Prestige Assurance Plc recorded a sharp decline in profitability in its full-year 2025 unaudited financial results, as weaker investment income, rising reinsurance expenses, foreign exchange losses and higher operating costs weighed heavily on performance.

The insurance firm’s profit before tax (PBT) fell by 76 per cent to N741.3 million, down from N3.09 billion posted in 2024  representing a drop of about N2.11 billion year-on-year.
Profit after tax also slid by 81 per cent to N609.3 million, compared with the previous year, while earnings per share declined significantly to 4.60 kobo from 24.42 kobo, highlighting mounting pressure on shareholder returns.

Despite the earnings setback, the company reported stronger top-line growth. Gross premium written rose 14 per cent to N25.7 billion, while insurance revenue increased 28 per cent to N25.16 billion, driven by improved policy volumes, pricing adjustments and stronger underwriting activities.

However, escalating claims-related and reinsurance costs eroded most of the gains.
Insurance service expenses climbed to N21.24 billion, while the net expense from reinsurance contracts reversed sharply to a N4.69 billion loss, compared with a N586 million income recorded in 2024. The swing significantly weakened underwriting performance.

Consequently, the company posted an insurance service loss of N762.3 million, compared to a profit of N127.7 million a year earlier.

Investment income also came under pressure, declining 33 per cent to N3.09 billion, largely due to a collapse in foreign exchange earnings, which shifted from a N1.89 billion gain in 2024 to a N283.8 million loss in 2025.

Operating efficiency deteriorated further as management and administrative expenses rose 34 per cent to N2.12 billion, squeezing margins.

Balance sheet remains steady

Despite weaker profitability, Prestige Assurance maintained a relatively stable balance sheet.

Total assets eased slightly to N37.35 billion from N38 billion, while net assets rose 4 per cent to N20.25 billion, supported by retained earnings and fair value gains on investment property and financial assets.

Total liabilities declined by about 8 per cent to N17.1 billion, reflecting lower insurance contract liabilities and reduced trade payables.
Equity strengthened moderately, backed by stable share capital, improved revenue reserves and resilient revaluation balances, helping to sustain the company’s capital position.

Overall, while revenue growth signals improved underwriting activity, rising costs and weaker investment returns continue to pose profitability challenges for the insurer.