… As total assets hits N2.3 trn, income N369.28 bn in Q2***
The Insurance Industry has recorded 0.2 per cent growth in gross claims compared to the corresponding year totalling N174.8 billion in the second quarter of 2022.
A performance bulletin released by the National Insurance Commission (NAICOM) in Abuja on Tuesday, said the figure represented 47.3 per cent of all premiums generated during the period.
NAICOM said that the net claims paid stood at about N148.2 billion which represented 84.8 per cent of all gross claims reported during the period.
The Commission said the performance reflected the professional underwriting capacity of the industry as driven by its intensified regulatory activities.
NAICOM said the life insurance business recorded 88.90 per cent claims settlement as against the reported claims while the non-life segment stood at 76.8 per cent.
The Commission said that motor insurance retained its lead, posting a claims settlement ratio of 92 per cent.
It said that the oil and gas recorded 85. 7 per cent of claims settlement ratio, an increase of 43 points compared to its position of 42.8 per cent recorded in the corresponding period of 2021.
The Commission said miscellaneous insurance also posted 61.9 per cent, higher than 44 per cent paid claims ratio, compared to the corresponding period of 2021.
NAICOM said that General Accident paid claims of 75 per cent; fire 76.2 per cent while Aviation & Marine posted 61.9 per cent.
The Commission said the sector recorded an increased growth rate of 12 per cent.
In the same vein, the insurance sector recorded an increased growth rate of 11.9 per cent with a total asset of about N2.3 trillion in the second quarter of 2022.
This is according to the National Insurance Commission (NAICOM).
A performance document released by NAICOM in Abuja on Tuesday said the industry’s financial position revealed a total of N1.2 trillion in Assets of Non-Life businesses while the Life business stood at about N1.1trillion.
The Commission said the market recorded about N369.2 billion during the period, indicating a 20.1 per cent growth rate compared to the same period in the previous year.
NAICOM said the figure was an impressive 65.0 per cent quarter-on-quarter.
The Commission said with the figures, it was obvious that the market could be adjudged as sound and stable while the stance of the market deepening remained optimistic.
”The continued steady growth from the first quarter of the year correlates with the current performance of the period under review.
”The Gross Premium Income in the second quarter of 2022 stood at N369.28 billion.
”The market data reveals that the industry grew 20.1 per cent higher than the national real Gross Domestic Product (GDP) of 3.5 per cent during the same period.
”This indicates the industry’s impressive performance given the recent trajectory.
”This performance analysis of the Insurance Industry is an insight into the market behaviour in the second quarter of 2022,” NAICOM said.
The Commission said the statistics of the insurance market performance for the second quarter of 2022 revealed some quality improvements in the market indicators including growth, claims settlement and profitability.
The newsmen recall that the industry’s total assets as at the end of 2021 financial year stood at N2.139 trillion.