Nigerian Insurance industry's Q4 2023 premium hits ₦1.003 trillion

News Agency Of Nigeria

March 26, 2024 12:33 PM

NAICOM said that the figure indicated a progressive trend of positive market performance at the close of the 2023 fourth quarter.

Nigerian Insurance industry's Q4 2023 premium hits ₦1.003 trillion

The Gross Premium written by the Nigerian Insurance industry for the fourth quarter of 2023 stood at ₦1.003 trillion.

This represents about 27% growth compared to ₦790 billion recorded in 2022. This is disclosed in the fourth quarter Insurance Industry’s Market Performance by the Statistics Department of the Directorate of Research, Statistics and Publications of the National Insurance Commission (NAICOM) on Tuesday in Lagos.

NAICOM said that the figure indicated a progressive trend of positive market performance at the close of the 2023 fourth quarter. The commission stated that the insurance market recorded a total assets of ₦2.67 trillion and capitalisation of ₦851 billion in 2023.

According to NAICOM, the net claims posted by the industry is ₦669.4 billion, as the non-life segment contributed ₦329 billion, while the Life segment recorded ₦340.4 billion. The commission said that non-life business accounted for 61.3% of all premiums written during the year worth ₦615.1 billion, while the Life segment contributed 38.7%, valued at ₦388.1 billion.

The regulator noted that the market also recorded a retention of about 87.7% for the Life business and about 54% for Non-Life, while the aggregate market average retention stood at 66.7% in the period under review.

NAICOM revealed that the major growth drivers in the non-life segment of the market as Oil and Gas and Fire Insurance, contributing ₦167.8 billion, representing 27.3% and ₦148 billion, which indicated 24.1% of the total premium respectively.

Meanwhile, the industry posted Gross claims of ₦536.5 billion at the close of the fourth quarter, of 2023, indicating a total Non-Life business of ₦312.3 billion and Life business of ₦224.2 billion.

The market average stood at about 71.4% of the gross claims, while the net claims stood at ₦382.9 billion. NAICOM noted that 95 per cent of net claims were attributed to Life business, reflecting ongoing regulatory measures on claims settlement.

It further said that the “no-premium, no-cover” policy contributed to a decline in outstanding premiums, which accounted for 1.6% of all premiums generated during the period.

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