The National Insurance Commission (NAICOM) says the insurance industry has recorded total assets of N2.3 trillion, indicating 9.0 per cent increase, Year-On-Year (YoY) at the end of the third quarter.
This is contained in a bulletin of the performance of the insurance market released on Tuesday in Lagos by Mr Rasaaq Salami, spokesperson for NAICOM.
The commission said the industry’s balance sheet stated that non-life business accounted for N1.1 trillion assets while the life business stood at about N1.2 trillion.
“From the ongoing, the market statistics of the third quarter 2022 has revealed some quality developments in the industry performance indicators in terms of growth and retention.
“Also, claims management experience and profitability, at levels of which the industry could be ruled as profitable, sound and stable.
“In cognisance also of the on-going digitisation and market deepening measures of the commission, the outlook remains strongly positive,” it said.
According to NAICOM, the insurance market remains profitable during the period, recording an overall industry average of 54.5 per cent, though lower, compared to 46.7per cent recorded in the corresponding period of the preceding year.
The commission reported that the non-life segment stood at 43.5 per cent better than in the life business, which reported a net loss ratio of 63.6 per cent during the period.
It said the sustained lower net loss ratios of the non-life, which was relatively a short-term business, was good for the market as it could quickly register some good market image and confidence in the industry.
NAICOM said: “Nonetheless, despite a rather good scenario of the market average, three insurers gave rise to the reported net loss ratio of the period under review.
“Those were underwriters with figures of a hundred per cent and above of net loss ratios.”
The commission explained that market control setting had not significantly changed in the last three months.
It said in the life business segment, three companies recorded a proportional contribution of about 0.1 per cent, same position compared to the previous quarter.
NAICOM stated that the top three insurers contributed 49.3 per cent of all
premiums generated during the period, which is just about four points increase compared to 45.4 per cent recorded in the previous quarter.
“Similarly, the non-life business had a record of 0.2.per cent of its market share contributed by the least three of the underwriters, same as in the prior period of second quarter of the year.
“While about 31.per cent of the non-life gross premium was contributed by its top three insurers, up from about 27 per cent it recorded in the previous quarter.
“Comparatively, the top 10 underwriters in the non-life section of the industry underwrote 64.2 per cent of the gross premiums income portraying an increased concentration risk from its position of 60.8 recorded in the prior period.
“Nonetheless, at the least bottom of the market, are institutions under regulatory watch or facing various operational challenges as revealed over time,” it said.
According to NAICOM, in the overall analysis, the market maintained a fairly balanced concentration, especially in the non-life section of the industry.
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