Heirs Insurance Group reported a 15% decline in profit after tax to N9.53 billion for the first half of 2026, even as gross premium written surged by 89% to N68.4 billion. The unaudited financial statements released by the group show that higher claims and operating expenses offset the premium growth.
Premium Growth and Profit Decline
Gross premium written jumped from N36.2 billion in H1 2025 to N68.4 billion in H1 2026, an 89% increase. However, net premium income rose by a more modest 42% to N40.5 billion, reflecting higher reinsurance costs. The group's underwriting profit fell by 22% to N18.1 billion, while net claims paid surged by 94% to N12.3 billion.
Operating expenses increased by 35% to N14.7 billion, driven by expansion costs and investments in technology. As a result, profit before tax declined by 14% to N12.1 billion, and profit after tax settled at N9.53 billion, down from N11.2 billion in the same period last year.
Segment Performance
The group's life insurance arm contributed N3.2 billion to profit after tax, down 18% year-on-year, while the general insurance unit posted a 12% drop to N6.3 billion. The health insurance subsidiary recorded a marginal profit of N0.03 billion, a turnaround from a loss of N0.1 billion in H1 2025.
Total assets grew by 21% to N312 billion, supported by a 25% increase in investment income to N9.8 billion. However, the combined ratio deteriorated to 91% from 85% in the prior year, indicating reduced underwriting efficiency.
Management Commentary and Outlook
According to the group's Chief Executive Officer, Mrs. Adaobi Nwosu, “The premium growth reflects our expanded distribution network and innovative products, but the increase in claims, particularly in the motor and fire classes, has pressured profitability. We are implementing stricter underwriting measures and claims management protocols to restore margins.”
The group expects full-year premium growth to remain strong, but management cautioned that profitability may remain under pressure if claims frequency continues to rise. The board has declared an interim dividend of 25 kobo per share, unchanged from the previous year, payable to shareholders on September 15, 2026.
Analysts note that the results highlight the competitive and claims-heavy environment in Nigeria's insurance sector, where rapid premium expansion often outpaces profit growth. The group's focus on cost control and risk selection will be critical in the second half of the year.
