The National Insurance Commission (NAICOM) has reported that the Nigerian insurance industry recorded total assets of ₦3.877 billion in the third quarter of 2024, reflecting a 5.1% growth compared to ₦2.809 billion in the same period last year.
According to a circular released on Monday, the non-life segment accounted for ₦2.337 billion of the assets, while the life insurance segment contributed ₦1.539 billion.
Despite macroeconomic challenges, the sector demonstrated remarkable resilience, achieving a year-on-year growth rate of 60.9% and a quarter-on-quarter expansion of 44.3%, closing the quarter with ₦1.173 billion in gross premiums written.
Improved claims management played a crucial role in driving expansion, with gross claims reported at ₦564 billion, representing 48.1% of the total premiums generated during the period. The life insurance segment recorded an 81.6% claims settlement ratio, while the non-life segment achieved 73.6%.
The non-life sector continued to dominate, holding 68.9% of the market share with a total volume of ₦808.4 billion. Key contributors included the oil and gas portfolio (35.2%), fire insurance (21.3%), motor insurance (14.4%), marine and aviation (12.4%), general accident (9%), and miscellaneous insurance (7.5%).
NAICOM also noted that the industry’s growth rate far outpaced the national GDP growth of 3.5% during the same period, underscoring its robust performance and potential.
The commission emphasised the need for accelerated premium growth and appropriate rate-setting to sustain the industry’s impressive trajectory, describing the sector as resilient, profitable, and competitive.
Credit: NAN (Text Excluding Headline)
