Prestige Assurance Plc reported a profit of N1.05 billion for the six months ended June 30, 2026, despite a 16% drop in premiums. This represents a 102% increase from the N519.6 million profit recorded in the corresponding period of 2025. According to its Q2 financial statement filed on the Nigerian Exchange (NGX), profit before tax rose by 97% to N1.14 billion from N577.3 million in the prior-year period, while earnings per share improved to 7.93 kobo from 3.92 kobo. Key Highlights
Insurance Revenue: N12.56 billion (Up 2% YoY from N12.31 billion)
Insurance Service Result: N1.09 billion (Up 5,852% from N18.28 million)
Total Investment Income: N1.25 billion (Down 24% YoY from N1.63 billion)
Profit Before Tax: N1.14 billion (Up 97% YoY from N577.34 million)
Profit After Tax: N1.05 billion (Up 102% YoY from N519.60 million)
Earnings Per Share: 7.93 kobo (Up 102% YoY from 3.92 kobo)
Net Assets: N21.32 billion (Up 5% YoY from N20.27 billion)
Net expense from reinsurance contracts held: N3.35 billion (Up 143% YoY from N1.37 billion)
Driving the numbers
Prestige Assurance delivered strong earnings growth despite a decline in gross premium written. Gross premium written fell 16% year-on-year to N12.83 billion, suggesting slower business acquisition or premium generation during the period.
However, insurance revenue still increased modestly by 2% to N12.56 billion. The most significant driver of profitability was the improvement in underwriting performance.
Insurance service expenses declined 26% to N8.11 billion from N10.91 billion in the prior year, helping insurance service result rise sharply to N1.09 billion from just N18.28 million a year earlier. This improvement was achieved despite a substantial increase in net expenses from reinsurance contracts held, which rose 143% to N3.35 billion. The higher reinsurance cost reflects the company’s strategy of maintaining strong risk protection for its specialized underwriting portfolio, particularly in high-risk business segments. Investment income weakened during the period, declining 24% to N1.25 billion from N1.63 billion. Nevertheless, the impact of lower investment returns was more than offset by the strong recovery in insurance service performance. Management expenses increased 20% to N1.14 billion. The expense profile included a N282.86 million penalty and fine charge, alongside administrative costs such as salaries, office expenses, and depreciation.
Despite this increase in operating costs, pre-tax profit nearly doubled due to the substantial improvement in underwriting margins. On the balance sheet, total assets increased to N40.47 billion while net assets rose to N21.32 billion, indicating continued capital accumulation from retained earnings generated during the period. The growth in shareholders’ funds provides additional capital support for underwriting activities and future business expansion. Balance Sheet
Total Assets: N40.47 billion (Up 3% from N39.20 billion)
Net Assets/Shareholders’ Funds: N21.32 billion (Up 5% from N20.27 billion)
Management Commentary
The company noted that it maintains adequate reinsurance arrangements to absorb high-risk exposures arising from its specialization in aviation, marine, and oil and gas insurance. “Adequate reinsurance has been put in place to absorb the impact of high risk which may likely occur due to the area of specialization of the Company.”
The company said its most valuable resources are its human capital, adding that the staff welfare is paramount to the Company.
It noted that non-human resources are of small relevance without appropriate personnel to drive the system. Market reaction
Prestige Assurance Plc’s share price closed at N1.50 per share on Wednesday, July 29, 2026. This represents a 10% decrease when compared to the N1.65 it traded at exactly six months earlier.
What you should know
The H1 performance marks an improvement from the 2025 financial result, where profit dipped by 76%. Profit before tax had dropped 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.
