Nigeria’s insurance market valued at N2.3trn in Q3, 2022 – NAICOM

BY FESTUS OKOROMADU, ABUJA

The total assets of the Nigeria insurance industry at the end of the third quarter of 2022 rose to N2.3 trillion, according to a report released by the National Insurance Commission.

The figure represented a 9 percent increase year on year when compared with the figure in third quarter of 2021.

Industry balance sheet showed that assets of Life business stood at about N1.2trillion while those of Non-Life business was about N1.1 trillion.

According to the sector quarterly bulletin published by National Insurance Commission, the industry generated about N532.7 billion in gross premium income during the period translating to 15 percent growth rate Year on Year.

Comparing the performance to the country’s growth in real Gross Domestic Product of 2.3 percent during the same period, NAICOM described the 15 percent growth rate as an impressive performance.

Breakdown of subsector contribution to gross premium income indicates that the Non-Life segment sustained its market dominance at 58.4 percent of the total premium generated.

The Oil & Gas segment emerged the lead driver at 30.8 percent with Fire Insurance following at 21.3 percent .

Motor Insurance stood at 14.6 percent while Marine & Aviation, General Accident and Miscellaneous reported a share of 11.8 percent, 11.2 percent and 10.3 percent respectively.

The share of Annuity in the Life Insurance business lagged at (25.5%) while Individual Life accounted for 41.2 percent of the gross premium generated during the period.

NAICOM disclosed that gross claims reported by market during the period stood at N242.6 billion.

However, the ratio of total claims to gross premium stood at about 46 percent in Q3 2022.

The net claims paid on the other hand stood at about N207.2 billion, signifying 85.4 percent of all gross claims reported during the period.