by Niyi Jacobs
The oil and gas sector in Nigeria paid a whopping N132.06 billion in gross insurance non-life premiums in the first quarter of 2024.
This represents 40.4% of total premiums paid in non-life insurance, according to the insurance market performance bulletin for Q1 2024.
The total gross non-life insurance premiums reached N326.9 billion, constituting about 69.5% of the total premium pool in the industry. The oil and gas sector was the lead driver of growth in the non-life segment, accounting for 40.4% of premiums, up from 32.6% in Q1 2023.
Fire Insurance accounted for 19.1% of non-life premiums, while Motor Insurance made up 14.9%. Marine & Aviation, General Accident, and Miscellaneous Insurance held market shares of 10.0%, 9.7%, and 5.9%, respectively.
The industry’s total gross premium income reached N470.7 billion, reflecting a year-on-year growth rate of 51.1%. This is a significant contrast to Nigeria’s real Gross Domestic Product (GDP) growth, which stood at 2.98% during the same period.
In the Life insurance sector, gross written premiums amounted to N143.8 billion, with Group Life contributing 38.1% and individual Life business accounting for 33.1% of total premiums. Annuity business represented 28.9% of total Life Insurance gross premium, driven by increased customer interest and confidence, alongside strong regulatory measures supporting the industry.
The industry’s overall average retention rate was approximately 54.2%, with the Life insurance segment achieving an average retention of 79.9%, while the non-life sector recorded a retention ratio of 42.9%.
The total value of assets in Nigeria’s insurance industry grew by 36.9% in Q1 2024, from N2.4 trillion in Q1 2023 to N3.3 trillion. Non-life businesses accounted for N1.94 trillion in assets, while the Life insurance sector held approximately N1.39 trillion.
