According to the National Insurance Commission (NAICOM), the total management fees of the Nigerian insurers amounted to 116 billion NGN (382.8 million USD) in 2016. This figure represents 36% of the market turnover estimated at 324 billion NGN (1.069 billion USD) in the year under review.
With a total of 100.9 billion NGN (333 million USD), the management fees of non-life insurance account for 50% of the premiums underwritten. Life insurers are more reasonable. Their costs are capped at 12% of their turnover, that is 15.1 billion NGN (49.8 million USD) out of 124.5 billion NGN (410.8 million USD).
This situation weighs on the results of Nigerian insurers who have not paid significant dividends to their shareholders during the last five years. This situation should be repeated in 2017.
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