Insurers Thrive: Total Assets Surge to ₦1.46 Trillion
Breaking Down the Growth:
The assets of 10 listed insurance firms in Nigeria soared to ₦1.46 trillion in the first nine months of 2024, a remarkable 51.3% increase from ₦965 billion during the same period in 2023. This impressive growth stems from increased investment in securities, including treasury bills and bonds, as rising yields boosted returns.
Key Drivers:
• Investment Securities: Tradable assets like equities and fixed-income instruments saw significant gains. Insurers benefited from higher bond yields compared to prior periods of lower returns.
• Fair Value Gains: A surge in profits from foreign currencies and other financial assets contributed to the asset boom.
Firm-by-Firm Analysis:
1️⃣ AIICO Insurance
• Total Assets: ₦399.6 billion (+32.8% YoY)
• Investment Securities: Grew to ₦314.4 billion (+17.9% YoY)
2️⃣ Custodian Investment
• Total Assets: ₦389 billion (+52.7% YoY)
• Investment Securities: Climbed to ₦270.5 billion (+41.8%)
3️⃣ AXA Mansard Insurance
• Total Assets: ₦210.7 billion (+57.9% YoY)
• Investment Securities: Surged to ₦114.9 billion (+99.5%)
4️⃣ Cornerstone Insurance
• Total Assets: ₦115.4 billion (+65.6% YoY)
• Investment Securities: Rose to ₦64.9 billion (+46.5%)
5️⃣ NEM Insurance
• Total Assets: ₦101.9 billion (+54.6% YoY)
• Investment Securities: Increased to ₦64.5 billion (+35.2%)
6️⃣ Consolidated Hallmark
• Total Assets: ₦52 billion (+725.4% YoY!)
• Investment Securities: Jumped to ₦30 billion (+102.7%)
7️⃣ Coronation Insurance
• Total Assets: ₦74.3 billion (+63.7% YoY)
• Investment Securities: Improved to ₦25.4 billion (+58.8%)
8️⃣ Linkage Assurance
• Total Assets: ₦60.4 billion (+24.5% YoY)
• Investment Securities: Increased to ₦41.5 billion (+16%)
9️⃣ Sovereign Trust Insurance
• Total Assets: ₦25.2 billion (+43.2% YoY)
• Investment Securities: Grew to ₦3.69 billion (+47.6%)
Prestige Assurance
• Total Assets: ₦37.2 billion (+62.4% YoY)
• Investment Securities: Rose to ₦18.6 billion (+52.5%)
Why This Matters:
The surge underscores how strategic investments in a rising-yield environment can drive growth in the insurance sector. These gains could enhance market competitiveness and boost financial stability for insurers.
What’s next for these firms? Share your thoughts below!
Breaking Down the Growth:
The assets of 10 listed insurance firms in Nigeria soared to ₦1.46 trillion in the first nine months of 2024, a remarkable 51.3% increase from ₦965 billion during the same period in 2023. This impressive growth stems from increased investment in securities, including treasury bills and bonds, as rising yields boosted returns.
Key Drivers:
• Investment Securities: Tradable assets like equities and fixed-income instruments saw significant gains. Insurers benefited from higher bond yields compared to prior periods of lower returns.
• Fair Value Gains: A surge in profits from foreign currencies and other financial assets contributed to the asset boom.
Firm-by-Firm Analysis:
1️⃣ AIICO Insurance
• Total Assets: ₦399.6 billion (+32.8% YoY)
• Investment Securities: Grew to ₦314.4 billion (+17.9% YoY)
2️⃣ Custodian Investment
• Total Assets: ₦389 billion (+52.7% YoY)
• Investment Securities: Climbed to ₦270.5 billion (+41.8%)
3️⃣ AXA Mansard Insurance
• Total Assets: ₦210.7 billion (+57.9% YoY)
• Investment Securities: Surged to ₦114.9 billion (+99.5%)
4️⃣ Cornerstone Insurance
• Total Assets: ₦115.4 billion (+65.6% YoY)
• Investment Securities: Rose to ₦64.9 billion (+46.5%)
5️⃣ NEM Insurance
• Total Assets: ₦101.9 billion (+54.6% YoY)
• Investment Securities: Increased to ₦64.5 billion (+35.2%)
6️⃣ Consolidated Hallmark
• Total Assets: ₦52 billion (+725.4% YoY!)
• Investment Securities: Jumped to ₦30 billion (+102.7%)
7️⃣ Coronation Insurance
• Total Assets: ₦74.3 billion (+63.7% YoY)
• Investment Securities: Improved to ₦25.4 billion (+58.8%)
8️⃣ Linkage Assurance
• Total Assets: ₦60.4 billion (+24.5% YoY)
• Investment Securities: Increased to ₦41.5 billion (+16%)
9️⃣ Sovereign Trust Insurance
• Total Assets: ₦25.2 billion (+43.2% YoY)
• Investment Securities: Grew to ₦3.69 billion (+47.6%)
Prestige Assurance
• Total Assets: ₦37.2 billion (+62.4% YoY)
• Investment Securities: Rose to ₦18.6 billion (+52.5%)
Why This Matters:
The surge underscores how strategic investments in a rising-yield environment can drive growth in the insurance sector. These gains could enhance market competitiveness and boost financial stability for insurers.
What’s next for these firms? Share your thoughts below!