Coronation Insurance Plc, one of the insurance companies listed on the NGX, says its stronger capital base will allow it to take on larger insurance risks and grow its premium income.

Managing Director Olamide Olajolo told shareholders at the company’s virtual annual general meeting on Thursday, September 24, that both its life and non-life businesses had met their recapitalisation requirements.

He said only about N1.3 billion of the additional capital was needed to complete the life business’s recapitalisation, leaving the group with more capacity to pursue larger risks.

The company also plans to invest in technology, develop new products and deepen its reach among small businesses, and underserved customers.

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But shareholders are already looking beyond the capital raise to what it will deliver for them.

At the AGM, Bisi Bakari questioned why profit declined despite the strong increase in insurance revenue, while Eric Akinduro sought clarity on when dividend payments would resume.

  • Tunji Bamidele also raised the issue of shareholder returns, asking whether bonus shares could be considered if dividends were not paid.
  • Shareholders also asked about the company’s Abuja property, which management said was still under construction and had yet to start generating revenue.

Their concerns reflect what happened to Coronation’s bottom line in 2025. Insurance revenue rose 51.4% to N74.83 billion, but profit after tax fell to N7.52 billion from N11.91 billion. In other words, the strong growth in insurance business did not translate into higher profit.

Management attributed much of that decline to factors outside the core insurance business.

  • Olajolo said Coronation moved from an exchange gain of about N8.5 billion in 2024 to an estimated exchange loss of N1.3 billion in 2025.
  • The company also paid two substantial oil and gas claims linked to events in 2024, which management described as one-off claims.

That explanation offers some comfort because those specific pressures may not repeat at the same scale.

H1 2026 already shows some improvement. Insurance revenue rose 14.8% to N37.81 billion, while the insurance service result increased 29.3% to N6.06 billion, showing stronger performance from the core insurance business. Investment and other income also improved, while finance expenses eased.

  • These gains helped profit before tax rise 18.9% to N4.05 billion. Profit after tax nearly doubled to N3.13 billion, although that stronger bottom-line growth was also helped by a much lower tax charge.
  • Notwithstanding, their earnings per share stood at 13.1 kobo in H1 2026, although higher than the 6 kobo recording in the corresponding period of last year, but just 42% of 2025 full year earnings per share.

This suggests that coronation must increase its earnings in the second half of 2026 to be able to match at least 2025 numbers.

The situation has been made more challenging by the increase in number of shares outstanding due to the capital raise

The group had about 23.99 billion shares at the end of June. It subsequently listed 4.53 billion placement shares, taking the total to about 28.53 billion.

To match its 2025 earnings per share of 31 kobo on the enlarged share base, Coronation would need full-year profit of about N8.84 billion.

With N3.13 billion earned in H1 2026, the insurer would therefore need to generate about N5.71 billion in H2, roughly 83% more than its first-half profit.

This shows how the capital raise has lifted the profit hurdle. Coronation now has more capital to grow the business, but it also has more shares over which earnings must be spread.

This challenge is not peculiar to Coronation. Every company that raises fresh equity initially has more shares competing for the same pool of profit.

  • The benefit only becomes clearer when the new capital is put to work and starts generating additional earnings.

That said, apart from the dilution impact of the increased shares, Coronation also needs to keep costs under control if the expected growth in premium income is to translate into stronger profit.

In H1 2026, non-attributable operating expenses rose 87% to N6.33 billion from N3.38 billion, eating into some of the gains from the stronger insurance business.

Shareholders now want returns

For shareholders, the issue is no longer just whether Coronation can write more premiums, but whether the additional business can produce higher profit after claims and expenses and eventually support a return to dividends.

  • There is some encouragement in the numbers. Group retained earnings increased to N17.22 billion in H1 2026 from N15.50 billion at the end of 2025, showing that accumulated profits are still building.
  • But investors have also watched the share price fall about 32% year-to-date, adding to the pressure for tangible returns.

A stronger case for dividends would therefore come from Coronation sustaining profit growth in H2, controlling costs and showing that the new capital is beginning to generate additional earnings.