WHAT! Only 27 firms control below 1 percent of Insurance market share

Twenty seven out of the 56 insurance companies in Nigeria have less than one per cent of the industry’s market.

The 27 companies have remained relatively unknown to the business community, explaining why underwriters still depend on foreign insurers for large transactions.

This is contained in the latest report of Nigeria Insurance Digest, published by the Nigerian Insurers Association (NIA).

The report shows that Leadway Assurance Company Limited leads the industry with 14.93 per cent market share, followed by AIICO Insurance Plc with 10.93 per cent, while Axa Mansard Insurance Plc, holds 4.80 per cent. Custodian & Allied Insurance Plc has 4.59 per cent of the market while Mutual Benefits Assurance Limited has 3.37 per cent.

Old Mutual Insurance Company Limited 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 Linkage Assurance, 0.98 per cent; Standard Alliance Insurance, 0.95 per cent; Ensure Insurance, 0.92 per cent; Great Nigeria Insurance, 0.88 per cent, Unity Kapital Assurance 0.85 per cent, Sterling Assurance 0.79 per cent, Equity Assurance, 0.79 per cent and Unitrust Insurance, 0.79 per cent.

Others include Prestige Assurance, 0.78 per cent; Alliance and General 0.76 per cent; Anchor Insurance, 0.75 per cent; Wapic Life, 0.39 per cent; Guinea Insurance, 0.28 per cent; Universal Insurance, 0.23 per cent; UNIC Insurance, 0.08 per cent; Spring Life, 0.01 per cent and Investment & Allied 0.00 per cent.

Only 33 companies in Nigeria were able to register profits in their latest reports, a development that prompted Minister of Finance, Mrs Kemi Adeosun, to call for another round of recapitalisation for the industry.

The Minister noted “To take true advantage of the opportunity in the industry, we must recapitalise and reposition the insurance industry.

“The top three banks have capital in excess of N300 billion each, but the top three insurers have capital of between N14billion to N25 billion.”

DAILY POST reports that the last time capital bases of insurance companies was raised was in 2007 and recent economic downturn has eroded much of their capitalisation leading to poor business practices.

Meanwhile, a report by Agusto & Co, noted that the Nigerian insurance industry underwrote risks of over N300 billion in 2015 through motor, oil and gas, general accidents, fire, marine, aviation, life insurance, among others as it estimated a 10 per cent growth in GPI in 2016.

The report reflected that at about 28 per cent GPI, over N100 billion generated was estimated to have been paid out as claims.

“This has helped businesses and individuals rebuild and recover from losses quickly”, it stated.

“In addition, in terms of financial intermediation, it stated that operators in the sector invested over N137 billion of its premium in the banking industry as placements and deposits in 2015 while it estimates about N178 billion has been placed with the banking sector in 2016.

“The Insurance sector directly employs 6,400 persons and expended an estimated N29 billion in employee related costs in 2016,” it stated.

 

Sourc: Dailypost.ng