By Kehinde Ibrahim, Lagos
CORONATION Insurance Plc is repositioning for stronger business growth and improved earnings following the successful recapitalisation of its life and non-life businesses, with management expressing confidence that the enlarged capital base will enhance its capacity to underwrite larger risks and expand premium income.
The company’s stronger financial position is also beginning to reflect in its operating performance, as first-half 2026 results showed significant improvement in profitability and insurance service performance, providing a stronger platform for sustained growth and enhanced shareholder value.
Speaking at the company’s virtual Annual General Meeting held on Thursday, the Managing Director of Coronation Insurance, Olamide Olajolo, said both the life and non-life businesses had successfully met their recapitalisation requirements.
He explained that the strengthened capital base would enable the group to pursue larger opportunities across the insurance market while improving its ability to support customers and participate in more substantial risks.
The development comes as shareholders increasingly focus on how the benefits of the recapitalisation will translate into stronger earnings and improved returns over the medium to long term.
At the AGM, shareholders sought clarification on the company’s earnings performance, dividend prospects, bonus shares and the progress of its Abuja property development.
Bisi Bakari asked about the relationship between the substantial increase in insurance revenue and the decline in profit in 2025, while Eric Akinduro sought an update on the resumption of dividend payments.
Tunji Bamidele also asked whether bonus shares could be considered if cash dividends were not immediately resumed, while shareholders requested further information on the company’s Abuja property, which management said remained under construction and had yet to commence revenue generation.
Coronation’s 2025 results showed strong growth in its underlying insurance business, with insurance revenue increasing by 51.4 per cent to N74.83 billion. Profit after tax, however, declined to N7.52 billion from N11.91 billion in 2024.
Management explained that the decline was significantly influenced by exceptional factors outside the core insurance business.
According to Olajolo, the company moved from an exchange gain of about N8.5 billion in 2024 to an estimated foreign exchange loss of N1.3 billion in 2025.
The company also incurred two substantial oil and gas claims relating to events in 2024, which management described as one-off claims.
With these exceptional pressures largely behind the company, its first-half 2026 performance has provided evidence of a stronger underlying trajectory.
Insurance revenue increased by 14.8 per cent to N37.81 billion in the first six months of 2026, while the insurance service result rose by 29.3 per cent to N6.06 billion.
Investment and other income also improved during the period, while finance expenses moderated, supporting a broader improvement in the group’s financial performance.
Profit before tax consequently increased by 18.9 per cent to N4.05 billion, while profit after tax almost doubled to N3.13 billion.
Although the increase in profit after tax was partly supported by a lower tax charge, the performance nevertheless represents a substantial improvement compared with the corresponding period of 2025.
Earnings per share also strengthened to 13.1 kobo from six kobo in the first half of 2025, reflecting the improvement in profitability.
The first-half performance provides a foundation for the company to build on its earnings momentum during the remainder of the year, particularly as the benefits of its strengthened capital position become increasingly reflected in its business operations.
The recapitalisation has expanded the company’s equity base, with the group having approximately 23.99 billion shares outstanding at the end of June 2026. Following the listing of 4.53 billion placement shares, total shares outstanding increased to about 28.53 billion.
While the enlarged share base raises the level of profit required to maintain previous earnings-per-share levels, the additional capital also provides Coronation with greater capacity to grow its business.
Based on the enlarged share capital, the company would require approximately N8.84 billion in full-year profit to achieve earnings per share of 31 kobo, its 2025 level.
Having recorded N3.13 billion in profit after tax during the first half of 2026, the company would need about N5.71 billion in the second half to reach that profit level.
The target highlights the opportunity available to the company as it enters the second half of the year, with stronger insurance operations providing a base for further earnings growth.
Importantly, the value of the recapitalisation extends beyond the immediate impact on earnings per share. The additional capital strengthens Coronation’s financial capacity, enabling it to pursue larger risks, expand its underwriting activities and take advantage of opportunities emerging across the insurance market.
The company’s ability to convert this capacity into profitable business will be central to the next phase of its growth.
Cost efficiency will also remain important as the insurer expands. In the first half of 2026, non-attributable operating expenses increased by 87 per cent to N6.33 billion from N3.38 billion.
While the increase reflects the cost of supporting business operations and growth, maintaining disciplined expense management will help ensure that stronger premium income and insurance service performance translate into sustainable profitability.
For shareholders, the combination of stronger capital, improving insurance operations and rising profitability provides a more constructive outlook for the company.
Coronation’s retained earnings increased to N17.22 billion in the first half of 2026 from N15.50 billion at the end of 2025, indicating continued growth in accumulated earnings.
The company’s focus will now be on sustaining this momentum, deploying its additional capital effectively and improving earnings across its enlarged equity base.
The performance of the first half of 2026 suggests that the business is making progress in that direction. If the company sustains the improvement in insurance service performance, strengthens investment returns and maintains cost discipline, the enlarged capital base could provide a platform for stronger earnings and improved shareholder distributions over time.
For Coronation, the recapitalisation therefore represents more than a regulatory requirement. It provides the financial capacity to pursue larger opportunities, strengthen its market position and build a more resilient insurance business capable of delivering sustainable growth and greater value to shareholders.
