Coronation Insurance bolsters capital, profit squeezed, shareholders seek returns
Coronation Insurance says both its life and non-life businesses have met recapitalisation requirements, with only about N1.3 billion still needed to finish the life unit, leaving the group with more capacity to take on larger risks. Managing Director Olamide Olajolo disclosed this at the company's virtual annual general meeting on Thursday, September 24. Despite a 51.4% jump in insurance revenue to N74.83 billion in 2025, profit after tax fell to N7.52 billion from N11.91 billion, mainly due to an exchange loss of N1.3 billion (versus an N8.5 billion gain in 2024) and two large oil-and-gas claims linked to 2024 events.
In H1 2026, insurance revenue rose 14.8% to N37.81 billion and the insurance service result increased 29.3% to N6.06 billion, showing stronger core performance. Profit before tax climbed 18.9% to N4.05 billion and profit after tax nearly doubled to N3.13 billion, though earnings per share stood at 13.1 kobo—just 42% of the 31 kobo recorded for full-year 2025. The share base grew from about 23.99 billion shares at end-June to 28.53 billion after listing 4.53 billion placement shares, lifting the profit needed to match 2025 EPS to roughly N8.84 billion for the year. Consequently, Coronation must generate about N5.71 billion in H2 2026, roughly 83% more than its H1 profit, while non-attributable operating expenses surged 87% to N6.33 billion from N3.38 billion.
Shareholders at the AGM questioned why profit did not rise with revenue, asked when dividends would resume, and whether bonus shares could be considered if dividends remain unaffordable. They also sought updates on the Abuja property, still under construction and revenue-free. Retained earnings rose to N17.22 billion from N15.50 billion at end-2025, but the share price has slipped about 32% year-to-date, underscoring pressure for tangible returns.
Will Coronation's H2 profit growth and disciplined cost control be enough to restore dividends and justify the capital raise?