Prestige Assurance Plc has released its full-year 2025 unaudited financial results, indicating a sharp decline in profitability as profit before tax (PBT) fell by 76% to N741.3 million, down from N3.09 billion in 2024, despite posting double-digit growth in premiums and insurance revenue.
The steep drop in pretax profit was largely driven by a surge in reinsurance-related costs, weaker investment income, higher operating expenses, and foreign exchange losses, which more than offset gains from underwriting volumes and improved interest income.
Profit for the year declined by 81% year-on-year to N609.3 million, while earnings per share fell sharply to 4.60 kobo from 24.42 kobo, underscoring the pressure on shareholder returns.
What the data is saying
Headline revenue indicators remained positive. Gross premium written rose by 14% to N25.7 billion, while insurance revenue jumped 28% to N25.16 billion, reflecting improved policy volumes, pricing adjustments, and stronger underwriting activity.
However, these gains failed to translate into profit growth. Insurance service expenses increased to N21.24 billion, while the net expense from reinsurance contracts swung sharply to a N4.69 billion cost, compared with a N586 million income in 2024. This reversal alone wiped out most underwriting gains.
As a result, the insurance service result deteriorated to a loss of N762.3 million, from a profit of N127.7 million a year earlier, highlighting the growing drag from reinsurance arrangements and claims-related adjustments.
Key financial highlights:
- Gross Premium Written: N25.70 billion (+14% YoY)
- Insurance Revenue: N25.16 billion (+28% YoY)
- Insurance Service Expenses: N21.24 billion (+6% YoY)
- Net Reinsurance Expense: N4.69 billion (from N586 million income in 2024)
- Insurance Service Result: N762.3 million loss (from N127.7 million profit)
- Total Investment Income: N3.09 billion (-33% YoY)
- Profit Before Tax: N741.3 million (-76% YoY)
- Profit After Tax: N609.3 million (-81% YoY)
- Net Assets / Equity: N20.25 billion (+4% YoY)
- Total Assets: N37.35 billion (-2% YoY)
- Total liabilities declined by about 8% to N17.1 billion
More insights
The insurer delivered a 956% improvement in insurance service result before reinsurance, rising to N3.92 billion, signalling that the core underwriting business improved before risk transfer costs were applied.
- Investment income, however, declined by 33% to N3.09 billion, mainly due to:
- A collapse in foreign exchange income, which swung to a N283.8 million loss from a N1.89 billion gain in 2024.
- Lower overall portfolio yields, despite a 13% rise in interest income to N1.94 billion.
Reduced dividend and other investment income
- Reinsurance costs surged as ceded premiums nearly doubled to N15.01 billion, alongside higher fees, commissions, and changes in reinsurance liabilities.
- Operating efficiency also weakened, with other management expenses rising 34% to N2.12 billion, further compressing margins.
Balance sheet performance
Despite weaker profitability, Prestige Assurance Plc’s balance sheet remained relatively stable in 2025, with total assets easing slightly to N37.35 billion from N38.00 billion.
- Net assets increased by 4% to N20.25 billion, supported by retained earnings and fair value gains on investment property and financial assets.
- On the liabilities side, total liabilities declined by about 8% to N17.1 billion, reflecting lower insurance contract liabilities and reduced trade payables.
- Equity strengthened moderately, with net assets rising to N20.25 billion. Stable share capital, improved revenue reserves, and resilient revaluation balances supported capital adequacy.
What you need to know
Prestige Assurance Plc has recorded steady profits in its financial performance from 2022 through 2024. In 2022, the insurer reported a pre‑tax profit of N143.11 million, reflecting modest profitability amidst rising expenses.
In 2023, the company expanded its risk book, with gross written premium rising to N14.88 billion and profit before tax reaching N1.404 billion, driven by stronger underwriting results.
By 2024, it posted a 51% increase in gross premiums to N22.47 billion, and profit after tax climbed to N3.236 billion.
