Nigeria: Listed Insurance Companies in Nigeria Post Record Profits

17 July 2025
Daba Finance (Abidjan)

TLDR

  • Nigeria's top-listed insurance firms have recorded their strongest earnings in over a decade, with combined pre-tax profits rising from N36 billion in 2019 to nearly N233 billion in 2024
  • The profit boom has been driven largely by rising interest rates, which have boosted returns on fixed-income investments, typically a large part of insurers' portfolios
  • Regulatory enforcement, particularly the "No Premium, No Cover" rule, has also improved liquidity and reduced defaults

Nigeria's top-listed insurance firms have recorded their strongest earnings in over a decade, with combined pre-tax profits rising from N36 billion in 2019 to nearly N233 billion in 2024, according to a review by Nairametrics. That's a sixfold increase in five years, outpacing many other sectors.

The profit boom has been driven largely by rising interest rates, which have boosted returns on fixed-income investments, typically a large part of insurers' portfolios. Regulatory enforcement, particularly the "No Premium, No Cover" rule, has also improved liquidity and reduced defaults.

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Breakout performers include NEM Insurance, whose profit surged nearly 20x, and Leadway Assurance, which grew its pre-tax profit from N11.3 billion to N73.6 billion and now holds over N1 trillion in assets. AIICO hit its highest-ever profit, although it ran an underwriting loss, making it more exposed to market swings. AXA Mansard, Custodian, and Cornerstone also posted strong results.

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Key Takeaways

Despite the strong earnings, Nigeria's insurance sector remains small compared to banking and telecoms. No insurer features in the NGX30 index or among Nigeria's SWOOTs--stocks seen as long-term investment-worthy. By market cap, they lag well behind banks and industrial firms. New threats are also emerging. Nigerian banks, under pressure to grow post-recapitalization, are expanding into insurance. Fintechs, meanwhile, are offering embedded microinsurance with superior tech and lower overhead. Without capital, digital infrastructure, and scale, traditional insurers may lose ground. Still, with rising income, growing insurance demand, and relatively low valuations, the sector presents a contrarian opportunity. The fundamentals are improving, but investors should watch closely--this boom must translate into sustainable, core underwriting growth to be durable.

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