The nation’s insurance industry in the second quarter of 2022 recorded a gross premium income of N369.2 billion, indicating a 20.1 per cent growth rate compared to the same period in 2021.
This is also an impressive 65.0 per cent quarter on quarter, as continued steady growth from the first quarter of the year correlates with the current performance of the period under review.
The National Insurance Commission (NAICOM) gave the revelation in its bulletin of the insurance market performance for the second quarter 2022.
According to the Commission, statistics of the insurance market performance for the period revealed some quality improvements in the market indicators including growth, claims settlement and profitability.
“It is obvious that, the market could be adjudged as sound and stable whilst, the stance of the market deepening remains optimistic, NAICOM said.
In terms of market size, the sector recorded an increased rate of growth of about 11.9 percent quarter on quarter with a total asset of about N2.3 trillion.
The industry’s financial position revealed a total of N1.2 trillion in assets of non-life business, while the life business contributed N1.1trillion.
Further breakdown of the statistics reveals that, out of the total gross premium income, non-life segment maintained its primacy at 59.3 percent.
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Insights in the segment show Oil & Gas was the leading driver at 32.5 percent with a distant second at 20.7 percent for Fire.
Motor Insurance stood third at 14.8 percent while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 12.3 percent, 10.9 percent and 8.9 percent respectively.
Life business on the other hand recorded 40.6 percent of the insurance market production as its share contribution, gradually closes up.
The share of annuity in the life insurance business stood at about 24.7 percent while individual life held a major driver position at 41.8 percent of the premium generated during the period.
In terms of claims, the industry recorded 0.2 percent growth in gross claims during the quarter under review, compared to the corresponding period of 2021.
The industry statistics for gross claims in quarter two of 2022 stood at N174.8 billion, representing 47.3 percent per cent of all premiums generated during the period.
This occasion reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the Commission, NAICOM said.
The net claims paid on the other hand stood at about N148.2billion, signifying an 84.8 percent of all gross claims reported during the period.
The life insurance business recorded a near perfect point of about 88.90 percent claims settlement, as against the reported claims while non-life segment stood at about 76.8 percent.
The data further revealed that the insurance market indeed remained profitable during the period, recording an overall industry average of 56.9 percent, maintaining a relative position of 57.7 percent recorded in the corresponding period of preceding year.
The non-life segment loss ratio stood at 43.6 percent while the life business stood at 68.8 percent, depicting a less profitable scenario comparatively over the same period.
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