Nigeria’s Insurance Sector Surges as Gross Premium Income Grew by 18% YoY to N726bn in Q4 2022


Data from the National Insurance Commission (NAICOM) reveals that the gross premium income of the insurance sector increased by 18% y/y and 36% q/q to NGN726bn in Q4 ’22. The total premium income is made up of income generated from both the life insurance and non-life insurance businesses. The insurance sector has remained resilient, despite the several macroeconomic headwinds faced by the sector, such as high inflation, rising cost of energy and fx shortages.

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In line with recent trends, the non-life business continued its market dominance with a 57% share of the total premium income. In terms of value, the total premium income generated by the segment increased 17% y/y and 34% q/q to NGN417bn.

The data shows that the Oil and gas sector was the leading contributor to the non-life business with a share of 30%. It was followed by Fire insurance and Motor insurance with respective shares of 22% and 15%. Marine & Aviation, General Accidents and others also contributed around 12%, 11% and 10% of the total premium income, respectively.

The life insurance business which accounted for 43% of the total premium income generated by the sector, increased by NGN48bn or (+18% y/y) to NGN309bn in Q4 ’22.

On a cumulative basis, the total premium income generated by the insurance sector increased by 16% y/y to NGN1.9trn in FY ’22.

In terms of the sector’s market size, its total assets stood at NGN2.3trn, implying an increase of 2% q/q and 4% y/y.

With respect to market size distribution of total assets, non-life business assets stood at NGN1.1trn, while life insurance assets amounted to NGN1.2trn.

Based on the data, the sector’s insurance claims rose by 31% q/q to NGN318bn during the quarter, accounting for 44% of the total premium income.

Although the country’s insurance sector has continued to deliver double-digit growth, there is significant ground to cover with respect to providing insurance coverage to individuals, particularly those in the informal sector.

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