Insurance sector sees increases in claims, premiums in Q1 2024

In the first quarter of 2024, Nigeria’s leading insurance firms reported substantial financial activity, marked by a notable increase in claims expenses and gross premiums.

According to financial reports, these companies collectively earned N193.694 billion in gross premiums, a significant rise from N103.583 billion in the previous year.

Claims expenses for the period amounted to N40.439 billion, which represents 20.88 per cent of the total gross premiums earned. This figure reflects a 19.40 per cent increase compared to N33.869 billion disbursed for claims during the same period in 2023.

AIICO Insurance Plc saw its claims stand at N13.412 billion in 2024 from N14.224 billion in the same period of 2023, a drop of 5.7 per cent. Its gross premium rose by 54.64 per cent to N49.083 billion from N31.740 billion recorded in 2023.

AXA Mansard, a prominent player in the sector, reported a considerable increase in both claims paid and gross premiums.

The firm disbursed N12.495 billion in claims in 2024, up 23.38 per cent from N10.127 billion in 2023. Similarly, its gross premiums surged to N64.640 billion from N34.391 billion, marking an 87.96 per cent increase year-on-year.

NEM Insurance also showed significant growth, with claims payments rising to N4.957 billion in 2024 from N3.430 billion in 2023, an increase of 44.52 per cent. The company’s gross premiums escalated to N29.032 billion from N11.717 billion, reflecting a substantial 147.78 per cent rise over the same period.

Financial results for NEM Insurance revealed a remarkable achievement in profitability, with a total comprehensive profit of N10.54 billion in the first quarter of 2024, a stark 485.55 per cent increase from N1.80 billion in 2023.

Consolidated Hallmark Insurance Plc reported net claims of N3.931 billion in 2024, up 285.77 per cent from N1.019 billion in 2023, while its gross premiums grew to N12.061 billion from N4.890 billion, marking a growth of 146.64 per cent.

Prestige Assurance Plc recorded a claims payment of N1.575 billion in Q1 2024, down from N2.331 billion in 2023, despite an increase in gross premiums to N6.814 billion from N4.814 billion. Notably, 23.11 per cent of its gross premiums were allocated to claims during this quarter.

Despite fluctuations in claims payments, Prestige Assurance Plc reported a profit after tax (PAT) of N2 billion in Q1 2024, reflecting a notable 661 per cent growth from N264.407 million in 2023, largely driven by foreign exchange gains amounting to N1.8 billion.

In contrast, Sovereign Trust Insurance Plc, Coronation Insurance Plc, and Veritas Kapital Insurance Plc reported varying increases in claims payments compared to 2023, underscoring the sector’s dynamic performance across different firms.

This surge in claims expenses and premiums highlights the resilience and growth potential within Nigeria’s insurance industry, driven by both increased economic activities and effective risk management strategies among the leading firms.