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.
Plus234Feed summary based on reporting from This Day. Read the original report below.
Read full article
Continue on This Day
Get the week in one email
Top stories, NPFL results, the naira — every Friday morning. Free, one email a week.
Related Stories
Insurance Sector Leads Broad-Based Sell-Off As Stock Market Ends Week Negative
Nigeria raises insurance capital requirements fivefold, sets one-year deadline
Investors Take Profit in Banking, Insurance, Consumer Goods Shares As Nigerian Stock Market Falls
Stock Market Records N2.84trn Increase in One Week on Positive Momentum
Mutual Benefit Grows Profit by 92%, Declares Dividend
12 companies rake in N2.4trn profit in half year
Get Plus234Feed on messaging apps
Same headlines, delivered where you already scroll.
