Consolidated Hallmark Holdings (CHHOLDCO) Plc emerged as the most profitable insurer with the highest Return on Equity (RoE) out of seven insurers analysed, driven by its strategic expansion of operations into a holding company.
At the year ended December 31, 2024, the Group’s restructuring boosted its after-tax profit by 495 percent to N22.6 billion from N3.8 billion, the highest on record since listing on the Nigerian Exchange Limited (NGX).
Currently, the Group is the parent body for Consolidated Hallmark Insurance Limited, CHI Micro Insurance Limited, CHI Health Management Organisation, CHI Capital Limited, and Grand Treasurers Limited.
However, profit after tax often garners attention as a key indicator of financial performance, but it does not fully capture a company’s profitability. To provide a more comprehensive analysis, this article evaluates the most profitable companies in Nigeria using the Return on Equity (RoE) metric.
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Return on Equity (RoE) is a financial measure that assesses a company’s ability to generate earnings relative to shareholders’ equity. It offers deeper insights into how effectively a company utilizes its equity base to drive profitability.
For investors, this achievement sends a strong message about Consolidated Hallmark Holdings (CHHOLDCO) Plc’s financial health and the potential for greater returns on their investments compared to other insurers.
Here are the seven most profitable Nigerian insurers in 2024
Consolidate Hallmark Holdings Plc
Consolidated Hallmark Holdings achieved an impressive FY RoE of 103.7 percent in 2024, a significant surge from the 43.5 percent recorded in 2023. The insurance firm’s net income also surged 417.8 percent to N23.3 billion from N4.5 billion in 2023.
While the group’s insurance revenue hit N29.4 billion, an 87.3 percent surge from N15.7 billion recorded in 2023, profit for the year stood at N22.6 billion.
Investment results improved to N23.8 billion from a loss of N115.9 million, aided by Net fair value gains on financial assets at fair value through profit and Net foreign exchange gains at the end of 2024.
NEM Insurance Plc
In 2024, NEM Insurance recorded a 56 percent RoE from 39 percent in 2023, making it the second most profitable insurer in Nigeria. The insurance firm’s net income hit N29.2 billion in FY 2024, more than double the N12.9 billion recorded in 2023.
The group’s insurance revenue also grew by 88 percent in 2024, to N98 billion, from N52.1 billion as of 2023. This growth, alongside a net investment income of N14.8 billion and after-tax profit of N29.2 billion, was instrumental in driving NEM Insurance’s impressive financials for 2024.
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AXA Mansard Plc
AXA Mansard delivered a remarkable 55 percent Return on Equity (RoE). The group recorded a net income of N26 billion for FY 2024, reflecting a 116 percent increase from the N12 billion posted in 2023.
Driven by strong growth in its core business, AXA Mansard’s insurance revenue surged to N131.7 billion, up from N82.8 billion in FY 2023. Additionally, the group’s investment returns nearly doubled, reaching N34.5 billion compared to N17.6 billion the previous year.
Cornerstone Insurance Plc
Cornerstone Insurance also appears on the list with a 52 percent Return on Equity (RoE) compared to 41.8 percent recorded in 2023. With its shareholders’ fund rising from N21.7 billion to N33.5 billion in 2024, the company recorded a rise in net income to N22.6 billion from N15.5 billion.
Although Insurance revenue rose to N11.8 billion from N8.4 billion, the insurer saw a 39.6 percent rise in insurance expenses to N10.8 billion and N2.5 billion in net expenses from reinsurance contracts held, resulting in a N1.3 billion loss in insurance service result.
Cornerstone ended the year with a loss for the year of N1.8 billion from a gain of N2.4 billion in 2023.
Coronation Insurance Plc
Coronation Insurance made a notable appearance on the list with a Return on Equity of 41.8 percent for FY 2024, more than triple the 9 percent recorded in the previous year.
The insurer recorded a net income of N7.7 billion for the year, more than double the N2.5 billion reported in 2023.
However, while revenue rose to N48.9 billion from N24.6 billion, driven by N34.2 billion insurance revenue from contracts measured under the Premium Allocation Approach (PAA) and N14.7 billion not measured under the PAA, After-tax profit was N9.9 billion.
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AIICO Insurance Plc
In FY 2024, AIICO Insurance also recorded a 25.3 percent RoE, a slight improvement from 23.3 percent in 2023. Net investment income before fair value changes rose to N41.9 billion from N26.8 billion.
While insurance revenue stood at N108.2 billion, profit for the period was N15.1 billion.
Linkage Assurance Plc
Linkage Assurance’s RoE for FY 2024 was 7.4 percent compared to 5.2 percent in the previous year. The Company achieved an investment income of N9.2 billion against an income of N8.7 billion in the prior year, buoyed by the dividend income of N2.1 billion received from Stanbic IBTC Pension Managers Limited.
Insurance revenue grew by 52 percent to N22.5 billion as of December 2024 from N14.8 billion recorded in the prior year, while After-tax profit stood at N5 billion.
