Insurers pool N329.12bn premium from Lagos, other South West markets

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Chuks Udo Okonta

Insurance companies generated N329.12 billion out of the total industry premium of N413.85 billion from policyholders within the South West of the country in 2018, Inspenonline has learnt.

According to the Nigerian Insurers Association (NIA), operators got the largest premium amounting to N196.56 billion from policyholders in Lagos State, which was followed by Abuja, which provided N15.53 billion premium and Rivers, N5.53 billion.

The association noted that cumulative gross premium written, showed that South West yielded N329.12 billion premium; North Central, N39.17 billion; South South, N24.84 billion; North West, N14.26 billion; South East, N5.76 billion and North East N689.36 million.

Continuing on what operators got from states, the NIA said, Oyo state provided, N3.49 billion; Kaduna, N2.05 billion; Kano, N1.81 billion and Delta, N1.49 billion.

Other states, according to the association provided less than N1 billion.

On claims paid by the operators, South West got N171.29 billion out of the total N211.52 billion paid in the year. North Central got N19.93 billion; South South, N12.97 billion; North West, N4.73 billion; South East, N2.54 billion and North East, N52.91 million.

The NIA stated that the industry grew at a faster pace than the economy, though penetration remains very low.

2018 snapshot of the industry performance according to the NIA

Gross Premium Written N413.8 billion

Gross Claims Paid N193.5 billion

Reinsurance Paid N118.4 billion

Net Premium Income N287.8 billion

Total Underwriting Profit N56.6 billion

Profit Before Tax N40.2 billion

Profit After Tax N31.5 billion

Shareholders’ Fund N378.3 billion

Total Assets N1.2 trillion

Management Expenses N88.9 billion

Number of Companies 58

Number of Offices 854

Number of Employees 6,731 (Male 60%, Female 40%)

Insurance Penetration 1.6%

Contribution to GDP 0.34%

10yr CAGR of Gross Premium 8.75%

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