AXA Mansard, AIICO, three others pay N49.158bn as claims in H1 2023

Leading insurance companies in Nigeria grappled with a significant surge in net claims by customers in the first half of 2023, amounting to N49.158 billion, a substantial increase of 25.47 per cent compared to the N39.178 billion recorded in the same period in 2022.

The companies, including Custodian Insurance, NEM Insurance, Sovereign Trust Insurance, AXA-Mansard Plc., AIICO, Mutual Benefits Assurance, and Cornerstone Insurance, earned a total of N200.515 billion in gross premium income representing a 21.1 per cent increase when compared to N165.626 in 2022.

Custodian and Allied Investment Plc. saw its claims rise to N11.412 billion in 2023 from N10.479 billion in the same period of 2022, a growth of 8.90 per cent.

Its gross premium rose by 13.39 per cent to N41.411 billion from N36.521 billion recorded in 2022.

AXA Mansard paid a whopping claim of N9.389 billion during the half year as against N8.529 billion in 2022, an increase of 10.08 per cent.

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Its gross premium income stood at N39.003 billion in the review period from N34.716 billion in the comparable period 2022, an increase of 12.35 per cent.

Sovereign Trust Insurance Plc. saw its claims rise to N7.559 billion in 2023 from N4.331 billion in the same period of 2022, a growth of 74.53 per cent.

Its gross premium rose by 33.35 per cent to N12.234 billion from N9.174 billion recorded in 2022.

Mutual Benefits Assurance Plc. recorded net claims of N7.290 billion in 2023, a 16.36 per cent increase from N6.265 billion paid in 2022.

The insurance firm recorded a gross premium income of N17.992 billion from N15.637 billion, accounting for a growth of 15.06 per cent.

AIICO Insurance followed with a net claim payment of N5.730 billion in 2023 a 56.51 per cent increase from N3,661 billion paid in 2022. Similarly, the gross premium income for the period was N49.997 billion as against N40.574 billion in 2022, a year-on-year increase of 23.22 per cent.

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This indicates that the company paid 11.46 per cent of its gross premium income as claims in the half year.

Cornerstone Insurance incurred a total of N4.262 billion in claims for half year of 2023, a 166 per cent increase from N1,602 billion paid in 2022.

Meanwhile, gross premium income rose by 24.93 per cent to N13.324 billion from N10.66 billion in 2022.

Cornerstone Insurance’s Profit after tax, however, rose to N11.251 billion a 2,567.6 per cent increase resulting from net gains on financial assets when compared to N408 million in 2022.

NEM Insurance Plc. trailed with a claim payment of N3.516 billion from N4.311 billion reported in 2022, marking an 18.44 per cent decrease. Its gross premium income stood at N26.554 billion in 2023, a 44.79 per cent increase over the N18.339 billion reported in 2022.

However, it reported a profit after tax of N3.499 billion in 2023, a 38 per cent increase from N2.534 billion recorded in 2022.

According to experts, insurance companies have grappled with soaring claims, impacting their premium growth and profitability, in recent years.

A myriad of economic challenges such as difficulties accessing forex became increasingly pronounced as the year progressed, compounded by the security challenges in the country.

Also, global economic headwinds occasioned by the ripple effects of Russia’s and Ukraine’s war played a significant role.