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Chuks Udo Okonta
Annuity business contributed gross premium income of N83.67 billion, which is 26.9 per cent of N309.9 billion generated from life underwriting in 2022, National Insurance Commission (NAICOM) has said.
NAICOM stated this in Bulletin of the Insurance Market performance for fourth quarter of 2022, adding that the total gross premium for the industry was N726.2 billion, which breakdown revealed that life business provided N309.9 billion while non-life N416.3 billion.
Data obtained from the National Pension Commission (PenCom) showed that Retiree Life Annuitants numbering 105,047 have paid N615.78 billion to insurers since the inception of the Contributory Pension Scheme (CPS).
PenCom disclosed this in its fourth quarter 2022 report, stressing that a total of N201.43 billion lumpsum had also be paid to the retirees.
The pension sector regulator noted that sectoral approval of the annuitants showed that 58,448 were from federal government; 12,524 from states and 33,675 from private sector.
PenCom submitted that the monthly annuity payout by life insurers was N6.24 billion.
PenCom said a total of 2,750 retirees chose annuity mode of pension payment during the fourth quarter 2022
A lump sum of N8.11 million was approved for payment to the retirees, while the sum of N20.57 million was approved for payment to Retiree Life Annuity Providers as premium in return for monthly annuity of N296.52 million, it posited