Insurance industry record a N2.33tn in Total Assets in Q4, 2022, NAICOM says

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The National Insurance Commission (NAICOM) has reported trillion Naira in Total Assets of the Insurance industry, according to the bulletin of the insurance market statistics performance released by the apex regulator in the industry for the fourth quarter of 2022.


The Commission disclosed that the total Assets of the Insurance industry stood at N2.328trillion in the fourth quarter, sustaining a positive growth that signifies expansion at the rate of two (2.4%) per cent, (QoQ) and at 4.4 per cent (YoY). Though relatively at a lower momentum compared to the prior period when the progression rate was recorded at about nine per cent (YoY), attributable to the wave of recapitalization drive recorded in that period, the report added.



However, NAICOM strongly believe that the outlook of the market growth in terms of Assets remains positive, with the increasing measures of market deepening and development, recapitalization drive still ongoing, regulatory Insurance laws and provisions enshrined in the Insurance bill, being reviewed and, digitization of the supervisory wide processes would lead to the realization of the vast potentials in the insurance industry.



Therefore, provides the necessary insight into the Market size distribution with respect to Life and Non-Life Insurance businesses during the period.



The report stated that profitability of the Sector recorded about forty-seven (47.2%) per cent net loss ratio during the period under review, suggestive of a workable, cost effective and profitable business in the industry. The Commission said this is mostly attributable to the Life business sustaining its positive course at 46.5% net loss ratio in the current period while the Non-Life portfolio recorded about 48.1% during the same period.



Moderately, the industry apex regulator noted that the market recorded an aggregate market average of 54.5% of net loss ratio in the previous period, hence depictive of an improved aggregate market desirability and profitability during the current period. While six companies with net loss ratios above 100 per cent were majorly responsible for the average industry loss registered for the period as it provides the numbers of Insurers with figures of the net loss ratios of 100% or above during the period under review, it stated.

“The market concentration landscape with regards to premium generation in the current period remained to a large extent similar to the prior period of third quarter whereby the top ten Insurers controls about sixty-one (60.8%) per cent of the market in the non-life segment, twenty-four of which was by the top three Insurers of this segment while just about one (1.3%) per cent of the market was shared by the bottom ten underwriters.


Similarly, the report continues, Life business on the other hand was controlled fifty-seven (57.1%) per cent by its top three underwriters while about eighty-four (83.8%) per cent of all gross premium generated in that portfolio was recorded for the top ten companies of that business.



“The least ten insurance companies operating life businesses during the same period held a proportional contribution of less than one (0.9%) per cent.



Comparatively, NAICOM stated that the Non-Life section has improved in terms of concentration effect, falling three points relative to its market share (64.2%) for the top ten in the previous quarter while no significant shift was recorded in the life business. In the overall analysis, the market maintained a fairly balanced concentration especially, in the Non-Life section of the industry which ultimately controls a major portion of the entire insurance market, it noted.

The Commission, in the statistics of the insurance market performance for the fourth quarter 2022 revealed consistent growth in terms of premium generation, quality improvements in essential indicators including claims settlement and profitability. It is obvious that the market could be ruled as sound and stable whilst, the stance of the market deepening remains optimistic in spite of operational and macro-economic challenges, it concluded.

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