Insurance, one of the oldest sectors of modern civilization, has experienced significant growth in the past few years, though still inundated by untapped opportunities. The industry’s performance in the past year has earned it a “Bb” rating by Agusto & Co. Limited in its newly published 2019 Insurance Industry report.
The Nigerian insurance industry’s economic importance is noteworthy. Overtime, the industry has succeeded in supporting businesses and individuals by helping them recover from unexpected losses, and has promoted economic growth by mobilizing domestic savings – most of which is used to fund the budget deficit through investments in treasury bills.
In analyzing the sector, Agusto & Co. noted that –
- The Nigerian Insurance Industry had a favorable year in 2018 with growth in its Gross Premium Income (GPI) rising by over 12% to an estimated ₦448.6 billion on account of favorable macroeconomic indices and the commencement of major projects across the country such as the Dangote refinery and fertilizer production plant.
- Its growth is also owing to other major contributors such as increased regulatory support through the implementation of bancassurance and micro-insurance initiatives.
However, despite the growth the sector has seen in the last year, there are enormous opportunities that abound, and challenges such as the Industry’s ROE being significantly lower than the average yield on 365-day treasury bills of about 14% in the same year. Investment returns still remain insufficient due to limited investment channels which are predominantly money market securities.
This report by Agusto & Co. analyses the Industry’s financial condition, based on the approved financial statements of forty-eight (48) licensed underwriters for the period ended 31 December 2017 and key financial indicators for the third quarter in 2018 using available unaudited accounts of 19 underwriters, the Macroeconomic environment and its impact on the industry.
Why should you buy this report?
- Get to understand recent and emerging trends in the Industry and how it affects your business.
- Gain insights into the regulatory environment and understand how recent and anticipated policies are changing operations in the Industry
- And recognise major threats that could impact the Insurance Industry in Nigeria.
