Economy
Nigeria Records 36.3% Rise in Insurance Premium in Q4 2022
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has said that Nigeria’s insurance industry recorded a 36.3 per cent quarter-on-quarter growth and 17.8 per cent year-on-year improvement in gross premium income at N726.2 billion in the fourth quarter of 2022.
According to a bulletin released by the country’s insurance sector regulator, this was a remarkable situation compared to the real growth (3.5 per cent) of the Gross Domestic Product (GDP) over the same period.
This development was attributed to the consistent regulatory measures being carried out by the commission.
It also said the non-life business, as in the prior periods, continued its dominance, contributing about 57.4 per cent relative to the share of the life business at 42.6 per cent, keeping about the same position in the prior period.
“The proportional significance of life in the industry was sustained a positive course in recent times reflective of the consumer’s confidence and awareness,” it said.
An in-depth analysis of the non-life segment of the market shows the oil & gas business sustaining its market share dominance at 30.25 per cent, increasing by two points (2.4 per cent) compared to the previous quarter.
The figure posted by fire insurance came a distant second at 22.2 per cent, maintaining the same pattern of contribution to the gross premium pool of the market, while motor insurance at 14.9 per cent, marine & aviation at 12.2 per cent, general accident at 11.1 per cent, and miscellaneous at 9.5 per cent followed in that order.
On the other hand, life business was driven by individual life portfolio (38.6 per cent) even as its relative contribution fell by about (2.6 per cent) compared to the third quarter (41.6 per cent).
The bulletin added, “In a contrasting path to the previous quarter, group life followed by about 34.5 per cent while annuity business contributed gross premium income of about 26.9 per cent during the period.
“In the phase of operational challenges posed in domestic and global economies, the industry continues to post inspiring numbers in business retention, reflective of the market resilience and increasing capacity. In the period under review, the industry-wide average retention ratio stood at about 71.3 per cent, although slightly a point lower than it held in the previous quarter and four points lower in comparison to the same period (YoY).
“Persistently, the life business retained about the same point of 93.3 per cent from its prior position of 93.8 per cent in quarter three.
“In the non-life segment, which also took a similar pattern, motor insurance continued its lead as the highest retaining portfolio with a retention ratio of about 93.5 per cent, a point higher than its standing in the prior quarter.
Oil & Gas recorded the least at about 35.9 per cent. The oil and gas portfolio remained a challenging angle in the market owing to its nature of enormous capital and professional requirements.
“Consequently, the retention performance in the current period sustained its prior position when compared to the third quarter as evidenced by the overall non-life business ratio of 55.0 per cent, slipping from about 56.6 per cent held in the prior period.”
“Claims reported during the fourth quarter stood at N318.2 billion, representing a 31.2 per cent QoQ growth. Possible attainment as a result of growing awareness and Market expansion as well as consumer confidence. In a similar pattern, the net claims paid were reported at N244.3 billion, growing at about 17.9 per cent QoQ during the same period.
“Insights into the non-life segment shows that motor insurance led with regards to claims settlement vis a vis gross claims reported at about 92.3 per cent signifying a nine points improvement as against its prior position.
“Fire insurance was the least at about 46.3 per cent, the only class below average proportion. All other portfolios of general accident insurance (80.7 per cent), oil & gas (51.6 per cent), marine & aviation (74.4 per cent), and miscellaneous insurances (86.1 per cent) recorded a proportion above the average of paid claims against gross claims reported.
“Life insurance business, on the other hand, reported two points less in comparison to the position held in the prior period of 94.6 per cent of net claims paid compared to total claims reported during the same period of 2021,” the bulletin added.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange opened the week on a sad note after it depreciated by 0.41 per cent on Monday, April 14.
The loss was influenced by the decline in the share price of Central Securities Clearing System (CSCS) Plc during the session by N1.80 to close at N20.90 per unit compared with the N22.70 per unit it closed last Friday.
This brought down the market capitalisation of the trading platform by N7.78 billion to N1.911 trillion from N1.919 trillion as the NASD Unlisted Security Index (NSI) was also pulled down by 13.28 points to 3,264.29 points from the previous session’s 3,277.57 points.
Business Post reports that the bourse crumbled yesterday despite two securities on the platform finishing on the gainers’ chart.
UBN Property Plc appreciated by 19 Kobo on Monday to sell for N2.17 per share versus the preceding session’s N1.98 per share, and FrieslandCampina Wamco Nigeria Plc gained 8 Kobo to settle at N35.63 per unit, in contrast to last Friday’s N35.55 per unit.
Yesterday, there was a 99.7 per cent decline in the volume of securities traded by the market participants to 436,357 units from the 152.3 million units recorded in the previous trading day.
