…Guinea, Veritas, NEM record decline
Despite ongoing reforms and macroeconomic challenges, Nigeria’s insurance sector recorded a robust performance in 2024, with 15 listed companies on the Nigerian Exchange Limited (NGX) posting a combined N142.2 billion profit before tax (PBT)—a staggering 75.5 per cent increase from N81.03 billion in 2023, according to unaudited financial statements.
However, the performance was not uniform across the board.
AXA Mansard Insurance Plc emerged as the most profitable insurance firm, while Guinea Insurance Plc, NEM Insurance Plc, Regency Assurance Plc, and Veritas Kapital Assurance Plc reported decline in profitability.
AXA Mansard led the sector with an impressive N30.98 billion PBT, marking a 96.4 per cent surge from N15.77 billion in 2023. Meanwhile, Coronation Insurance Plc and Consolidated Hallmark Holdings Plc posted extraordinary growth.
Coronation Insurance’s N13.2 billion PBT reflected a 495.5 per cent increase, while Consolidated Hallmark Holdings’ N24.8 billion PBT soared by 433.4 per cent year-on-year.
In contrast, Guinea Insurance saw its PBT slump 67.5 per cent to N162.26 million, while Veritas Kapital Assurance nosedived 92.8 per cent to N213.7 million.
The insurance industry also experienced a 64 per cent surge in revenue, with 14 companies reporting a combined N710.36 billion in insurance income, up from N433.5 billion in 2023.
AXA Mansard, AIICO Insurance, and NEM Insurance led the charge, with AXA Mansard generating N131.34 billion, a 59 per cent increase year-on-year.
The sector’s transformation is underpinned by the Nigeria Insurance Industry Reform Bill, 2024, which seeks to consolidate outdated regulations, enforce stricter capital requirements, and improve claims management.
However, insurers continue to grapple with high inflation, currency devaluation, and rising interest rates, which threaten profitability and growth.
The NGX Insurance Index reflected the sector’s resilience, gaining 0.49 per cent Year-to-Date as of February 7, 2025.
However, fluctuating foreign exchange rates and aggressive monetary tightening by the Central Bank of Nigeria (CBN)—which raised interest rates from 18.75 per cent to 27.5 per cent in 2024—continue to pose challenges.
Despite these hurdles, the insurance sector out performed many other industries, contributing to Nigeria’s 3.46 per cent GDP growth in Q3 2024, with forecasts suggesting a 3.6 per cent expansion for the year, aligning with IMF projections for sub-Saharan Africa.
Experts believe that while insurance penetration remains low in Nigeria, innovations like embedded insurance—integrating coverage into existing services—could boost adoption and trust.
