March 26, (THEWILL) – Total assets of the Nigerian Insurance industry increased to about N2.67 trillion in the fourth Quarter (Q4) of 2023, the National Insurance Commission (NAICOM) said in the latest data released on Tuesday.
According to the report by its Statistics Department, Directorate of Research, the industry also recorded a total capitalisation of N851 billion in the same quarter under review.
The report stated that Nigeria’s Insurance industry sustained its progressive trend of positive market performance at the close of 2023 fourth quarter. It closed the year recording a milestone growth of N1.003 trillion, representing about 27 percent growth compared to the N790 billion recorded in 2022.
According to the report, non-Life businesses accounted for 61.3 percent of all premiums written during the year while the Life segment contributed 38.7 percent, valued at N388.1 billion.
The market also recorded retention of about 87.7 percent for the Life business, just about 54 percent for Non-Life while the aggregate market average retention stood at 66.7 percent 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 respectively.
“Reflecting the ongoing regulatory measures regarding claims settlement, the Life business recorded about 95 percent of net claims to the total recorded claims during the year while the market average stood at about 71.4 percent of the N536.5 billion gross claims reported at the close of the fourth quarter, 2023.
“Reflecting the “no-premium no-cover” policy of the NAICOM, the outstanding premium continued to decline, posting a 1.6 percent as outstanding of all the premiums generated in the market during the period,” the report added.
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