Prestige Assurance Plc has announced a 51 per cent increase in its gross written premium for the 2024 financial year, highlighting its resilience in a challenging operating environment.
The company’s Chairman, Mrs. Funmi Oyetunji, disclosed the results while presenting the 2024 financial report at the firm’s 55th Annual General Meeting held recently in Lagos.
According to her, Prestige Assurance generated a gross written premium of N22.47bn in 2024, compared to N14.87bn in 2023. Profit after tax also rose significantly, closing at N3.24bn in 2024, up from N1.31bn in the previous year.
Oyetunji attributed the strong performance to improved underwriting discipline, prudent investment management, and the dedication of management and staff. “Our results reflect the resilience of our people and our unwavering commitment to meeting the evolving needs of our policyholders,” she said.
On the company’s financial position, shareholders’ funds grew by 21 per cent, rising from N15.93bn in 2023 to N19.37bn in 2024. Total assets also surged by 36 per cent, closing the year at N38bn compared to N27.9bn in the previous year.
Despite the improved topline numbers, Oyetunji noted that underwriting performance was negatively affected by Nigeria’s tough operating environment. The underwriting figure stood at N128m in 2024 compared to N619m in 2023. To address these challenges, the company introduced new measures to manage risks more effectively.
Among the steps taken, Prestige Assurance revised policy terms, particularly on Goods-in-Transit insurance, to ensure that exposure to risk remains within manageable levels. It also prioritised pre-loss survey exercises for fire and engineering risks, where claims are often more frequent. In addition, marine cargo superintending has been strengthened to improve shipment handling and minimise losses.
However, Oyetunji informed shareholders that the company would not recommend dividend payments for the 2024 financial year. She explained that the decision was necessary to consolidate funds ahead of the insurance industry recapitalisation exercise mandated by the National Insurance Commission (NAICOM).
“The Board nevertheless remains committed to a policy of regular dividend payments to our shareholders in appreciation of their continued faith in the company. We are optimistic that dividends will resume after the recapitalisation,” she assured.
The recapitalisation exercise has been a major policy drive for insurers in Nigeria, as NAICOM insists on stronger capital bases to ensure market stability, protect policyholders, and boost the industry’s ability to pay claims. Many operators have resorted to mergers, rights issues, or capital raising to meet the requirement, with shareholders closely monitoring how their investments will be affected in the transition period.
Looking ahead, the chairman said Prestige Assurance will continue to pursue sustainable long-term growth by reinforcing underwriting operations, driving innovation in product offerings, and ensuring that the company maintains a robust claims-paying capacity.
She noted that the company’s 2025 growth agenda will also focus on digital transformation and customer-centric services to enhance competitiveness in the insurance sector. “We are committed to building a stronger, more resilient company that can weather challenges while providing real value to our policyholders and stakeholders,” Oyetunji said.
Industry observers note that Prestige Assurance’s decision to suspend dividends may disappoint some investors in the short term but could prove strategic in the long run if the recapitalisation exercise strengthens the company’s market position. By consolidating funds rather than paying out profits, the insurer will be better equipped to meet regulatory requirements and attract new opportunities in Nigeria’s evolving insurance market.
With its improved financials, stronger asset base, and risk management reforms, Prestige Assurance appears positioned to sustain growth despite prevailing headwinds in the economy. The company’s renewed focus on underwriting discipline, alongside its investment in claims efficiency and customer experience, may also help it consolidate its market share.
