H1: No Respite as Insurance Companies Declare 43.8% Drop in Profit

The Nigerian insurance sector has seen a significant decline in profits, with 12 leading companies on the Nigerian Exchange Limited (NGX) reporting a 43.8% drop in profit for the first half of 2025. However, some companies like Mutual Benefits Assurance, NEM Insurance, and Sovereign Trust Insurance showed impressive growth in profits during the same period.

Rising costs, particularly in insurance service expenses and reinsurance costs, have impacted profit generation for many companies. Despite the challenges, some insurance companies have seen an increase in revenue, with AXA Mansard Insurance and NEM Insurance leading in insurance revenue growth.

The recent enactment of a new Insurance Act requiring companies to raise fresh capital has sparked optimism in the sector, leading to a 41% surge in stock prices last week. Analysts expect the sector to undergo consolidation and mergers as companies seek to meet the new capital requirements within the stipulated timeframe.