The top 15 insurance firms in the country recorded 83.1 per cent growth in profitability to N166.6 billion in 2024 from N91.01 billion in 2023.
The sharp growth in profitability indicates the positive impact of various growth strategies of the National Insurance Commission, NAICOM, as well as other umbrella bodies to drive insurance penetration.
The companies are Aiico insurance, Axa Mansard, Cornerstone Insurance, Coronation Insurance, Custodian Investment, Guinea Insurance, International Energy Insurance, Lasaco Assurance, Linkage Assurance and NEM Insurance
Others are Prestige Assurance, Regency Assurance, Sovereign Trust Insurance, Sunu Assurances, as well as Veritas Kapital Assurance.
Vanguard analysis of financial results of 15 insurance companies released on the Nigerian Exchange Limited shows that the growth in profitability was driven by a 61.4 per cent increase in Gross Premium Written to N735.8 billion from N455.8 billion.
Claims payment increased by 53.04 per cent to N451.53 billion from N295.04 billion.
Total assets went up by 36.8 per cent to N1.56 trillion in the period under review from N1.14 trillion recorded in 2023.
It will be recalled that the insurance sector is undergoing significant reforms to modernise and enhance 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Part of these reforms include: the Nigeria Insurance Industry Reform Bill, 2024 aimed to consolidate outdated laws to provide a more robust regulatory environment, increased capital requirements, focus on deepening penetration, and claims management and consumer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.
The reforms represent a significant shift, aiming to modernise the industry and increase its contribution to Nigeria’s economic growth. However, the proposed changes require careful implementation to balance industry development with inclusivity and fairness.
Speaking on developments in the sector, Director General of Nigerian Insurers Association, NIA, Mrs. Bola Odukale, stated that the insurance sector is committed to claims payment and has been paying huge claims in recent time which is evident in the increase in claims payment by 53.04 per cent.
She said: “Despite the negative perception that some members of the public have about insurance, the fact remains that insurance companies are paying claims and have been paying huge claims in recent times.”
