Economy
Nigeria’s Insurance Premiums Grow Above N1trn
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has revealed that Nigeria’s insurance sector crossed the N1 trillion mark as the industry recorded a total premium of N1.003 trillion in the last quarter of 2023 (Q4 2023).
In a statement titled Market Performance At A Glance-Q4 -2023 released by the Statistics Department Directorate of Research, Statistics and Publications, it was disclosed that, “The insurance industry of Nigeria has sustained its progressive trend of positive market performance at the close of 2023 fourth quarter, recording a milestone growth to close at N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022.”
The commission gave a breakdown of how the premium was generated, saying the non-life business accounted for 61.3 per cent of all premiums written during the year while the life segment contributed 38.7 per cent valued at N388.1 billion.
The statement further said the market also recorded a retention of about 87.7 per cent for the life business, just about 54 per cent for non-life, while the aggregate market average retention stood at 66.7 per cent during the same period.
According to NAICOM, the major growth drivers in the non-life segment of the market were oil & gas and fire insurance, which contributed 27.3 per cent and 24.1 per cent, respectively. Motor insurance contributed N114.8 billion, general accident generated N59.1 billion, and marine raked in N69.1 billion.
Net motor insurance premiums stood at N100.3 billion, fire recorded N75.3 billion, general accident posted 39.0 billion, marine reported 33.5, while oil and gas stood at N54.6 billion.
In terms of market performance percentages – motor insurance polled 66.5 per cent, fire polled 46.9 per cent, general accident posted 6.7 per cent, marine recorded 30.9 per cent, while oil and gas reported 25.5 per cent.
Talking in terms of claims settlement for the period, the commission said, “Direct reflection to the ongoing regulatory measures regarding claims settlement, the life business recorded about 95 per cent of net claims to the total recorded claims during the year while the market average stood at about 71.4 per cent of the N536.5 billion gross claims reported at the close of fourth quarter, 2023.”
The agency further noted that in a direct reflection of its “no-premium no-cover” policy, the outstanding premium has continued to decline, as the industry posted just 1.6 per cent outstanding of all the premiums generated in the market during the period.
It further said within the period under review, total assets of the sector stood at about N2.67 trillion, while capitalisation stood at N851 billion in 2023.
Giving a break down of claims payment by various classes, NAICOM said the motor insurance class paid gross claims of N32.1 billion and net claims of N31.0 billion, the fire insurance class paid gross claims of N61.5 billion and net claims of N41.3 billion, general accident paid gross claims of N22.3 billion and net claims of 17.0 billion, marine class had gross claims of N16.9 billion and net claims of 12.0 billion while oil and gas class had gross claims of N157.1 billion and net of N54.6 billion.
In terms of market size NAICOM said non-life had N1.669 billion assets, life had N1.00 billion, bringing the market aggregate to N2.673 billion, while by market capitalisation, non-life had N670.2 billion and life totaled N180.9 billion, bringing the aggregate to N851.0 billion.
In terms of outstanding premiums, the non-life outstanding premium stood at just 2.5 per cent of the total premium, while life was pegged at 0.2 per cent bringing the aggregate of outstanding premium for the industry in the period under review to 1.6 per cent.
By Dipo Olowookere
The presence of the bulls further strengthened the Nigerian Exchange (NGX) Limited on Tuesday, as the performance indices further gained 0.19 per cent.
The nation’s stock market survived profit-taking witnessed in the banking sector during the session, which crashed its index by 0.02 per cent.
This loss was offset by the gains recorded by the other sectors, with the insurance segment chalking up 0.49 per cent. The consumer goods space appreciated by 0.47 per cent, the industrial goods counter expanded by 0.04 per cent, and the energy sector rose by 0.03 per cent.
At the close of business, the All-Share Index (ASI) was elevated by 475.60 points to 246,659.56 points from 246,183.96 points, and the market capitalisation improved by N307 billion to N159.119 trillion from N158.812 trillion.
The market breadth index was positive yesterday after the bourse finished with 34 price gainers and 22 price losers, implying strong investor sentiment.
UPDC REIT grew by 9.86 per cent to N11.70, Thomas Wyatt advanced by 9.73 per cent to N3.72, Ikeja Hotel climbed 9.53 per cent to N46.55, The Initiates went up by 9.52 per cent to N33.95, and Neimeth increased by 9.47 per cent to N9.25.
Conversely, Mecure depreciated by 9.95 per cent to N76.95, Haldane McCall dropped 9.86 per cent to trade at N3.29, CMFC declined by 9.85 per cent to N3.02, Trans-Nationwide Express lost 9.68 per cent to close at N2.80, and Academy Press shrank by 9.38 per cent to N5.80.
