By David Akinmola
Nigeria’s insurance industry sustained its expansionary momentum in the second quarter of 2024, recording ₦813.1 billion in Gross Premium Written (GPW), a performance that underscores growing market activity despite persistent macroeconomic headwinds.
Industry data show that the Q2 outturn represents a 47.4 per cent year-on-year growth compared with the corresponding period of 2023, and a sharper 72.7 per cent increase quarter-on-quarter, reflecting continued recovery and consolidation following the strong performance recorded in the first quarter of the year. The growth trajectory also contrasts sharply with Nigeria’s nominal GDP growth of 3.19 per cent over the same period, positioning insurance among the country’s standout growth sectors.
A breakdown of the figures indicates that non-life and life businesses both contributed significantly to the industry’s performance. Motor insurance generated ₦86.9 billion, fire insurance accounted for ₦98.2 billion, general accident contributed ₦49.5 billion, while marine insurance recorded ₦70.6 billion. The oil and gas segment remained the largest contributor within the non-life portfolio, with premiums of ₦220.3 billion, reflecting sustained demand for risk cover in the energy sector.
Other non-life businesses classified as miscellaneous generated ₦36.6 billion during the quarter. On the life side, individual life insurance contributed ₦86.6 billion, group life policies accounted for ₦89.8 billion, while annuity business added ₦74.6 billion, reinforcing the growing relevance of long-term insurance products in the market.
Net premium income for the industry stood at ₦467.7 billion in the period, with oil and gas again leading at ₦70.0 billion, followed closely by individual life insurance at ₦85.1 billion and group life at ₦61.3 billion. Motor insurance recorded ₦61.1 billion in net premiums, while fire and marine businesses generated ₦50.7 billion and ₦27.5 billion, respectively.
Analysts note that the proportional contribution of life insurance classes continues to rise, reflecting gradual improvements in insurance awareness, compulsory insurance enforcement and the growing role of group life policies linked to employment and pension structures. The sustained dominance of oil and gas premiums, however, highlights the sector’s continued reliance on large-ticket corporate risks.
The National Bureau of Statistics, in its sectoral performance assessment, listed insurance among the major contributors to economic growth during the period, pointing to improved underwriting capacity and premium pricing adjustments in response to inflationary pressures.
Despite the positive outlook, stakeholders caution that sustaining the growth momentum will depend on claims settlement efficiency, regulatory stability and the industry’s ability to deepen retail penetration in a high-inflation environment. Nonetheless, the Q2 2024 figures reinforce the insurance sector’s resilience and its emerging role as a key driver within Nigeria’s financial services landscape.
