By Aliyu Galadima
Top insurance companies in Nigeria posted a total of N443.6bn revenue in 2024 despite low insurance penetration in Africa’s most populous country.
In 2024, the companies revenues were up by 69.7% from N261.4bn recorded in 2023, signaling a potential to lead the service sector in the future.
This was based on analysis on the 2024 financial statements of AIICO Insurance Plc, AXA Mansard, Cornerstone Insurance, Coronation Insurance Plc, Consolidated Hallmark Holding Plc and NEM Insurance Plc.
The companies which are among the largest listed on the Nigerian Exchange Limited made a combine profit of N118.8bn which is 108.1% above the N57.1bn profit declared in 2023.
Despite the difficulty encountered by insurance companies regarding penetration and tough business environment due to economic policy of the President Bola Tinubu’s government, the insurance firms grew their assets by 37.9% to N952.5bn in 2024.
As of December 2023, the insurance companies assets were only worth N640.3bn.
However, the companies saw a 32.8% surge in their liabilities, rising from N487bn in 2023 to a record N647bn in 2024.
Based on individual performance, AIICO Insurance Plc emerged the biggest insurance firm in the country by assets posting N407.8bn up from N318.2bn in 2023.
The firm also grew its revenue base from N72.76bn to N108.26bn making it the second largest by revenue base in 2024.
The company’s profit was also the second highest after it earned N13.6bn in 2024 compared to N12.1bn in 2023.
The insurance firm’s liability also increased from N266.25bn in 2023 to N343.2bn in 2024.
AXA Mansard maintained its lead as the biggest insurance firm by revenue and profit.
In 2024, its revenue grew from N82.75bn in 2023 to N131.3bn in 2024, while its profit hit a record N26bn in 2024 compared to the N12bn recorded in 2023.
AXA Mansard grew its assets to N185.1bn in 2024 from 141.1bn in 2023, making it the second largest insurance firm by assets.
Similarly, its liability hit N132.4bn in 2024 up from N99.7bn recorded in 2023.
Cornerstone Insurance grew its assets to N114.5bn in 2024 from N82.5bn in the previous year, driven by strategic innovations. This made it the third largest insurance firm by assets.
The firm grew its revenue from N25.9bn in 2023 to N38.4bn in 2024 making it the fifth largest by revenue.
Its profit rose from N14bn in 2023 to N22.66bn in 2024 while the firm recorded an increase in liability from N48bn in 2023 to N60.5bn in 2024.
NEM Insurance Plc is the fourth biggest insurance company by asset after posting N110bn assets in 2024 up from N74bn in 2023.
However, the firm maintained a strong revenue position posting N97bn in 2024 up from the N51bn generated in 2023.
The strong revenue performance placed the company as the third largest company by revenue in 2024.
The company declared a profit after tax of N23.3bn in 2024 as against the N13.25bn posted in 2023. Its liability saw a surge to N50.48bn in 2024 to N35.5bn in 2023.
Coronation Insurance Plc emerged as the fifth largest insurance firm by assets with N78.55bn in 2024, up from N48bn in 2023.
The firm also recoded a revenue of N48.8bn compared to N24.5bn in 2023, making it the fourth largest by revenue.
The firm made N9.9tn profit in 2024 compared to N1.8tn in 2023. Also, its liability rose from N23.6bn in 2023 to NN39.79bn in 2024.
Consolidated Hallmark Holding Plc recorded an asset of N56.3bn in 2024 compared to N26.17bn in 2023, making it the sixth largest by assets.
The firm’s revenue rose from N3.4bn in 2023 to N19.63bn in 2024, while its profit hit N23.1bn in 2024 from the N3.76bn it posted in 2023. Its liability rose from N13.28bn in 2023 to N20.4bn in 2024.
The country’s insurance sector is undergoing fresh reforms instituted by the National Insurance Commission ,NAICOM, with the aim of driving insurance penetration.
A new Insurance Consolidated Bill titled Nigeria Insurance Industry Reform Act, 2024 has been passed by the National Assembly.
It pegs the minimum capital for non-life insurance businesses at N15bn from N3bn, life insurance businesses at N10bn from N2bn, and reinsurance businesses at N35bn from N10bn.
“Passage of the Bill marks a significant triumph for Nigeria’s insurance industry, tackling the long-standing challenge of low insurance penetration in the country.
The new legislation addresses the industry’s need for a more robust legal and regulatory framework, enabling it to compete favourably in the African insurance market and globally”, said NAICOM.
In an exclusive chat with the Chief Executive Officer of Cornerstone Insurance, Stephen Alangbo, said insurance companies in the past failed the industry by not paying claims to policy holders.
According to him, “We want people to buy insurance. In 2025, there will be a significant build up from the N1tn insurance companies achieved in 2024, because of the various measures that the regulators have put in place to ensure that the adoption of insurance and compliance of insurance, payment of claims and the massive training of youths as insurance agents.
“I expect insurance penetration will be high this year, and the rating of Nigeria in the insurance adoption will obviously improve because we are the giant of Africa and we have the population and resources”.
