Market Intelligence

Top 10 insurance firms emerge

by BALA AUGIE

December 4, 2017 | 1:25 pm
  |     |     |   Start Conversation

Fifteen out of the 43 non-life insurance companies in Nigeria have less than one per cent of the industry’s market.

The 15 companies have remained under the radar and are relatively anonymous to the business community, raising concerns about their ability to shore up capital and take on more risk.

The ranking is based on industry total gross premium income.

According to the 2016 annual report of non-life business posted on the website of the National Insurance Commission (NAICOM), Leadway Assurance Company Limited leads the industry with 10.69 per cent market share of N201.10 billion industry gross premium income (GPI), followed by AIICO Insurance Plc with 8.10 per cent, while Custodian and Allied Insurance, holds 8.05 percent. AXA Mansard Insurance has 7.09 percent of the market share while NEM Insurance has 5.25 per cent.

Niger Insurance is leading the pack of firms with less than one per cent share, having 0.99 per cent market control despite its robust offshore affiliation. It is followed by Anchor Insurance Co., 0.97 per cent; FBN General Insurance, 0.97 percent; Equity Assurance, 0.97 per cent; Goldlink Insurance, 0.95 percent; KBL Insurance, 0.89 per cent; Nigerian Agric Insurance Corp, 0.88 percent; Great Nigerian Insurance, 0.57 percent; Guinea Insurance, 0.45 percent; Nicon Insurance, 0.45 percent; and Nigeria reinsurance Corp, 0.36 percent.

Others include FINSURANCE, 0.34 percent; The Universal Insurance Corp, 0.28 percent; Alliance and General Insurance, 0.00 percent; Invest and Allied ASS, 0.00 percent.

Only 22 companies in Nigeria were able to register profits, according data on website of NAICOM, a development that prompted many stakeholders to call for another round of consolidation.

RANKING OF NON LIFE INSURANCE COMPANIES WITH GROSS PREMIUM INCOME 2016

S/NO

COMPANIES

REGNO

TOTAL GROSS PREMIUM

MARKET SHARE (%)

1

LEADWAY ASSURANCE CO LTD

RIC021

21,539,968,000

10.69

2

CONTINENTAL RE INS PLC

16,322,712,000

8.1

3

CUSTODIAN AND ALLIED INS CO LTD

RIC028

16,222,090,000

8.05

4

AXA MANSARD INSURANCE PLC

RIC041

14,293,717,000

7.09

5

NEM INSURANCE CO PLC

RIC003

10,628,183,000

5.27

6

ROYAL EXCHANGE ASS NIG PLC

RIC034

8,995,531,000

4.46

7

ZENITH GEN INS CO LTD

RIC005

8,555,212,000

4.24

8

AIICO INSURANCE PLC

RIC013

7,332,749,000

3.64

9

SOVEREIGN TRUST INS PLC

RIC039

6,763,130,000

3.36

10

MUTUAL BENEFIT ASS PLC

RIC018

6,660,746,000

3.3

11

STACO INSURANCE PLC

RIC032

5,779,908,000

2.87

12

CORNERSTONE INSURANCE PLC

RIC017

5,767,268,000

2.86

13

CONSOLIDATED HALLMRK INS PLC

RIC016

5,708,277,062

2.83

14

WAPIC INSURANCE PLC

RIC007

5,212,598,000

2.59

15

INTER ENERGY INSURANCE PLC

RIC035

4,170,684,000

2.07

16

LINKAGE ASSURANCE PLC

RIC046

3,960,407,000

1.96

17

LAW UNION AND ROCK INS PLC

RIC008

3,958,462,148

1.96

18

NSIA INSURANCE (adic ins)

RIC044

3,915,103,000

1.94

19

LASACO ASSURANCE PLC

RIC047

3,516,692,000

1.74

20

OLD MUTUAL NIG GEN INS CO LTD

RIC023

3,385,923,000

1.68

21

REGENCY INS CO LTD

RIC019

3,337,313,000

1.66

22

ENSURE INSURANCE PLC

3,006,546,000

1.49

23

STERLING ASSURANCE NIG LTD

RIC022

2,733,429,000

1.36

24

PRESTIGE ASSURANCE PLC

RIC026

2,547,530,000

1.26

25

STANDARD ALLIANCE INS PLC

RIC011

2,503,967,000

1.24

26

UNITYKAPITAL ASSURANCE PLC

RIC033

2,197,357,174

1.09

27

INDUSTRIAL & GEN INSURANCE PLC

RIC049

2,170,645,000

1.08

28

SAHAM UNITRUST INS CO LTD

RIC036

2,083,158,000

1.03

29

NIGER INSURANCE PLC

1,991,308,000

0.99

30

ANCHOR INS CO LTD

RIC010

1,960,782,000

0.97

31

FBN GEMERAL INSURANCE LTD

RIC024

1,957,668,000

0.97

32

EQUITY ASSURANCE PLC

RIC027

1,956,775,000

0.97

33

GOLDLINK INSURANCE CO LTD

RIC030

1,912,635,000

0.95

34

KBL INSURANCE LIMITED

RIC037

1,795,908,000

0.89

35

NIG AGRIC INS CORPORATION

RIC020

1,765,702,000

0.88

36

GREAT NIG INSCO LTD

RIC014

1,152,851,000

0.57

37

GUINEA INSURANCE PLC

RIC004

906,692,000

0.45

38

NICON INSURANCE PLC

RIC001

899,998,000

0.45

39

NIGERIA RE- INSURANCE CORP

716,606,000

0.36

40

FINSURANCE PLC

RIC048

687,610,000

0.34

41

THE UNIVERSAL INS CO LTD

RIC029

573,838,000

0.28

42

ALLIANCE & GEN INS PLC

RIC025

0

0

43

INVEST AND ALLIED ASS PLC

RIC038

0

0

TOTAL

201,547,678,384

Source: NAICOM

 This is because there too many insurers with a weak capital base that prevents them from taking on more risk and taking advantage of the opportunities in the Nigerian economy.

The top three banks have shareholders fund of N1.98 billion while the total equity of the top three insurers stood at N56.92 billion as at September 2017.

Indeed Nigeria’s market is fragmented and in its embryonic as premium penetration is low.

Out of Nigeria’s estimated population of two hundred million populations, and of ninety million adults, only two million people have one form of insurance cover or the other.

This explains why the sector’s contribution to GDP is less than 1 percent, lagging sub-Saharan countries like Kenya and South Africa

Experts have attributed the poor contribution of the sector to the economy to apathy toward insurance, lack of proper regulation and weak consumer spending.

The last time capital bases of insurance companies were raised was in 2007 as an economic downturn and rising operating expenses have eroded profitability.

The cumulative shareholders fund of the 43 insurance firms stood at N306.90 billion, which is lower than the N767.69 billion of Tier one lender, Zenith Bank.

 

BALA AUGIE

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by BALA AUGIE

December 4, 2017 | 1:25 pm
  |     |     |   Start Conversation

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