Nigerian Insurance Sector Rebounds, Records 8.01% Annual Growth

The Nigerian insurance industry grew by 8.01 per cent in 2021, compared to a negative growth rate of 13.29 per cent in 2020, figures obtained from the National Bureau of Statistics have shown.

The NBS, in its Gross Domestic Product report for the fourth quarter of 2021, said the insurance industry also accounted for 7.82 per cent of the finance sector.

According to the report, the underwriting industry recorded negative growth of 2.08 per cent in the first quarter of 2021.

It, however, expanded by 16.41 per cent, 7.86 per cent and 13.61 per cent in the second, third and fourth quarters of 2021.

The NBS said, “The finance and insurance sector consists of the two subsectors, financial institutions and insurance, which accounted for 92.18 per cent and 7.82 per cent of the sector respectively in real terms in Q4 2021.

“As a whole, the sector grew at 24.92 per cent in nominal terms (year-on-year), with the growth rate of financial institutions as 25.99 per cent and 13.61per cent growth rate recorded for insurance.

“The overall rate was higher than that in Q4 2020 by 26.02 per cent points, and lower by 1.54 per cent points than the preceding quarter. Quarter on quarter growth was 25.34 per cent, while annual growth rate stood at 11.88 per cent in 2021.

“The sector’s contribution to the overall nominal GDP was 3.10 per cent in Q4 2021, higher than the 2.80 per cent it represented a year previous, and higher from the contribution of 2.70 per cent it made in the preceding quarter.

“Growth in this sector in real terms totalled 24.14 per cent, higher by 27.76 per cent points from the rate recorded in 2020 fourth quarter and up by 0.90 per cent points from the rate recorded in the preceding quarter.

“Quarter on quarter growth in real terms stood at 26.99 per cent, while annual growth was 10.07 per cent in 2021.”

The report said the contribution of finance and insurance to real GDP totalled 3.66 per cent, higher than the contribution of 3.07 per cent recorded in the fourth quarter of 2020 by 0.59 per cent points, and higher than 3.16 per cent recorded in Q3 2021 by 0.50 per cent points.

A recent report released by the National Insurance Commission showed that Nigerian insurance companies earned N630.36bn in 2021.

The Head, Corporate Communications and Market Development, NAICOM, Rassaq Salami, disclosed this in its unaudited result for 2021.

According to the commission, this was a rise from the audited figure of N514bn premium earned in 2020

NAICOM said the total assets of the underwriting companies were N2.14tn while net claims paid was N238.05bn in 2021.