Despite a surge in premium generation and a resilient market performance last year, 15 insurance companies listed on the Nigerian Exchange Limited (NGX) have declared a 29 percent drop in profit before tax for the financial year ended December 31, 2025.
According to the latest financial data released on February 3, 2026, the cumulative profit for these firms fell to ₦110.47 billion, down from the ₦157.7 billion earned in 2024. This downturn is largely attributed to a sharp spike in Operating Expenses (OPEX), driven by persistent inflationary pressures, higher insurance service expenses, and rising reinsurance costs.
The results reveal a starkly divided industry, where some “tier-1” players managed to buck the trend while others struggled. AXA Mansard Insurance led the decline with a staggering 80.7 percent drop in profit before tax, followed by International Energy Insurance, which saw a 78 percent plunge.
Similarly, Lasaco Assurance slipped into a loss position of ₦2.98 billion, primarily due to the fade-out of foreign exchange gains that had cushioned its 2024 results. Analysts note that while these firms are generating more revenue, the “cost of doing business” in a high-inflation environment is effectively hollowing out their bottom lines.
In contrast, a few firms leveraged aggressive growth strategies to achieve massive gains. Universal Insurance Plc reported a 131.2 percent increase in profit before tax, while Mutual Benefits Assurance posted a 78.9 percent rise, reaching ₦21.54 billion.
These outliers highlight that while the macro environment is challenging, firms with efficient risk management and diversified investment portfolios are still finding paths to profitability. As the industry enters 2026, the focus is shifting toward the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which mandates higher capital thresholds and is expected to trigger a wave of mergers and acquisitions to stabilize the sector.
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