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2017 NIGERIA INSURANCE DIGEST Nigeria Insurance Digest 2017 03 Principal Officers Of The Association As At December 2018 Tope Smart Chairman 04 Nigeria Insurance Digest 2017 Principal Officers Of The Association As At December 2018 Ganiyu Musa Segun Balogun Deputy Hon. Treasurer Chairman Edwin Igbiti Yetunde Ilori Hon. Asst. Director-General Treasurer /CEO Nigeria Insurance Digest 2017 05 Editorial Board CHIEF TECHNICAL ADVISER Tope Smart TECHNICAL ADVISER Ganiyu Musa EDITOR-IN-CHIEF Yetunde Ilori EDITOR Lanre Ojuola ASST. EDITOR Joshua Bolorunduro Published By Nigerian Insurers Association Registered Office Temporary Office NIA House 264, Ikorodu Road, 42, Saka Tinubu Street, Obanikoro, Lagos, Nigeria. Victoria Island, Lagos. Tel: 08170784444, 08029908531 Email: [email protected] Website: www.nigeriainsurers.org 06 Nigeria Insurance Digest 2017 Foreword well-developed and vibrant insurance market is a catalyst for economic growth. It provides good mechanism for accumulating long-term funds for infrastructural financing, sustainability for business models, job creation, and an improved standard of living. The drive for reforms in Nigeria insurance sector is geared towards unlocking its inherent but untapped potential as Aencapsulated in EFInA market survey report, which revealed only 1.9% out of 96.4 million adult Nigerian of 18 years and above have insurance in the last accounting year. The Industry is set to reap the benefit of opportunities and potentials in the economic recovery occasioned by improving crude oil prices and output level stability, improving foreign reserve and declining inflation in the coming years. In line with the Federal Government's decision to focus more attention on the insurance industry and to reposition it for improved growth, the regulator came up with a number of market transformation agenda. Some of these initiatives include the new pricing regime on "Compulsory Insurance", Revised Guidelines on Micro Insurance, while there are on-going discussions on RBS - Risk Based Supervision. The rise in disposable income, digitalization and automation of insurance services, a growing middle class, better adherence to operational guidelines by market players and innovative service delivery will enable the industry to achieve increased profitability and market penetration. The growth in the industry was buoyed by its Investment Income which rose to N65.88 billion in 2017 compared to N45.32 billion in 2016 representing 45.37% increase. Fresh injection of patient capital and a model that encourages the use of mobile technology and unconventional sales channels are likely to produce better results. The industry remained resilient, recording a significant increase in the volume of business underwritten in the year 2017. The premium production stood at N365.06 billion compared to N315.96 billion in 2016, representing a percentage increase of 15.53%. The average annual growth rate of the Nigerian insurance sector in the last ten (10) years is 14.29%. Non-life insurance premium income grew by 7.43% while Life insurance business recorded significant feats with a premium growth rate of 27.64%. This year's edition of the Nigeria Insurance Digest presents the operating performance of the industry in both Life and Non-Life insurance businesses. Data contained in this publication were extracted from the Annual Financial Reports and Accounts of 50 out of 59 member companies of the Association, comprising 14 specialist Life insurance companies, 28 Non-Life insurance companies, 15 composite insurance companies and 2 Reinsurance companies. This publication will be a useful research tool and an important guide for sound decision making as it highlights the industry operations in premium production, claims paid, investment income, management expenses, commission ratio, loss ratio, expense ratio, investment ratio, distribution of assets and liabilities and reinsurance transactions. Nigeria Insurance Digest 2017 07 Contents Information About Operating Environment The Association Operating Performance Of Non-life Companies 11. The Nigerian Insurers Association 38. 2017 Marine And Aviation Insurance 13. Objective 20. 2017 Operating Environment Premium Income 14. List Of Governing Council Members 24. Member Companies Transacting 40. Member Companies Ranked In As At December 2017 Non-life Business As At 31st Order Of Gross Premium From 15. Nigerian Insurers Association December, 2017 Their Direct Marine And Aviation Management Team 25. 2017 Motor Insurance Premium Business, (2013-2017) 16. Chairmen And Secretaries Of Income 41. 