Nigerian insurance companies paid a combined N15.2 billion in income taxes in 2025, more than double the N6.6 billion recorded in 2024, even as the sector recorded a 15 percent decline in profit before tax (PBT), according to audited financial statements.
The figures, analysed from the 2025 financial reports of 11 insurance firms, show that while revenues increased significantly across the industry, profitability weakened in several companies, leading to mixed financial performance.
The firms generated a combined insurance revenue of N827.49 billion in 2025, representing a 34 percent increase from N617.41 billion in 2024. However, total profit before tax fell to N162.18 billion, down from N190.51 billion in the previous year.
Custodian Investment Plc emerged as the highest taxpayer, paying N3.76 billion in income tax in 2025, compared to N1.48 billion in 2024. The company also recorded strong growth in insurance revenue and profit before tax.
AXA Mansard Insurance followed with N3.34 billion in tax payments, despite a sharp drop in profit before tax from N31.69 billion to N6.12 billion.
Other insurers, including NEM Insurance, Sovereign Trust Insurance, and Coronation Insurance, also recorded significant increases in tax payments, even as their profits declined in some cases.
NEM Insurance paid N1.88 billion in tax, while Sovereign Trust also paid N1.88 billion, both higher than the previous year.
Coronation Insurance paid N1.08 billion in taxes, though its profit before tax declined compared to 2024.
Mutual Benefits Assurance, Cornerstone Insurance, AIICO Insurance, SUNU Assurances, Lasaco Assurance, and Universal Insurance also reported varied performances, with most firms experiencing revenue growth but mixed profit outcomes.
SUNU Assurances and Lasaco Assurance recorded weaker earnings, while Universal Insurance posted higher profit before tax despite being the lowest taxpayer among the firms reviewed.
The report highlights a sector under pressure from rising costs, regulatory changes, and varying claims exposure, even as insurance revenue continues to expand across the industry.
