Life insurers generate N328.88bn premium from benefit annuity

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Chuks Udo Okonta

Life insurance operators have generated N328.88 billion premium from benefit annuity since the inception of the Contributory Pension Scheme (CPS), Inspenonline can report.

According to the National Pension Commission (PenCom) in its fourth quarter 2018 reports, life underwriters also made monthly annuity payments of N3.26 billion as at the end of fourth quarter, 2018.

PenCom noted that it approved a total of 4,350 applications for retirement under life annuity during the quarter, bringing the total number of retirees receiving their retirement benefits through the annuity plan to 61,652, adding that the 4,350 retirees received N8.61 billion as lump sum payment and paid premium of N38.91 billion to the insurance companies and monthly annuity of N260.14 million.

In 2017, annuity provided the largest chunk of premium income amounting to N77.77 billion, which is 48 per cent to Life Insurance Companies.

Data obtained from the Nigerian Insurers Association (NIA) revealed that Life Insurers earned N44.58 billion, 28 per cent from group life and N39.27 billion from individual life business.

A breakdown of net written premium earned by some companies showed that Leadway Assurance Company Limited, posted N56.17 billion; Custodian Life Assurance Limited, N7.71 billion; FBNInsurance Limited, N6.76 billion; AIICO Insurance Plc, N3.22 billion and ARM Life Plc, N2.71 billion.

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