According to data from the National Insurance Commission (NAICOM), the insurance industry’s gross premium income climbed by 18% year-over-year (y-o-y) and 36% quarter-over-quarter (q-o-q) to N726 billion in the fourth quarter (Q4) of 2022.
The revenue from both the life insurance and non-life insurance sectors makes up the overall premium income.
According to FBNQuest analysts, the insurance industry has managed to remain resilient despite a number of macroeconomic headwinds, including high inflation, rising energy prices, and FX shortages.
The non-life industry maintained its market dominance in accordance with recent trends, with a 57% share of the overall premium income. Value-wise, the segment’s overall premium revenue rose 17% y-o-y and 34% q-o-q to N417 billion.
According to the data, the oil and gas industry contributed the most to the non-life business, with a share of 30%.
Fire insurance and motor insurance followed with shares of 22% and 15% respectively. Marine and aviation casualties, general casualties and others also contributed around 12%, 11% and 10% of total premium income, respectively.
The life insurance business, which accounted for 43% of the sector’s total premium income, grew by N48 billion (+18% y-o-y) to N309 billion in the fourth quarter of 2022.
On a cumulative basis, the insurance sector’s total premium income increased by 16% y-o-y to N1.9 trillion in FY22.
In terms of the sector’s market size, the data showed that total assets amounted to N2.3 trillion, an increase of 2% compared to the previous quarter and 4% compared to the previous year.
In terms of market size distribution of total assets, non-life business assets amounted to N1.1 trillion while life insurance assets amounted to N1.2 trillion. Based on the data, the sector’s insurance claims rose 31% sequentially to 318 billion naira in the quarter, accounting for 44% of total premium income.
Although the country’s insurance sector has continued to experience double-digit growth, there is a significant growth reason for the provision of insurance coverage to individuals, particularly those in the informal sector.