Nigeria’s insurance sector gross premium rose to N551.4 billion at the end of the second quarter of 2023, as against N369.2 billion same period in 2022, according to data from the National Insurance Commission (NAICOM).
FBQuest analyst said the growth represents an increase of 49 percent quarter by quarter (q/q ) and 77 percent year-on-year, respectively.
The total premium income is comprised of income generated from both the life and non-life insurance businesses.
The country’s insurance sector has continued to deliver double-digit growth in the face of numerous macroeconomic challenges, including high inflation, rising energy prices and fx shortages, FBNQuest said in its monthly report.
The robust y/y growth in premium income was underpinned by an 81 percent y/y expansion in the non-life business to N362.4 billion in Q2 ’23.
Although all segments of the non-life business increased significantly, fire insurance was the largest contributor.
The life insurance business which accounted for about 34 percent of the sector’s premium income, was also up by 77 percent y/y to N189.0 billion in Q2 ’23.
On a cumulative basis, the total premium income generated by the sector increased by 45 percent y/y to N862.9 billion in H1 ’23.
According to the latest national account, the insurance sector grew by 7.3 percent y/y. This compares to growth rates of -8.0 percent y/y and 6.9 percent y/y in Q1 ’23 and Q2 ’22 respectively.
With respect to market size, the sector’s total assets increased by 18 percent y/y to N2.7trn as of Q2 ’23.
The modest y/y rise in the industry’s total assets was due to a 33 percent y/y increase in the asset size of the non-life insurance business to N1.6 trillion. The total asset of the life insurance business was flat y/y at N1.1 trillion.
While the insurance sector has made considerable progress in recent years, it still has a long way to go in addressing the low level of insurance penetration in the country, FBNQuest analysts said.