Insurance industry grows income to N1.003trn on back of enhance performance by oil, gas portfolio

The Nigerian insurance industry continues to make appreciable progress with the industry’s Gross Premium Written cascading to N1.003 trillion for the fourth quarter of 2023. The industry’s regulatory authority; the National Insurance Commission (NAICOM) who released the figures indicated that the performance recorded  in 2023 driven was mostly by Oil & Gas and Fire Insurances, contributing 27.3 per cent and 24.1 per cent respectively.

The industry sustained positive performance at the close of Q4, 2023 recording a milestone growth in Gross Premium Written (GPW) of N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022 stood at N1.003 trillion, National Insurance Commission (NAICOM) has said.

In its fourth quarter Insurance Industry’s Market Performance by the Statistics Department of the Directorate of Research, Statistics and Publications, the figure represents about 27 per cent growth compared to N790 billion recorded in 2022.

NAICOM said the figure indicates 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 asset of N2.67 trillion and capitalisation of N851 billion in 2023.

According to NAICOM, the net claims posted by the industry is N669.4 billion, as the non-life segment contributed N329 billion, while the Life segment recorded N340.4 billion.

The commission said that non-Life business accounted for 61.3 per cent of all premiums written during the year worth N615.1 billion, while the Life segment contributed 38.7 per cent, valued at N388.1 billion.

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

NAICOM revealed that the major growth drivers in the non-life segment of the market were Oil and Gas and Fire Insurances, contributing N167.8 billion, representing 27.3 per cent and N148 billion, which indicated 24.1 per cent of the total premium respectively.