Seven publicly traded Nigerian insurance companies reported a 45% increase in their net asset base in 2024, indicating that the company has enough assets to cover its liabilities, thereby reducing the risk of insolvency.

AIICO Insurance, AXA Mansard Insurance, Cornerstone Insurance, NEM Insurance, Coronation Insurance, Linlage Assurance, and Consolidated Hallmark Holdings recorded an overall net asset value of 343.3 billion naira in 2024, an increase of 45.2% compared to 236.4 billion naira in 2023.

AIICO Insurance tops the list with net assets of N 64.7 billion, closely followed by NEM Insurance with N 59.8 billion and AXA Mansard Insurance with N 52.7 billion and AXA Mansard Insurance with N 52.7 billion.

The increase in net assets reflects the increased ability of insurance companies to settle claims and grow their businesses. Analysts point out that a solid capital base is essential to instill confidence among policyholders and investors.

“The increase in net assets is a clear sign that Nigerian insurance companies are on the path to sustainable growth,” said financial analyst Abiodun Adebayo. “With regulatory support and improvements in corporate governance, we expect more foreign and institutional investors to take an interest in the sector.

Adebayo Olaniyi, a financial analyst at an insurance company, described the increase as a testament to the improvement in the financial health of the sector.

“The rise in net assets indicates that insurance companies are strengthening their financial base. This reinforces the confidence of investors and policyholders, thus ensuring the stability of the sector,” said Olaniyi

The increase in net assets is expected to attract more investors, including foreign direct investment (FDI), to the insurance sector in Nigeria. Thanks to a stronger financial situation, businesses are in a position to broaden their range of services, to take out greater risks and to improve the benefits offered to insured persons.