AIICO Insurance Plc, AXA-Mansard and three other insurance firms earned a whopping sum of N139.440 billion as revenue in the half year of 2022, outperforming their earnings in the corresponding period of 2021 of N115.530 billion.
According to the information contained in the half year financial statements of the companies, AIICO Insurance Plc led the park with N40.574 billion earnings in the first half of 2022.
The company reported an increase of 17.82 per cent in gross premium during the half year as it remained resilient in the operational environment amid volatility in the economy.
AIICO reported a premium of N40.574 billion during the half year of 2022 as against N34.436 billion representing a growth of 17.82 per cent.
It was followed by Custodian and Allied Investment Plc which reported an earning of N36.521 billion in the same period.
Despite financial and operational headwinds in the first half of the year, Custodian and Allied Investment Plc reported a 10.88 per cent growth in gross premium for the first half of the year 2022 to N36.521 billion as against N32.936 billion in 2021.
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AXA-Mansard Plc sustained a positive trajectory during the half year ended June 30, 2022, with 33.92 per cent growth in gross premium.
The company reported a premium of N34.717 billion in its half-year 2022 gross premium from N25.923 billion a year ago, taking advantage of the rise in risk environment due to operational headwinds in the first half of the year.
NEM Insurance Plc posted a gross premium of N18.339 billion for the first half of the year 2022 from N15.237 billion in 2021, accounting for an increase of 20.36 per cent as the firm also grew premium despite rising cost of operations occasioned by inflation and the Russia-Ukraine war.
Coronation Insurance Plc gained a 32.75 per cent increase in gross premium during the review period.
The company recorded a premium of N9.290 billion in half year 2022 from N6.998 billion in 2021, accounting for an increase of 32.75 per cent.
Various factors such as shrinking federal/state government revenues, unavoidable devaluation of the Naira and high energy costs resulting in an inflammatory landscape increased challenges being faced by insurance companies in Nigeria.
Access to forex by businesses and individuals alike became very difficult as the year progressed and the gap between the interbank and parallel market became very high, compounded by COVID-19 pandemic ravaging the world.
The effect was low capacity utilization by industries and outright shut down of many plants with attendant layoffs impacting the ability of businesses, individuals and governments to enter into insurance contracts and pay appropriate insurance premiums.