Insurers Grow Gross Premium Income By 47.4% To N814.1bn, Pay N297.9bn Claims In Q2, 2024
The Nigerian insurance companies have continued to record significant performance in their underwriting activities as reflected in the industry’s performance scorecard in second quarter 2024.
During the period under review as contained in ‘Insurance Industry Bulletin’ issued by the National Insurance Commission (NAICOM), the industry’s total gross premium written grew by 47.4 per cent to N814.1 billion while the total claims paid stood at N297.9 billion.
According to the report, “The market recorded about N813.1 billion in gross premium Written during the period, indicating a 47.4 per cent growth rate compared to the same period of the prior year and an impressive 72.7 per cent, quarter on quarter.
“The continued steady growth from the first quarter of the year correlates with the current performance of the period under review.”
NAICOM ascribed the industry’s performance to consistent regulatory focus on public awareness and the enforcement of timely claims settlements.
“Consistent regulatory focus on public awareness and the enforcement of timely claims settlements has had a significant impact on the insurance industry, signifying persistent increase in gross claims reported which stood at N297.9 billion in second quarter of 2024.
“This represents 36.6% per cent of all premiums generated during the period and, a fifteen percent increase on annual basis. The net claims paid on the other hand stood at N259.4bn, signifying an 87.1% of all gross claims reported in the industry during the period,” NAICOM stated.
The Life Insurance business of the industry, NAICOM added, recorded a near perfect point of 92.5% claims settlement against reported claims
while net claims paid of the non-life segment stood at about 83.0% per cent of gross claims report.
It further added, “The industry reported a total asset of N3,687.9bn, signifying a 9.5% increase from the N3,336.4 billion reported in Q1 2024. The balance sheet indicates that the Non-Life business holds assets amounting to N2,292.4bn, while the Life business accounted for N1,395.5bn of the industry total assets.
“These figures highlight a significant increase in both segments, reflecting the overall robustness and upward trajectory of the industry.”
