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Insurance companies in Nigeria that paid the most claims in Q1 2022



Insurance companies in Nigeria incurred a sum of N35.6 billion in net claims in the first quarter of 2022 which compares to about N13.5 billion same period in 2021.

Nairametrics compiled claims from Custodian Insurance, NEM, Coronation, Mansard Plc, AIICO, Consolidated Hallmark Insurance and Cornerstone Insurance all of which are among the 7 largest Insurance companies quoted on the Nigerian Exchange.

The companies did not explain why net claims have more than tripled in the first quarter of the year. However, the insurance companies also ended up earning a total of N56.5 billion in the first quarter of the year compared to N45.8 billion same period last year.

This means the insurance companies incurred 63% of their Net Premium as claims expenses in the first quarter of this year compared to 29.47% same period last year.

The rising claims experienced in recent times by these companies have upstaged the rate of growth in premium, a development that industry watchers said was threatening the profitability of the firms and the industry as a whole.

Various factors such as shrinking federal/state government revenues, unavoidable devaluation of the Naira and high energy costs resulting in an inflammatory landscape increased challenges being faced by insurance companies in Nigeria.

Access to forex by businesses and individuals alike became very difficult as the year progressed and the gap between the interbank and parallel market became very high compounded by the COVID-19 pandemic ravaging the world.

The effect was low-capacity utilization by industries and outright shut down of many plants with attendant layoffs impacting the ability of businesses, individuals and governments to enter into insurance contracts and pay appropriate insurance premiums. Business productivity was generally stifled.

What the operators are saying

  • The Managing Director, Tangerine General Insurance Plc, Mr Mayowa Adeduro said the rise in claims was due to a lot of #EndSARS claims that occurred in 2020 and the incidences of economic downturn made itching for claims even at a little thing.
  • “We noticed that people’s maintenance culture has gone down due to high cost of living spiked by inflation. Inflation is a factor because the imported items have gone up due to a hike in the exchange rate and this affected the maintenance culture in Nigeria.
  • “Disposable income has gone down and people are struggling to maintain what they have. For instance, if vehicles are not maintained very well and an accident occurs, the insurance firm will still pay the claims.
  • “We also see a bit of employee infidelity in the banking sector but is not a major factor. Insecurity is also low on the claims because most victims of attacks are not insured. Low maintenance culture, job infidelity, theft of goods on transit and breakdown of vehicles on the roads due to bad roads, all combined to help spike the increase in claims,” Adeduro said.
  • Mr. Pekun Talabi, Managing Director, Regent Alliance Insurance Brokers Limited reacting to the development linked the cause of increase to inflation-induced and rising insecurity in the country.
  • “The increased in claims during the quarter could be traced to rising inflation in the country, owing to this development, cost of repairs has gone up astronomically, the high level of insecurity, incidence theft has increased, the rate of employee infidelity is also on the increase,” Talabi said.

This is a list of the top seven insurance firms by claims in Nigeria based on published financial statements.

7. Coronation Insurance – N587 million

  • Coronation Insurance Plc trailed a claim payment of N587 million from N1.253 billion reported in Q1 2021. Its gross premium written stood at N4.75 billion in the first quarter of the year, a 37.28% increase over N3.46 billion reported in Q1 2021. Notably, 12.36% of its total gross premium was incurred on claims in the review quarter.
  • However, it reported a 25% growth in its profit after tax to N810 million in Q1 2022 from N648 million recorded in Q1 2021.

6. Cornerstone Insurance Plc – N865 million

  • Cornerstone Insurance incurred a total of N865 million in claims in Q1 2022, which is 27.1% lower than the N1.19 billion spent in the corresponding period of 2021. Meanwhile, gross premium written rose by 6.84% to N5.95 billion from N5.57 billion in Q1 2021.
  • It is worth noting that 14.54% of the total gross premium was incurred as claims in the period under review.
  • Cornerstone Insurance’s Profit after tax also came under pressure from growth in claims as the firm reported 88.14% drop in net earnings to N78 million from N658 million recorded in Q1 2021.

5. Consolidated Hallmark Insurance Plc – N1.12 billion

  • Consolidated Hallmark Insurance recorded net claims of N1.12 billion in Q1 2022, a 60.2% increase compared to N698 million incurred in the corresponding period of 2021. The insurance firm recorded a gross premium of N3.69 billion from N3.23 billion, accounting for a growth of 14.4%.
  • The company reported 51.89% growth in profit after tax to N442 million in Q1 2022 from N291 million declared in Q1 2021.

