13 of the 15 NSE insurance firms’ total assets have hit N375.81 billion in the first quarter of the year as insurers invest premium income to with a view to generating returns.
This represents a 5.57 per cent or 20.03 billion increase from the N355.30 billion recorded in the corresponding period of (Q1) March 2016.
AIICO Insurance is the largest insurer by total assets as assets base of N80.85 billion is 21.52 per cent of the total figure.
This is followed by AXA Mansard Insurance and Mutual Benefits Assurance with total assets of N61.64 billion and N52.19 billion representing 16.41 per cent and 13.89 per cent of the total figure. See chart.
For the first three months through March 20107, the cumulative shareholders’ fund of the 13 insurers increased by 4.40 per cent to N130.09 billion compared with N124.56 billion recorded the previous year.
Cornerstone Insurance’s total equity of N20.03 billion is the largest among the firms under our coverage; this represents 15 per cent of the total figure. See chart.
The question in the minds of many experts is whether these firms have a favourable policyholders fund to will give them the leeway to take on more risk. Or whether they have the required leverage ratios that presuppose they can meet their obligations.