In apparent response to the prevailing harsh operating environment in the country, total assets of general (non-life) business portfolio for the insurance industry declined by 4.1 per cent Year-on-Year, YoY, to N1.17 trillion in the first quarter of 2023, Q1’23, from N1.22 trillion recorded in Q1’22.
However, according to the 2023 first quarter report released by the National Insurance Commission, NAICOM, yesterday, total assets of life business portfolio increased by 17.8 per cent to N1.26 trillion in Q1’23 from N1.07 trillion in Q1’22.
Overall, the increase in the life business portfolio made up for the decline in general portfolio with industry total assets recording 6.3 per cent increase to N2.44 trillion in Q1’23 from N2.29 trillion recorded in Q1’22.
According to NAICOM, the growth is attributed to the on-going digitisation process and market deepening measures employed by insurance operators.
NAICOM, in the report stated: “Statistics from the first quarter of 2023 has revealed that the market could be adjudged as sound, stable and profitable during the period. In cognisance also to the on-going digitisation process and market deepening measures, the outlook could only be better as the industry continues to professionalise its process and regulatory measures strengthened through the full transition to risk-based supervision of the industry.”
Speaking on the development, Managing Director of Universal Insurance Plc, Mr. Ben Ujoatuonu, said the growth in industry total assets is commendable and is an indication that insurance operators are adopting new measures to grow the business. He stated: “Growth in life business total assets is commendable as it shows that insurance operators are becoming ingenious in creating new products. However, the decline in total assets for the non-life portfolio is a reflection of the harsh operating environment bedeviling the business landscape.”
Source: Vanguard
