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Nigeria’s 5 Leading Insurance Firms Grow Gross Premium To N139 Billion In Mid-Year 2022

Nigeria’s 5 Leading Insurance Firms Grow Gross Premium To N139 Billion In Mid-Year 2022

Nigeria’s 5 Leading Insurance Firms Grow Gross Premium To N139 Billion In Mid-Year 2022

Nigeria’s 5 Leading Insurance Firms Grow Gross Premium To N139 Billion In Mid-Year 2022

Leading insurance firms in Nigeria made a staggering N139.440 billion in revenue during the first half of 2022, exceeding their earnings of N115.530 billion during the same period in 2021.

The companies’ premiums increased by 20.69% compared to the same period in 2021, according to information from the financial statements for these companies’ first half years that Nairametrics study obtained.

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Given the economic disruptions in the global economy brought on by the Russia-Ukraine conflict and the inflationary pressure on household budgets, as well as the rippling effects on food, energy, and power costs, among others, the premium growth recorded by the corporations is extraordinary.

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Nigeria’s 5 Leading Insurance Firms Grow Gross Premium To N139 Billion In Mid-Year 2022

 

The issues faced by insurance businesses in Nigeria have intensified as a result of numerous variables including declining federal and state government revenues, the unavoidable depreciation of the Naira, and rising energy costs creating an inflammatory environment.

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As the year went on, it became increasingly difficult for both enterprises and individuals to access foreign exchange. The gap between the interbank and parallel markets widened, and the COVID-19 pandemic that was wreaking havoc across the globe made matters worse.

Low capacity utilization by industries and the complete shutdown of many factories with accompanying layoffs had an impact on how well enterprises, people, and governments were able to enter into insurance contracts and pay the necessary insurance premiums. In general, business productivity was restricted.

Nigeria’s 5 Leading Insurance Firms Grow Gross Premium To N139 Billion In Mid-Year 2022

Our metrics are simply the premium reported in the first half of this year based on calendar months. For the sake of emphasis, we analyzed five companies which include Custodian Investment Plc, Nem Insurance Plc, Coronation Insurance Plc AXA-Mansard Plc and AIICO Insurance Plc.

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This is a list of the five Insurance firms quoted on the floor of the Nigerian Stock Exchange ranked by gross premiums based on published financial statements and also ranked by percentage growth.

1. Coronation Insurance Plc – N9.290 billion

  • Coronation Insurance Plc gained a 32.75% increase in gross premium during the review period. The company recorded a premium of N9.290 billion in half year 2022 from N6.998 billion in 2021, accounting for an increase of 32.75%.
  • The insurance firm closed its last trading day (Tuesday, August 30, 2022) at 38 kobo per share on the Nigerian Stock Exchange (NGX). Coronation began the year with a share price of 56 kobo but has since lost 32.1% off that price valuation, ranking it 151st on the NGX in terms of year-to-date performance.

2. NEM Insurance Plc – N18.339 billion

  • NEM Insurance Plc posted gross premium of N18.339 billion for the first half of the year 2022 from N15.237 billion in 2021, accounting for an increase of 20.36 as the firm also grew premium despite rising cost of operations occasioned by inflation and the Russia-Ukraine war.
  • NEM closed its last trading day at N5.00 per share on the Nigerian Stock Exchange (NGX). The insurance firm began the year with a share price of N4.50 and has since gained 11.1% on that price valuation, ranking it 41st on the NGX in terms of year-to-date performance.

3. AXA- Mansard Plc – N34.717 billion

  • AXA-Mansard Plc sustained a positive trajectory during the half year ended June 30, 2022, with 33.92% growth in gross premium. The company reported a premium of N34.717 billion in its half-year 2022 gross premium from N25.923 billion a year ago, taking advantage of the rise in risk environment due to operational headwinds in the first half of the year.

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  • Mansard closed its last trading day (Tuesday, August 30, 2022) at N1.80 per share on the Nigerian Stock Exchange (NGX), recording a 2.7% drop from its previous closing price of N1.85. AXA Mansard began the year with a share price of N2.32 but has since lost 22.4% off that price valuation, ranking it 144th on the NGX in terms of year-to-date performance.

4. Custodian and Allied Investment Plc – N36.521 billion

  • Despite financial and operational headwinds in the first half of the year, Custodian and Allied Investment Plc reported a 10.88% growth in gross premium for the first half of the year 2022 to N36.521 billion as against N32.936 billion in 2021.
  • Custodian and Allied closed its last trading day of Tuesday, August 30, 2022, at N6.50 per share on the Nigerian Stock Exchange (NGX). Custodian & Allied began the year with a share price of N7.90 but has since lost 17.7% off that price valuation, ranking it 134th on the NGX in terms of year-to-date performance.

5. AIICO Insurance Plc – N40.574 billion

  • AIICO Insurance Plc reported an increase of 17.82% in gross premium during the half year as it remained resilient in the operational environment amid volatility in the economy. AIICO reported premium of N40.574 billion during the half year of 2022 as against N34.436 billion representing a growth of 17.82%.
  • AIICO closed its last trading day at 53 kobo per share on the Nigerian Stock Exchange (NGX). AIICO began the year with a share price of 70 kobo but has since lost 24.3% off that price valuation, ranking it 150th on the NGX in terms of year-to-date performance.

IBEH C. JOE

Financial analyst, Entrepreneur, Blogger and Business model

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