May 7, 2024/FBNQuest Research
The most recent update from the National Insurance Commission (NAICOM) reveals that the premium income growth generated by the insurance sector sustained its upward trajectory. According to the data, the industry’s gross premium increased by N274.1bn or (+38% q/q) to N1.0trn in Q4 ’23. In terms of split, the total premium figure consists of N255.6bn and N655.1bn in the life insurance and non-life insurance businesses, respectively.
- Specifically, the non-life insurance business, which accounted for the largest share (c.61%) of the total premium income, increased by 30% q/q in Q4.
- Within the non-life insurance segment, all revenue items demonstrated robust growth, contributing to the overall increase in premium income. However, the most significant growth drivers were Fire and Oil and Gas insurance, indicating the sector’s resilience and adaptability to market conditions.
- Their value of premium incomes increased by N31.2bn and N36.3bn to N167.8bn and N148.0bn, respectively.
- Compared to the non-life market, the life insurance business witnessed significant growth in Q4, expanding by 52% q/q. Consequently, its market share increased from c.35% to c.39% of the total premium income.
- Driving the robust q/q rise in the life-insurance segment was an increase of N68bn or (+78% q/q) in the individual life assurance business to N161.2bn.
- According to NAICOM, the industry’s impressive performance can be attributed to the aggressive implementation of regulatory reforms to deepen insurance penetration in the country.
- Regarding market size, the industry’s total assets value amounted to roughly N2.7trn in Q4 ’23, comprising N1.7trn and N1.0trn in the non-life insurance and life insurance businesses, respectively.
- Despite the significant strides made in the insurance sector, there remains untapped potential for further growth and expansion. Addressing the country’s low level of insurance penetration could unlock these opportunities, contributing to the nation’s economic growth and development.
