Six leading insurance companies in Nigeria collectively grew their premium collections by 28.7%, amassing ₦144.56 billion as of September 30, 2024, compared to ₦112.24 billion during the same period in 2023.
This performance, disclosed in the companies’ unaudited financial statements filed with the Nigerian Exchange, reflects robust growth despite challenging economic conditions.
Breaking Down the Figures
NEM Insurance led the group with a premium of ₦85.43 billion, marking a 34.8% increase from ₦63.38 billion recorded in 2023.
Cornerstone Insurance Plc followed, recording ₦31.33 billion in premiums, a notable 50.3% rise from ₦20.86 billion in the previous year.
Other notable performances included:
- Regency Alliance Insurance Plc: Premiums rose by 15% to ₦5.70 billion, compared to ₦4.96 billion in 2023.
- Guinea Insurance Plc: Recorded ₦2.41 billion, a 34.9% increase from ₦1.79 billion in the prior year.
- Universal Insurance Plc: Premiums surged 41.4% to ₦12.06 billion, up from ₦7.09 billion in 2023.
- Sovereign Trust Insurance Plc: Achieved a 29.7% increase, reaching ₦3.91 billion from ₦3.01 billion in the same period last year.
Industry-Wide Growth Trends
The surge in premium collection aligns with broader industry trends. Earlier this year, the National Insurance Commission (NAICOM) reported that the total industry premium for 2023 stood at ₦1.003 trillion, a 27% growth compared to ₦790 billion in 2022.
Additionally, the gross written premiums for eight leading insurance firms grew by 22.43% year-on-year, reaching ₦367.66 billion in 2023, compared to ₦300.31 billion in 2022.
Key Drivers of Growth
The increase in premium collections can be attributed to several factors, including heightened awareness of the benefits of insurance, the introduction of innovative products tailored to customer needs, and improved regulatory oversight from NAICOM.
The growth trajectory also reflects a sustained commitment by insurers to expand their market reach, embrace digital solutions, and improve claims processing, which has boosted consumer confidence in the industry.
Outlook for the Industry
With premium growth trends continuing into the third quarter of 2024, the Nigerian insurance sector appears poised for further expansion. Analysts project that ongoing reforms, strategic investments in technology, and targeted marketing efforts will enable the industry to build on its current momentum.
As the sector evolves, insurers must continue addressing market challenges, including low penetration rates and economic volatility, to unlock the full potential of the Nigerian insurance market.
