The insurance industry life annuity fund portfolio now stands at N322,918,475,660.72 as at the end of Q2, 2019. This represents a growth of17.46 percent from N274,918,556,624.90 as at end of Q4, 2018. Within the same period under focus, the cumulative total RLA payouts stands at N122,094,395,111.31 as at end of Q2, 2019, according to the National Insurance Commission (NAICOM).
The RLA market has been in existence since the advent of the Contributory Pension Scheme (CPS). The RLA portfolio so far has recorded 73,554 contracts purchased for a total premium of N341,615,154,821.14 as at end of Q2, 2019.This depicts 13.02% and 6.21% growth in count and volume, respectively in 2019 from end of Q4, 2018.
The growth (i.e. YOY) during the last three years for RLA business has averaged 34.28 percent and 35.12 percent in count and volume respectively, while RLA fund portfolio growth has averaged 27.46% notwithstanding the RLA payouts made (i.e. cumulative total payments of N122,094,395,111.31 as at end of Q2, 2019).
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The graph of the annuity payouts, premium receipts and portfolio fund balance depicts a clear representation as the difference between the cumulative premium amounts received and fund balance is small (i.e. N18,696,679,160.42) compared to the cumulative annuity payouts earlier stated.
The above indicates growth in the RLA business and a positive future outlook for the business in Nigeria.
Retiree Life Annuity is an insurance product and one of the available retirement benefit options for retirees which can be purchased from a Life Insurance Company licensed by the National Insurance Commission (NAICOM) and authorized to sell RLA under the regulation on retiree life annuity.
