After careful analysis, we believe all sectors are viable options for investment as all segments currently operate at sub-optimal levels. Nonetheless, we highlight areas we see the most potentials for growth. The introduction of social health insurance – NHIS in Nigeria paved way for the growth of private health insurance companies, however, NHIS has since grappled with a variety of challenges which has put a strain on its ability to meet the primary objective of providing affordable healthcare for all. Despite the sub optimal performance of the NHIS, private health insurance companies have continued to thrive with most HMO’s creating niches in the corporate and business space. Notwithstanding the current number of HMO’s (60), entry opportunities into the sector exist – investment into this segment can be made through debt and equity financing for existing companies to drive expansion or new entrants into the sector.
Furthermore, the role of insurance in mortgage financing cannot be overemphasized as it protects the financier in the case of a default. Nigeria currently has a housing deficit of 17-20.0m units according to data from the Federal Mortgage bank. Mortgage financing remains the most sustainable method to solving housing deficit similar to the model deployed in developed countries. As a result, the sector possesses enormous potentials that can directly buoy mortgage insurance. Although the performance of the mortgage sector is at sub-optimal levels, value is currently being unlocked gradually; hence, insurance companies with intentions to broaden the scope of mortgage operations in order to take opportunities in that sector are viable options for investment either through debt or equity financing.