Nigeria’s Insurance Sector Surges: Premium Income Reaches Record High of N551.4 Billion in Q2 2023

Nigeria’s insurance sector reported a surge in premium income to N551.4 billion in the second quarter of 2023, according to data recently published by the National Insurance Commission (NAICOM).

This figure represents a 49 percent quarter-by-quarter (q/q) increase and a 77 percent year-on-year (y/y) growth compared to the same period in 2022.

FBQuest analysts have attributed this growth to the sector’s resilience in the face of various macroeconomic challenges, including high inflation, rising energy prices, and foreign exchange shortages.

The robust y/y premium income expansion was largely driven by an 81 percent increase in the non-life insurance business, amounting to N362.4 billion in Q2 ’23, with fire insurance making the most significant contribution.

Even the life insurance business, which accounted for approximately 34 percent of the sector’s premium income, soared by 77 percent y/y to N189.0 billion in Q2 ’23.

The cumulative premium income generated by the sector over the first half of 2023 increased by 45 percent y/y to N862.9 billion.

Despite this impressive growth, analysts warn that Nigeria’s insurance sector must still address the challenge of low insurance penetration in the country.

Nevertheless, the industry’s total assets grew by 18 percent y/y to N2.7 trillion in Q2 ’23, with the non-life insurance business playing a significant role in this increase.

While there is undoubtedly more work to be done, these figures are undeniably a cause for celebration in the nation’s insurance landscape.