Lagos — The total liabilities of 58 insurance companies in the country have increased to N1.084 trillion with the figure expected to rise above N1.25 trillion by the time all underwriting firms release their 2018 financial statements, LEADERSHIP learnt.
A document sourced from the Nigerian Insurers Association (NIA) shows that, of the N1.084 trillion liabilities posted in their 2017 financial year, Non-Life companies recorded N551.53 billion while Life Insurers posted N532.97 billion.
Further breakdown of the figure shows that Insurance Funds Liabilities was N463.6 billion, with Life insurance Companies recording Investment Liabilities to the tune of N114.29 billion, while Borrowing attracted N14.6 billion, even as N53.72 billion was posted under Trade Payable.
Under Share Capital, insurance companies recorded N169.63billion, N126.8 billion under Reserves, Share Premium was N73.7billion and Other Liabilities attracted N68billion, thereby, translating to a cumulative N1.084 trillion in the financial year under review.
However, there was an improvement of N88 billion from N992.18 billion Total Liabilities posted in 2016 financial year while underwriters recorded N894. 96 billion in their 2015 financial year end.
Total liabilities are the aggregate debt and financial obligations owed by a business to individuals and organizations at any specific period of time. Total liabilities are reported on a company's balance sheet and are a component of the general accounting equation: Assets = Liabilities + Equity.
While promising that insurance industry will continue to play an active role in economic growth and recovery, the Chairman, NIA, Mr. Tope Smart, said the sector has consistently grown over time, promising better productivity of the industry as well as increase its contribution to the nation's Gross Domestic Product (GDP) in the near future.
Smart, who is also the managing director/CEO, NEM Insurance Plc, noted that the association was working closely with the National Insurance Commission (NAICOM) to promote the business of insurance and increase insurance awareness and adoption.
Some of the initiatives' according to him, include, the insurance industry rebranding project; regulation on micro insurance; collaboration on financial inclusion; bancassurance guidelines, among others, expected to impact positively on the business of insurance companies.
LEADERSHIP had earlier reported that the Total Assets of 58 Insurance Companies in the country have risen to N1.08 trillion, with Non-Life companies recording N557.94 billion while Life Insurers posted N533.51 billion.