Despite the challenging operating business environment in the economy, insurance companies were able to increase their total assets by 36.9 percent year on year (YoY) to N3.3 trillion in Q1’24 from N2.4 trillion in Q1’23. The National Insurance Commission, NAICOM, announced this yesterday in its first quarter Q1’24 report on the insurance industry.
According to the report, the overall assets of the non-life business were N1.9 trillion, while the total assets of the life company were N1.4 trillion. According to NAICOM, the insurance industry’s strong performance and market deepening capabilities demonstrate its ability to adapt and flourish despite current macroeconomic constraints.
Further examination of the report reveals that industry gross premium income jumped by 51% to N470.7 billion in Q1’24 from N311.5 billion in Q1’23. According to NAICOM, the significant increase is due to regulatory actions and market dynamics.
Further analysis of the report reveals that the non-life segment led the market with premium income of N326.9 billion, accounting for 69.5 percent of the total premium pool, while the life segment generated N144.9 billion, accounting for 30.5% of the total premium during the period.
Claims payments grew by 71.8% to N149.1 billion in Q1’24, up from N86.8 billion in Q1’23. According to NAICOM, the rise in claims payment is a result of greater public awareness and stakeholder confidence in claims resolution.
“This is a win-win situation for insurers, policyholders and society at large as stakeholder confidence remains a major determinant of market deepening and sustainability in the long run.”
