Q3: Insurance Sector Records N729.1bn Premium as Assets Soars to N2.8tn

Ebere Nwoji

The insurance sector in Q3 2023 grew its gross premium written for non-life and life businesses to N729.1 billion.

When compared with overall performance of the industry in 2022, it showed that the industry had at third quarter 2023 overshoot its overall performance in 2022, which was N726 billion. 

Following the third quarter performance, the National Insurance Commission (NAICOM) was optimistic that by the end of 2023, the industry’s total premium would hit the much-projected N1 trillion mark, a target it set for itself some years back.

Theses were contained in the third quarter 2023 financial results released by NAICOM recently.

According to NAICOM, “In 2021 we had gross premium income of N621billion and by 2022 we had N726 billion and by half year of 2023 we had N551 billion. in third quarter 2023 we had N729.1 billion.”

The industry’s total assets within the same period also rose to N2.8 trillion from the N2.5 trillion figure of 2022.

Similarly, gross claims and net claims paid by the industry within the same period stood at N365.5 billion and N259.0 billion respectively.

NAICOM, in an abridged version of the report titled, “Nigeria Insurance Market At A Glance – Q3, 2023,” made available to the media, said the  major drivers of the growth during the period under review, for non-life segment were  oil & gas, fire and motor insurance.

According to the commission, Oil & gas contributed 28.9 per cent while fire and motor insurance contributed 23.6 per cent and 18.1 per cent respectively.

According to the commission, for life segment, individual life contributed 36.4 per cent while group life contributed 34.5 per cent.

The industry’s claims ratios during the period under review showed that total claims to total premium was 59.1 per cent ratio of claims paid to industry was 70.9 per cent ratio of claims paid to non-life was 55.0 per cent and ratio of claims paid to life was 94.9 per cent.

NAICOM stated that the change in market capitalisation was 1.5 per cent quarter on quarter and 19.9 percent year on year translating to total paid up capital of N422.3 billion, total industry capital N848.9 billion and total statutory deposit N26.7 billion.

The changes in market size, according to NAICOM report, were 4.1 per cent quarter on quarter and 23.5 per cent year on year broken down thus – industry total size N2.81 trillion total assets – non-life N1.8 trillion billion and total assets – life N1.1 trillion