Prestige Assurance Plc delivered its weakest half-year in six years as rising costs and weaker investment income crushed earnings.
The non-life insurer reported an after-tax profit of ₦519 million for the first half of 2025, an 81% drop from ₦2.78 billiona year earlier, according to its filing on the Nigerian Exchange Group.
Revenue Growth Overshadowed
Meanwhile, revenue growth looked strong.
Gross written premium jumped 32% to ₦15.32 billion, while insurance revenue surged 39% to ₦12.3 billion.
However, costs quickly swallowed those gains.
Insurance service expenses soared 86% to ₦10.9 billion, shrinking service results by 97% to only ₦18.3 million.
Although reinsurance recoveries reduced net costs by 41%, they failed to outweigh the sharp rise in claims and acquisition charges.
Balance Sheet Holds Firm
At the same time, investments added more pressure.
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Income slumped 47% to ₦1.63 billion as foreign exchange gains weakened and asset revaluations cooled.
Operating costs also climbed: management expenses jumped 53% to ₦948 million on higher staff, professional, and office costs.
As a result, profit before tax crashed 82% to ₦577 million, while earnings per share fell to 4 kobo from 21 kobo.
Even so, Prestige continued to build balance sheet strength.
Total assets expanded 12% year-on-year to ₦42.7 billion, while shareholders’ funds inched up to ₦19.9 billion.
More importantly, the insurer improved its liquidity.
It generated ₦1.59 billion net inflow from investing activities—reversing a ₦1.54 billion outflow last year—by redeeming debt instruments and collecting dividends and interest.
Consequently, cash and cash equivalents more than doubled to ₦4.16 billion, giving Prestige a stronger buffer for claims and fresh investments.
Investors have rewarded that resilience.
Prestige’s shares have rallied 73% this year, lifting its market value to ₦25.04 billion.
