Nigeria: 48 Insurers Generate N117bn Premium Income - AllAfrica.com

Patience SaghanaLagos

Forty-eight Insurance companies operating in the state generated a insurance premium income of N117 billion in 2007, following the recapitalisation of the companies to N206 billion in the same year.

The N117 billion recorded by the 48 investment bankers stands for a 42 per cent addition over the N82 billion posted in 2006. Of the N117 billion, the Marine/Aviation Insurance raked in N32.3 billion; General Accident, N28.2 billion; Motor Insurance, N24.3 billion; Life Insurance, N18.1billion and Fire Insurance, N13.94 billion.

Mr Ibidolapo Balogun, the contiguous past times president of NIA, told newsmen yesterday in Lagos that the coverage industry recapitalisation was largely responsible for the immense insurance premium income recorded by the sector last year. "The industry witnessed a major milepost in regard of the successful recapitalisation of 48 coverage companies whilst the capitalization increased from N25.9 billion in 2006 to N206 billion in 2007," he said. Balogun who yesterday handed over the NIA chairmanship to Mister Wole Oshin added: "The significance of this transmutation is evidenced by the sector becoming the 2nd most active sector in the working capital market. The volume of concern written grew from N82 billion to N117 billion during the twelvemonth under review. This 42 per cent growing is expected to be surpassed in the approaching twelvemonth as the consequence of the pension reforms and Nigerian local content in the oil and gas sector impacts public presentation of the industry."

Balogun said the enforcement of Section 72 of the Insurance Act 2003 which qualifies that "no 1 shall transact concern with any foreign-based coverage company other than companies that are registered under this Act" helped to bring forth more than concern for companies operating in Federal Republic Of Nigeria The compulsory employer-paid life coverage policies for all employees in both the private and public sectors also helped to invigorate the life coverage concern in the country.

Meanwhile, the 48 insurance companies in the twelvemonth under reappraisal settled N35.2 billion claims. Of the N35.2 billion claims, NICON Insurance paid N6 billion claims of backdown benefits on pension to over 125 establishments across the state in 2007.