Thirteen listed insurance companies on the Nigerian Exchange (NGX) Limited recorded N574.658 billion revenue for the financial year ended December 31, 2024 despite the low penetration of insurance in the country.
The 13 insurance companies’ total revenue grew by N225.538 billion or 64.60 per cent from N349.12 billion achieved in the full year 2023.
The companies are Guinea Insurance, Linkage Insurance, NEM Insurance, Regency Alliance Insurance, Veritas Kapital Assurance, AXA Mansard Insurance, Coronation Insurance, AIICO Insurance, Cornerstone Insurance, LASACO Assurance, Prestige Insurance, Sovereign Trust Insurance and SUNU Assurance.
The Nigerian insurance sector has demonstrated sustained growth despite macroeconomic challenges, with projections indicating continued expansion driven by rising demand for health insurance. The sector has benefited from upward repricing of premium rates and naira devaluation, which inflates foreign currency-denominated premiums upon conversion.
Meanwhile, the sector is undergoing significant reforms to modernise and enhance its operations. Part of these reforms include: the Nigeria Insurance Industry Reform Bill, 2024 aimed to consolidate outdated laws to provide a more robust regulatory environment, increased capital requirements, focus on deepening penetration, and claims management and consumer protection.
Analysis of the 14 insurers’ results showed that they generated the revenues from life and non-life businesses (Oil & gas, Agriculture, Investment management, Property development and Health Maintenance).
The unaudited full year result and accounts submitted to the Nigerian Exchange Limited (NGX), showed that AXA Mansard Insurance generated N131.338 billion revenue, from N82.753 billion reported in 2023.
AIICO Insurance’s revenue amounted to N108.268 billion in 2024 from N72.761 billion in 2023, while NEM Insurance reported revenue of N97.107 billion in 2024.
Guinea Insurance, Linkage Insurance, Regency Alliance Insurance, Veritas Kapital Assurance, Coronation Insurance, Cornerstone Insurance, LASACO Assurance, Prestige Insurance, Sovereign Trust Insurance and SUNU Assurance posted revenue growth of N2.837 billion, N22.529 billion, N7.268 billion, N22.113 billion, N48.859 billion, N38.452 billion, N22.603 billion, N19.558 billion, N38.372 billion and N15.354 billion respectively.
The impressive performance of listed insurance companies has contributed to the NGX Insurance index gaining 107.64 per cent for the year 2024.
Speaking, the vice president of Highcap Securities Limited, David Adnori stated that, these insurance companies should take pride in their achievements and resilience displayed in 2024 unaudited financial year amidst the rapidly changing macro environment in the period under review.
“Despite challenges posed by the macroeconomic environment and supply constraints, these listed insurance companies delivered strong performance, maintaining a disciplined approach to strategic investments for the future hence upholding the strength of our balance sheet,” he said.
He added that, insurance sector over the years in Nigeria remained a hard sell in Nigeria despite significant changes and advancements.
“However, embedded insurance holds the potential to address these challenges by integrating insurance products with existing services and increasing awareness, accessibility, and trust in the insurance sector,” Adnori said.
Also, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion noted that the insurance sector performance on the NGX is purely market dynamics, stressing that, though penetration may be weak, a little off these companies are introducing products and services to drive top-line.
Analysts at Comercio Partners stated that, “despite its strong performance, the insurance sector remains relatively illiquid and holds a low market capitalization compared to other sectors. As such, large-scale investments may not be advisable due to liquidity constraints, even with the sector’s promising fundamentals and profitability outlook.”
The firm said, this growth is expected to stabilise in 2025 as premium rate adjustments and recapitalisation efforts continue to influence the sector’s trajectory, saying that “the recapitalisation initiative mandated new minimum capital requirements: N25 billion for non-life insurance, N15 billion for life insurance, and N45 billion for reinsurance firms. While not all insurers may meet these requirements, the initiative is expected to drive mergers and acquisitions, improve efficiency, and foster synergies across the sector.
“A strengthened capital base is also likely to attract foreign investment, mitigate risks, and enhance the sector’s ability to provide coverage for high-risk industries like oil and gas, ultimately contributing to economic growth.”
