September 06, (THEWILL) – Nigeria’s oil and gas companies paid about N132.06 billion in gross insurance non-life premiums in the first quarter of 2024 (Q1 2024).
This is according to the bulletin of insurance market performance in the first quarter of the year, which revealed that non-life insurance premiums paid by companies in the sector constitute 40.4% of total premiums paid in non-life insurance.
According to the report, total gross non-life insurance premiums reached N326.9 billion, which constitutes about 69.5% of the total premium pool in the industry.
“The Non-life segment, generating a gross written premium of N326.9 billion, led the market, contributing 69.5% of the total premium pool as the Life segment made up 30.5% of the total premiums during this period.
“A quick look at the non-life business indicates that the Oil & Gas portfolio held a share of about forty (40.4%) percent as a lead driver of growth during the quarter, relative to its record of 32.6% reported in the first quarter of 2023,” the report said.
The report noted that Fire Insurance accounted for 19.1% of all non-life premiums generated during the review period. Motor Insurance made up 14.9% of the segment, while Marine & Aviation, General Accident, and Miscellaneous Insurance held market shares of 10.0%, 9.7%, and 5.9%, respectively.
The report further disclosed that in the first quarter of 2024, gross premium income reached N470.7 billion, reflecting a year-on-year growth rate of 51.1%.
This marked a notable contrast to Nigeria’s real Gross Domestic Product (GDP) growth, which stood at 2.98% during the same period.
In the Life insurance sector, gross written premiums amounted to N143.8 billion, with the Group Life segment contributing 38.1% and Individual Life business accounting for 33.1% of the total premiums in this segment.
Annuity business, representing 28.9% of the total Life Insurance gross premium, showed substantial growth, driven by increased customer interest and confidence, alongside strong regulatory measures supporting the industry, according to the report.
Considering the premium retention rate, the industry’s overall average retention rate was approximately 54.2% during the period.
On a more detailed level, the Life Insurance segment achieved an average retention of 79.9%, while the non-life sector recorded a retention ratio of 42.9%.
The total value of assets in Nigeria’s insurance industry grew by 36.9% in the first quarter of 2024 from N2.4 trillion in the first quarter of 2023 to N3.3 trillion.
Financial data from the report for the industry showed that non-life businesses accounted for N1.94 trillion in assets, while the Life Insurance sector held approximately N1.39 trillion.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
