Statistics from the National Insurance Commission (NAICOM) say the insurance industry recorded  N3.877 billion in total assets in the third quarter of 2024.

In a circular posted on the website on Monday, NAICOM said that the figure represented an expansion of 5.1 per cent compared to the corresponding period when it reported N2.809 billion as the industry size.

It said that the statistics of the financial position of the market recorded a total of N2.337 billion in assets as attributable to non-life business while the life business accounted for N1.539 billion.

NAICOM said the industry showed resilience amid macroeconomic challenges, sustaining its growth trajectory at 60.9 per cent year-on-year.

It said that the industry also sustained 44.3 per cent on a quarter-on-quarter basis, to close at about N1.173 billion in gross premium written.

On settlement of claims, NAICOM said that the improvements in claims management of the industry had served as a driver for expansion in gross claims reported in Q3.

The commission said that the claims reached N564 billion, representing about 48.1 per cent of the total premiums generated during the period.

NAICOM said the development had underscored the need for accelerated premium growth and appropriate rate setting.

It added that the life insurance segment recorded a claims settlement ratio of 81.6 per cent while the non-life segment achieved 73.6 per cent.

According to NAICOM, the gross premium written in the third quarter of 2024 stood at N1.173 billion, attributable to the consistent deepening policy of the commission and market resilience.

NAICOM said that the non-life segment maintained its dominance, accounting for 68.9 per cent of the total quarter.

The commission said the oil and gas portfolio led with a 35.2 per cent contribution; fire insurance contributed  21.3 per cent. It said that motor insurance accounted for 14.4 per cent, while marine and aviation, general accident, and miscellaneous contributed 12.4 per cent, 9.0 per cent, and 7.5 per cent, respectively.

”The performance was majorly led by the non-life sector, recording a market share of 68.9 per cent for a total volume of N808.4 billion. The life segment accounted for 31.1 per cent of the market premium aggregate.

”The industry statistics reveal that the market has achieved a substantially higher rate of growth compared to the national output (GDP), which grew at 3.5 per cent during the period under review. This signifies its impressive performance and potential propensity,” NAICOM said.

It explained that the industry had demonstrated a significant level of robustness, profitability, substantial market expansion and a competitive operating environment. 

(NAN)