Insurers Thrive: Total Assets Surge to ₦1.46 Trillion ??

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! ?