Prestige Assurance Plc has released its unaudited financial results for the nine months ended September 30, 2025, revealing significant pressure on profitability despite growth in premium income.
The Lagos-based insurance company reported gross written premiums of N19.29 billion for the nine months ended September 30, 2025, representing a 40% increase from N13.82 billion in the corresponding period of 2024.
Insurance service expenses also rose in proportion to N16.52 billion from N11.82 billion.
However, the insurance service result before reinsurance contracts held showed a loss of N777 million in the current period, compared to a loss of N3.99 billion in the prior year. After accounting for reinsurance contracts, the net insurance service result deteriorated to a loss of N239.6 million, versus a loss of N81.2 million a year earlier.
A major factor in the company’s reduced profitability was the collapse in investment income. Total investment income plummeted 44% to N373.7 million from N687.9 million a year earlier. Interest income measured using the effective interest method dropped 15% to N392.3 million, while net fair value gains on financial assets fell significantly.
The company also recorded a net foreign exchange loss of N193.8 million, compared to a loss of N90.7 million in 2024—a 104% increase that reflects ongoing currency volatility.
Net insurance and investment income totalled N744.7 million, but after finance costs, management expenses of N1.42 billion, and other operating costs, profit before tax stood at N316.5 million—down 66% from N2.63 billion in 2024.
After income tax expense of N74.7 million, profit for the period came in at N241.9 million, representing a 48% decline from N2.40 billion in the same period last year.
Both basic and diluted earnings per share fell to 6 kobo, compared to 18 kobo in the prior-year period—a 48% decrease that mirrors the overall profit decline.
The company’s total comprehensive income for the period also stood at N241.9 million, down from N2.40 billion, as there were no other comprehensive income items recorded in either period.
News.ng reports that the results highlight the challenging operating environment facing Nigeria’s insurance sector, with rising operational costs, currency pressures, and lower investment returns squeezing margins despite growing premium volumes. The company will need to focus on improving underwriting efficiency and investment performance to return to stronger profitability levels.
