Nigerian Insurance Sector Faces 29% Profit Slump Despite Some Firms Showing Growth

The Nigerian insurance sector witnessed a 29% decline in profits for 15 listed insurance companies on the Nigerian Exchange Group (NGX) for the tax year ending December 31, 2025. While some companies like AIICO Insurance Plc, Mutual Benefit Assurance Plc, and Universal Insurance Plc reported significant profit increases, others like Lasaco Assurance Plc and Veritas Kapital Assurance Plc recorded losses.

Rising operational expenses and reinsurance costs were cited as major factors affecting profitability. The sector's performance is attributed to the implementation of new laws requiring companies to raise fresh capital, making insurance of property assets mandatory.

Analysts anticipate further regulatory guidance and industry consolidation through mergers and acquisitions to meet the new capital requirements within the stipulated timeframe.