Insurance firms project N14.1bn decline in Q2 profit on FX losses

Four Nigerian insurance firms have a projected combined after-tax profit of N14.1 billion for the second quarter of 2025, marking a 29.9 percent decline from the N20.1 billion recorded in the same period last year, according to their earnings projections.

The surveyed firms include AXA Mansard Insurance Plc, Consolidated Hallmark Holdings Plc, Linkage Assurance Plc, and Sunu Assurance Nigeria Plc.

These firms’ projected top-line earnings are expected to rise to N117.03 billion from N56.72 billion during the period under review.

The projected decline in profit is a reflection of the companies reporting losses in their foreign exchange compared to gains made last year during the same period.

For instance, in the first quarter of the year, they collectively reported a loss of N101 million from a foreign exchange gain of N3.4 billion reported in Q1 last year. Only AXA Mansard bucked the trend with a gain of N2.3 billion.

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However, the FX figures for Q2 are yet to be released, pending official financial statements.

Nigeria’s foreign exchange witnessed relative stability in the first half of this year with analysts seeing the calmness sustained all through the year in what could pare the FX-induced losses of the firms.

How these firms’ share prices performed in H1

Investor confidence in the sector remains tepid, as reflected in the performance of insurance stocks on the Nigerian Exchange (NGX). The NGX Insurance Index posted a modest year-to-date return of just 5.23 percent in H1 2025, ranking among the worst-performing sectors.

Analysts say the lackluster performance stems from dampened investor appetite due to weak earnings outlooks and persistent macroeconomic pressures.

In the first half, the share price of Consolidated Hallmark Holdings Plc fell to N2.98 from N3.06, and Sunu Assurance Nigeria Plc fell to N5.14 from N5.75, while Axa Mansard rose from N9.22 in January to N9.25 in June.

However, the Linkage Assurance Plc share price remained unchanged at N1.50.