4. NEM Insurance Plc – N3.36 billion

  • NEM Insurance followed with a net claim payment of N3.36 billion in Q1 2022 from N2.53 billion recorded in Q1 2021. Similarly, the gross premium written for the period was N11.88 billion as against N9.36 billion in the corresponding period of 2021, a year-on-year increase of 26.91%.
  • This indicates that the company paid 28.3% of its gross premium as net claims in the first quarter of the year.
  • NEM Insurance reported a profit after tax of N1.55 billion, a 41.57% increase from N1.09 billion posted in Q1 2021.

3. AXA Mansard Plc – N7.71 billion

  • AXA Mansard paid a whopping claim of N7.7 billion during the quarter as against N5.41 billion in Q1 2021. Its gross premium written stood at N17.26 billion in the review period from N12.81 billion in the comparable period 2021, an increase of 34.69%. Notably, 44.7% of the gross premium was spent as net claims in the review period.
  • The insurance firm reported 85.33% decline in net earnings to N386 million for Q1 2022 from N2.63 billion recorded in Q1 2021.

2. Custodian and Allied Investment Plc – N10.91 billion

  • Custodian and Allied Investment Plc saw its claims rise to N10.91 billion in Q1 2022 from an inflow of N8.54 billion in the same period of 2021. Its gross premium rose by 13.79% to N17.23 billion from N15.14 billion recorded in Q1 2021. Meanwhile, 63.3% of its gross premium was used as net claims during the review period.
  • The company recorded a 64.48% increase in profit after tax to N2.19 billion in Q1 2022 as against N1.33 billion posted in Q1 2021.

1. AIICO Insurance Plc – N11.08 billion

  • AIICO Insurance incurred a net sum of N11.08 billion on claims in Q1 2022, a marginal increase compared to N10.98 billion spent in the previous year (Q1 2021). Although, the gross premium for the period grew by 16.56% to N20.22 billion in Q1 2022 from N17.35 billion in Q1 2021, indicating that 54.8% of its gross earnings was used in paying claims in the review period.
  • AIICO Insurance Plc recorded a profit after tax of N1.35 billion in Q1 2022, a decrease of 10.69% when compared to its previous net earnings of N1.51 billion recorded in Q1 2021.


 Analysing the demands of Nigerian SMEs to achieve global competitiveness 




Growing globalisation presents Small and Medium Enterprises (SMEs) across the globe with an unprecedented opportunity to extend market reach, enhance performance, and potentially upscale to larger companies. Thanks to global interconnectedness, a small family-run business in a remote part of China can manufacture shirts and export worldwide. This is the case for most Chinese SMEs. In 2020 they accounted for 68% of Chinese exports, according to estimates by the Organisation for Economic Co-operation and Development (OECD). In Nigeria, the reality is different for most small and medium-sized businesses. 

In its latest report, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) reported that only 7.7% of business enterprises surveyed exported their goods or services. Of this crop of businesses, 95.3% of exports value less than 10 million Naira ($23,300). This export data highlights the gross under-representation of Nigerian SMEs in international trade despite contributing to nearly half of the domestic GDP when combined with micro-scale businesses. 

The exclusion of Nigerian SMEs from global trade matters because the success of small and medium-scale businesses will directly translate to the enhanced global competitiveness of the Nigerian economy. China and India, both highly populated developing countries, have risen to prominence on the back of value-creation by entrepreneurs in SMEs. 

Furthermore, there is only so much value that can be created within a geographical market; however, expansion to other regions can create new demand and opportunities. Take, for instance, the $93 billion global oil palm industry where Nigeria has a market share of less than 5% despite having abundant natural and human resources to potentially produce and supply oil palm as well as derivatives. We lose out on the multi-fold values that could have been derived from processing and exporting to the vast global market if our agricultural commodities are only consumed within the country and our SMEs fail to break into the global markets. 

There is a plethora of reasons why less than a handful of SMEs in Nigeria are engaged in exports; most of the bottlenecks are behind the borders and overlap with challenges already identified by small and medium business operators. In the 2021 SMEDAN report, 92.4% of surveyed businesses believed the biggest challenge to enterprise development was the lack of finance.  

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The availability of funding is critical for the day-to-day operation of businesses as well as financing business expansion in the long term. Due to high-interest rates, high rates of informality, poor documentation culture, lack of sufficient cash flow, and weak macroeconomic conditions, many SMEs are unable to obtain loans from most financial institutions. Where obtaining a loan is possible, for example from a micro-finance bank, the volume is too little to make a meaningful impact while the volume of loans disbursed by government programs is good but could be better. As a result, 48% of SMEs depend on family and friends, while 15% rely on credit facilities, 8% on trade credit, 6% on co-operatives, and 6% on grants based on PwC MSME Survey 2020.  

