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Prestige Assurance Plc posted a strong earnings performance for the first half of 2026, reporting a 102% increase in profit after tax (PAT) to ₦1.05 billion, even as its gross premium written declined by 16% during the period.
The insurer’s unaudited financial results for the six months ended June 30, 2026, show that improved underwriting performance and tighter control of insurance service expenses helped offset weaker premium generation and declining investment income.
Key Financial Highlights
Prestige Assurance reported the following performance for the review period:
- Insurance Revenue: ₦12.56 billion, representing a 2% increase from ₦12.31 billion recorded in H1 2025.
- Gross Premium Written: ₦12.83 billion, down 16% year-on-year.
- Insurance Service Result: ₦1.09 billion, compared with just ₦18.28 million in the corresponding period last year.
- Total Investment Income: ₦1.25 billion, a 24% decline from ₦1.63 billion.
- Profit Before Tax: ₦1.14 billion, up 97% from ₦577.34 million.
- Profit After Tax: ₦1.05 billion, representing a 102% increase from ₦519.60 million.
- Earnings Per Share: Improved to 7.93 kobo, from 3.92 kobo a year earlier.
- Net Assets: Increased to ₦21.32 billion, up 5% from ₦20.27 billion.
Underwriting Performance Drives Earnings
Although premium generation slowed during the period, Prestige Assurance recorded stronger profitability as improvements in its core insurance operations significantly boosted earnings.
Insurance service expenses declined by 26%, falling to ₦8.11 billion from ₦10.91 billion in the corresponding period of 2025.
The reduction in claims-related and operational insurance costs translated into a sharp improvement in the company’s insurance service result, which rose from ₦18.28 million to ₦1.09 billion.
The improved underwriting margin proved sufficient to offset weaker investment returns and deliver a near doubling of pre-tax and post-tax earnings.
Reinsurance Costs Rise Sharply
One of the notable developments in the financial statement was the substantial increase in reinsurance costs.
Net expenses from reinsurance contracts climbed 143% year-on-year to ₦3.35 billion, compared with ₦1.37 billion recorded in the first half of 2025.
The company attributed the increase to its strategy of maintaining adequate reinsurance protection for high-risk insurance portfolios, particularly in specialised business lines such as aviation, marine and oil & gas insurance.
Management stated that the reinsurance arrangements are designed to cushion the financial impact of potential large-scale claims associated with these sectors.
Investment Income Softens
Unlike its underwriting business, Prestige Assurance experienced weaker returns from investments during the period.
Total investment income fell 24% to ₦1.25 billion, reflecting softer earnings from its investment portfolio.
Operating expenses also increased, with management costs rising by 20% to ₦1.14 billion.
The expense line included a ₦282.86 million penalty and fine charge, in addition to administrative costs such as staff salaries, office operations and asset depreciation.
Despite these headwinds, the company’s stronger insurance operations ensured overall profitability continued to improve.
Balance Sheet Remains Resilient
Prestige Assurance also strengthened its financial position during the review period.
Total assets increased to ₦40.47 billion, while shareholders’ funds rose to ₦21.32 billion, supported by retained earnings generated from improved profitability.
The stronger capital base provides additional capacity for future underwriting activities and positions the company to support business expansion while meeting regulatory capital requirements.
Market Performance
Despite the stronger financial results, Prestige Assurance’s share price has experienced some pressure on the Nigerian Exchange.
The stock closed at ₦1.50 per share on July 29, 2026, representing a 10% decline compared with ₦1.65 recorded six months earlier.
While investors continue to monitor premium growth and investment returns, the company’s latest results demonstrate that improved underwriting discipline and prudent risk management can deliver stronger earnings even in a challenging operating environment.
