T en insurance companies listed on the Nigerian Exchange Limited (NGX) collectively generated N493.41bn in revenue for the 2024 financial year, marking a 65.53% increase from the previous year. An analysis of their unaudited and audited financial statements reveals the impressive performance, even amid macroeconomic challenges.
The companies included in this report are Cornerstone Insurance, AXA Mansard Insurance Plc, AIICO Insurance Plc, Sovereign Trust Insurance, Regency Alliance, Coronation Insurance, NEM Insurance, International Energy Insurance, Guinea Insurance Plc, and SUNU Assurances.
In addition to the revenue growth, these firms reported a combined profit of N105.12bn, a 73.69% increase from the N60.52bn earned in 2023, demonstrating their resilience.
Notable Performances:
- Cornerstone Insurance nearly doubled its profit after tax (PAT) to N22.66bn, up 61.28% from N14.05bn. Revenue increased to N38.45bn, from N25.91bn.
- AXA Mansard saw a 58.71% revenue increase to N131.34bn, while its PAT more than doubled, rising to N26.19bn from N12.05bn.
- AIICO Insurance grew its revenue by 48.80% to N108.27bn, with PAT rising by 12.19% to N13.62bn.
- Sovereign Trust Insurance experienced a 98.58% revenue increase, with PAT rising by 142.34% to N3.09bn.
- Coronation Insurance achieved a 98.89% increase in revenue, with PAT surging 444.43% to N9.90bn.
- NEM Insurance saw a 75.90% rise in PAT, which reached N23.31bn, from N13.25bn.
Challenges and Declines:
- Regency Alliance Insurance Plc and Guinea Insurance Plc both reported profit declines of 60.69% and 69.11%, respectively. However, their revenue still showed growth, rising by 19.47% and 36.59%.
Despite these challenges, the sector's overall growth reflects the industry's resilience and the positive impact of efforts to reprice premium rates and the devaluation of the naira.
Industry Outlook: According to rating firm Agusto & Co., the Nigerian insurance industry remains resilient, driven by upward premium adjustments and the devaluation of the naira. Analysts believe that the enforcement of third-party motor insurance by the police, which began on February 1, 2025, will further drive insurance penetration and boost the revenue of industry players.
Bàbàtunde Oguntade, President/Chairman of the Nigerian Council of Registered Insurance Brokers, also noted that third-party insurance, now recognized cross-border under ECOWAS, would continue to improve the industry’s performance.
The outlook for the sector remains positive, as more Nigerians embrace insurance products amid enforcement measures and industry expansion.
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