Yet, engaging in exports is a capital-intensive venture because of the need to produce goods that meet international standards, as well as investments that need to be put into securing authorization (from Nigeria Export Promotion Council, Standards Organisation of Nigeria, NAFDAC, CBN, etc.) for exports and facilitating the logistics.  

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Another area in SMEs that needs intervention to improve their development, and in turn, global participation is the provision of infrastructure. Per the SMEDAN report, 20.9% consider the paucity of the quality physical infrastructure to be a critical challenge. The problem of infrastructure extends across the entire chain of value businesses rely on. Epileptic power supply means shorter production hours, high operating costs when generating sets (industrial or residential) are employed, or even high capital expenditure to procure alternative power sources. After scaling the issues of power supply, SMEs face obstacles imposed by poor transportation networks. For SMEs involved in exports, goods can be stuck for months at the port and end up in poor form by the time they arrive at their destination. 

Another area of demand for SMEs and similar businesses is vocational and entrepreneurship training. From the SMEDAN report, 20.8% of surveyed businesses rated gaps in vocational and business skills as the main constraint on enterprise development. Often overlooked, entrepreneurship and management skills are a bedrock of SMEs’ success. Programs on vocation and entrepreneurship will help business owners and operators learn essential business skills such as financial and risk management, strategy, sourcing business capital, taxation, human resource management, and so on. This training will also help businesses formalise and position themselves for better opportunities in the market.  

Other pressing demands of SMEs are the need for workspaces, consistent government policies, and access to research & development. Concerning government policies, some of the pain points of businesses are the multiplicity of taxes, demolition of properties, high fuel prices, customs duties, a ban on particular raw materials importation, and trade permits.  

The government would need to improve accessibility to capital to improve the situation for SMEs. Several state and private funding initiatives such as FGN Special Intervention Fund for MSMEs, National Enterprise Development Programme, the YouWIN Connect Nigeria program, The Youth Entrepreneurship Support (YES) Programme, Tony Elumelu Entrepreneurship Programme (TEEP), and Lagos State Entrepreneurs Trust Fund (LSETF) already exist amongst others. Improving access would involve creating more specialised funds for women entrepreneurs, and training SMEs on how to keep records and apply for existing credit and grants.  

There are no shortcuts to solving the problem of infrastructure for SMEs, but one quick win is expanding opportunities for export-oriented SMEs to participate more in Free Trade Zones (FTZs). FTZ, as defined by Mondaq, is any location where goods can be shipped, handled, manufactured, reconfigured, and re-exported without the involvement of customs agencies. These zones have a tendency to have better infrastructure and streamlined processes that allow a smoother flow of goods.  

On vocational and entrepreneurial training, a partnership by local and foreign experts in the private sector with the government in organising workshops, seminars, boot camps, and similar programs for SME owners and operators will go a long way. Through tax incentives consulting firms like the Big 4s can be encouraged to organise training for SMEs in areas like digitalisation, taxation, financial records keeping, and business strategy. This idea can be extended to the areas of research and development. Asides from private and public research institutes, academia can be a viable partner to pair SMEs with so that new products and technology can be developed. 

To conclude, it is paramount to drive home the point that SMEs hold so much potential to enhance growth and development for Nigeria, as is the case for many developing countries. The limitation faced by SMEs in global market participation is therefore an important issue for national development that must be addressed by all stakeholders.  

About the author:

 Connect with Nnamdi Okoh on Instagram @nnamdiokoh, Twitter @Lord_nnamz and LinkedIn @Nnamdi Okoh. Learn more about Terminal Africa’s service offerings at

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Lagos seals 42 health facilities across the state




The Lagos State Government, through the Health Facilities Monitoring and Accreditation Agency (HEFAMAA) has sealed a total of 42 health facilities out of about 1040 visited between January and September 2022. 

This was made known by the executive secretary of HEFAMAA, Dr. Abiola Idowu, in Ikeja while reviewing the activities of the agency in the nine-month period. 

Sealed for non-compliance with regulatory standards: Idowu said the facilities were sealed for non-compliance with regulatory standards, adding that other infractions committed include non-registration of facilities and lack of qualified medical personnel, as well as the illegal training of auxiliary nurses.  

She disclosed that in the same period, 170 facilities across the state were inspected for registration, while about 157 closure notices were issued. 

Idowu explained that the key areas monitoring officers focus on during monitoring and inspection exercises of health facilities are: the qualification of personnel, operation processes of the facility, the environment, and the standard of equipment. 

