Nigeria’s insurance industry records N1.17tn premium, N564.1bn claims in Q3, 2024- NAICOM
National Insurance Commission
Nike Popoola
At the end of the third quarter of 2024, Nigeria’s insurance industry showed resilience amid macroeconomic challenges, sustaining the industry growth trajectory at 60.9 per cent, year on year, and 44.3 per cent on a quarter-on-quarter basis, to close at about N1.173tn in gross premium written.
This was stated in the National Insurance Commission (NAICOM)’s third quarter bulletin of the insurance market performance obtained by Dailyeconomy on Sunday. The analytical report of the insurance industry statistics in the bulletin is a description of the market performance during the period of third quarter, 2024.
The improvements in claims management of the industry also 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.
The industry recorded N3.877tn in total assets representing an expansion of 5.1% compared to the corresponding period when it reported N2,809.3billion as the industry size.
Further details of the bulletin states that, “The gross premium written in the third quarter of 2024 stood at N1,173.1billion, a remarkable occasion attributable to the consistent deepening policy of the Commission and market resilience.
“The performance was majorly led by the non-life sector, recording 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.”
According to the industry statistics, the market 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% share in the previous quarter.
Within this segment, the Oil & Gas portfolio led with a 35.2% contribution, followed by
Fire Insurance at 21.3%. Motor Insurance also accounted for 14.4%, while Marine & Aviation, General Accident, and Miscellaneous contributed 12.4%, 9.0%, and 7.5%, respectively.
The Life business on the other hand contributed 31.1% 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% of the total gross premium, while Individual Life business led with about 41.8% contribution of all the life insurance premiums during the quarter.
The statistics of the financial position of the market also recorded a total of N2,337.9 billion in Assets as attributable to Non-Life business while the Life business accounted for N1,539.2billion as total Assets at the close of the quarter.
