Custodian, AXA Mansard, NEM, Cornerstone, Are Largest Insurers by Profit

Custodian Investment Plc, AXA Mansard Plc, NEM Insurance Plc , and Cornerstone Insurance Plc are the largest companies by profit in the industry as higher interest rates that are deleterious to the economy remains a boon for sector players.

Data gathered by MoneyCentral shows Custodian Investment recorded profit after tax (PAT) of N51.29 billion as at December 2024; AXA Mansard, N26.18 billion; NEM Insurance, N23.31 billion, and Cornerstone Insurance, N22.66 billion.

Others are: AIICO Insurance, N13.61 billion; Linkage Assurance, N5.03 billion; Coronation Insurance, N4.05 billion; Sunu Insurance, N3.66 billion; Sovereign Trust, N3.04 billion; Prestige Assurance, N2.87 billion; Lasaco Insurance, N1.89 billion; Regency Guinea Insurance, N147.58 million, and Veritas Insurance, N73.51 million.

Insurers are leveraging the technology to expand their products and services especially to their direct and personal clients, which is part of digital transformation strategy. This tactic which has been accepted by customers is also responsible for earnings growth even the products on the portfolio of these firms are contributing to the top line (sales) growth.

Also, some of them received dividend income from their Pension Managers as the continuous hike in interest rates by the central bank which seeks to tame rising inflation drove up investment income for firms who had investment in government securities and are now enjoying juicy yields.

Analysts say that Life insurers’ premium spiked on the back of Compulsory Group Life Insurance and Annuity  for Life Policy while Oil and Gas insurers are beneficiary of Local Content Policy.

The combined profit of the largest insurers hit N158.13 billion as at December 2024, which is 80 percent higher than 2023’s N88.17 billion, according to data gathered by MoneyCentral.

Nigeria’s inflation rate rose to 34.8 percent in December 2024, up from 34.6 percent in November, driven by increased demand for goods and services during the festive season.

Nigeria 10 bear bond yield was 21.80 percent on Friday February 7, according to over-the-counter interbank yield quotes for this government bond maturity. Historically, the Nigeria 10-Year Government Bond Yield reached an all-time high of 22.35 in January of 2025.

The Monetary Policy Committee of the Central Bank of Nigeria has raised the country’s interest rate by 25 basis points to 27.50 per cent in November from 27.25 per cent in September 2024.

Drilling down the numbers of sector players showed Custodian Investment’s profit surged +160.70 percent; AXA Mansard +117.36 percent; NEM Insurance, +75.90 percent; Cornerstone, +61.28 percent; AIICO, +17.69 percent; Coronation, +736.02 percent; Sovereign Trust +138.66 percent, and Prestige, +119.67 percent.

However, Guinea Insurance, Regency Assurance, Linkage Assurance, and Veristas Insurance all fell off the cliff with a reduction in profits by, -69.11 percent; -60.69 percent; -4.69 percent, and -97.33 percent.

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