The Nigerian insurance market

Photo credit: US Gov / CIA World Factbook

Insurance market features

Regulatory authority:
National insurance commission
Premiums (2004): 522.3 million USD
Insurance density (2004): 3.77 USD
Penetration rate (2004): 0.87%

Market structure in 2004

Actors	Number
Insurance companies	105
Life companies	6
Non-life companies	51
Composite insurance companies	48
Reinsurance companies	5
Brokers	509

Identity

Area: 923 768 Km²
Population (2004): 138 400 000 inhabitants
GDP (2004): 60 billion USD
GDP per capita: 433.5 USD
GDP growth rate (2004): 6.1%
Inflation rate (2004): 15%
Main economic sectors: crude oil, natural gas, tin, coal, lead, zinc, cocoa, peanuts, rubber, timber

Major cities

(in number of inhabitants)

Lagos: 9 250 000
Kano: 3 600 000
Ibadan: 3 500 000
Abuja (capital): 400 000

Turnover evolution: 2000-2004

in millions USD/NGN

Premiums	2000	2001	2002	2003	2004	2003/2004 Growth rate
USD	250.3	297.7	369.0	432.5	522.3	+ 20.76 %
NGN	27 666.3	33 114.5	44 503.8	55 940.5	69 410.8	-

Gross premiums evolution by class of business: 2000-2004

in thousands USD

	2000	2001	2002	2003	2004
Non life
Fire	31 200	33 200	39 400	46 900	55 200
Motor	63 800	79 100	89 700	106 800	113 400
General accident	71 900	50 800	60 600	79 100	103 900
Marine-Aviation	36 800	76 900	110 700	121400	158 000
Total	203 700	240 000	300 400	354 200	430 500
Life
Total	46 600	57 700	68 600	78 300	91 800
Grand total	250 300	297 700	369 000	432 500	522 300

Gross premiums split by class of business in 2004

Split of non-life premiums and incurred losses, net of reinsurance: 2000-2004

in thousands USD

	Motor	Fire	Accident	Marine Aviation	TPL	Others	Total
2000
Earned premiums	43 700	16 500	15 700	14 700	2 500	10 400	103 500
Incurred losses	12 800	5 600	6 600	2 500	400	2 600	30 500
Loss ratio	29%	34%	42%	17%	16%	25%	29%
2001
Earned premiums	53 100	19 200	20 300	20 700	3 300	14 300	130 900
Incurred losses	16 500	7 400	6 800	10 300	1 350	4 600	46 950
Loss ratio	31%	39%	33%	50%	41%	32%	36%
2002
Earned premiums	70 200	20 500	25 800	25 400	4 500	7 600	154 000
Incurred losses	14 900	7 200	4 900	6 200	3 350	738	37 288
Loss ratio	21%	35%	19%	24%	74%	10%	24%
2003
Earned premiums	86 500	26 300	35 900	33 600	6 800	12 500	201 600
Incurred losses	20 600	9 100	16 400	9 000	2 800	3 200	61 100
Loss ratio	24%	35%	46%	27%	41%	26%	30%
2004
Earned premiums	96 500	28 500	51 300	55 600	3 800	16 200	251 900
Incurred losses	24 000	8 100	13 900	7 800	900	5 600	60 300
Loss ratio	25%	28%	27%	14%	24%	35%	24%

Breakdown of non-life net incurred losses in 2004

in thousands USD

Non life insurance companies' top ten in 2004

in thousands USD

Company	Turnover	Market shares
Nicon Insurance Corporation	117 100	27.2%
Leadway Assurance Co.Ltd.	21 700	5.0%
Goldlink Insurance Co. Ltd.	20 400	4.7%
Industrial & General Ins. Co. Ltd.	9 800	2.3%
Cornerstone Insurance PLC	9 650	2.2%
Linkage Assurance Co. Ltd.	9 600	2.2%
Unitrust Insurance Co. Ltd.	7 600	1.8%
Wapic Insurance PLC	6 400	1.5%
Royal Exchange Ass. Nigeria PLC	6 370	1.4%
Law Union & Rock Insurance (Nigeria) PLC	4 800	1.1%
Total of non life companies' top ten	213 420	49.5%
Total	430 500	100.0%

Life insurance companies' top ten in 2004

in thousands USD

Company	Turnover	Market shares
AIICO Insurance PLC	20 080	21.9%
Nicon Insurance Corporation	11 120	12.1%
Crusader Insurance Co. PLC	8 995	9.8%
Industrial & General Ins. Co. Ltd.	7 700	8.4%
Leadway Assurance Co. Ltd.	7 250	7.9%
Niger Insurance PLC	6 850	7.5%
ELMAC Assurance (Nigeria) Ltd.	6 260	6.8%
African Alliance Insurance Co. Ltd.	5 300	5.8%
Wapic Insurance PLC	3 850	4.2%
Great Nigeria Insurance Co. Ltd.	2 370	2.6%
Total of life companies' top ten	79 775	87.0%
Total	91 800	100.0%

Life loss ratio: 2000-2004

Exchange rate USD/NGN as at 31/12	2000	2001	2002	2003	2004
Exchange rate USD/NGN as at 31/12	110.50	111.23	120.58	129.22	132.89

Source: Nigeria Insurance Digest 2005 - A Statistical Journal of the Nigerian Insurers Association Thanks: we thank Continental Re for their kind assistance in the conception of this chapter

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Tue, 14/05/2013 - 16:06

The Nigerian insurance market

Insurance market features

Market structure in 2004

Identity

Major cities

(in number of inhabitants)

Turnover evolution: 2000-2004

Gross premiums evolution by class of business: 2000-2004

Gross premiums split by class of business in 2004

Split of non-life premiums and incurred losses, net of reinsurance: 2000-2004

Breakdown of non-life net incurred losses in 2004

Non life insurance companies' top ten in 2004

Life insurance companies' top ten in 2004

Life loss ratio: 2000-2004

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