In a significant boost to Nigeria’s insurance sector, the 2024 audited financial reports of publicly listed insurers show a combined 41% increase in shareholders’ funds, rising to N452.77 billion from N320.67 billion in 2023. This surge comes as the Senate approves a new capital base requirement—N25 billion for non-life, N15 billion for life, and N35 billion for reinsurance firms—raising the bar for undercapitalized operators and prompting a renewed focus on capital adequacy.
Among the 16 listed firms analyzed, only seven surpassed the N35 billion mark in shareholders’ equity. Leading the pack is AIICO Insurance Plc, which emerged as the top-listed insurer with shareholders’ funds of N67.71 billion in 2024, representing a 30.4% growth. AIICO’s robust capital base reflects sustained earnings and solid underwriting results.
Trailing closely is NEM Insurance Plc, with N65.44 billion in shareholders’ equity for 2024—a 69.8% year-on-year increase. The company’s retained earnings of N52.3 billion and statutory reserves of N18 billion powered a 41% return on equity, underlining its profitability and operational efficiency.
Cornerstone Insurance Plc ranked third with N53.99 billion in equity, buoyed by strong retained earnings and a contingency reserve of N11 billion. It posted a profit after tax of N22.66 billion and an asset base of N114.5 billion.
AXA Mansard Insurance Plc followed with N52.64 billion in 2024, which rose to N60.1 billion by Q1 2025. Despite holding the largest balance sheet at N244.7 billion, its return on equity stood out at 59%, driven by a post-tax profit of N26.19 billion.
Linkage Assurance Plc ranked fifth with N42.85 billion in equity. However, its relatively low 12% return on equity suggested room for improved earnings efficiency, despite strong fair value reserves boosting its capital base.
Coronation Insurance Plc (WAPIC) held the sixth spot with N38.77 billion in equity and a 34% return on equity, backed by a N9.9 billion profit in 2024.
Consolidated Hallmark Insurance rounded out the top seven with N34.96 billion, just shy of the new reinsurance threshold. Its ROE of 67% and retained earnings exceeding N21 billion underscore strong internal capital generation.
Despite these achievements, the insurance sector’s size remains modest. The N452.77 billion in shareholders’ funds accounted for just 36% of total assets of N1.25 trillion—less than the asset base of any top-tier Nigerian bank.
Private insurer Leadway Assurance, though unlisted, stood out with N144.3 billion in shareholders’ funds, showcasing the scale some private players command.
With the recapitalization deadline looming, the sharp rise in equity positions among listed insurers reflects both strategic preparation and investor confidence. However, the wider industry still faces hurdles in meeting regulatory thresholds, expanding market penetration, and building resilience in a challenging economic environment.
