Surge in Claims Payments Amid Economic Challenges
In the face of inflation, increasing living costs, and growing risks, 14 publicly-listed Nigerian insurance companies paid out a combined N101.3 billion in claims during the first half of 2024 (H1 2024). This represents a 42% increase from the N71.6 billion disbursed in the same period in 2023 (H1 2023). These figures, however, exclude Leadway Assurance, one of the largest insurers in Nigeria known for its significant claims payouts.
Increase in Premium Collections
The 14 insurers under review collectively received N373.8 billion in premiums during H1 2024, marking a 59% year-on-year increase from the N234.7 billion collected in H1 2023. This robust growth in premium intake reflects the increasing demand for insurance products in an economy faced with heightened risks and financial uncertainties.
AIICO Insurance Leads in Claims Payment
Among the 14 insurance companies, AIICO Insurance led in claims payments, disbursing N42.5 billion in H1 2024. This reflects a substantial 70% growth from the N25 billion paid in H1 2023. Despite the high claims payout, AIICO saw a notable increase in premium collection, receiving N87 billion during the period, which is a 55% rise from the N56.2 billion collected in H1 2023.
AXA Mansard’s Claims and Premium Growth
AXA Mansard followed, paying out N25.5 billion in claims, a 29% increase from the N19.8 billion paid in H1 2023. AXA Mansard also experienced strong growth in premium collections, with a 79% rise, receiving N80.8 billion in H1 2024 compared to N45.2 billion in the previous year.
NEM Insurance: Significant Increase in Premium Collection
NEM Insurance ranked third in claims payments, disbursing N9.1 billion, a 34% increase from the N6.8 billion paid in H1 2023. NEM also recorded substantial growth in premium collections, with N66.1 billion received during the half-year, up 58% from N41.9 billion collected in H1 2023.
Custodian and Allied Insurance Sees Moderate Growth
Custodian and Allied Insurance, a subsidiary of Custodian Investment, paid N7.7 billion in claims during H1 2024, reflecting a 19% increase from the N6.5 billion paid in H1 2023. The insurer received N29.8 billion in premium payments during the period under review, showing moderate growth in collections.
Coronation Insurance: Record Growth in Claims
Coronation Insurance saw the most significant growth in claims payments, disbursing N4.3 billion in H1 2024, an 81% increase from N2.4 billion in H1 2023. The company’s premium collections mirrored this growth, rising 81% to N27.2 billion, compared to N15 billion collected in the same period in 2023.
Decline in Prestige Assurance’s Claims Payments
Prestige Assurance saw a 13% decline in claims payments, dropping to N3.8 billion in H1 2024 from N4.4 billion in H1 2023. However, the insurer experienced a 46% growth in premium collections, receiving N11.3 billion during the period compared to N7.8 billion in H1 2023.
Other Notable Performers
Sovereign Trust Assurance reported a 45% increase in claims payments, disbursing N2 billion in H1 2024 compared to N1.4 billion in H1 2023. The insurer also saw a significant rise in premium collections, receiving N23.6 billion during the half-year, nearly double the N12.5 billion collected in H1 2023.
Linkage Assurance, on the other hand, paid N1.6 billion in claims, representing a 22% decrease from N2 billion paid in H1 2023. The company, however, recorded a 44% increase in premium collections, receiving N11.7 billion in H1 2024 compared to N8.1 billion in the previous year.
Veritas Kapital Assurance recorded a massive 172% growth in claims payments, paying N1.4 billion in H1 2024 compared to N527.4 million in H1 2023. The company also saw a 233% surge in premium collections, receiving N11.9 billion during the half-year, up from N3.6 billion in H1 2023.
Smaller Insurers’ Contributions
Regency Alliance Insurance saw a 90% increase in claims payments, disbursing N1.2 billion in H1 2024 compared to N605 million in H1 2023. Meanwhile, Universal Insurance, SUNU Assurances, Guinea Insurance, and International Energy Insurance paid claims amounting to N932 million, N828 million, N236 million, and N184 million, respectively, during the first half of 2024.
Social Media Reactions:
- Uche Madu: “These insurers are really stepping up. N101bn in claims is impressive!”
- Tunde Akinola: “Wow, AIICO is leading the pack again in claims payments. Kudos!”
- Ngozi Eze: “Glad to see AXA Mansard growing both claims and premiums.”
- Chinedu Okoro: “Insurance companies are finally pulling their weight. H1 2024 looks good!”
- Kemi Adedoyin: “Hope this rise in claims payment means better service for customers!”
- Fatima Bello: “It’s great that insurers are paying more claims, but what about the premiums?”
- Dayo Akinremi: “Prestige Assurance’s decline in claims is surprising. What’s going on there?”
- Suleiman Abdullahi: “AIICO paying N42bn in claims? That’s some serious growth!”
- Grace Onyeka: “Veritas Kapital Assurance seems to be doing really well with a 172% growth!”
- Ifeoma Johnson: “N101bn in claims in just six months is impressive. Nigerian insurers are on the rise!”
- Emeka Eze: “The insurance sector is finally growing in Nigeria. Good news for policyholders.”
- Maryam Yusuf: “Glad to see insurance companies are handling more claims in these tough times.”
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