Ten top insurance firms in Nigeria are targeting to achieve N250.479 billion gross written premium (GWP) for the third quarter ending September 2022.
The companies which are among the largest insurance firms quoted on the Nigerian Exchange Limited (NGX) include Custodian Investment Plc, AIICO Insurance Plc, AXA-Mansard Insurance Plc, NEM Insurance Plc, Prestige Insurance Plc, Cornerstone Insurance Plc, Consolidated Hallmark Insurance Plc, Sunu Assurance Plc, Regency Alliance Insurance Plc and Royal Exchange Plc.
According to data from the Nigerian Exchange Limited tracked by Nairametrics, the companies’ forecast Profit and Loss Accounts Information for the Q3 earnings, also showed that the firms are projecting to achieve N19.727 billion for profit after tax during the quarter.
According to market watchers, as the COVID-19 concerns continue to decline, Nigerian insurers expect more rapid growth this year than what was obtained in 2021, although non-pandemic challenges around regulation, talent, sustainability, and evolving consumer preferences may present a hurdle to the industry.
Breakdown of the projections
- Further checks showed that Custodian Investment Plc led with a target of N67.701 billion for gross written premium and profit after tax of N6.471 billion for third-quarter ending September 2022, AIICO Insurance Plc followed with N63.33 billion Gross Written Premium (GWP) and N2.99 billion as profit after tax while AXA-Mansard Insurance Plc is projecting to achieve N55.613 billion gross premium written and N2.251 billion profit after tax for the third quarter.
- NEM Insurance Plc targeting to realise N24.65 billion for gross premium and N3.544 billion for profit after tax, Prestige Assurance Plc seeks to achieve N10.5 billion in for gross premium written and N1.064 billion for profit after tax, Cornerstone Insurance Plc is projected N8.640 billion for gross premium written and N1.665 billion for profit after tax, Consolidated Hallmark Insurance Plc projected N8.610 billion as gross premium written and N471.757 million for profit after tax.
- SUNU Assurance Plc seeks to achieve N4.784 billion for gross premium written and N179.801 million for profit after tax. Regency Alliance Insurance Plc is targeting to achieve N4.185 billion for gross premium written and N652.338 million as profit after tax while Royal Exchange Plc trailed with the hope to realise N2.469 billion as gross premium is written and N247.964 million for profit after tax for the third quarter ending September 2022.
2022 insurance industry outlook
According to analysts at Deloitte Insurance Services, despite lingering concerns about COVID-19 variants, most insurers expect an accelerating economic recovery and additional digital technology investments in 2022. The demand for insurance is expected to keep rising worldwide.
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- “The challenges insurers face range from economic hurdles such as the potential for sustained inflation, to sustainability concerns including climate risk, diversity, and financial inclusion; to rapidly evolving consumer product and purchase preferences.
- “Insurers are increasingly dependent on emerging technologies and data sources to drive efficiency, enhance cybersecurity, and expand capabilities across the organization. However, most should also focus on improving the customer experience by both streamlining processes with automation as well as providing customized service where needed and preferred.
- “On a more fundamental level, many carriers can consider taking steps to bolster trust among stakeholders to boost retention and profitability. This might be achieved in part through greater transparency in how insurers collect and utilize personal data. They can also become more proactive in seeking comprehensive solutions to big picture societal problems, such as mitigating the financial impact of future pandemics and closing coverage gaps for natural catastrophes,” the analysts noted.