Coronation Insurance targets larger insurance risks after N9.2 billion additional capital boost

Coronation Insurance Plc said it is targeting larger insurance risks after raising N9.2 billion in additional capital during the insurance sector recapitalisation exercise.

The Managing Director and Chief Executive Officer, Olamide Olajolo, disclosed this at Coronation Insurance’s 68th Annual General Meeting (AGM) held virtually on Thursday, September 24, 2026.

He said only about N1.3 billion of the funds raised was required for the life business to achieve full recapitalisation, leaving the company with increased capacity to pursue larger risks.

Management said the stronger capital position would also support technology investments, deeper penetration of underserved markets and SMEs, and expansion through digital channels and new products.

Coronation targets larger insurance risks:

Coronation Insurance said both its life and non-life businesses are now fully recapitalised and positioned to use the stronger balance sheet to expand underwriting capacity. Olajolo said the company had built its capital reserves ahead of the recapitalisation requirement, limiting the amount that needed to be deployed into its life business.

• “Both companies are fully recapitalised, and we are geared to move from capital to capacity going forward,” Olajolo said.

About N1.3 billion of the N9.2 billion raised was required for the life business to achieve full recapitalisation, according to the Managing Director.

• “We entered 2026 with a stronger operating platform, a broader distribution base and greater capacity to respond to the evolving needs of our customers.”

Olajolo said the additional capital would allow Coronation Insurance to participate in larger risks while expanding its reach among underserved customers and SMEs.

Coronation Insurance Chairman, Mutiu Sunmonu, said the development marked a shift from meeting the sector’s new capital requirements to using the stronger balance sheet to expand underwriting and market penetration.

Highlight of financial performance:

Sunmonu said the Company’s 2025 performance demonstrated the importance of building resilience while navigating a changing operating environment.

• “The performance of Coronation Insurance in 2025 reflects a business that continued to grow while responding responsibly to significant changes in the market. Our focus remains on strengthening the business, protecting policyholders and creating sustainable value for our shareholders.”

The stronger capital position comes as Coronation Insurance recorded significant growth in its core insurance business in 2025.

Insurance revenue increased from N49.47 billion in 2024 to N74.83 billion in 2025, representing a 51.4% increase.

The company’s insurance service result also increased to N7.30 billion from N5.49 billion.

However, profit before tax declined to N9.65 billion from N13.81 billion, reflecting the impact of foreign exchange movements.

The CEO, Olajolo, told shareholders that the company recorded an exchange gain of N8.5 billion in 2024 but an estimated exchange loss of N1.3 billion in 2025.

• “The primary cause of this is the movement in exchange gains,” he said.

Despite the earnings decline, Olajolo highlighted the improvement in the company’s underlying underwriting performance.

• “The positive side of it is that the insurance revenue and underwriting results improved from N5.5 billion to N10.6 billion,” he said.

He also highlighted the performance of its bancassurance partnership with Access Bank, which generated N19.4 billion in Gross Written Premium for the Group in 2025, compared with N13.6 billion in 2024.

Shareholders question profit, dividends resumption timeline:

The growth in insurance revenue did not prevent shareholders from questioning the decline in profit and the company’s prospects for shareholder returns.

Mrs. Bisi Bakari commended management for meeting the recapitalisation requirement but asked why profit declined despite the sharp increase in insurance revenue.

Mr. Eric Akinduro also questioned the profit decline and sought clarification on key audit matters, the Abuja property investment and when dividend payments would resume.

• “The board and management discipline and compliance gave shareholders leverage to remain shareholders,” Akinduro said.
• Mr. Tunji Bamidele asked how the company would sustain revenue growth through digitalisation, new products, and branding. He also questioned shareholder returns in the absence of dividends. “If there is no dividend, whether bonus shares could be given,” Bamidele asked.

Profit outlook after one-off claims weakened 2025 profit:

Management said two substantial oil and gas claims relating to 2024 events were paid in 2025 but described them as one-off claims.

• “It’s not a trend, it’s just one-off,” Olajolo said, adding that the company had recovered a significant portion through insurance recovery.

The insurer’s H1 2026 performance subsequently showed insurance revenue of N37.81 billion, up 14.81%, while profit before tax rose 18.90% to N4.05 billion.

This provides an early indication of how the strengthened capital position is being accompanied by continued growth in the company’s core insurance operations.

Coronation Insurance also said its Abuja property remains under construction and is not yet generating revenue.

The company listed 4.53 billion new shares at N2.16 each following the recapitalisation transaction, giving the new equity an issue value of about N9.79 billion.

At the AGM shareholders approved all proposals brought before them by the board and management including the Company’s audited financial statements and other resolutions relating to its governance, Board composition, Audit Committee and future oversight arrangements.