Insurance industry records N3.877 billion for Q3 2024 – NAICOM

The National Insurance Commission (NAICOM) has reported that the Nigerian insurance industry recorded total assets of N3.877 billion in the third quarter of 2024, reflecting a 5.1% growth compared to the corresponding period in 2023, which stood at N2.809 billion.

In a circular posted on its website on Monday, NAICOM disclosed that N2.337 billion of the total assets was attributable to non-life insurance business, while the life insurance segment accounted for N1.539 billion.

The industry demonstrated resilience amid macroeconomic challenges, sustaining a year-on-year growth trajectory of 60.9% and a quarter-on-quarter growth of 44.3%, closing at N1.173 billion in gross premium written.

Claims and Premium Performance

NAICOM highlighted improvements in claims management, which drove the gross claims reported during Q3 to N564 billion, representing 48.1% of total premiums generated during the period.

The life insurance segment recorded a claims settlement ratio of 81.6%, while the non-life segment achieved 73.6%, underscoring the industry’s focus on claims processing as a driver for growth.

The gross premium written for the third quarter stood at N1.173 billion, with the non-life segment maintaining its dominance, contributing 68.9% of the total figure.

Portfolio Breakdown

The oil and gas portfolio led the non-life segment, contributing 35.2%, followed by fire insurance at 21.3%, motor insurance at 14.4%, marine and aviation at 12.4%, general accident at 9.0%, and miscellaneous insurance at 7.5%.

NAICOM emphasized that the insurance industry’s growth rate far outpaced Nigeria’s national GDP growth of 3.5% during the same period, showcasing its robust performance, profitability, and market expansion.

“The industry has demonstrated a significant level of robustness, profitability, and competitiveness within its operating environment,” NAICOM stated.

The commission credited the consistent deepening policies and resilience of the market for the impressive results and reiterated its commitment to driving further growth in the industry.