Coronation Insurance Plc said its strengthened capital base will allow it to pursue larger insurance risks and grow premium income, but shareholders are already pressing for evidence that the expansion will deliver higher profits and dividends.
Managing Director Olamide Olajolo told the company’s virtual annual general meeting on Thursday, September 24, that both its life and non-life businesses had completed recapitalisation. He said only N1.3 billion remained to finish the life business’s requirements, leaving the group with capacity to move forward.
“Both companies are fully recapitalised, and we are geared to move from capital to capacity going forward,” Olajolo said. The insurer also plans to invest in technology, develop new products and reach small businesses and underserved customers.
But the capital raise has raised the bar for profit growth. Coronation added 4.53 billion placement shares, bringing total shares outstanding to about 28.53 billion from 23.99 billion at the end of June. Earnings must now be spread across a larger share base.
Insurance revenue rose 51.4% to N74.83 billion in 2025, but profit after tax fell to N7.52 billion from N11.91 billion. Kanyi Daily reports that management attributed much of the decline to factors outside the core insurance business: an exchange loss of N1.3 billion in 2025 against a gain of N8.5 billion in 2024, plus two substantial oil and gas claims linked to 2024 events.
H1 2026 showed improvement. Insurance revenue climbed 14.8% to N37.81 billion, while the insurance service result jumped 29.3% to N6.06 billion. Profit before tax rose 18.9% to N4.05 billion, and profit after tax nearly doubled to N3.13 billion. However, earnings per share stood at 13.1 kobo, only 42% of the full-year 2025 figure of 31 kobo.
To match 2025 earnings per share on the enlarged share base, Coronation would need full-year profit of about N8.84 billion. With N3.13 billion earned in the first half, the insurer needs to generate roughly N5.71 billion in H2—about 83% more than H1 profit.
Non-attributable operating expenses rose 87% to N6.33 billion in H1 2026 from N3.38 billion, pressuring margins despite the stronger insurance business. Shareholders raised concerns at the AGM about declining profit despite revenue growth, the timing of dividend resumption, and the status of the company’s Abuja property, which remains under construction.
Group retained earnings increased to N17.22 billion in H1 2026 from N15.50 billion at year-end 2025, showing accumulated profits are still building. But the share price has fallen about 32% year-to-date, intensifying pressure for tangible returns. A case for dividends would require sustained profit growth in the second half, controlled costs and evidence that new capital is generating additional earnings.
