Nigeria: Insurance Assets Rises By 27 Percent, Hits N2.67trn

27 March 2024

Nigeria's insurance industry recorded a significant improvement in real terms as the market recorded total assets of N2.67 trillion and capitalisation of N851 billion in 2023, according to official data that was released by the National Insurance Commission (NAICOM) early Tuesday.

The sector sustained a progressive trend of positive market performance at the close of 2023 fourth quarter (Q4), posting a growth to close at N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022.

The non-life business accounted for 61.3 per cent of all premiums written during the year while the Life segment contributed 38.7 percent, valued at N388.1 billion.

The market also recorded a retention of about 87.7 per cent for the Life business, just about 54 per cent for Non-Life while the aggregate market average retention stood at 66.7 percent during the same period.

The NAICOM data showed that major growth drivers in the non-life segment of the market were Oil & Gas and Fire Insurances, contributing 27.3 percent and 24.1 per cent respectively.

In a direct reflection to the ongoing regulatory measures regarding claims settlement, the Life business recorded about 95 per cent of net claims to the total recorded claims during the year while the market average stood at about 71.4 per cent of the N536.5 billion gross claims reported at the close of fourth quarter, 2023.

In a direct reflection to the "no-premium no-cover" policy of the Commission, the outstanding premium continued to decline, posting a 1.6 per cent as outstanding of all the premiums generated in the market during the period.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.