The Nigerian Senate recently approved a revised capital base for insurance companies, setting new benchmarks for operators in the sector:
- N25 billion for non-life insurance,
- N15 billion for life insurance,
- N35 billion for reinsurance firms.
While the move is expected to enhance risk management and bolster industry resilience, it also raises the bar for undercapitalized players.
A review of audited 2024 financial statements reveals that 16 listed insurance companies had combined shareholders’ funds of N452.77 billion; a 41% increase from N320.67 billion in 2023.
However, despite the impressive growth in shareholders’ equity, the Nigerian insurance industry remains relatively small in scale.
The combined shareholders’ funds of the listed companies under review accounted for just 36% of total assets, which stood at N1.25 trillion as of year-end, a figure still lower than the asset base of any of the listed top banks
Out of the 16 listed insurers reviewed, only seven had shareholders’ funds exceeding N35 billion.
Leadway Assurance, a non-listed insurance company and one of the largest, reported a total shareholders’ funds of N144.3 billion per their 2023 annual report.
The listed companies that made the cut include AIICO Insurance Plc and NEM Insurance Plc topped the list. Others are Cornerstone Insurance, AXA Mansard, Link Assurance, Coronation Insurance (WAPIC) and Consolidated Hallmark Holdings Assurance.
Below are how these companies performed:
7 – Consolidated Hallmark Insurance
Consolidated Hallmark Insurance ranked 7th with total shareholders’ funds of N34.96 billion as of December 2024, marking an impressive 171% year-on-year growth.
By the end of Q1 2025, its equity position had increased further to N35.18 billion, representing 61% of its total assets of N58 billion.
A key driver of this strong equity base is the company’s substantial retained earnings, which stood at over N21 billion, accounting for nearly 60% of total shareholders’ funds. This highlights the firm’s ability to internally generate capital through sustained profitability.
Consolidated Hallmark Insurance delivered a standout performance in 2024, recording a robust return on equity (ROE) of 67%, suggesting that the company was highly profitable relative to its shareholders’ equity.
6 – Coronation Insurance Plc (WAPIC)
Coronation Insurance Plc is yet to release its Q1 2025 results, but its unaudited full-year 2024 financials showed shareholders’ equity of N38.77 billion, placing it 6th among listed insurers by equity. This represented 49% of its total assets, which stood at N78.56 billion as of year-end 2024.
The strong equity base is driven by a combination of share capital and retained earnings, with the latter significantly boosted by a profit after tax of N9.9 billion, the 5th highest among the companies under review.
This solid profitability helped lift Coronation Insurance’s return on equity (ROE) to approximately 34%,
5 – Linkage Assurance Plc
Linkage Assurance Plc is ranked 5th among listed insurers by shareholders’ equity, which stood at N42.85 billion as of year-end 2024, reflecting a 23% year-on-year growth.
By the end of Q1 2025, equity had grown slightly to N43.55 billion, accounting for 63% of the company’s total assets.
In terms of profitability, the insurer reported a profit after tax of N5.6 billion in 2024, followed by N733 million in Q1 2025.
Notably, more than 50% of its shareholders’ funds, specifically N22.67 billion, is attributed to its fair value reserve, highlighting the impact of asset revaluations.
However, despite the strong equity position, return on equity (ROE) stood at just 12%, relatively low compared to other top performers in the industry, indicating room for improvement in translating capital into earnings.
4 – AXA Mansard Insurance Plc
AXA Mansard Insurance Plc ranked 4th among listed insurers with shareholders’ funds of N52.64 billion as of the end of 2024.
The equity base is made up of N18 billion in share capital and N34.1 billion in retained earnings, reflecting strong profit retention.
By Q1 2025, its shareholders’ funds had increased to N60.1 billion, representing 24% of its total assets, which stood at N244.7 billion, the largest balance sheet among the insurance companies reviewed.
The company also delivered a standout financial performance, reporting a profit after tax of N26.19 billion in 2024.
This translated into a remarkable return on equity (ROE) of 59%.
3 – Cornerstone Insurance Plc
Cornerstone Insurance Plc is ranked 3rd in terms of shareholders’ funds, which stood at N53.999 billion based on its unaudited 2024 financial statements, reflecting a strong 59% year-on-year growth.
The shareholders’ equity accounted for 47% of its total assets of N114.54 billion, placing it third by asset size among the reviewed companies.
The company reported a profit after tax of N22.66 billion in 2024, driven by strong underwriting and investment performance.
Its equity base is anchored by retained earnings of N29.8 billion, a contingency reserve of N11 billion, and paid-up capital of N9 billion.
2 – NEM Insurance Plc
NEM Insurance Plc ranked 2nd among Nigeria’s listed insurers by shareholders’ equity, which stood at N65.44 billion as of 2024, reflecting a robust 69.81% year-on-year growth.
By the end of Q1 2025, the company’s equity position had further strengthened to N78.26 billion, accounting for 51.46% of its total assets of N151.1 billion.
The growth in shareholders’ funds was largely driven by retained earnings of N52.3 billion and a statutory contingency reserve of N18 billion.
In 2024, NEM posted a profit after tax of N29.24 billion, delivering a return on equity of 41%, reflecting efficient capital utilization and strong profitability.
1 – AIICO Insurance Plc
AIICO Insurance Plc topped the list with shareholders’ funds of N67.71 billion in 2024, marking a 30.4% year-on-year growth.
As of Q1 2025, equity had grown to N68.94 billion, representing 18.3% of its total assets of N376.37 billion; the largest balance sheet among listed insurers.
The company posted a profit after tax of N15.1 billion in 2024 and N4.4 billion in Q1 2025. Its retained earnings stood at N33.6 billion, complemented by a statutory contingency reserve of N15.6 billion — key drivers of its robust equity position.
Overall, the rankings highlight the growing capitalization of Nigeria’s insurance sector.
While AIICO and NEM lead shareholders’ equity, metrics like return on equity highlight varying levels of capital efficiency.
As the industry braces for higher capital thresholds, sustained profitability and prudent earnings retention will be critical for long-term competitiveness.
