As July was drawing to a close, many listed companies on the Nigerian Stock Exchange were in a rush to file their half-year 2019 unaudited financial statements. Among them were insurance firms, nearly twenty of whom disclosed their financial performances for the past two quarters of the year.

Just in case you are wondering why this is a big deal, quoted insurance companies in Nigeria are “notorious” for late filing of their financial statements. For this very reason, many of them have constantly been fined.

[READ: NSE to sanction Fidelity Bank, others for late filing of reports]

 Earlier this year, some insurance firms blamed the IFRS (i.e., the International Financial Reporting Standard 6 & 4) for the delay in the filing of their full-year 2018 results. According to the insurance firms, more time was needed in order to enable them successfully implement the IFRS which was recently mandated by the National Insurance Commission, NAICOM. To this end, therefore, they sought for an extension of the time required of them to file their results, a request that was obliged by the NSE.

Going by their timely compliance this time around, it is safe to assume that the insurance companies have finally gotten used to the new reporting standard. But how well did they perform financially in H1 2019? This is the one million question because it is one thing for a company to hurriedly release its financial statements, and another thing for the said financial statements to be impressive. This is why we have compiled and analysed the results and shall hereby compare them.

The Score Card: Out of about twenty-three insurance companies that are listed on the Nigerian Stock Exchange, eighteen released their H1 2019 results while five cited a number of excuses for their delay. The sum of N102.1 billion was earned in gross premium by these companies.

The top five performers: In terms of profit, the top five best-performing Nigerian insurance companies in H1 2019 are:

• AIICO Insurance Plc
• NEM Insurance Plc
• Mutual Benefits Assurance Plc
• AXA Mansard Plc
• Africa Prudential Plc

The worst performers: So far, the worst performing insurance companies (in terms of half-year 2019 profit/loss), in no particular order, are:

1. African Alliance Insurance Plc and
2. SUNU Assurance Nigeria Plc

The Breakdown

AIICO Insurance Plc earned a gross premium of N23.3 billion to emerge the highest-earning. The company’s profit before tax for the period stood at N3.1 billion while the profit after tax stood at N2.9. The insurance company was incorporated on July 14th 1970 and has a market capitalisation of N4.4 billion on the Nigerian bourse.

AIICO Insurance’s CEO, Edwin Egbiti, and other company officials during an AGM

NEM Insurance Plc earned a gross premium of N10.6 billion to come second on this list. Its profit before tax for the period under consideration stood at N1.9 billion, even as profit after tax stood at N1.6 billion. The company has been listed on the NSE since September 1990 following its incorporation in April 1970. It has a market capitalisation of N11.3 billion.

Mutual Benefits Assurance Plc came in third, having earned a gross premium of N8.2 billion in H1 2019. The company’s profit before tax for the period is N1.8 billion, even as profit after tax stood at N1.4 billion. The company has a market capitalisation of N2.4 billion.

[READ: NAICOM urged to extend deadline for recapitalisation of Insurance firms]

AXA Mansard Insurance Plc recorded a gross premium income of N19.6 billion. However, difference operating costs (including reinsurance expenses valued at N7.5 billion) saw it recording a profit before tax of N1.5 billion and a profit after tax of N1.4 billion. Mansard remains highly-capitalised at N17.3 billion.

Africa Prudential Plc: This company’s gross premium earned in H1 2019 is N2 billion. Profit before tax is N1.2 billion while profit after tax is N1 billion.

It should be noted that African Alliance Insurance Plc’s gross premium income stood at N2.9 billion. The company only ceded N23.4 million worth of insurance premium to reinsurance. It then recorded a loss before tax of N2.1 billion and a loss after tax of N2.3 billion.

In the same vein, SUNU Assurance Nigeria Plc earned a gross premium of N1.4 billion and incurred reinsurance expenses of N314.7 million. Loss before tax stood at N146.2 million while loss after tax stood at N174.4 million.

[READ: Is this company quietly planning its exit from the NSE?]

The Other Details

Continental Reinsurance Plc recorded an insurance premium revenue of N19.7 billion. Its profit before tax stood at N1.1 billion even as profit after tax stood at N864.3 million.

Cornerstone Insurance Plc’s gross premium income for the period under review stood at N6 billion. Profit before tax stood at N557.5 million, while profit after tax stood at N501.7 million.

LASACO Assurance Plc recorded gross premium earned of N5.4 billion, profit before tax of N639.9 million, and a profit after tax of N479.4 million.

For Consolidated Hallmark Insurance Plc, the gross premium earned stood at N4.4 billion, profit before tax at N426.5 million, and profit after tax at N332.3 million.

Regency Alliance Insurance Plc recorded a gross premium income of N2.1 billion, profit before tax of N396 million, and a profit after tax of N317.2 million.

WAPIC Insurance Plc earned a gross premium of N3.8 billion, with profit before tax standing at N299.4 million, just as profit after tax stood at N 185.4 million.

Linkage Assurance Plc’s H1 gross premium income stood at N1.5 billion. Profit before tax is N190.7 million, even as profit after tax is N133.5 million.

 Law Union and Rock Insurance Plc recorded gross premium earned of N2.3 billion, profit after tax of N120.8 million and a profit after tax of N102.7 million.

Lastly, Veritas Kapital Assurance Plc earned a gross premium of N1.4 billion with a profit before tax of N162.5 million and a profit after tax of N60.9 million.