Nigeria’s Insurance Industry Assets Rise 5% to N3.9trn in Q3
Nigeria’s insurance industry assets rose by more than 5% in the third quarter, according to data from the National Insurance Commission, NAICOM. The industry recorded a N3, 877.1 billion in total assets, representing an expansion of 5.1% compared to the corresponding period when it reported N2, 809.3 billion as the industry size.
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 businesses, while life businesses accounted for N1,539.2 billion as total assets at the close of the quarter.
NAICOM said that the industry showed resilience amid macroeconomic challenges, sustaining its growth trajectory at 60.9 per cent year-on-year. It said that the industry also sustained 44.3 per cent on a quarter-on-quarter basis, to close at about N1,173 billion in gross premium written.
On settlement of claims, NAICOM said that the improvements in claims management of the industry had served as a driver for expansion in gross claims reported in Q3. The commission said that the claims reached N564 billion, representing about 48.1 percent of the total premiums generated during the period.
NAICOM said that the development had underscored the need for accelerated premium growth and appropriate rate setting. It said that the life insurance segment recorded a claims settlement ratio of 81.6 percent, while the non-life segment achieved 73.6 percent.
According to NAICOM, the gross premium written in the third quarter of 2024 stood at N1,173 billion, attributable to the consistent deepening policy of the commission and market resilience.
NAICOM said that the non-life segment maintained its dominance, accounting for 68.9 percent of the total quarter. The commission said that oil and gas portfolio led with a 35.2% contribution, and fire insurance contributed 21.3 percent.
It said that motor insurance accounted for 14.4 percent, while marine and aviation, general accidents, and miscellaneous contributed 12.4 percent, 9.0 percent, and 7.5 percent, respectively. ”The performance was primarily led by the non-life sector, recording a market share of 68.9 per cent for a total volume of N808.4 billion.
“The life segment accounted for 31.1 percent of the market premium aggregate.
”The industry statistics reveal that the market has achieved a substantially higher rate of growth compared to the national output (GDP), which grew at 3.5 percent during the period under review.
“This signifies its impressive performance and potential propensity,” NAICOM said. It said that the industry had demonstrated a significant level of robustness, profitability, and substantial market expansion, and a competitive operating environment. #Nigeria’s Insurance Industry Assets Rise 5% to N3.9trn in Q3 Naira Plunges as Banks Resume FX Sales to Customers
