Insurance Boom: Profits Soar, Risks Linger

Nigeria's top listed insurance firms are experiencing their most profitable run in over a decade, driven by rising interest rates, stricter regulation, and better investment strategies.

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A review of six major players—AIICO, NEM Insurance, Custodian, AXA Mansard, Leadway Assurance, and Cornerstone—shows that their combined pretax profits surged from ₦36 billion in 2019 to nearly ₦233 billion in 2024. This sixfold growth outpaces most other sectors in Nigeria's struggling economy.

The profit boom is not coming solely from underwriting. Nigeria's high-interest environment has delivered impressive gains from fixed-income investments, where insurers hold significant reserves. Higher treasury yields translated into stronger investment income, now a major earnings driver for the industry.