The Nigerian insurance sector recorded a significant asset growth of 5.15%, rising to ₦3.88tn at the end of the third quarter (Q3) of 2024, compared to ₦3.69tn in the previous quarter. This was disclosed in the latest market performance report released by the Research & Statistics Department of the National Insurance Commission (NAICOM).
Asset Composition
The report revealed that the non-life insurance business accounted for the majority of the sector’s assets, contributing ₦2.34tn, while the life insurance business contributed ₦1.54tn.
“The industry has demonstrated robustness, profitability, and stability through premium generation, favourable loss ratios, market expansion, and competitive performance. The ongoing regulatory measures in automation, market deepening, and legal framework improvements promise a favourable market outlook,” the report stated.
Premium Growth
Gross premiums written surged by 60.9% year-on-year and 44.3% quarter-on-quarter to close at ₦1.17tn by the end of Q3. Non-life insurance accounted for 68.9% of the total premiums, contributing ₦808.4bn, while life insurance made up 31.1%.
Key Segments in Non-Life Insurance
Within the non-life sector:
- Oil & Gas insurance led the portfolio with a 35.2% contribution.
- Fire insurance followed, contributing 21.3%.
- Motor insurance accounted for 14.4%.
- Marine & Aviation insurance contributed 12.4%.
- General Accident insurance made up 9%.
- Miscellaneous insurance accounted for 7.5%.
Life Insurance Contributions
The life insurance segment was dominated by the Individual Life business, which contributed 41.8% of premiums. This was followed by the Annuity business at 31.8%, while Group Life insurance accounted for the remaining share.
Outlook for the Sector
NAICOM’s report highlights the insurance industry’s resilience and its promising future, driven by regulatory policies aimed at fostering process automation, improving legal frameworks, and deepening market penetration. These factors are expected to sustain the industry’s growth and stability in the coming years.