According to the Central Bank of Nigeria(CBN)’s 2015 Quarterly Statistical Bulletin, a number of insurance companies and other financial institutions are indebted to commercial banks to the tune of N790billion as at September 2015.
Fixed Assets outlay of the insurance sector stood at N187.0bn, representing increases of N9.9bn or 5.6 percent and N16.4bn or 9.6 percent above the levels reported in the preceding quarter and the corresponding period of 2014, respectively.
Insurance companies’ total assets and liabilities increased by 3.2 percent to N817.6bn in the third quarter of 2015, representing increases of N25.1bn or 3.2 percent and N126.8bn or 18.4 percent above the levels reported in the preceding quarter and the corresponding period of 2014.
The indebtedness of insurance companies, capital market operators and other financial organisations to banks in the country was N763, 392.26 in December 2014 and rose to N849, 595.55 in August 2015 before it went down to N790, 241.68 as at September 2015.
The expansion in fixed assets was largely accounted for by the increases of N8.2bn or 7.5 percent and N2.3bn or 3.7 percent in real estate and equipment, respectively. The rise was however due to the decrease of N0.7bn or 51.8 percent in others.
The total current liabilities of the insurance business stood at N65.3bn, showing a decrease of N0.9bn or 1.4 percent below the level reported in the preceding quarter but, increased by N24.1bn or 58.6 percent above the level reported in the corresponding period of 2014.