Insurance Companies That Underperformed, H1 2022

A couple of insurance companies out of the 18 listed insurance on the Nigerian Stock Exchange have failed to perform as expected between the first six months of the year 2022.

A total sum of N35.6 billion in net claims was incurred by insurance companies, in the first quarter of 2022 which compares to about N13.5 billion same period in 2021.

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Insurance Companies That Underperformed, H1 2022

Cornerstone and Linkage Assurance saw their investment grow by 56.52% and 1.96% respectively, as its share appreciated to N0.72kobo from N0.46kobo while their market valuation went up to N13.07 billion at the end of June, against the N8.35 billion the firm was valued at the beginning of January.

Linkage Assurance, experienced a minimal growth rate from N0.51kobo to N0.52kobo and a market cap of N7.27 billion, surpassing the year’s open of N7.13 billion. Below is a list of insurance companies that experienced significant loss in the first six months of the year.

Regency Alliance Insurance led the worst performers table for the half year report of 2022, with a loss of -44.8% of their investment in the company after massive sell off among investors rocked the firm.

The company’s share value dropped to as low as N0.27kobo, after the massive sell off, even though it sold for N0.49kobo at the start of the first quarter in 2022. This caused a loss of N1.46 billion in market value, which dwindled to N1.80 billion, from N3.26 billion.

Presitge Assurance comes next on the table with a -27.4% within the period of six months.  Prestige Assurance share fell from N0.51kobo to N0.37kobo, wiping off N1.85 billion from shareholders investment, as the Market capitalisation fell to N4.90 billion from N6.75 billion in H1.

Wapic’s Coronation Insurance, experienced a -26.7% loss in its share value, as demand for the equity falls, amid investors dumping their shares. Coronation Insurance shares which sold N0.56kobo in January traded for as low as N0.41kobo in June, leading to a dropping N9.83 billion from N13.43 billion with which it started trading in January, 2022

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Insurance Companies That Underperformed, H1 2022

Mutual Benefit Assurance, dropped to N0.25kobo, from N0.33kobo, causing -24.2% devaluation of the shares in the market. Mutual Benefit Assurance, investors lost N1.60 billion, reducing the value of the firm, which was N6.62 billion at the start of January to N5.01 billion last month.

Investors in Sunu Assurance were not spared of the bearish sentiment that held the insurance sector hostage in H1 2022, with investors in the company losing -22.2% of their investment in the insurer.

The company had started 2022 with a stock worth N0.45kobo per share, but after six months of trading, it experienced a downward trajectory that saw the share sell at N0.35kobo at the end of second quarter this year.

Analysis shows that the -22.2% decline in the share price between January to June represents a loss of N581.08 million, after the market capitalisation of Sunu depreciated from N2.61 billion to N2.03 billion.


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