Nigeria’s insurance industry took a profit hit in 2025 as rising operating expenses wiped out gains from sector reforms, with 15 listed insurers reporting a combined 29% drop in profit before tax.
Total profits fell to ₦110.47 billion from ₦157.7 billion in 2024, despite strong market momentum and regulatory tailwinds. While some firms bucked the trend, most struggled with soaring insurance service costs and reinsurance expenses.
AIICO Insurance led the winners, posting ₦18.98 billion in profit before tax, up nearly 20%. Mutual Benefits Assurance surged 79% to ₦21.54 billion, while Universal Insurance more than doubled earnings to ₦4.6 billion. Veritas Kapital Assurance also returned to profitability with ₦6.63 billion, after a loss in 2024.
On the flip side, Lasaco Assurance slipped into a ₦2.98 billion loss, while major players including AXA Mansard, Cornerstone, Coronation, NEM, Linkage and Sunu reported sharp profit declines. AXA Mansard suffered the worst fall, with profits plunging over 80%, followed by International Energy Insurance, which saw earnings drop 78% to ₦688.8 million.
Despite the earnings slump, insurance stocks delivered stellar market performance. The NGX Insurance Index surged 65.6% year-to-date in 2025, outperforming the broader market, while the sector jumped 41% in a single week on optimism over the new Insurance Act.
Analysts say reforms and recapitalisation requirements will reshape the industry, likely triggering mergers and acquisitions as smaller operators scramble to meet new capital thresholds. With insurance penetration expected to rise and foreign interest growing, the sector remains firmly in investor focus — even as cost pressures bite.
