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Nigerian Insurance Sector Records N1.17trn Gross Premium, Assets Soar to N3.388trn

The insurance sector  in the third quarter 2024, posted Gross Premium written of N1.173 trillion against N1.003 trillion gross premium it posted in 2023. Similarly the sector grew its assets to N3.388 trillion against N2.7 trillion assets growth in 2023.

With these achievements, the sector successfully sustained its growth trajectory at 60.9 per cent year-on-year and 44.3 per cent on a quarter-on-quarter basis.

This is contained in the latest publication of the National Insurance Commission(NAICOM) on the industry’s performance tagged, “Bulletin of the Insurance Market Performance Q3 2024.”

NAICOM in the publication said the insurance sector showed resilience amid macro-economic challenges. The commission said the N1.173.1billion gross written premium was a remarkable occasion attributable to the consistent deepening policy of the commission and market resilience.

According to the commission, the performance was majorly led by the non-life sector, which recorded a market share of 68.9 per cent for a total volume of N808.4billion while the life segment accounted for 31.1 per cent of the market premium aggregate.

The industry statistics reveals that the market has achieved a substantial higher rate of growth compared to the national output (GDP) which grew at 3.5 per cent during the period under review, signifying its impressive performance and potential propensity.

The Non-Life segment maintained its dominance, accounting for 68.9 per cent of the total premium generated during the period, closely aligning with its 69.1 percent share in the previous quarter.

Within this segment, the report said the Oil & Gas portfolio led with a 35.2 per cent contribution, followed by Fire Insurance at 21.3 per cent, Motor Insurance also accounted for 14.4 per cent while Marine & Aviation, General Accident, and Miscellaneous contributed 12.4 percent, 9.0 per cent and 7.5 per cent respectively.

According to the report, the life business on the other hand contributed 31.1 per cent of the total premium, gradually increasing its proportional share of the industry’s gross premium.

“Analysis of the Life Insurance segment also shows that, Annuity business accounted for 31.8 percent of the total gross premium, while Individual Life business led with about 41.8 percent contribution of all the life insurance premiums during the quarter,” the report said.

The report said notwithstanding the experiments within the financial services sector, underwriters exhibited undoubted certainty and confidence, as reflected in the robust retention levels across the market.

On claims payment, the report maintained that the improvements in claims management of the industry has served as driver for expansion in gross claims reported in Q3 2024, reaching N564.1 billion which is representative of about 48.1 per cent of the total premiums generated during the period.