The bulletin was released by Mr Rasaaq’ Salami, Head, Corporate Communications and Market Development, National Insurance Commission (NAICOM) on Friday in Lagos.
The report said the industry grew at the rate of 20.1 per cent compared to the same period of the previous year and 65.0 per cent quarter on quarter.
It said the figure was also higher than the national real Gross Domestic Product (GDP) of 3.5 per cent during the same period.
“This indicates the industry’s impressive performance given the recent trajectory.
“The proportional participation of each class of business suggests the continued improvement of life insurance business as driven by its component of the individual life.
“The non-life segment as revealed in the figures, maintained its primacy at 59.3 per cent of the total premium generated while life business on the other hand recorded 40.6 per cent of the insurance market production,” it said.
According to the bulletin, oil and gas was the leading driver of the premium at 32.5 per cent, with fire a distant second at 20.7 per cent.
It said motor insurance stood at 14.8 per cent while marine and aviation, general accident and miscellaneous reported a share of 12.3 per cent, 10.9 per cent and 8.9 per cent respectively.
The bulletin stated that the share contribution of life business gradually closed up, as the share of annuity in the life insurance business logged at 24.7 per cent.
The performance report indicated that individual life held a major driver position at 41.8 per cent of the premium generated during the period.
The bulletin noted that operational confidence remained high in spite of economic challenges, as life business retention for the period was 93 per cent, non-life recorded a ratio of 55 per cent, while the industry average stood at 70.5 per cent.
It stated that the retention in non-life business despite reporting an above average level, relative to its prior position of 59.4 per cent in the corresponding period of the preceding year, would require a focused attention for improvement.
“The performance by various classes in the non-life segment of the market revealed that all classes stood at an above average position except for the oil and gas business, which held a retention of 40.1 per cent.
“This shows a decline in the oil and gas retention capacity in the market compared to the same period in 2021 when it recorded 42.3 per cent in retention proportion,” it said.
According to the market report, the insurance market remained profitable during the period under review, recording an overall industry average of about 57 per cent and maintaining a relative position of 57.7 per cent recorded in the corresponding period of preceding year.
It stated that the non-life segment loss ratio stood at 43.6 per cent while the life business stood at 68.5 per cent, depicting a less profitable scenario, comparatively over the same period.
According to the bulletin, the net loss ratio for non-life, bears an improved market image in the current period as compared to the preceding period when it was 48.2 per cent.
The report noted that the drivers of the loss experience were made up of some 12 underwriters, which included six composite underwriting firms, one life underwriter and five non-life underwriters with a record of loss ratio above 100 per cent during the period.
“Indeed, the viability of the industry and, especially its outlook, remains good and suitable for gainful returns on investment.
“The COVID-19 crisis introduced opportunities for underwriters to refine their operations as there is still a lot of untapped potential for improvements.
“The continued steady growth from the first quarter of the year correlates with the current performance of the period under review,” it said.
According to the report, statistics of the insurance market’s performance for the second quarter revealed some quality improvements in the market indicators, including growth, claims settlement and profitability.
The bulletin said it was obvious that the market could be adjudged as sound and stable.