Investors Reassured as Nigeria’s Insurance Firms Gain N343.3bn in Net Assets

(3 Minutes Read)

Seven Nigerian insurance companies reported a 45 per cent increase in their net asset base in 2024, suggesting they have enough assets to meet their liabilities, thereby lowering the risk of insolvency. This growth indicates long-term sustainability, making the sector more appealing to investors seeking capital gains.

AIICO Insurance leads with a net asset value of N64.7 billion, followed by NEM Insurance at N59.8 billion and AXA Mansard Insurance at N52.7 billion. Together, these firms achieved a total net asset value of N343.3 billion in 2024, marking a 45.2 per cent rise from N236.4 billion in 2023. The increase in net assets demonstrates the companies’ improved ability to fulfil claims and expand their operations. Analysts emphasise that a strong capital base is essential for building confidence among both policyholders and investors.

According to financial analyst Abiodun Adebayo, this growth signals that Nigerian insurance firms are moving towards sustainable development. Regulatory support and better corporate governance are attracting more foreign and institutional investors to the sector. The rise in net assets shows that these companies are fortifying their capital bases, which fosters trust among investors and policyholders, ensuring industry stability, as noted by Olaniyi.

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In the context of an insurance firm, net assets—often referred to as shareholders’ funds or book value—represent the total value of its assets after liabilities are deducted, reflecting the company’s overall worth or equity. This increase in net assets is likely to draw more investors, especially foreign direct investment (FDI), into Nigeria’s insurance market. With a stronger financial foundation, firms are better positioned to broaden their service offerings, underwrite larger risks, and enhance benefits for policyholders.