As of September 2024, the financial performance of six notable insurance companies in Nigeria showed remarkable growth in premium collections. The total premiums collected by these firms surged by 28.7% to reach N144.56 billion, up from N112.24 billion recorded in the same period the previous year. This surge reflects a positive trend in the insurance sector, signaling increasing confidence among consumers in insurance products and services. The financial outcomes were detailed in the companies’ unaudited financial statements submitted to the Nigeria Exchange, marking a significant development in their market performance.
Leading the performance among these companies was NEM Insurance, which reported an impressive premium collection of N85.43 billion, showcasing a substantial increase of 34.8% compared to N63.38 billion recorded in the previous year. This growth positions NEM Insurance as not only the largest insurer in terms of premiums collected but also as a key player in driving the overall increase in the sector’s revenue. Following closely, Cornerstone Insurance Plc achieved a total premium of N31.33 billion—reflecting a remarkable 50.3% increase from N20.86 billion in 2023. This growth underscores Cornerstone Insurance’s effective strategies in enhancing their service offerings and expanding their market reach.
Other players like Regency Alliance Insurance Plc also exhibited positive growth, with premiums rising by 15% to reach N5.70 billion, up from N4.96 billion the previous year. Similarly, Guinea Insurance demonstrated a robust increase with total premiums of N2.41 billion, marking a 34.9% growth from N1.79 billion in 2023. Universal Insurance Plc reported an impressive total premium collection of N12.06 billion, indicating a 41.4% uplift from the previous year’s N7.09 billion. In addition, Sovereign Trust Insurance experienced a growth rate of 29.7%, with premiums climbing from N3.01 billion in 2023 to N3.91 billion in the current reporting period.
The overall performance of these six companies reflects a broader trend in the Nigerian insurance market. For instance, data from eight additional insurance firms revealed a year-on-year increase in gross written premiums, which rose by 22.43% to reach N367.66 billion in 2023 from N300.31 billion the previous year. This growth paints a positive picture of the insurance industry in Nigeria, suggesting that insurance penetration may be improving, as more individuals and businesses recognize the importance of safeguarding against various risks through insurance policies.
Looking back at the broader industry context, the National Insurance Commission reported earlier this year that the overall premium generated by the insurance sector stood at N1.003 trillion in 2023, representing a remarkable growth of about 27% compared to N790 billion in 2022. This overall increase not only signifies an expanding insurance market in Nigeria but also reflects increased consumer awareness and acceptance of insurance products as essential financial instruments.
In conclusion, the performance of the six insurance companies indicates a promising trajectory for the Nigerian insurance industry. The significant rises in premiums collected across various firms highlight enhanced confidence among consumers as well as the effectiveness of companies in adapting to market demands. Continued growth in this sector may have positive implications for economic stability and risk management, thereby contributing to the overall financial resilience of both individuals and businesses in Nigeria. Consequently, stakeholders in the industry may want to maintain strategies that foster growth and build consumer trust to sustain this momentum moving forward.
