Four Nigerian insurance firms—AXA Mansard Insurance Plc, Consolidated Hallmark Holdings Plc, Linkage Assurance Plc, and Sunu Assurance Nigeria Plc, are projecting a combined after-tax profit of N14.1 billion for Q2 2025, signaling a sharp 29.9% drop from the N20.1 billion posted during the same period in 2024.
Despite the profit downturn, these companies anticipate significant top-line growth, with total projected revenues expected to jump to N117.03 billion, up from N56.72 billion in Q2 2024. This shows operational expansion but underscores the impact of non-operating costs on net profit.
The major driver of the profit decline is foreign exchange losses, a reversal from the previous year’s gains. In Q1 2025, the firms collectively reported FX losses of N101 million, a steep contrast to N3.4 billion in FX gains reported in Q1 2024. This shift has deeply impacted bottom lines.
Among the four firms, AXA Mansard stood out by posting an FX gain of N2.3 billion, bucking the downward trend. This positions the company as relatively better insulated from the adverse currency environment affecting its peers.
While projections hint at ongoing FX-related challenges, the actual Q2 2025 FX figures are yet to be disclosed. Full clarity will emerge once official financial statements are released, which will provide a clearer picture of the insurance sector’s financial health amid Nigeria’s volatile currency market.
Source: Business day