The activity level was mixed during the session, as investors traded 932.5 million equities worth N49.3 billion in 50,059 deals versus the 851.6 million equities valued at N49.6 billion transacted in 56,873 deals a day earlier.
This showed that the trading volume soared by 9.50 per cent, the trading value moderated by 0.61 per cent, and the number of deals retreated by 11.98 per cent.
The busiest equity for the day was Access Holdings, which sold 336.6 million units for N8.7 billion. FCMB exchanged 88.8 million units worth N1.0 billion, First Holdco transacted 72.7 million units valued at N7.7 billion, Zenith Bank traded 37.4 million units for N4.4 billion, and UBA transacted 32.1 million units worth N1.5 billion.
By Aduragbemi Omiyale
Thirty-one companies on Tuesday emerged as winners of the 2025 licensing round of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The energy firms competed to take control of 50 oil and gas blocks put on offer by the Nigerian government.
They were among the 143 companies that submitted 200 bids for the oil facilities drawn from diverse terrains, including the Niger Delta Onshore, Niger Delta Shallow Water, Niger Delta Deep Offshore, Benin Basin Onshore, Anambra Basin Onshore, Chad Basin Onshore and Benue Trough.
Business Post gathered that investors, however, were only interested in 37 out of the 50 oil blocks put up for sale by the NUPRC. This is the first time in Nigeria’s energy history that frontier basins would attract such a level of investor interest.
The organisations that won the bids include SSonic Petroleum Limited (PPL 2A29), CFP Pipeline and Flowlines (2A30), Dutchford E&P Limited (2A32), Attabanson Global Company Limited (2A33 and PPL 901), Rosem Energy Limited (2A38), Pivot-GIS Limited (2A39), Network E&P (2A40), Asharami (2A41), LexOil (2A42), BVOF (2A43), GupscoEnergy Limited (2A44 and 2A51), Saratoga (2A45), Volante (2A46), Concept-Reel Petroleum Services Limited (2A47 and 2A55), Clinton Oil Field (2A48 and 2A62) and Nuway Oaklane Limited (2A49).
Others are Ramec (2A50), Italia (2A53), Blueridge E&P (2A54), Up Energies Limited (2A56), AYM Shafa (2A57), Blackrock Holdings Limited (2A58), Funtay Integrated Business Limited (2A59), Riparian Development and Production Limited (2A60), Nikstallis (2A61 and PPL 900), Stardeep Petroleum (PPL 2010), Dakoda & U Limited (PPL308 and PPL 800), Southborne Oil and Gas Limited (PPL 902), Lanaka Petroleum (PPL 903) HighbanResources Limited (PPL 700), Eyre Energy Limited (PPL 801).
By Adedapo Adesanya
Oil prices rose roughly 2 per cent on Tuesday as investors reacted to mounting concerns that escalating hostilities between the United States and Iran and threats by Yemen’s Houthis to blockade Saudi Arabia could disrupt global energy supplies.
Brent futures rose $1.79 or 2.0 per cent to $91.01 a barrel, while the US West Texas Intermediate (WTI) crude gained $1.68 or 2.0 per cent to settle at $84.91 per barrel.
US forces bombed targets in the south and west of Iran while Iran targeted American sites in Bahrain, Kuwait and Jordan and at least one tanker was hit in the Strait of Hormuz.
Supply concerns resurfaced with the Strait essentially closed again and tanker traffic at multi-month lows, to the level from before the ceasefire between the US and Iran, which appears to be over at the moment.
Prices could go much higher if the renewed conflict drags on for a few more months, as the world has now drained a lot of the buffers that had kept oil surges in check between March and May.
Drained strategic and commercial inventories in many key oil-consuming economies, including the US, are setting the stage for further oil price rallies during the busiest oil demand season.
The just-declared Houthi blockade on Saudi maritime shipping has already begun to witness ill-effects, as reports emerge of two oil tankers having made U-turns while initially en route toward the Suez Canal. It was reported that their crews received threats from Houthi militants in Yemen.
The two oil tankers, which loaded Saudi crude for China and India, made U-turns in the Red Sea and headed toward the Suez following the warning from the militia.
Meanwhile, Kuwait’s power and desalination plants caught fire for a second straight day as US and Iran traded strikes for a tenth day.
As Russia’s war with Ukraine expands beyond Ukraine’s borders, the Caspian Pipeline Consortium (CPC) has stopped receiving oil from Kazakhstan after suspending loadings on Monday due to attacks on oil tankers at its Black Sea terminal.
