Rex Insurance Plc has posted a resilient financial performance for the 2025 fiscal year, reporting profit growth despite a substantial ₦30.2 billion payout in insurance claims. The company’s ability to remain profitable amid the challenging macroeconomic environment underscores its robust risk management framework, prudent underwriting, and strategic focus on operational efficiency.
According to its latest financial report submitted to the Nigerian Exchange Group (NGX), Rex Insurance achieved a gross written premium (GWP) of ₦94.8 billion for the period, representing a 26% increase compared to ₦75.3 billion recorded in the previous year. The company attributed the growth to expanding its retail and corporate segments, improving customer retention, and introducing innovative insurance products tailored to meet evolving market needs.
Despite the increase in claims, which rose by nearly 19% year-on-year, Rex Insurance maintained strong profitability through effective reinsurance arrangements and investment income diversification. Its profit before tax stood at ₦11.4 billion, while profit after tax closed at ₦7.9 billion, marking a 13% improvement compared to the prior year.
The company’s Managing Director/Chief Executive Officer, Mr. Tunde Alade, described the performance as a testament to Rex Insurance’s resilience and strategic adaptability. He noted that the company had successfully navigated the economic headwinds affecting the insurance industry, including inflationary pressures, foreign exchange fluctuations, and increased underwriting costs.
“Despite higher claims and market volatility, we achieved steady growth through prudent underwriting, cost control, and our renewed focus on customer satisfaction,” Alade said. “Our commitment to prompt claims settlement and value delivery has strengthened our brand trust and ensured customer loyalty.”
He added that the company’s continued investment in digital transformation had enhanced its service delivery, claims management, and data-driven decision-making. The use of advanced analytics, automation, and artificial intelligence has improved efficiency in policy administration and customer engagement.
Rex Insurance has also deepened its partnerships with brokers, agents, and financial institutions, enabling it to extend its reach to new customer segments and diversify its portfolio. Its retail business saw strong growth in motor, health, and life insurance, while the corporate arm benefited from renewed contracts in energy, marine, and property insurance lines.
Analysts have described the company’s financial results as impressive given the challenging operating conditions in the Nigerian insurance market. Rising inflation and increased cost of vehicle repairs, medical expenses, and construction materials have driven claims costs upward for most insurers. Yet, Rex Insurance managed to maintain healthy margins through risk diversification and prudent asset management.
Industry experts also commended the firm’s capital adequacy position and adherence to regulatory standards set by the National Insurance Commission (NAICOM). The company’s solvency ratio remains well above the required threshold, ensuring it maintains the capacity to meet future obligations.
According to Alade, Rex Insurance continues to prioritise policyholder protection and transparency. “We are committed to meeting all legitimate claims promptly because customer confidence is the foundation of our business. Our strong reinsurance support and liquidity position enable us to absorb large claims without jeopardising profitability,” he stated.
The company also reported a significant increase in its investment income, which rose by 21% to ₦8.6 billion, driven by gains from government securities and money market instruments. The management credited this growth to the implementation of a balanced investment strategy aimed at maximising returns while mitigating risks associated with market volatility.
In line with its sustainability agenda, Rex Insurance continued to invest in social impact programmes during the year, including road safety awareness campaigns, financial literacy workshops, and youth empowerment initiatives. The company reaffirmed its commitment to supporting inclusive insurance access for underserved populations, aligning with national goals for financial inclusion.
Looking ahead, Alade expressed optimism that the company will continue to deliver strong performance despite economic uncertainties. He revealed that Rex Insurance plans to expand its digital footprint, introduce new microinsurance products, and explore regional market opportunities across West Africa.
“Our goal is to build a stronger, tech-driven insurance company that provides value to customers, shareholders, and the broader economy,” he said. “We will continue to adapt to emerging risks, strengthen our operational capacity, and innovate to meet the changing needs of our clients.”
The Nigerian insurance sector has faced numerous challenges in 2025, including rising claim obligations and high operational costs due to inflation and currency depreciation. However, analysts believe that firms like Rex Insurance are well positioned to thrive due to their efficient management practices and customer-centric approach.
By maintaining profitability after settling ₦30.2 billion in claims, Rex Insurance has demonstrated financial strength, trustworthiness, and a clear commitment to policyholder satisfaction. The company’s performance not only reinforces investor confidence but also reflects the resilience of Nigeria’s insurance industry amid a rapidly evolving economic landscape.
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