L-R: Mr. Adebisi Ikuomola (Executive Director, Technical), Mr. Akin Taiwo (Distinguished Director), Dr. Ebose Augustine Osegha (MD/CEO), Prof. Paul Udofot (Chairman) and Mr. Ime Umoh (Company Secretary) at Anchor Insurance’s 36th Annual General Meeting held in Lagos on Wednesday, 19 August 2026.
Distinguished Shareholders, Members of the Board of Directors, the Representative of the National Insurance Commission (NAICOM), our esteemed Management and Staff, representatives of other regulatory and supervisory bodies, members of the Press, distinguished guests, ladies and gentlemen.
On behalf of the Board of Directors, I warmly welcome you to the 36th Annual General Meeting of Anchor Insurance Company Limited. I am particularly delighted to have you with us as we review the Company’s performance, progress and prospects and consider the audited financial statements as at end of December 2025.
I wish to express our sincere appreciation to our valued shareholders for your continued confidence, support and commitment to Anchor Insurance. I also acknowledge and commend my fellow Board members for your guidance, diligence and steadfast patriotism to the Company’s growth and sustainability.
Our appreciation further goes to the National Insurance Commission (NAICOM), other regulatory authorities, our Management and Staff, business partners, customers and members of the Press for your invaluable contributions to the Company’s continued progress.
As we commence this meeting, I thank you all for your presence and look forward to a fruitful and engaging deliberation on the affairs and future direction of Anchor Insurance Company Limited.
GLOBAL ECONOMY
The global economy in 2025 remained resilient but continued to operate in an environment of moderate growth, declining but still elevated inflation, geopolitical tensions and considerable trade-policy uncertainty. Although the world economy avoided a major recession, growth remained below its long-term pre-pandemic average. The International Monetary Fund (IMF), in its October 2025 World Economic Outlook, estimated global Gross Domestic Product (GDP) growth at approximately 3.2% in 2025, compared with 3.3% in 2024, while the World Bank estimated growth at about 2.7%. Both institutions agreed that global growth remained relatively weak.
Geopolitical and regional tensions were an important drag on the global economy. The continuing Russia–Ukraine war, instability in the Middle East and heightened conflicts involving Israel and Hamas disrupted trade routes and increased business uncertainty. The uncertainty also contributed to cautious investment and more conservative economic decision-making.
NIGERIAN ECONOMY
The Nigerian economy in 2025 remained challenging but showed signs of gradual macroeconomic stabilisation as the Federal Government’s ongoing economic reforms began to yield some positive results. Real Gross Domestic Product (GDP) growth strengthened to about 4.0%.
Despite this growth, inflation and the high cost of living remained major concerns throughout the year. Inflation, which had been exceptionally high in 2024, moderated during 2025 but remained elevated, averaging about 23% for the year.
The depreciation and volatility of the naira also continued to affect economic activities. Although reforms in the foreign exchange market helped improve liquidity and reduce some of the extreme volatility experienced previously, the relatively weak naira increased the cost of imported items.
The removal of the petrol subsidy and the consequent high pump price of Premium Motor Spirit (PMS) continued to have far-reaching effects on the economy. For businesses, this translated into increased costs of maintaining offices and operations, travelling, marketing and servicing customers across different locations.
Another major constraint was persistent insecurity, including kidnapping, banditry, terrorism and other forms of criminality in several parts of the country. Insecurity disrupted and weakened consumer confidence and constrained investment in the affected areas.
Nevertheless, 2025 also recorded some encouraging developments. Improved foreign-exchange market conditions, stronger government revenues, increased foreign-exchange reserves and continued reforms helped strengthen confidence in the Nigerian economy. The World Bank estimates that Nigeria’s external position improved significantly, with foreign-exchange reserves rising to about US$45.5bn and the current account remaining in surplus.
NIGERIAN INSURANCE SECTOR
The Nigerian insurance industry experienced a year of significant transformation and resilience in 2025, against the backdrop of a challenging macroeconomic environment characterised by the headwinds earlier enumerated. Despite the drawbacks, the sector recorded strong growth in premium generation and continued to strengthen its contribution to the Nigerian financial system.
A major defining development during the year was the recapitalisation exercise arising from the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The new legislation substantially raised the minimum capital requirements for insurance companies, including ₦15bn for non-life insurers and set July 31st 2026 as deadline for compliance. The exercise generated considerable industry-wide debate, as operators grappled with the scale, timing and modalities of raising additional capital. By November 2025, NAICOM had completed its review of recapitalisation plans submitted by operators, underscoring the regulator’s determination to strengthen the financial capacity and resilience of the industry.
Beyond recapitalisation, 2025 witnessed substantial growth in the size of the insurance market. According to NAICOM’s subsequent Q4 2025 market bulletin, Gross Premium Written reached approximately ₦2.3trn, representing a remarkable 47.3% year-on-year increase. The non-life segment remained dominant, accounting for about 68.4% of total premiums.
The sector also recorded an expansion in its financial asset base, with total industry assets rising to approximately ₦4.79trn by the end of 2025. However, the industry continued to face challenges relating to risk retention, particularly in capital-intensive classes such as Oil & Gas, Marine and Aviation. Overall market retention stood at about 68.1%, while non-life retention was significantly lower at 60.3%, indicating that inadequate capacity in certain specialised risks continued to result in substantial premium outflows to foreign markets.
