Nigerian Insurance Firms See Robust Growth in Premiums and Profits for 2023

By Abass Ganiyu

The gross written premiums of eight major Nigerian insurance firms surged by 22.43% year-on-year, reaching N367.66 billion in 2023, up from N300.31 billion in 2022. This growth reflects the broader industry's performance, with the National Insurance Commission reporting a premium income of N1.003 trillion for the sector, a 27% increase from N790 billion in 2022.

The insurance industry’s growth has been driven by several factors, including aggressive risk repricing, asset valuation upsurge, and devaluation of the naira, which increased the premiums on dollar-denominated policies. Furthermore, the rise in micro-insurance and takaful insurance contributed significantly to the overall premium income.

The Manufacturing Africa programme by the UK government has supported the Nigerian insurance industry by offering advisory services for financial analysis and strategic business planning. This has enabled companies to expand their capabilities and generate substantial foreign direct investments.

Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, emphasized the role of regulatory support and awareness campaigns by NAICOM, which have been crucial in enhancing insurance penetration and supporting the sector's double-digit growth.

As the industry continues to evolve, the focus on sustainable growth, regulatory support, and innovative insurance products is expected to maintain the upward trajectory, further boosting Nigeria's economic stability and development.


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