Nigeria’s five leading insurance firms grow gross premium to N139 billion in half year 2022

Nigeria’s leading insurance companies earned a whopping sum of N139.440 billion as revenue in the half year of 2022, outperforming their earnings in the corresponding period of 2021 of N115.530 billion.

According to the information contained in the half year financial statements of these companies and compiled by Nairametrics research, the companies’ premiums rose by 20.69% compared to half year 2021.

The premium growth recorded by the companies is remarkable, considering economic disruptions in the global economy occasioned by the ripple effect on energy, power, and food cost, amongst others, caused by the Russia-Ukraine face-off and the inflationary pressure on the household wallets.

Various factors such as shrinking federal/state government revenues, unavoidable devaluation of the Naira and high energy costs resulting in an inflammatory landscape increased challenges being faced by insurance companies in Nigeria.

Access to forex by businesses and individuals alike became very difficult as the year progressed and the gap between the interbank and parallel market became very high compounded by COVID-19 pandemic ravaging the world.

The effect was low capacity utilization by industries and outright shut down of many plants with attendant layoffs impacting the ability of businesses, individuals and governments to enter into insurance contracts and pay appropriate insurance premiums. Business productivity was generally stifled.

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.

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.
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.

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.

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.
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.

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.

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.