Fortis Global Insurance narrows quarterly loss as recapitalisation lifts cash to N27.45 billion

Fortis Global Insurance Plc reported a loss before tax of N1.38 billion for the quarter ended 30 September 2026, compared with a loss of N2.17 billion in the corresponding quarter of 2025.

This represents a 36.5% narrowing of the loss.

The report is contained in the company’s Q3 unaudited financial statements posted on the Nigerian Exchange (NGX).

Key Highlights

• Insurance revenue: N2.06 billion (Up 1,588% YoY from N122.26 million).
• Loss before tax: Loss of N1.38 billion (Down 36.5% in the size of the loss from N2.17 billion).
• Loss after tax: Loss of N1.40 billion (Down 35.5% in the size of the loss from N2.17 billion).
• Earnings per share: Loss per share of N7.66, compared with N0.17 in the corresponding 2025 quarter.

Driving the numbers

Fortis Global Insurance’s September-quarter results show a significant increase in insurance revenue, but the growth has not yet translated into underwriting profitability.

Insurance revenue rose to N2.06 billion from N122.26 million in the corresponding period of 2025.

• However, insurance service expenses increased more sharply, reaching N3.96 billion from N545.77 million.
• Consequently, the insurance service result remained negative at N1.90 billion, compared with a loss of N434.47 million a year earlier. This indicates that the cost of providing insurance services exceeded the revenue recognised from insurance contracts during the reported quarter.
• Investment income provided an important offset. It increased to N2.24 billion from N527.57 million, helping the company record a positive financial insurance result of N1.86 billion, compared with a loss of N117.05 million in the prior-year quarter.
• The company also recorded N741.61 million from the extinguishment of debt relating to the Daewoo bond.
• The improvement was partly countered by higher operating expenses.
• Other operating expenses rose to N2.01 billion from N285.26 million. The breakdown includes staff costs of N422.60 million, regulatory fees and levies of N362.21 million, professional and consultancy fees of N319.93 million, and entertainment and business promotion expenses of N202.63 million.

Other finance costs fell to N71.81 million from N1.28 billion, while insurance finance expense declined to N371.29 million from N644.62 million. These reductions helped ease the pressure on the bottom line.

Nevertheless, the company remained loss-making, with a pre-tax loss of N1.38 billion and a post-tax loss of N1.40 billion.

• The cash flow statement shows that the company received N25 billion through an irredeemable convertible loan during the period.
• Financing activities generated a net cash inflow of N24.53 billion, while operating activities used N1.93 billion and investing activities used N6.65 billion. Cash consequently increased by N15.95 billion during the period.

The company also reported that N25 billion held with the Central Bank of Nigeria was part of the recapitalisation requirements under NIIRA 2025 and was expected to be released by October 2026. This is a material liquidity consideration because the amount was not available for the company’s day-to-day activities at the reporting date.

Balance Sheet

Total assets increased to N48.83 billion from N25.39 billion, driven more by cash and cash equivalents, which rose to N27.45 billion from N11.75 billion.

• Financial assets also increased to N5.36 billion from N907.66 million.

Borrowings were nil as at 30 September 2026, compared with N6.51 billion a year earlier, but irredeemable convertible debt rose to N30.00 billion, compared with N12.00 billion in September 2025.

Management commentary

Management said the company’s financial position has been fundamentally transformed by its successful recapitalisation.

• It attributed the increase in cash and financial assets to new capital and the conversion of debt to equity, adding that this had strengthened liquidity and solvency and positioned the company to meet regulatory obligations under NIIRA 2025.
• Management also attributed the growth in insurance revenue to renewed underwriting activity and the increase in investment income to higher yields and improved portfolio management. It acknowledged that underwriting remained loss-making because of prior-period reserve strengthening, while stronger investment income helped offset the underwriting deficit and narrow the net loss.

The company said its priority was to translate its improved financial position into sustainable profitability and that it was well-positioned to return to profitability in coming periods.

Market reaction

Fortis Global Insurance share price closed at N1.75 on October 29, 2026.

This represents a 775% YtD growth from N0.20 on January 2, 2026.