Coronation Insurance Plc has reported a pre-tax profit of N5.003 billion in the nine-month period ended September 30, 2025, indicating a -58.25% decline from N11.98 billion reported in the corresponding period of 2024.
Also, according to the unaudited report, the 9-month post-tax profit declined by 59.64% YoY to N3.7 billion compared to the N9.192 billion in 9M 2024
This is despite the impressive performance from insurance activities and investment
- Insurance service results improved to N8.922 billion compared to the –N485 million in 9-month 2024, driven by a 49.81% increase in insurance revenue to N51.176 billion compared to N34.158 billion in the months of 2024.
- While investment income grew by 53% to N3.684 billion.
Key highlights (9M 2025 vs 9M 2024)
- Insurance revenue: N51.176 billion (+49.81% YoY)
- Insurance expenses: N32.541 billion (+53.13%)
- Insurance Service Result: N8.92 billion (+1,740% YoY)
- Investment Income: N3.684 billion; (+52.60% YoY)
- Total investment and other income: N4.356 billion (-64.36% YoY)
- Net insurance and investment result: N10.730 billion; (-10.51% YoY)
- Total operating expenses: N6.751 billion; (+176.48% YoY)
- Operating profit – Group: N3.979 billion (-58.32% YoY)
- Profit before tax (PBT): N5.003 billion (-58.25% YoY)
- Profit after tax (PAT): N3.71 billion (-59.6% YoY)
- Total assets: N103.100; (+34.25%)
- Shareholders’ funds: N44.818; (+12.72%)
Cursory analysis
Coronation Insurance Plc has experienced a mixed performance for the first nine months of 2025.
- On one hand, the company achieved notable growth in its core operations, with insurance revenue surging by nearly 50%.
- However, this revenue growth was offset by a sharper rise in insurance expenses, up by 53.13%, outpacing the revenue increase.
- Despite rising costs, Coronation Insurance delivered an outstanding improvement in its insurance service result, which shot up to N8.92 billion compared to the loss of N484 million in 9M 2024
Investment income vs. Total Income Decline
Another key observation is the contrasting performance in investment income and total investment income.
While investment income grew by 52.60%, a solid result reflecting better returns from the investment portfolio, total investment and other income declined sharply by 64.36%.
This was primarily due to significant losses on foreign exchange, which detracted from the overall positive impact of the investment portfolio.
Profitability declines
Despite the growth in revenue and investment income, profitability took a significant hit.
- Operating profit fell by 58.32%, and profit before tax (PBT) dropped by a similar 58.25%.
- Additionally, the reduction in other income further compounded the pressure on earnings.
Balance Sheet:
On the balance sheet side, Coronation Insurance remains in a relatively strong position.
- Total assets grew by 34.25%, driven by increases in cash reserves and financial assets. This suggests that the company is expanding its asset base, a good sign of financial stability.
- Shareholders’ funds also grew by 12.72%, further indicating a strong capital position.
- However, a noticeable increase in insurance contract liabilities (up 67.74%) suggests that the company is taking on more obligations, which will need to be carefully managed moving forward.
Bottomline:
Coronation Insurance Plc’s performance in 9M 2025 reflects a mixed bag.
The company’s solid revenue growth and improvements in its insurance service results are commendable, but rising operational costs and lower investment income have tempered its overall performance.
The key takeaway is that while Coronation Insurance is expanding and strengthening its balance sheet, it must focus on controlling rising expenses and improving its investment strategy to return to sustainable profitability.
The company’s ability to balance growth with cost management will be crucial in the coming months.