2017 Ratio Of Gross Claims Paid To Technical Committees 26. Member Companies Ranked In Gross Premium Income Of Marine 17. Member Companies And Types Of Order Of Gross Premium Income And Aviation Business Business Transacted From Their Motor Insurance 42. Growth Of Marine And Aviation 18. Industry Facts Business (2013-2017) Insurance Premium (2008-2017) 27. 2017 Ratio Of Gross Claims Paid To 43. 2017 Workmen Compensation Gross Premium Income Of Insurance Premium Income Motor Business 44. Member Companies Ranked In 28. Growth Of Motor Insurance Order Of Gross Premium From Premium (2008-2017) Their Direct Workmen 29. 2017 Fire Insurance Premium Income Compensation Business, 31. Member Companies Ranked In (2013—2017) Order Of Gross Premium From 45. 2017 Ratio Of Gross Claims Paid To Their Direct Fire Insurance Gross Premium Income Of Business, (2013-2017) Workmen Compensation 32. 2017 Ratio Of Gross Claims Paid To 46. Reinsurance Transactions In Gross Premium Income Of Workmen Compensation & Employers Fire Business Liability Business 2013-2017 33. Growth Of Fire Insurance Premium (2008—2017) 34. 2017 General Accident Insurance Premium Income 35. Member Companies Ranked In Order Of Gross Premium From Their Direct General Accident Insurance Business, (2013 - 2017) 36. 2017 Ratio Of Gross Claims Paid To Gross Premium Income Of General Accident Business 37. Growth Of General Accident Insurance Premium 2008 - 2017 08 Nigeria Insurance Digest 2017 Contents 62. Premium Income, Net Claims, Management Expenses, Total Investment And Investment Income Of Non-life Insurance Companies 2017 63. Gross Claims Paid Non-life Insurance Business 2017 64. Ratio Of Gross Claims Paid To Gross Premium Income Of Non Life Member Companies 2017 65. Ratio Of Net Claims Paid To Net Premium Income Of Non Life Member Companies 2017 67. Ratio Of Management Expenses To Gross Premium Income Of Non Life Member Companies 2017 47. 2017 Oil And Gas Insurance Premium 68. Ratio Of Commission To Gross Income Premium Income Non-life Member Operating Performance Of Life 49. Member Companies Ranked In Companies 2017 Companies Order Of Gross Premium From 69. Ratio Of Investment Income To Their Direct Oil And Gas Business, Total Investment Of Non-Life Member 82. Member Companies Transacting (2013—2017) Companies 2017 Life Insurance Business 50. 2017 Ratio Of Gross Claims Paid To 70. Gross Premium Income Of Non-life As At 31st December, 2017 Gross Premium Income Of Oil And Gas Member Companies (2008-2017) 83. Life Insurance Premium Income, Business 71. Member Companies Ranked In 2017 51. Growth Of Oil & Gas Insurance Order Of Premium From Their Direct 85. Individual Life Insurance Premium Premium (2008-2017) Non - Life Insurance Business (2017) Income 2017 52. 2017 Engineering Insurance Premium 72. Reinsurance Transactions In Non-life 86. Group Life Insurance Premium Income Business 2013 - 2017 Income 2017 53. Member Companies Ranked In Order 73. Comparative Statistics Of Gross 87. Annuity Insurance Premium Of Gross Premium income From Their Premium Income, Claims And Income 2017 Direct Engineering Business (2017) Management Expenses Of 88. Composition Of Life Insurance 54. 2017 Ratio Of Gross Claims Paid To Gross Non - Life Insurance Companies Premium 2017 Premium Income Of Engineering (2013-2017) 89. Ratio Of Gross Claims To Premium Business 74. Assets of Non-Life Insurance Income Of Life Member Companies 55. Growth Of Engineering Insurance Companies 2017 2017 Premium (2008-2017) 76. Distribution Of Assets Of Non-life 90. Ratio Of Net Claims Paid To Net 56. 2017 Miscellaneous Insurance Gross Insurance Companies (2015-2017) Premium Income Of Life Member Premium Income 77. Liabilities of Non-Life Insurance Companies 2017 58. Member Companies Ranked In Companies 2017 91. Ratio Of Management Expenses To Order Of Gross Premium From 78. Distribution Of Liabilities Of Gross Premium Income Of Life Their Direct Miscellaneous Non-life Insurance Companies Member Companies 2017 Business, (2013 - 2017) (2015-2017) 92. Ratio Of Commission To Gross 59. 2017 Ratio Of Gross Claims Paid To 79. Underwriting Profit of Non-life Premium Income Life Member Gross Premium Income Of Member Companies 2017 Companies 2017 Miscellaneous Business 80. Growth Of Non-life Premium 94. Ratio Of Investment Income To 60. Growth Of Miscellaneous Insurance (2008 -2017) Total Investment Of Life Premium (2008- 2017) Member Companies 2017 61. Composition Of Non-life Insurance Premium 95. Premium Income, Net Claims 2017 Management Expenses Total Investment And Income Of Life Insurance Companies 2017 96. Comparative Statistics Of Gross Premium Income Claims And Management Expenses Of Life Insurance Companies (2013-2017) 97. Assets Of Life Insurance Companies 2017 98. Distribution Of Assets Of Life Insurance Companies (2015-2017) 99. Liabilities Of Life Insurance Companies 2017 Nigeria Insurance Digest 2017 09 Contents 100. Distribution Of Liabilities Of Life 117. Gross Premium Income Of Insurance Companies