The Nigerian insurance industry has shown remarkable growth in Q2 2024, with gross premium income increasing by 72% quarter-on-quarter (QoQ) to N813.1 billion, up from N470.7 billion in Q1 2024. On a year-on-year (YoY) basis, the industry achieved a 47.4% rise compared to Q2 2023, highlighting the sector’s ability to grow despite tough economic conditions.
Data from the National Insurance Commission (NAICOM) revealed that the sector remained profitable during the period. The average net loss ratio for Q2 2024 stood at 55.5%, a slight increase from 52.9% in Q1 2024. The non-life segment reported a net loss ratio of 57.2%, while the life insurance segment had a slightly better ratio at 53.6%.
Key Contributors to Premiums
In the life insurance segment, Group Life insurance was the top-performing category, contributing 35.8% of gross premiums, while the annuity business had the smallest share at 29.7%. On the non-life side, the oil and gas sector led with a 39.2% share of premiums, followed by Fire Insurance (17.5%), Motor Insurance (15.5%), and Marine and Aviation Insurance (12.5%).
Gross claims during the quarter amounted to N297.9 billion, representing 36.6% of the gross premium income. Of this, net claims totaled N259.4 billion, accounting for 87.1% of the total gross claims reported.
Sector Assets and Market Share
The insurance sector’s total assets grew by 9.5% QoQ, reaching N3.69 trillion by the end of Q2 2024. Non-life businesses accounted for N2.29 trillion, while life businesses contributed N1.39 trillion.
However, market concentration remains an issue, with the top three life insurance companies controlling 43.8% of total life premiums and the top three non-life insurers holding 34.8% of the non-life market share.
The Q2 performance demonstrates that the Nigerian insurance industry continues to expand its reach and maintain stability, meeting the growing demand for risk management and financial protection.
