Coronation Insurance Plc has seen its profit outlook dampened by persistent inflationary pressures and foreign exchange losses, despite strong top-line growth during the first nine months of 2025.
The insurer posted a 59.63 per cent decline in profit after tax (PAT) to ?3.71 billion for the period ended September 2025, compared with ?9.19 billion recorded in the corresponding period of 2024. The steep drop in earnings was largely attributed to significant foreign exchange revaluation losses, combined with surging finance and operating costs.
A detailed breakdown of the company’s financial performance shows that Coronation Insurance incurred a foreign exchange loss of ?996.59 million during the review period. This marks a sharp reversal from the ?4.28 billion gain posted in September 2024, signaling the adverse impact of currency swings on insurers with dollar-denominated assets.
According to market analysts, the relative stability of the naira in recent months-driven by increased liquidity measures by the Central Bank of Nigeria (CBN)-has not benefited financial institutions that had previously booked revaluation gains on their foreign currency assets. With the appreciation of the local currency, earlier gains have now eroded considerably, weakening bottom-line performance.
Further pressure on earnings came from a spike in finance expenses linked to insurance contract liabilities, which rose to ?3.87 billion in September 2025. Management expenses also surged by 176.63 per cent to ?6.75 billion, from ?2.44 billion recorded in the same period of 2024. Analysts say this reflects both the inflationary operating climate and the insurer’s expanded growth drive.
Despite the earnings setback, Coronation Insurance recorded strong revenue performance. Gross written premiums and related income rose 54.63 percent to ?51.17 billion, underscoring its growing influence as one of Nigeria’s leading bancassurance partners. The company continues to leverage strategic retail penetration and distribution partnerships to expand market share in both life and general insurance segments.
The insurer’s balance sheet remains resilient, supported by an increase in total assets to ?103.09 billion, from ?76.79 billion posted a year earlier. Shareholders’ funds also strengthened to ?44.81 billion, highlighting sustained capital adequacy and capacity to underwrite larger-ticket risks across diverse sectors.
Company leadership maintains that ongoing investments in technology infrastructure, product innovation and human capital development will enhance operational efficiencies and improve long-term value creation.
‘Coronation Insurance 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,’ said CEO Olamide Sunmonu, reaffirming management’s commitment to navigate current macroeconomic headwinds.
Industry analysts note that insurance firms will need to continue adjusting their risk exposure and foreign asset portfolios as currency reforms evolve. While near-term pressures persist, stronger premium growth, stable capital buffers and improved investment income may offer a pathway to recovery in the quarters ahead.
As the insurance industry adapts to changing economic conditions, Coronation Insurance is betting on strategic transformation, digital innovation and a broader retail footprint to retain profitability and sustain growth momentum into 2026.