Seven underwriting firms listed on the stock exchange accounted for N339.848 billion in gross premiums in the first nine months of 2023. The amount is 47 per cent of the total of N729.1 billion generated by the entire industry in the same period.
This was revealed in their financial reports. The insurance operators also settled a sum of N116.636 billion as claims to policyholders who suffered risk in the period.
The claim payment marked a significant increase despite an economic challenge from N96.902 billion paid in the same period in 2022, representing a growth of 20.36 per cent.
The gross premium written (GPW) recorded last year by the underwriting firms, showed substantial growth compared to the N274.628 billion reported in 2022.
The sector, in 2023, grew its gross premium written for non-life and life businesses to N729.1 billion. When compared with the overall performance of the industry in 2022, the industry had, in the three quarters of 2023, overshot its overall performance in 2022, which was N726 billion.
The seven leading operators are AIICO Insurance Plc, Custodian and Allied Investment Plc, NEM Insurance Plc, AXA-Mansard Plc, Mutual Benefits Assurance Plc, Cornerstone Insurance Plc and Consolidated Hallmark Insurance Plc.
Analysts in the market observed that the rising claims recorded by underwriting firms in recent years impacted their premium growth rate and overall profitability.
They also stressed that various economic challenges, including difficulties in accessing foreign exchange, impacted negatively on business performance.
AllCO Insurance paid a total sum of N37.58 billion in claims in 2023, a 14.03 per cent increase from its 2022 performance, with a gross premium in the same period of N85.138 billion. Custodian and Allied Investment paid N21.958 billion as claims in 2023, showing a 22.29 per cent increase from the 2022 payment.
