Leadway Assurance Limited, the largest insurer by assets, has enough financial resources to meet all its commitments such as claims and other obligations as evidenced in a strong solvency margin ratio.
For the year ended December 2024, Leadway Assurance solvency margin ratio stood at 842 percent, which is the highest in the insurance industry, according to data gathered by MoneyCentral.
This means the insurer has the strongest balance sheet that is capable of withstanding macroeconomic headwinds and it is in a benign position to meet obligations to policyholders as at when due.
Leadway Assurance has total admissible total assets of N918.86 billion as at December 2024, which is higher than admissible total liabilities of N759.80 billion, leaving available solvency margin of N159.04 billion.
Solvency Ratio is a measure of capital adequacy. It is expressed as a ratio of Available Solvency Margin to Required Solvency Margin.
The excess of assets over liabilities and other liabilities of policyholders’ funds and shareholders’ funds maintained by the insurer is referred to as Available Solvency Margin (ASM). The regulator requires all insurers to maintain a minimum excess assets over liabilities, which is referred to as Required Solvency Margin (RSM).
Leadway Assurance Group insurance revenue grew by 55% to N190 billion in 2024 from N122.4 billion in 2023 as the insurance giant continued to generate solid returns despite tough macro conditions.
Profit before tax(PBT) also moved up by 35% to N73.57 billion compared to N54.4 billion achieved in the previous year.
The increase in Insurance revenue was largely experienced by all classes, while the increase in the reported profit was largely driven by Investment income and Wealth management services.
Leadway Board of Directors recommended a cash dividend of N15 billion to shareholders which translates to N0.75kobo per unit of ordinary share subject to withholding tax. This is however a 50% drop from the N30 billion (N1.50) cash dividend paid last year.
Major shareholders of Leadway Assurance are Swiss Re Investment Company Limited, Switzerland 25% ownership, Sir. Hassan O. Odukale TRUST 20%, OHO Investments Ltd. 12%, Leadway Capital & Trusts Ltd. 7% and Book Holding I Limited Mauritius 5%.Wealth management.
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