Nigeria Insurance Industry Gross Premium Income Rose 51% to N470.7bn in Q1
The Nigeria Insurance industry grew strongly in the First Quarter (Q1) of 2024 as Gross premium income rose by 51 percent to N470.7 billion ($335 million).
The growth rate is a notable development when compared to Nigeria’s real Gross Domestic Product (GDP) growth of 2.98% during the same period.
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, according to data from NAICOM.
A quick look at the Non-Life business indicates that Oil & Gas portfolio held a share of about forty (40.4%) per cent as a lead driver of growth during the quarter, relative to its record of 32.6% reported in the first quarter of 2023.
This is followed by the Fire Insurance contributing 19.1% of all non-Life premiums generated during the period under review. Motor Insurance constituted 14.9% of the segment while Marine & Aviation, General Accident and, Miscellaneous Insurance reported market shares of 10.0%, 9.7%, and 5.9% respectively.
Life business on the other hand with a gross written premium of N143.8 billion was majorly driven by the share of Group Life at 38.1% and individual Life business at 33.1% of all premiums recorded in the Life business segment of the Market.
Annuity business however, stood at 28.9% of the total Life Insurance gross premium as it closes up to other components owing to growing customer interest and confidence in tandem with the robust regulatory measures relating to the business.
The total claims reported during the quarter stood at N149.1 billion which is about thirty-two (31.7%) per cent of all the premiums generated during the period.
Nigeria Insurance Industry recorded N3.3 trillion in total assets indicating an expansion of 36.9% compared to N2.4 trillion reported in the corresponding period of 2023. Statistics of the industry’s financial position revealed a total of N1.94 trillion in Assets of NonLife businesses while the Life business stood at about N1.39 trillion.
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