November 23, (THEWILL) — Seven Nigerian insurance companies show mixed dividend prospects for the full-year of 2025, based on their nine months results as of September 30, 2025, THEWILL investigation has shown.
The surveyed insurers with complete financial data include AIICO Insurance, AXA Mansard, Consolidated Hallmark Holdings (CHH), NEM Insurance, Lasaco Assurance, Mutual Benefits, and Cornerstone Insurance.
9-Months Performance Overview
AIICO Insurance Plc recorded a pre-tax profit (PBT) of ₦15.3 billion and a net profit (PAT) of ₦13.8 billion for the nine months ending September 2025. The earnings per share (EPS) stands at 37 kobo, with total assets of ₦514.4 billion. Strong underwriting performance and investment gains suggest a favorable environment for dividend distribution.
AXA Mansard Insurance posted a PBT of ₦6.1 billion and a PAT of ₦6.0 billion for the nine-month period, down significantly from FY 2024. EPS for the period was 63 kobo. Although revenues remain solid, the decline in profitability may limit dividend payouts.
Consolidated Hallmark Holdings (CHH) delivered a PBT of ₦7.7 billion and PAT of ₦6.1 billion, with an EPS of 56.31 kobo and total assets of ₦72.18 billion. The company’s balance sheet suggests a capacity to support dividends.
NEM Insurance achieved a PBT of ₦23.77 billion and PAT of ₦20.51 billion, with an EPS of 582 kobo (from FY 2024). The insurer’s strong revenue and investment performance indicate a high likelihood of dividend payouts.
Lasaco Assurance Plc recorded a PBT of ₦1.62 billion for Q1 2025 and total assets of ₦45.68 billion. With FY 2024 PAT at ₦1.89 billion, dividend payments are likely to be modest.
Mutual Benefits Assurance Plc posted a PBT of ₦4.456 billion and PAT of ₦4.136 billion for Q1 2025, with EPS of 20 kobo and total assets of ₦163.51 billion. Historically, the company paid a 2kobo dividend, indicating a conservative approach despite strong growth.
Cornerstone Insurance Plc saw a 253 percent increase in PBT for Q2 2025, reaching ₦5.3 billion, with a corresponding PAT of ₦4.8 billion. The insurer declared a 27kobo dividend, reflecting confidence in its profitability and capital position.
Categorised Dividend Outlook
Based on historical patterns and current earnings, the following categorisation emerged from the status of the surveyed firms:
High Likelihood of Dividend Payout: AIICO, NEM, CHH, Cornerstone
These insurers are considered strong candidates for paying dividends in 2025 as they combine solid profitability, capital strength, and, in some cases, established payout patterns.
AIICO
It has reported a substantial ninemonth pre-tax profit (PBT) of ₦15.3 bn and PAT of ₦13.8 bn, according to its interim results. Its strong asset base (over ₦500 bn) provides a cushion and shows capacity to absorb underwriting risks. The company has managed a strong underwriting performance and seems well-positioned to continue generating distributable earnings. Its strong 9M results make it likely that management will reward shareholders with dividends.
NEM Insurance
The company reported an impressive PBT (₦23.77 bn) and PAT (₦20.51 bn) for nine months, suggesting robust earnings power. Its 2024 EPS of 582 kobo (from its annual report) indicates very high per-share profitability. Such high earnings and likely strong cash inflows from both underwriting and investment give NEM substantial capacity to distribute profits. Given this performance, it’s reasonable to expect a meaningful dividend, especially if management wants to signal strength to shareholders.
Consolidated Hallmark Holdings (CHH)
CHH’s ninemonth PBT is ₦7.7 bn, PAT is ₦6.1 bn, and its EPS for that period is 56.31 kobo. Its total assets (₦72.18 bn) and relatively moderate liabilities suggest good balance sheet stability. In its interim report, CHH also declared an interim dividend (₦0.10/share), signaling a commitment to shareholder returns. These factors combined make it very plausible for CHH to pay a further dividend, or at least a substantial one, in 2025.
Cornerstone Insurance
Cornerstone has declared a final dividend of 27 kobo per 50kobo share, based on its results for FY2024.
The payout ratio is relatively moderate (reportedly 18.94 percent), which suggests they are not over-distributing relative to profit. Their underwriting business is solid: premiums are growing (e.g., Q1 2025 premiums), showing strong core operations. Though their Q1 profit declined (mainly due to lower investment returns), the strong underwriting base and adequate retained earnings make their 27 kobo dividends credible.
HighLikelihood Group: These companies have strong earnings, stable capital, and (in some cases) declared or demonstrated willingness to pay. They are the most credible dividend payers among the seven.
Moderate /Small Dividend Prospect Companies: Lasaco, Mutual Benefits
These insurers are in a good position. However, there are limitations that could lead to moderate or cautiously sized dividends in 2025.
Lasaco Assurance
For FY 2024, Lasaco reported a PBT of ₦2.17bn and a PAT of ₦1.89bn. Its Q1 2025 results show a PBT of ₦1.62bn; this continuing profitability is positive. Their first half 2025 interim results show total assets growing substantially (to ₦44.09bn) and a remarkable increase in shareholders’ funds. However, Lasaco’s scale (relative to some of its peers) is smaller, which may constrain its dividend payout. The combination of consistent profits but limited scale suggests it is capable of paying a dividend – most likely conservative dividend payout.
Mutual Benefits Assurance
In Q1 2025, Mutual Benefits reported a PBT of ₦4.456bn and PAT of ₦4.136bn, with EPS of 20 kobo. Its total assets are relatively strong (₦163.51 bn at Q1 2025). Historically, it paid a very modest 2 kobo dividend, indicating a conservative approach to shareholder distribution.
Given its cautious dividend history, it is likely to pay some dividend, but not very large balancing growth and capital retention.
Summary for ModerateLikelihood Group: These companies are profitable and growing, but likely to prioritize capital prudency. While their dividend potential is real, they might not have the same financial muscle as those in the first group.
Uncertain /Cautious Group: AXA Mansard
AXA Mansard falls into this category because, despite remarkable revenue haul, its profitability has come under pressure, and there are signs it may not be able to return as much cash as other insurers.
Its PBT for 9M 2025 was ₦6.099 bn, with PAT of ₦6.005 bn, according to its interim reports. EPS for the period closed around 63 kobo, suggesting relatively lean EPS compared with its earnings size.
Compared to its FY 2024 results (where profit was much higher), the drop in earnings indicates pressure possibly due to volatile investment income or increased underwriting costs. Because profitability is more constrained, management may choose to retain a larger portion of earnings to shore up reserves, rather than distribute ‘generously’.
Stakeholders may therefore expect a cautious or modest dividend.
Stakeholder Perspectives
Stakeholders emphasise the importance of maintaining a balance between rewarding shareholders and strengthening capital for underwriting obligations.
AIICO’s management indicates that its strong earnings and stable capital base support potential dividends.
NEM Insurance’s board is expected to recommend dividends aligned with profitability growth.
Mutual Benefits has historically opted for modest dividends to ensure capital resilience.
Cornerstone’s declaration of a 27kobo dividend reflects management confidence, though caution remains due to volatility in underwriting results.
AXA Mansard and Lasaco are monitoring profitability closely before committing to payouts.
The Nigerian insurance sector demonstrates resilience, but dividend prospects vary among the top players. Companies such as AIICO, NEM, CHH, and Cornerstone are well-positioned for payouts, while AXA Mansard, Lasaco, and Mutual Benefits may adopt more conservative approaches. For investors, in assessing earnings performance, historical dividend trends and capital adequacy will be key factors.
Ogochukwu Onwaeze
