By David Akinmola
An underwriting firm, Universal Insurance Plc has strengthened its market position with a sharp rebound in profitability, posting a 388 per cent rise in post-tax profit for the nine months ended September 2025, driven by strong investment gains, sustained premium growth and tighter cost controls.
The insurer has reported a significant turnaround in its financial results for the nine month period in September 2023, delivering robust growth in profit and demonstrating improved financial resilience.
According to the insurer financial statement, profit after tax rose to N1.13 billion, up from N230.6 million recorded in the same period of 2024, while profit before tax also increased sharply to N1.13 billion, compared with N232 million last year.
Gross written premium climbed 51 per cent year-on-year to N18.59 billion, up from N12.29 billion in 2024, reflecting stronger business acquisition and improved underwriting capacity. Insurance revenue rose by 49 per cent to N14.68 billion, compared with N9.85 billion a year earlier.
Despite a decline in insurance service results from N3.25 billion in 2024 to N1.13 billion in 2025, the company recorded a major rebound in investment income.
Investment and fair-value gain rose to N2.31 billion, reversing a loss of N753 million posted in 2024. This strong rebound boosted the group’s net insurance and investment result to N5.18 billion, up from N2.61 billion in the corresponding period.
The underwriter also recorded a market improvement in cost management, with administrative expenses dropping significantly to N845.5 million, from N4.05 billion in 2024. The reduction played a key role in reinforcing the company’s profitability.
Total assets rose by 6.5 per cent to N23.63 billion, compared with N22.19 billion as at December 2024.
Shareholders’ funds increased by 7.5 per cent to N16.09 billion, supported by a recovery in retained earnings, which improved to N428.6 million from a deficit of N139.3 million the previous year.
Insurance contract liabilities rose to N6.57 billion, up from N5.88 billion, reflecting growth in the company’s policy obligations. Total liabilities increased to N7.44 billion, from N5,81 billion in 2024. Despite this, the insurer maintained a strong capital base, with equity representing about 68 per cent of total assets.
Total shareholders’ fund expanded by 16.6 per cent to N14.38 billion compared with N12.33 billion in 2024, indicating improved valuation and financial strength.
With strong investment income, expanding premiums and tighter cost controls, analysts say the insurer is on track to close 2025 with one of its most impressive financial performances in recent years.
