Nigeria’s insurance industry may be making more money, but many companies are also battling declining profits despite paying significantly higher taxes.
A new analysis of audited financial reports from 11 major insurance firms shows that the companies collectively paid about N15.2 billion in income taxes in 2025 — more than double the N6.6 billion paid in 2024.
The report, based on financial statements reviewed by TheCable, revealed that insurance revenues across the sector surged sharply during the year, even though overall profit before tax dropped by nearly 15 percent.
According to the figures, the firms generated a combined insurance revenue of N827.49 billion in 2025, compared to N617.41 billion recorded the previous year.
However, despite the massive revenue growth, combined profit before tax fell from N190.51 billion in 2024 to N162.18 billion in 2025.
Custodian, AXA Mansard Top Tax List
Custodian Investment Plc emerged as the highest taxpayer among the insurance firms reviewed.
The company reportedly paid N3.76 billion in taxes in 2025, a major jump from the N1.48 billion paid in 2024.
Its insurance revenue also increased significantly, rising from N96.2 billion to N141.4 billion.
AXA Mansard Insurance came next with N3.34 billion paid in taxes.
Although the company recorded higher revenue during the year, its profit before tax reportedly crashed from N31.69 billion to N6.12 billion, while profit after tax dropped dramatically.
Mixed Fortunes Across Insurance Sector
Several other insurers also recorded sharp increases in tax payments despite weaker profits.
NEM Insurance paid N1.88 billion in taxes compared to N428 million the previous year, while Sovereign Trust Insurance also saw its tax obligations rise sharply.
Coronation Insurance, Cornerstone Insurance and Mutual Benefits Assurance all reported higher tax payments as revenues climbed across the industry.
However, not every company enjoyed stronger earnings.
Some firms, including Lasaco Assurance, reportedly slipped into losses despite recording increased revenues.
Lasaco posted a loss before tax of N2.6 billion in 2025 after making profits the previous year.
Industry Growing, But Pressure Remains
Analysts say the figures reflect a complicated reality in Nigeria’s insurance sector.
While companies are earning more from insurance premiums and expanding operations, rising operating costs, economic pressure and financial market challenges may be affecting profitability.
The industry has also faced growing pressure from inflation, foreign exchange volatility and increasing claims costs in recent years.
Despite the mixed results, experts believe the strong revenue growth suggests more Nigerians and businesses are embracing insurance services across the country.
The development also highlights the growing contribution of the insurance sector to government tax revenue at a time Nigeria continues searching for alternative sources of income beyond oil.
