The National Insurance Commission has said that the insurance sector recorded 72 percent growth in gross premium income which stood at N813.1 billion as against N470.7 billion reported in the first quarter 2024.
In the second quarter of 2024 quarter-on-quarter rose to N813.1bn in Q2 2024 from N470.7bn in Q1 2024.
Annually, the gross premium income grew by 47.4 percent year-on-year compared with Q2 2023 figures.
Experts say the growth highlights the sector’s resilience, considering the current macroeconomic environment.
The report also indicated that the insurance market remained profitable in Q2 2024, with the sector recording an average net loss ratio of 55.5 percent, increasing from the 52.9 percent reported in Q1 2024.
For context, the non-life segment’s net loss ratio stood at 57.2 percent, while the life segment recorded an improved net loss ratio of 53.6 percent in Q2 2024.
It is also worth noting that the sector’s overall net loss ratio represents market averages, as some underwriters recorded less favourable loss ratios. Consequently, while certain players faced notable challenges, the sector as a whole remained profitable.
Furthermore, NAICOM’s data showed that Group Life was the largest premium-generating component in the life insurance segment, accounting for 35.8 percent of gross premiums. Meanwhile, the annuity business contributed the least, with a share of 29.7 percent in Q2 2024.
Additionally, the oil and gas sector continued to dominate the non-life insurance business, contributing 39.2 percent of the segment’s share, while Fire, Motor Insurance, Marine and aviation followed with shares of 17.5 percent, 15.5 percent, and 12.5 percent, respectively.
The insurance sector’s gross claims totaled N297.9 billion, representing 36.6 percent of the gross premium income.
On the other hand, net claims stood at N259.4 billion, representing about 87.1 percent of all gross claims in the sector.
The sector’s total assets grew by 9.5 percent Quarter on Quarter to N3.69 trillion, with the non-life business accounting for N2.29 trillion and the life business contributing N1.39 trn.
Regarding market concentration risk, the top three life insurance companies accounted for approximately 43.8 percent of total life premiums, while the top three non-life companies held 34.8 percent of the market share.
