurances Nigeria reported a drop in profit before tax last year, over increasing operating expenses.

Despite challenges posed by the macroeconomic environment, the 15 insurance companies reported N1.43 billion in insurance revenue in 2025, up 131.4 per cent from N617.5 billion in 2024.

The insurance companies’ stocks in 2025 responded to the federal government’s new law requiring companies to raise fresh capital and making property and other asset insurance mandatory.

With a strong Year-to-Date (YtD) performance above 65.6 per cent in 2025, the NGX insurance Index outperformed the overall NGX All-Share index performance of 51.2 per cent in 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 that “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.”