Adverse operating environment headlined by COVID-19 pandemic and #EndSARS protest in 2020 has taken a massive toll on the growth rate of the Nigerian insurance industry.
But top 16 insurers have managed to record positive figures in their 2020 financial results though significantly below previous year’s figures. The 16 companies control over 80 percent of the entire industry.
The 16 companies are AIICO Insurance, Axa Mansard, Consolidated Hallmark, Cornerstone Insurance, and Coronation Insurance. Others are Linkage Assurance, Mutual Benefits Assurance, Nem Insurance, Niger Insurance, Prestige Assurance, Regency Alliance, Royal Exchange, Sovereign Trust, Sunu Assurance, Universal Insurance, and Veritas Kapital.
Financial Vanguard perusal of the early reports submitted by the 16 insurance companies to the Nigerian Stock Exchange shows a 27 per cent year-on year, y/y, growth in profitability in 2020, down from 89 per cent in 2019.
The companies’ combined profit after tax (PAT) rose to N26.5 billion in 2020 from N20.8 billion in 2019 which shows 27 per cent growth, but the 2019 results shows that profit rose to N20.8 billion from N11 billion recorded in 2018, a whopping growth rate of 89 per cent. (Vanguard)