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Nigerian insurance sector gross premium crosses N1trn milestone

Nigerian insurance sector gross premium crosses N1trn milestone

Nigeria’s insurance industry has sustained its progressive trend of positive market performance at the close of 2023, recording a milestone growth to close at N1.003trillion at the end of fourth quarter, representing about 27 per cent growth compared to the N790billion recorded in 2022.

Data released Tuesday by the Statistics Department of the Directorate of Research, Statistics & Publication of the National Insurance Commission (NAICOM), the Non-Life business accounted for 61.3 per cent of all premiums written during the year, amounting to N615.1 billion, while the Life segment contributed 38.7 per cent, valued at N388.1billion.

The market also recorded a retention of about 87.7 per cent for the Life business, just about 54 per cent for non-life while the aggregate market average retention stood at 66.7 per cent during the same period.

Major growth drivers in the non-life segment of the market were Oil & Gas and Fire Insurances, contributing 27.3 percent and 24.1 percent, equal to N167.8 billion and N148.1 billion respectively.

In a direct reflection to the ongoing regulatory measures regarding claims settlement, the Life business recorded about 95 per cent of net claims to the total recorded claims during the year while the market average stood at about 71.4 per cent of the N536.5billion gross claims reported at the close of fourth quarter, 2023.

In a direct reflection to the “no-premium no-cover” policy of the Commission, the outstanding premium continue to decline, posting a 1.6 per cent as outstanding of all the premiums generated in the market during the period.

Statistics also shows that the market recorded total assets of about N2.67trillion and capitalization of N851billion in 2023.