In Nigeria’s complex and often unpredictable economic environment, the insurance industry has long struggled with sluggish penetration, low consumer trust, and regulatory pressures. Yet, Coronation Insurance Plc has emerged as a case study in resilience and transformation. At its 67th Annual General Meeting (AGM) held recently in Ikoyi, Lagos, the company unveiled what can only be described as a historic year: revenue doubled to ₦49.4 billion, representing 101 percent year-on-year growth.
This milestone does not exist in isolation—it reflects broader shifts in Nigeria’s financial services ecosystem and the strategic recalibration of an insurance giant positioning itself for relevance in the future of risk management.
The Numbers Behind the Story
The headline figures are striking. Group Profit Before Tax surged 527 percent, from ₦2.2 billion in 2023 to ₦13.8 billion in 2024, the company’s strongest profit growth in over a decade. Insurance revenue doubled to ₦49.4 billion, while the Insurance Service Result skyrocketed by 6,202 percent, closing the year at ₦5.5 billion.
To put this in perspective, according to the National Insurance Commission (NAICOM), Nigeria’s entire insurance industry generated Gross Written Premium (GWP) of about ₦950 billion in 2023. Coronation Insurance’s ₦49.4 billion therefore represents roughly 5.2 percent of national industry revenue—a significant share for a single group in an industry populated by more than 50 licensed operators.
Equally important, Coronation Insurance’s total assets grew from ₦48 billion to ₦76.8 billion, while Shareholders’ Funds rose to ₦39.8 billion, cementing its financial capacity to underwrite larger risks. In an era when multinational corporates and large-scale infrastructure projects require robust underwriting partners, this balance sheet strength positions Coronation as a go-to insurer.
Resilience in a Volatile Economy
Chairman of the Board, Mutiu Sunmonu, described 2024 as a year of “profound resilience and bold transformation.” This phrase is not mere rhetoric—it captures the paradox of growth amid turbulence.
Nigeria’s macroeconomic environment in 2024 was defined by inflation averaging 27 percent, persistent naira depreciation against the US dollar, and evolving regulatory frameworks under NAICOM’s risk-based capital supervision model. These headwinds typically squeeze insurance operators, many of whom struggle to align premium growth with the rising cost of claims.
Yet, Coronation’s outperformance suggests that with the right mix of governance, digitalisation, and partnerships, insurers can defy industry gravity. By prioritising operational efficiency and disciplined underwriting, the company not only weathered the storm but thrived in it.
The Bancassurance Catalyst
One of the most decisive levers of Coronation’s growth story in 2024 was its bancassurance partnership with Access Bank. This relationship yielded ₦13.6 billion in GWP, a 68 percent increase from 2023. Of this, Coronation’s share stood at ₦11.2 billion, accounting for 31 percent of its total premium base.
This is a remarkable feat considering bancassurance penetration in Nigeria remains nascent compared to markets such as South Africa, Kenya, or even Ghana. The model leverages banks’ extensive distribution networks to sell insurance products, bridging the awareness and accessibility gap that has long hindered Nigeria’s insurance penetration rate, which still hovers at less than 1 percent of GDP, far below the African average of 2.78 percent.
By effectively tapping into Access Bank’s millions of retail and corporate customers, Coronation has demonstrated the scalability of bancassurance as a growth engine. It also raises critical questions for the rest of the industry: will bancassurance become the single most transformative distribution channel in Nigeria’s insurance future?
Digitalisation and Operational Efficiency
Managing Director of Coronation Insurance Plc, Olamide Olajolo, emphasised that the company’s trajectory is anchored on digitalisation, capacity enhancement, and strategic partnerships.
The insurance industry has historically been plagued by manual processes, cumbersome claims management, and poor customer experience. Coronation’s pivot to digital platforms has not only streamlined operations but also improved customer confidence—a critical intangible asset in an industry where trust deficits are notoriously high.
By 2024, Coronation had deployed digital platforms for claims processing, retail distribution, and customer engagement. This was coupled with the use of data-led underwriting models, ensuring that risks are priced accurately while enhancing profitability.
Evidence of efficiency gains can be found in profitability metrics. The standalone entity’s profit before tax surged 854 percent, from ₦650 million to ₦6.2 billion, driven partly by other operating income rising from ₦923 million to ₦3.8 billion. These gains highlight that digitalisation and disciplined investment strategies are not just buzzwords—they translate into real, measurable bottom-line growth.
Governance and Compliance
Another cornerstone of Coronation’s success lies in corporate governance. The company appointed seasoned professionals to its Board, including Victor Etuokwu as a Non-Executive Director, reinforcing governance oversight and strategic depth.
Moreover, Coronation has maintained full compliance with IFRS 17 standards, the global accounting benchmark for insurance contracts. IFRS 17, which became effective in 2023, requires greater transparency in revenue recognition and risk assessment, posing challenges for many insurers globally. Coronation’s ability to meet these standards is both a sign of institutional maturity and a confidence booster for investors and regulators.
Implications for Nigeria’s Insurance Industry
Coronation Insurance’s performance offers several lessons for the Nigerian insurance industry:
Scale is Possible: Doubling revenue in one year proves that aggressive growth is not only possible but replicable if operators embrace innovative distribution, technology, and partnerships.
Trust and Transparency Matter: Compliance with IFRS 17 and governance reforms build confidence among investors, shareholders, and customers. For an industry still fighting a reputation for delayed claims settlement, transparency is an asset.
Partnerships are the Future: Bancassurance is no longer optional—it is central to bridging the penetration gap. As financial inclusion deepens, insurers that fail to align with banks risk being sidelined.
Digitalisation is Non-Negotiable: The future of insurance will be built on platforms that integrate with customer lifestyles, from mobile apps to instant claims portals. Coronation’s emphasis on digital ecosystems positions it ahead of the curve.
The Road Ahead
Looking forward, Coronation Insurance has set its sights on deepening insurance penetration. Its strategy revolves around:
Expanding its retail agency network: Nigeria’s insurance gap is most pronounced at the grassroots. By empowering agents with digital tools, Coronation can democratise access.
Data-driven underwriting: Leveraging analytics to refine risk profiling and product design.
Targeted customer engagement: Building trust and loyalty through personalised products, faster claims, and transparency.
Yet, challenges remain. Insurance awareness is still low, disposable income is under strain, and competition is intensifying as new players and InsurTechs enter the market. Coronation will need to guard against complacency, even in the wake of record success.
A Broader Reflection
Coronation Insurance’s 2024 performance is more than a corporate success story—it is an inflection point for Nigeria’s insurance industry. It demonstrates that with strategic clarity, disciplined execution, and bold partnerships, insurers can defy historical constraints.
It also raises the stakes for the rest of the industry. Will others rise to the challenge, embrace digitalisation, and explore bancassurance with the same intensity? Or will they risk being left behind in an increasingly consolidated market where scale, trust, and efficiency determine survival?
As Sunmonu aptly noted, “These numbers are not only a testament to our strategic clarity and operational strength but also a strong validation of our investment in platforms, governance, and people.”
For stakeholders, from regulators to consumers, Coronation’s story offers both inspiration and pressure: inspiration that Nigerian insurers can achieve world-class results, and pressure to ensure the broader industry evolves fast enough to keep pace with changing realities.
