Nigerian Insurance Industry Grows Premium Income By 33.9% in 2022
The Nigerian Insurers Association (NIA) said the volume of business written by Members Company in 2022 grew to about N726.2 billion representing an increase of 33.9 percent over the premium income of N569.1 billion recorded same period in 2021.
The Association generated a gross income of N620,529 in 2022 against N520,632 in 2021 representing an increase of 20.34 percent. The amount generated exceeded budgeted income of N578,615,000 for2022 by 8.28 percent.
This increase was attributable to improved earnings from Annual Membership Subscription and surplus from Nigerian Insurance Industry Database Fund.
Expected Annual Membership Subscription was N274,567,000 but N297,634,000 was achieved an increase of 5.86 percent. Similarly, surplus from Nigerian Insurance Industry Database fund grew by 19.63 percent from N178,933,000 in 2021 to N214,050,000 in 2022 also exceeded budgeted amount of N164,500,000 by 30.12 percent.
The total expenditure for 2022 was N449,809,000 as against N300,611,000 in 2021, representing an increase of 49.63 percent. When compared to the budgeted expenditure of N451,257,537, representing an increase of 0.32 percent. The increase in expenditure was as a result of expenses incurred during the unveiling of new NIA House and impairments of financial assets.
The total asset of the Association as of December 31, 2022 stood at N2,598,901,000 an increase of N291,935,000 or 12.65 percent when compared with same period in 2021. The major reason for the difference was as a result of increase in Non-Current Assets that is, the construction of new NIA House.
The Association’s Restricted Funds increased by 0.9 percent from N921,360,000 in 2021 to N930,312,000 in 2022. This increase was attributable to the surplus on digital compulsory insurance and outstanding payment received on African Insurance Organisation.
These were contained in the Association’s 2022 Annual Report and Accounts presented at the 52nd Annual General Meeting (AGM) held in Lagos yesterday.
The Chairman of the Association, Mr. Olusegun Omosehin, in his statement, highlighted some of the challenges faced by the Nigerian Insurance Industry during the review period, adding that despite the challenges, the industry has remained resilient.
According to him, despite the economic downturn being experienced in Nigeria with its cataclysmic effect on all aspect of our national life, the Nigerian insurance industry continues to take its pride of place in the Nigerian economic space as the economic driver, restorer of businesses and a dependable safeguard for national assets.
“It is worthy to note that as a subset of the national financial system, the insurance industry also had a fair dose of the general economic and socio-political problems bedeviling the country in the past one year.
“Perennial power outages, internecine conflicts between herders and farmers, menace of kidnappers and bandits, insurgency in the Northeast especially around the Lake Chad Besin, poor infrastructural facilities, galloping inflation, rising unemployment, flooding and other natural catastrophes, increasing poverty levels and the geometric rise in exchange rate of the naira to the United State (US) dollar continue to be a major challenge to businesses resulting in high cost of operations,” Mr Omosehin stated.
He said notwithstanding these challenges, insurance companies continue to discharge their obligations as financial intermediators and restorers of businesses in line with their mandate.
Mr. Omosehin said “During the year under review, the volume of business written by members companies grew to about N726.2 billion which is estimated to be an increase of 33.9 percent over the premium income of N569,1 billion recorded in 2021.
He said the Association is working closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial services and technology segments to promote the business of insurance and increase its contribution to National Gross Domestic Product (GDP).
