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.
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:
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.