There was also a 99.8 per cent fall in the value of transactions to N10.1 million from N4.6 billion, while the number of deals increased by 218.8 per cent to 51 deals from 16 deals.
At the close of business, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units valued at N520.9 million, trailed by Okitipupa Plc with 153.6 million units worth N4.9 billion, and Industrial and General Insurance (IGI) Plc with 71.2 million units sold for N24.2 million.
Okitipupa Plc was the most traded stock by value (year-to-date) with 153.6 million worth N4.9 billion, followed by FrieslandCampina Wamco Nigeria Plc with 14.7 million units sold for N566.9 million, and Impresit Bakolori Plc with 533.9 million units valued at N520.9 million.
By Aduragbemi Omiyale
Offices of a popular Ponzi scheme operator, CBEX, in Ibadan and a few other places in Nigeria have been looted by some aggrieved investors.
This followed news that the company has shut down its services, with funds of several investors trapped.
Last week, there were speculations that CBEX has crashed following the inability of members to withdraw their funds.
The company quickly dispelled this, noting that it locked the wallets of its investors because of the bonuses gifted members, which must be used for trading before withdrawal.
CBEX, thereafter, assured that from Tuesday, April 15, 2025, members of the Ponzi scheme would be able to withdraw their funds without ease.
However, on Monday, it was gathered that funds in the accounts of investors were wiped off, with a notice to members that they would only be access their money upon the payment of a reactivation fee, a similar pattern of other defunct operators.
“All accounts need to undergo the following verification steps to ensure their authenticity.
“For accounts with funds below $1,000 before any losses, a deposit of $100 is required.
“For accounts with funds exceeding $1,000, a deposit of $200 is required.
“Additionally, please keep your deposit receipts to ensure you can prove the authenticity of the account during future withdrawal reviews,” the message from CBEX stated.
This development shattered the hopes of some investors, triggering a looting spree of the company’s offices.
Some videos of the internet showed moments some irate youth stormed the Ibadan office of the organisation, carting away with some valuables, including office items and others.
Many Nigerians have expressed shock at the level of acceptance of the Ponzi scheme in the country despite the harrowing experience of MMM some years ago.
Business Post reports that some weeks ago, a similar Ponzi scheme operator, Cheersway, went away with investors’ funds after it claimed its platform was hacked.
Just like CBEX, it asked members to pay a reactivation fee of their exact level, which ranges from $50, $150, $400, and $1,000, to have access to their money, but most of those who paid were never granted any access until the company folded up.
Also, those who invested in a new investment vehicle it came up with, TikTok Shop, could not receive their capital and return-on-investment as promised.
It later assured investors that it would move them to a new company established last month known as C&P Capital, noting that they would get their funds back after the new organisation makes profit, probably after two years of operations.
By Adedapo Adesanya
The Naira further strengthened against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, April 14, by N5.83 or 0.36 per cent to settle at N1,605.25/$1, in contrast to the N1,611.08/$1 it was traded in the previous session, which was last Friday.
Equally, the local currency appreciated against the Pound Sterling in the official FX market during the session by N34.55 to quote at N2,056.03/£1 versus the preceding trading day’s value of N2,090.58/£1 and gained N45.66 on the Euro to finish at N1,770.14/€1 compared with the N1,815.82/€1 it was exchanged in the previous trading session.
In the same vein, the domestic currency improved its exchange rate against the Dollar yesterday by N5 in the black market to sell for N1,615/$1 compared with the preceding session’s N1,620/$1.
The pressure on the Nigerian currency eased on Monday as tariffs from the United States were paused, and recent signals showed that the government was complementing efforts to stabilise the market via adequate liquidity and supporting orderly market functioning.
A look at the cryptocurrency market showed a mixed outcome as President Donald Trump of the United States, after pausing sweeping global tariffs, made some concessions on electronics imports.
Further easing concerns was the European Commission, the executive arm of the EU, confirming to hold off on retaliatory tariffs on US goods worth €21 billion until July 14 to allow space for negotiations.
The US Federal Reserve also signalled that a return of the original punitive Mr Trump tariffs would trigger the need for sizable “bad news” rate cuts.
Dogecoin (DOGE) depreciated yesterday by 3.5 per cent to sell at $0.1593, Solana (SOL) which lost 1.2 per cent to trade at $130.99, Litecoin (LTC) went down by 0.6 per cent to $77.74, and Cardano (ADA) dropped 0.3 per cent to close at $0.6405.
On the flip side, Bitcoin (BTC) grew by 1.2 per cent to $85,435.17, Ethereum (ETH) rose by 0.9 per cent to $1,636.35, Ripple (XRP) appreciated by 0.5 per cent to $2.14, and Binance Coin (BNB) went up by 0.08 per cent to $588.65, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
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