Prestige Assurance Plc has reported a sharp decline in profit for the nine months ended September 30, 2025, as challenging market conditions eroded gains from strong premium growth.
According to the company’s unaudited financial statements, profit after tax fell 48% to ₦241.9 million, down from ₦2.40 billion recorded in the same period of 2024. Profit before tax also plunged 66% to ₦316.5 million, compared to ₦2.63 billion a year earlier.
Despite the steep profit decline, the insurer achieved a 40% growth in gross written premiums, rising to ₦19.29 billion from ₦13.82 billion in the previous year. However, insurance service expenses surged to ₦16.52 billion, up from ₦11.82 billion, largely offsetting the revenue gains.
Declining Investment Income
Prestige Assurance’s bottom line was further pressured by a steep drop in investment income, which fell 44% to ₦373.7 million from ₦687.9 million in 2024. Interest income, measured using the effective interest method, slipped 15% to ₦392.3 million, while fair value gains on financial assets declined significantly.
The company also suffered a net foreign exchange loss of ₦193.8 million, more than double the ₦90.7 million loss recorded a year earlier, reflecting continued currency volatility in the Nigerian market.
Underwriting and Operational Pressures
After accounting for reinsurance, the net insurance service result showed a loss of ₦239.6 million, compared to a ₦81.2 million loss in the corresponding period last year.
Management expenses stood at ₦1.42 billion, while finance and other operating costs further weighed on profitability. Earnings per share declined to 6 kobo, from 18 kobo a year earlier—a direct reflection of the 48% drop in profit.
Tough Operating Environment
The company’s total comprehensive income for the period matched its profit after tax at ₦241.9 million, as no additional gains or losses were recorded.
Analysts say the results underscore the difficult operating environment facing Nigeria’s insurance industry, with rising operational costs, foreign exchange challenges, and weaker investment returns putting pressure on margins despite growth in premium volumes.
Industry observers suggest that Prestige Assurance will need to strengthen underwriting efficiency, optimize cost management, and improve investment performance to restore profitability in subsequent quarters.
