Coronation Insurance Maintains Adequate Solvency Amid Deteriorating Profit Margin

Coronation Insurance Plc has steady operation and adequate solvency in the last quarter of 2025, which gives the company the leeway to pay policyholders even amid rising expenses which undermined profit margin.

The solvency margin ratio of Coronation Insurance was 411 percent as at December 2025, though lower than 2024’s 422 percent, according to MoneyCentral calculations.

It is important to note that the insurer’s N19.23 billion solvency (assets minus liabilities) is way above the regulatory threshold of N3bn.

Solvency ratio in the insurance industry indicates an insurer’s ability to cover its liabilities and other obligations with the assets that it has. In insurance, solvency ratio is measured as the ratio of the amount of Available Solvency Margin to the amount of Required Solvency Margin.

Despite Coronation Insurance stable liquidity position, it capitulated to an inflationary environment as the higher replacement costs of assets took its toll on profit margin.

• Higher operating expenses undermined profits: Profit after tax (PAT) reduced by 36.94 percent to N7.51 billion as at December 2025 from N11.91 billion as at December 2024. Profit before tax (PBT) was down 30.91 percent to N9.64 billion in the period under review from N13.81 billion the previous year.
•  Claims inflation bloats operating expenses: Claims expenses have been rising on the back of inflationary pressures as well as foreign exchange volatility which means insurers will pass on the spiraling cost of replacement assets to the polichoders during the renewal periods

For instance, Insurance service expenses surged by 86.28 percent to N50.65 billion in December 2025 from 27.16 billion the previous year.

• Diversified product base lifts revenue: the insurer’s bancassurance partnership with Access Bank is still having a positive impact on its revenue, as the company remains focused on building platforms that create long-term value, strengthening governance structures that inspire confidence, and investing in talent that powers our capacity to deliver sustainable growth.

Insurance revenue spiked by 51.24 percent to N74.82 billion in the period under review from N49.47 billion as at December 2024.

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