Despite Stronger Profit Growth, 13 Insurance Firms’ Revenue Falls 9.9% to N228bn

Listed insurance companies on the Nigerian Exchange Limited (NGX) experienced a mixed performance in the first quarter of 2026. While industry-wide insurance revenue fell by 9.9% to N228.07 billion from N253.01 billion in the same period of 2025, profitability saw a boost. This improvement was driven by stronger investment income, enhanced operational efficiency, and prudent cost management.

The decline in revenue underscores the persistent challenge of low insurance penetration in Africa's largest economy, despite ongoing reforms aimed at deepening market participation and expanding the industry's contribution to economic growth. Several companies reported significant drops in insurance revenue. Consolidated Hallmark Holdings Plc saw one of the sharpest contractions, with its insurance revenue falling nearly 73% to N11.69 billion in Q1 2026 from N43.30 billion a year prior. International Energy Insurance Plc also recorded a steep decline, with revenue dropping almost 61% to N615.78 million.

NEM Insurance Plc, a major player, reported a nearly 19% decrease in insurance revenue, down to N37.24 billion from N46.06 billion. Lasaco Assurance, Prestige Assurance, and Sovereign Trust Insurance also posted revenue declines, reflecting a challenging operating environment and intense competition. Despite these pressures on top-line earnings, many insurers demonstrated resilience.

Consolidated Hallmark Holdings emerged as a strong performer in profitability, growing its profit before tax by an impressive 159.4% to N21.1 billion. This single company accounted for over 37% of the sector's combined profit before tax. Overall, the 13 listed insurers generated N56.8 billion in profit before tax in Q1 2026, a nearly 14% increase from N49.99 billion in Q1 2025. This growth in earnings highlights the ability of many operators to navigate revenue pressures through effective cost control and strategic investment management.