Nigeria’s insurance sector continues to navigate the regulatory push for higher capital thresholds, with varying progress across composite, non-life, and life/composite insurers.
Composite Insurers
Most composite insurers comfortably exceed the N25 billion minimum capital requirement. AIICO Insurance leads with a N40.77 billion buffer, followed by Cornerstone Insurance and Mutual Benefits Assurance with surpluses of N36.65 billion and N31.78 billion, respectively. AXA Mansard and Consolidated Hallmark Insurance also maintain moderate capital surpluses. LASACO Assurance has raised approximately N11.10 billion through a private placement, bringing it closer to compliance, while Fortis Global Insurance remains yet to disclose eligible capital, signaling potential recapitalisation needs.
General (Non-Life) Insurers
In the non-life segment, NEM Insurance holds a substantial N51.83 billion surplus over the N15 billion requirement, with Linkage Assurance at N27.08 billion. Coronation Insurance reports a shortfall of N10.22 billion, while Guinea Insurance and International Energy Insurance face deficits of N10.17 billion and N22.75 billion, respectively. STACO Insurance remains inactive, with no eligible capital recorded.
Life/Composite Insurers
Life/composite insurers show mixed performance. Veritas Kapital posts a modest N0.79 billion surplus above the N15 billion requirement. However, Regency Alliance, Universal Insurance, SUNU Assurances, and Sovereign Trust fall short, with deficits ranging from N0.94 billion to N5.04 billion, indicating potential needs for rights issues, strategic partnerships, or mergers.
The divergence in capital positions underscores potential consolidation, private equity investments, and strategic partnerships in the sector. Analysts expect investor sentiment to favour insurers with strong capital buffers, operational efficiency, and disciplined underwriting practices.
BusinessNG will like to note that the report is based on market research and data analysis and is intended for informational purposes only. It does not constitute investment advice or recommendations to buy or sell securities. Readers should consult qualified financial advisers before making investment decisions.
