Nigeria’s leading insurance firms earned a whopping sum of N180.200 billion as revenue in the first nine months of 2022, outperforming their earnings of N146.240 billion in the corresponding period of 2021.
According to the information contained in their third-quarter financial statements as compiled by Nairametrics Research, the companies’ collective gross premiums rose by 23.22% compared to 2021.
The growth is remarkable, considering economic headwinds occasioned by the ripple effects of Russia’s invasion of Ukraine which affected energy, power, and food costs, amongst others. The subsequent inflationary pressure has adversely affected many Nigerian household wallets.
The inflationary environment heightened the challenges already being faced by insurance companies in Nigeria.
For the sake of emphasis, we analyzed six companies which include Nem Insurance Plc, Coronation Insurance Plc AXA-Mansard Plc and AIICO Insurance Plc, Consolidated Hallmark Insurance Plc and Coronation Insurance Plc.
Below is a list of the six Insurance firms quoted on the floor of the Nigerian Exchange, ranked by their gross premium percentage increases as of Q3 2022.
6. Cornerstone Insurance Plc –N15.881 billion (8.39% growth)
- Despite financial and operational headwinds in the first half of 2022, Cornerstone Insurance Plc reported an 8.39% growth in gross premium for the first nine months of the year 2022 to N15.881 billion as against N14.651 billion in 2021.
- Profit after tax for the nine months was down by 37.19% to N964.621 from N1.536 billion reported the previous year.
- Earnings per share of Cornerstone Insurance stands at 5kobo, down by 37.19% from the EPS of 8 kobos achieved in Q3 2021.
- Cornerstone closed its last trading day (Tuesday, November 22, 2022) at N0.44 per share on the Nigerian Stock Exchange (NGX). It began the year with a share price of N0.46 but has since lost 4.35% off the price valuation.
5. Consolidated Hallmark Insurance Plc-N9.082 billion (14.19% growth)
- Consolidated Hallmark Insurance Plc also reported an increase of 14.19% in gross premiums during the period under review amid volatility in the economy. The insurance firm reported a premium of N9.082 billion as against N7.953 billion, representing a growth of 14.19%.
- The insurer ended its last trading day (Tuesday, November 22, 2022) at N0.59 per share on the Nigerian Stock Exchange (NGX), recording a 3.3% drop from its previous closing price of N0.61. Consolidated Hallmark began the year with a share price of N0.79 but has since lost 25.3% off the price valuation.
4. NEM Insurance Plc – N18.339 billion (18.8% growth)
- NEM Insurance Plc posted a gross premium income of N25.363 billion for the period under review from N21.346 billion in 2021, accounting for an increase of 18.8%. The growth was despite the rising cost of operations occasioned by inflation and the Russia-Ukraine war.
- NEM closed its last trading day at N4.12 per share on the Nigerian Stock Exchange (NGX). N.E.M. began the year with a share price of N4.50 but has since lost 8.44% off the price valuation.
3. AIICO Insurance Plc – N63.513 billion (23.46% growth)
- AIICO Insurance Plc reported an increase of 23.46% in gross premium income during the nine months of the year as it remained resilient in the operational environment amid volatility in the economy. AIICO reported a premium of N63.513 billion during the period under review as against N51.443 billion representing a growth of 23.46%.
- Profit after tax grew year on year by 152.88% to N6.134 billion from N2.426 billion profit reported the previous year. Earnings per share of AIICO Insurance grew to 17 kobos from the EPS of 7 kobos reported the previous year.
- AIICO closed its trading day at 0.N53 per share on the NGX. It began the year with a share price of N0.70 but has since lost 24.3% of the price valuation.
2. AXA- Mansard Plc – N52.474 billion (29.65% growth)
- AXA-Mansard Plc sustained a positive trajectory during the third quarter that ended September 30, 2022, with a 29.65% growth in gross premium income. The company reported a premium of N52.474 billion in its nine months from N40.473 billion a year ago, taking advantage of the rise in risk environment due to operational headwinds in the first nine months of the year.
- AXA Mansard Insurance’s unaudited financial statements for the period ended 30 September 2022 showed a 55.04% drop in profit for the nine months to N 1.711 billion from N3.806 billion in 2021.
- The profit for the three months dropped by 44.59% to N839.936 million from N1.516 billion in 2021.
- Mansard closed trading at N1.68 per share on NGX. It began the year with a share price of N2.32 but has since lost 27.6% off the price valuation.
1. Coronation Insurance Plc – N13.887 billion (33.86% growth)
- Coronation Insurance Plc (formally Wapic Insurance Plc) gained a 33.86% increase in gross premium income during the review period. The company recorded a premium of N13.887 billion in nine months ended September 30, 2022, from N10.374 billion in 2021, accounting for an increase of 33.86%.
- The insurance firm closed its last trading day at N0.35 per share on the Nigerian Stock Exchange (NGX), recording a 2.9% gain over its previous closing price of N0.34. The company began the year with a share price of N0.56 but has since lost 37.5% off the price valuation.