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On HEFAMAA’s monitoring activities, the executive secretary explained that the aim of the franchise is to improve the effectiveness of the monitoring exercise so that all the health facilities in the state can be monitored at least twice a year as the law stipulates. 

  • She said, “The Agency is empowered by the Health Sector Reform (HSR) Law 2006 to franchise some of its activities. Section 49 (5) of the law granted the agency the power to select franchise companies to monitor and ensure compliance with the law by health facilities in the state.’’ 

Get acquainted with the law: Dr. Idowu, therefore, advised owners and operators of health facilities to get acquainted with the law and carry out their operations in accordance with it to safeguard the health of the people. 

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She also emphasized the commitment of the state government to sustain the fight against quackery and unprofessional conduct in the system, as well as urged intending operators to ensure proper registration with the agency through its website, before commencing operations. 

Going further, she added that existing registered operators should ensure prompt renewal of their certificates to avoid being sanctioned. 


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Nigeria produces 13% of global tantalum output – EITI




The Extractive Industries Transparency Initiative (EITI) said Nigeria produces 13% of the global production of tantalum. 

EITI disclosed this in its 2022 Mission Critical Report which was released on Wednesday, November 2.   

Tantalum is a highly resistant mineral used in manufacturing electronics, especially mobile phones, laptops, and super alloys. 

According to EITI, the mineral will potentially be used in electric vehicle (EV) batteries, depending on the technology development and deployment of alternative zero-cobalt batteries.    

In 2021, China recorded imports of tantalum from Nigeria, the Democratic Republic of Congo (DRC), Ethiopia, Madagascar, Mozambique, and Sierra Leone.   

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Nigeria lacks mining data: The report showed that aside from the recorded tantalum production rate, Nigeria rarely had any definite data for 14 of the minerals highlighted in the report. That’s because the country’s solid mineral sector is characterised by artisanal mining and small-scale mining of manganese and tantalum. 

Lack of data discourages investors: The report showed that exploration and mapping of mineral deposits are limited in many EITI-implementing countries, especially African countries like Nigeria. The availability of comprehensive and public geological data determines the ability of resource-rich countries to attract responsible investors and negotiate favourable terms for the country and its people.  

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The importance of open geological data: EITI said access to open geological data is important to support a transition mineral development strategy and to level the playing field in negotiations between governments, companies, and communities. Transparent information can improve the terms of contracts, facilitate mine planning, and ensure that all stakeholders are well informed.  

Profit shifting in Nigerian mining market: In October 2021, the International Monetary Fund (IMF) said countries like Nigeria lose $600 million in revenue due to tax rate differences between African countries and offshore affiliates in the same multi-national enterprises’ group.   

The EITI report corroborates what the IMF said. The report said: 

  • “Research on profit shifting in mining across Sub-Saharan Africa indicates that African countries are losing, on average, between $470 million and $730 million per year in corporate income tax from MNE tax avoidance. The baseline estimate – which also includes Sub-Saharan African economies with small mining sectors – suggests a revenue loss of about $600 million, based on tax rate differentials between African countries and offshore affiliates in the same MNE group.”   

What you should know: Tax base erosion and profit shifting (BEPS) is a serious governance challenge for countries pursuing resource revenues from the taxation of multinational enterprises (MNEs).  

  • BEPS occurs when companies shift reporting of profits generated in higher tax jurisdictions to other parts of their business in lower tax or no-tax jurisdictions.  
  • This challenge could become more pronounced in the transition minerals sector given the integrated business structures of many of the MNEs involved in mining, processing, refining, marketing, and trading in transition minerals across multiple jurisdictions.  
  • There are also increasingly powerful global partnerships controlling transition mineral value chains, for example, through the consolidation of mine-to-car business deals by upstream and downstream MNEs.    

Nigeria must take action: Nigeria and other sub-Saharan African countries need to take intentional steps to maximize their mineral resources, especially in the era of the global energy transition.  

  • During the October 2022 Reuters Impact Climate Conference in London, the president of the Africa Finance Corporation (AFC), Samaila Zubairu said it was time for Africa to rethink the approach to its mining value chain.  
  • According to him, mining is carried out in Africa, and the minerals are exported to Asia where they are processed and exported to other parts of the world. He said that this cannot continue and Africa needs to also process mineral resources so, there is value capture here before exports take place, and Africa can expand its mining capacity.   
  • Zubairu said; “Africa needs to expand its mining capacity, more minerals should be sourced, mined, and processed here on the continent. More investments in adaptation will increase infrastructural capacity.” 


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