Claims management and underwriting profitability also remained important issues. NAICOM’s Q2 2025 assessment placed the market-wide net loss ratio at 59.4%, above the generally accepted comfort range of 40–55%, reflecting the pressure that claims and operating costs continued to exert on underwriting margins.
Other major issues during the year included the low level of insurance penetration, intense price competition, public concerns about claims settlement, the prevalence of fraudulent or fake insurance transactions, limited public awareness, technological disruption and the need for greater digitalisation.
In all, 2025 was a watershed year for Nigeria’s insurance industry. While economic pressures and the recapitalisation process created considerable uncertainty and adjustment costs for operators, the sector emerged with stronger growth prospects, increased regulatory discipline and a clearer pathway towards higher capitalisation, improved risk-bearing capacity and greater market penetration. The successful implementation of the recapitalisation programme in 2026 is, therefore, expected to be pivotal in determining the industry’s ability to retain more risks locally, improve claims-paying capacity, attract investment and play a more prominent role in supporting Nigeria’s economic development.
OUR PERFORMANCE
The period under review was a year of significant progress and strategic transformation for the Company, despite a challenging operating environment characterised by economic pressures, inflationary trends, intense market competition, clients’ financial inability to meet premium demands, delayed budget funding by the Federal Government and rising operating costs.
Against this backdrop, the Company remained focused on strengthening its financial capacity, improving operational efficiency, enhancing customer service and expanding its market presence. I am, therefore, pleased to report that we achieved a Gross Written Premium of ₦35.02bn during the year ended 31st December 2025 from ₦34.18bn in 2024, representing a growth of 2.46% while Insurance Revenue increased to ₦34.79bn from ₦33.84bn, an improvement of 2.81%.
Shareholders’ Funds appreciated by 6.83%, rising from ₦18.34bn in 2024 to ₦19.56bn in 2025 while Total Assets expanded by 9.69% from ₦23.64bn to ₦25.93bn over the same periods under comparison. During the year, the Company paid ₦10.89bn in claims to affected policyholders, compared with ₦5.28bn in 2024, further demonstrating our strong financial capacity and unwavering commitment to the prompt settlement of all genuine claims. Profit After Tax for the year stood at ₦1.69bn while the Company’s Solvency Margin improved by 4.24%, rising from ₦8.96bn in 2024 to ₦9.34bn in 2025. These results reflect the resilience of our business, the confidence of our stakeholders and the commitment of our Management and Staff.
My well-respected Shareholders, a major milestone during the year was the commencement and substantial progress of our recapitalisation programme in response to the regulatory requirements of the National Insurance Commission (NAICOM) as I have earlier explained. You will permit me to report that we completed the process within the deadline set, with your dear Company’s capital base now in excess of N25.5bn, significantly surpassing the ₦15bn minimum regulatory capital requirement for non-life insurance companies. For us, it is a strategic initiative which has further strengthened the Company’s financial foundation and positioned Anchor Insurance for sustainable growth, greater capacity and enhanced competitiveness in the Nigerian insurance market.
DIVIDEND
The Board of Directors, in recognition of the continued support and confidence of the Company’s owners, has proposed a dividend payment of 5.5K per ordinary share for the shareholders’ approval at this Annual General Meeting.
The proposed dividend is being recommended in consideration of the Company’s performance for the financial year ended 31 December 2025, its financial position and the Board’s assessment of the Company’s capacity to make the payment while maintaining adequate resources to support its ongoing operations and strategic objectives.
Upon your approval, the proposed payment shall be made to you, subject to deduction of withholding tax at the prevailing statutory rate.
The Board considers the proposed payment to be a demonstration of its commitment to delivering value to our dear shareholders.
The Board, therefore, recommends your consideration and approval.
FUTURE OUTLOOK
Anchor Insurance enters the coming year with renewed strength and a well enhanced capital base following the successful completion of its recapitalisation. This provides a solid platform for sustainable growth, increased underwriting capacity, stronger market presence and improved risk-taking capability.
Going forward, we will focus on disciplined underwriting, effective claims management, operational efficiency, digital transformation and superior customer service while expanding distribution channels and strategic partnerships.
With a stronger balance sheet, sound governance and clear strategic direction, we are well positioned to compete effectively, meet our obligations to policyholders and create sustainable value for shareholders. The Company will remain committed to building a stronger, innovative and resilient general insurance business anchored on financial strength, customer trust and long-term value creation.
CONCLUSION
Our dear Shareholders, the Board remains committed to sound corporate governance, prudent risk management, innovation and the continuous enhancement of shareholder value.
As we look ahead, your Company is well positioned to build on the gains of 2025, pursue new business opportunities, deepen customer relationships and deliver stronger and more sustainable performance.
On behalf of the Board, I thank all our stakeholders for their continued confidence and support and assure you of our unwavering commitment to making the Company a stronger, more resilient and increasingly competitive insurance institution.
Once more, I welcome you to this Meeting.
Thank you for your attention.
May the good Lord bless you.
Long live Anchor Insurance Company Limited.
Mr. Usen Okon Effiong
Chairman
