16 insurance companies record 27% increase in aggregate profit in 2020

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Top16 insurance companies have recorded favourable financial results for 2020 financial year recorded 27 percent increase in aggregate profit for last year.

Despite an adverse operating environment cast last year by the COVID-19 pandemic and #EndSARS protests, a series of mass demonstrations against police brutality that over event last year, the 16 insurers still pull through

They are AIICO Insurance, AXA Mansard, Consolidated Hallmark, Cornerstone Insurance, Coronation Insurance, Linkage Assurance, Mutual Benefits Assurance, Nem Insurance, Niger Insurance, Prestige Assurance, Regency Alliance, Royal Exchange, Sovereign Trust, Sunu Assurance, Universal Insurance, and Veritas Kapital.

In the financial statements the 16 insurers lodged with the Nigerian Stock Exchange show a 27 percent increase in aggregate profits for 2020, a pace which is slower than the 89 percent surge shown in 2019.

The insurance companies’ combined profit after tax (PAT) rose to NGN26.5bn ($69.7m) in 2020 from NGN20.8bn in 2019. Their 2018 PAT was NGN11bn.

The combined GWP grew by 16 percent to NGN255.1bn in 2020 from NGN219.6bn in 2019. In comparison, in 2019, the combined GWP rose by 39.2 percent from NGN157.8bn in 2018..

The turnover grew by 16 percent from 219.6 billion NGN (572.69 million USD) in 2019 to 255.1 billion NGN (665.27 million USD) in 2020.

Although the #EndSARS crisis was devastating for the Nigerian economy, it caused less damage to insurers because of the low insurance coverage in the country. Group managing director of Continental Reinsurance,

Dr Femi Oyetunji, said, “One of the things that I have found most disheartening in Africa is that if there is a disaster, there are huge economic losses but few insured losses because of the low insurance penetration.

“Unfortunately, the insurable loss from the #EndSARS protests is nothing compared to the economic loss and that again is because of under-insurance or non-insurance. People don’t know the importance of insurance.”