Insurance Alpha: Custodian, NEM, and Mutual Benefit Top Peers by Profit

Even amid claims inflation which validates a challenging environment, some insurers such as Custodian, NEM, and Mutual Benefit have remained profitable, as they are increasingly leveraging technology solutions which helped accelerate underwriting.

As of the first nine months of 2025, Custodian Investment posted a profit after tax (PAT) of N45.64 billion, making it the largest listed insurer by profit in Nigeria.

Second on the lists is NEM Insurance Plc with a profit of N20.50 billion; Mutual Benefit Assurance Plc, (N14.28 billion); AIICO Insurance Plc, (N13.08 billion); Cornerstone Insurance Plc, (N8.10 billion); Consolidated Hallmark Insurance Plc, (N6.10 billion); AXA  Mansard Insurance Plc, (N6 billion); Coronation Insurance (N3.71 billion); Linkage Assurance Plc  (N3.11 billion); Royal Exchange, (N1.48 billion); Prestige (N762 million); Regency, (N412 million), and Sovereign Trust Insurance Plc, (N317 million).

Lasaso Insurance is the outlier as it posted a loss after tax of N499 million, but the insurer remains solvent and capable of paying claims to policyholders.

There has been a decline in the profit of some companies amid slow growth at the bottom line due to general softening of the market and easing interest rates as inflationary pressures balloons the replacement costs of assets. Insurers no longer enjoy foreign exchange revaluation gains that added strength to profit.

The Central Bank of Nigeria lowered its benchmark rate by 50 bps to 27 percent on September 23, 2025, the first cut since September 2020, following three meetings of no change.

There are positive prognosis about the outlook for the sector as a gradual economic recovery as well as increased awareness about the usefulness or importance of insurance are expected to bolster earnings.

According to the National Bureau of Statistics (NBS), in Q2-25, the Nigerian economy grew by 4.23 percent year on year (yoy) in real terms. This marks an improvement from the 3.48 percent yoy growth recorded in Q2-24, and the 3.13 percent yoy growth observed in Q1-25.

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