Fourteen insurance companies on the Nigerian Exchange Limited saw their gross written premium rise to N120 billion in the first quarter of this year.
Their combined gross written premium increased by 27.92 percent from N93.81 billion in the same period of 2022.
According to the data compiled by BusinessDay from their unaudited financial statements, their combined profit before tax during the first quarter was N12.04 billion, a 10.5 percent increase from 10.9 billion in Q1 2022.
The National Insurance Commission (NAICOM), on December 22, 2022, increased the premium rate for motor insurance in Nigeria.
In the new directive, private vehicles that were paying N5,000 premium for N1 million Third Party Property Damage limit now pay N15,000 premium for N3 million; owner good vehicles now pay N20,00 premium for N5 million, and staff buses now pay N20,000 premium for N3 million.
AIICO Insurance recorded N31.74 billion in gross written premium in the first quarter of 2023, up from N24.66 billion in 2022.
AXA Mansard’s gross written premium rose to N19.43 billion from N17.26 billion, while NEM Insurance posted N19.92 billion, up from N12.71 billion.
Other companies that also recorded large gross written premium during the period include Sovereign Trust Insurance, N9.12 billion; Cornerstone, N8.04 billion; Lasaco Assurance, N6.52 billion; Linkage Assurance, N5.5 billion; Prestige Assurance, N4.83 billion, and Consolidated Hallmark Insurance, N4.86 billion.
Others are SUNU Assurance, N3.36 billion; Veritas Kapital, N2.08 billion; African Alliance Insurance, N2.55 billion; Regency Alliance, N1.93 billion; and Guinea Insurance, N800 million.
Sunday Thomas, commissioner for insurance, said despite operational challenges posed in domestic and global economies, the industry continued to post inspiring numbers in business retention, reflective of the market resilience and increasing capacity.
NAICOM revealed that the industry recorded a remarkable gross premium of N726.2 billion at the end of fourth quarter of 2022, representing a growth of 36.3 percent quarter-on-quarter and 17.8 percent year-on-year.
“This is a remarkable situation compared to the real growth (3.5 percent) of Gross Domestic Product over the same period and is attributable to consistent regulatory measures being carried out by the commission,” the commission said.
In terms of market size, total assets of the industry stood at N2.328 trillion in the fourth quarter, sustaining a positive growth that signifies expansion at the rate of 2.4 percent quarter-on-quarter and at 4.4 per cent year-on-year.
In terms of claims, the industry saw N318.2 billion reported claims, representing a 31.2 percent quarter-on-quarter growth, while N244.3 billion was actually paid out to customers, and NAICOM has attributed this to possible attainment because of growing awareness and market expansion as well as consumer’s confidence.
In terms of business class, non-life business compared to prior periods continued its dominance, contributing 57.4 percent relative to the share of the life business 42.6 percent.
NAICOM said: “In-depth analysis of the non-life segment of the market shows oil and gas business sustained its market share dominance at 30.25 percent, increasing by 2.4 percent compared to the previous quarter, while fire insurance came a distant second, contributing 22.2 percent, and maintaining the same pattern of contribution to the gross premium pool of the market.
Read also: AXA Mansard Insurance records 13% revenue growth in Q1
“Motor insurance contributed 14.9 percent; marine and aviation, 12.2 percent, general accident, 11.1 percent and miscellaneous, 9.5 percent followed in that order.
“On the other hand, individual life portfolio at 38.6 percent even as its relative contribution fell by about 2.6 percent compared drove life business to third quarter 41.6 percent. In a contrasting path to the previous quarter, group life followed by 34.5 percent per cent while annuity business contributed gross premium income of 26.9 percent during the period.”
It said the average retention ratio stood at 71.3 percent, although slightly a point lower than in the previous quarter and four points lower in comparison to the same period year on year.
The commission noted that the life business retained 93.3 percent from its prior position of 93.8 percent in quarter three.
“In the non-life segment, which also took a similar pattern, motor insurance continued its lead as the highest retaining portfolio with a retention ratio of 93.5 percent, also a point higher than its standing in the prior quarter, the data shows,” it said.
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