Prestige Assurance Plc has announced a profit after tax of N535.57m for the first quarter ended 31 March 2026, representing a seven per cent decline compared to the N574.90m recorded in the corresponding period of 2025.
According to the company’s unaudited financial results at a glance, obtained from the NGX on Monday, the dip in profit followed a contraction in top-line revenue and a sharp rise in operational outlays. Gross premium written decreased 10 per cent to N7.21bn from N8.02bn in Q1 2025, while insurance revenue softened one per cent to close at N6.98bn.
The underwriting firm also battled mounting cost pressures during the quarter, as insurance service expenses jumped 34 per cent to N4.69bn, up from N3.49bn in the previous year. Similarly, total investment income took a 36 per cent hit, dropping to N438.79m against N687.51m in 2025, while basic earnings per share eased from 4.34 kobo to 4.04 kobo.
Despite the bottom-line contraction, the company’s core underwriting capacity showed resilience as its insurance service result surged 79 per cent to N843.87m from N471.24m, aided by a 53 per cent reduction in net expenses from reinsurance contracts held. Net assets also grew three per cent to N21.03bn.
Reviewing the performance in its Management Discussion and Analysis note, the leadership of Prestige Assurance stated, “For the period ended 31 March 2026, the Gross Premium written of the company decreased 10 per cent compared with the previous period, and the insurance revenue decreased by N809.13m compared with the previous period as a result. Insurance service results for the period increased by N372.63m when compared with the previous period, 31 March 2025, whilst profit for the period decreased by N39m compared to the prior period.”
Addressing the risk management architecture designed to insulate the balance sheet from extreme underwriting volatility, the company noted, “Insurance business is a kind of business that is full of risk known as ‘insurable risks’. This is a known risk, but the likelihood and magnitude of the occurrence are not certain. The company has put in place a balanced reinsurance policy to absorb the impact of such risks at any time in the future.”
Highlighting its institutional competitive advantage through international alignment, the management added, “Prestige Assurance Plc is a subsidiary of The New India Assurance Company Limited, Mumbai, India. Our parent company is one of the largest insurance business undertakers across the Afro-Asian continent. The parent company provides support to us in all ramifications, which has had a positive impact in terms of skills and financial status to underwrite high-risk businesses rarely underwritten by the local companies.”
The firm concluded that its workforce remains its most critical operational pillar, asserting that strategic focus will remain fixed on human capital development to successfully navigate the evolving macroeconomic realities in the local insurance industry.
