Insurance Firms’ Total Assets Hit N1.08trn
The total assets of 58 Insurance Companies in the country have increased to N1.08 trn with the figure expected to rise to about N1.2 trillion by the time all underwriting firms release their 2018 financial statements.
Total Assets refers to the total amount of assets owned by a person or entity. Assets are items of economic value, which are expended over time to yield a benefit for the owner. If the owner is a business, these assets are usually recorded in the accounting records and appear in the balance sheet of the business.
A document sourced from the Nigerian Insurers Association (NIA) shows that out of the N1.08 trillion assets posted in their 2017 financial year, Non-Life companies recorded N557.94 billion while Life Insurers posted N533.51 billion.
Further breakdown of the figure shows that Cash & Cash Equivalent was N131.73 billion, with Financial Assets having the highest figure of N545.59 billion, while Debtors & Prepayment attracted N41.8 billion, even as N4.71 billion was posted under Trade Receivables.
Under Reinsurance Assets, insurance companies recorded N102.24 billion, N86 billion under Property & Equipment, Statutory Deposits was N15.4 billion and Other Assets attracted N163.9 billion, thereby, translating to a cumulative N1.08 trillion in the financial year under review.
However, there was an improvement of N88 billion from N992.1 billion Total Assets posted in 2016 financial year while underwriters recorded N894. 9 billion in their 2015 financial year end.
While promising that insurance industry will continue to play an active role in economic growth and recovery, the chairman, NIA, Mr. Tope Smart, said the sector has consistently grown over time, promising better productivity of the industry as well as increase its contribution to the nation’s Gross Domestic Product (GDP) in the near future.
Smart, who is also the managing director/CEO, NEM Insurance Plc, noted that the association was working closely with the National Insurance Commission (NAICOM) to promote the business of insurance and increase insurance awareness and adoption.
Some of the initiatives’ according to him, include, the insurance industry rebranding project; regulation on micro insurance; collaboration on financial inclusion; bancassurance guidelines, among others, expected to impact positively on the business of insurance companies.