2024 Insurance Industry Report

Overview of the Report

The Nigerian insurance industry continues to show resilience despite the macroeconomic downturn, maintaining its growth trajectory. The Industry has benefitted from the general drive to reprice premium rates upwards and the persistent naira devaluation as foreign currency denominated premiums are bloated upon translation to naira. Increased marketing drive, partnerships and efforts to improve consumer confidence and trust levels have also yielded some gains. Consequently, the Industry’s gross premium income rose by 22.9% to ₦776.5 billion in 2022 and is estimated by Agutso & Co. to have grown further by circa 30% in 2023 to exceed the ₦1 trillion mark. Our near-term outlook for gross premiums and performance is positive given our expectation that the Industry will continue to benefit from the free-fall of the naira and business expansion drive. In the first two months of 2024, the naira depreciated by 40.8% against the USD, backing our anticipation for higher premiums from foreign currency-denominated policies, especially oil and gas. Furthermore, we expect higher investment income given the contractionary policies of the Central Bank of Nigeria and we believe this will significantly strengthen profitability in the near term.

Our Agusto & Co.’s 2024 Insurance Industry Report include an analysis of the following:

  • The impact of the macroeconomic environment on the Insurance Industry
  • The key trends and developments in the Industry
  • The changes in the regulatory environment and expected impact on the Industry
  • A detailed analysis of the Industry’s Gross Premium Income (with breakdown by operating segments and business lines)
  • A comprehensive ranking of Industry players across various financial indicators
  • A detailed analysis of the Industry’s financial condition, based on figures and information published in the financial statements of forty-five (45) insurance companies for the period ended 31 December 2022
  • A summary of key financial indicators for the financial year 2023 using available unaudited accounts of 17 underwriters
  • The Insurance Industry’s three-year historical data estimates for 2023 and forecasts for 2024
  • An outlook for the Industry
  • To gain market intelligence on the Industry through the financial summaries of 45 insurance companies covered in the report. The Industry’s risk rating is also provided in the report.
  • To understand the recent changes in the regulatory environment and how these will shape the Industry in the near term
  • To understand how the macroeconomic environment and its impact on the performance of underwriters
  • To recognise major risk factors that affect the Nigerian Insurance Industry
  • To understand the financial conditions of the top players in the life, non-life and composite operating segments