Chart of the day: Leading insurance companies by net-worth (N’billion)

The net worth of insurance companies is determined by finding the Policyholder surplus.

Policyholder surplus is the difference between an insurance company’s assets and its liabilities. It is a measure of an insurance company’s financial strength and a source of funding. A weakened surplus might result in rating downgrades and, in the worst-case scenario, insolvency.

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In 2021, the top 10 insurance companies had an average of N25 billion, only the top three insurance companies ranked above average.

Consumers can depend on these ratings for help in choosing an insurance company because they indicate the strength of an insurer financially.