WorldStage– AIICO Insurance Plc, AXA Mansard Plc, and Africa Prudential Plc, among Nigeria’s insurers ranking high on assets, racked up liabilities that equalled more than half of their assets in 2025.
The three, alongside 13 other insurers which met the Nigeria Exchange Group (NGX) annual financial statement submission deadline, disclosed these in their financial positions late March.
Their debt-asset ratios the WoldStage analysed showed the companies run well over 60 percent on debt. Leveraging debt this way constricts profit margins, and raises risk profiles, especially when inflation rates whipsaw.
Of the three, AIICO had the highest, N584 billion in assets, in 2025, a 40 percent rise from N416 billion the year before. Its financial assets contributed most of these.
However, its liabilities also jumped by 39 percent from its N349 billion in 2024 to N485 billion a year after. Insurance contract liabilities (responsibility for future claims) and fixed income liabilities, in that order, contributed the most.
That indicated AIICO used creditors’ funds to build up 83 percent, more than three-quarters, of its assets in the reporting year.
AXA Mansard had N227.9 billion in total assets, a 17.5 percent jump from N194 billion in 2024—thanks to investment securities, reinsurance contract assets, and investment property, in that order.
In the same breath, the company’s liabilities rose 21.7 percent from N141 billion in 2024. Insurance contract liabilities, investment contract liabilities, and technical liabilities piled on the most debts. Its total liabilities stood at N172 billion in 2025, adding up to three-quarters of its assets.
Africa Prudential’s assets standing at N41.9 billion didn’t compare with the two in 2025. The figure, however, represented a 20 percent jump from its N35 billion the year before. Debt investments at amortized cost and equity instrument respectively added the most to the asset base.
But just over the same period, the company’s total liabilities increased 25 percent from N24 billion in 2024. The figure stood at N29 billion last year, indicating debt formed 69.1 percent of the assets.
Leveraging in business has been around for a while, analysts say. It particularly suits industries like technology. But high debt-asset ratios signal financial positions are weakening. A company can over-leverage, pushing its debt-asset ratio to 1 or 100 percent and more.Analysts say a company in that position is at risk of failing to fulfil obligations, especially as interest rates on debts rise with inflation.
