Recapitalisation effect: Insurance firms earned N164.5bn in 2008

By Ayeleso Oladele, Lagos - Updated: Tuesday 30-06-2009

Mr. Olutola Mobolurin, Group CEO,
Crusader Nigeria Plc, displaying the
Other Financial Institutions of the
Year 2008 award received from
Mr. Abimbola Oladipo of Financial
Standard, in Lagos, recently. IN spite of the crippling effects of the global economic meltdown that forced most industries to report losses in their annual accounts in 2008, the Nigerian insurance industry grew its gross premium income from N100.6 billion in 2007 to about N164.5 billion in year 2008.

As part of the efforts by the sector’s operators to redeem the image of the industry and to further prove to the public and the regulators that it is committed to the payment of all genuine claims promptly and expeditiously, the industry paid claims totalling N53.3 billion in 2008.

Despite that year 2008 was a very challenging year in the insurance industry being the first full year of operations after recapitalisation, the figure made available to the insurance operators during the 38th Annual General Meeting of the Nigerian Insurers Association (NIA), out of the N164.5 billion premium, fire contributed N16.976 billion, motor N41.234 billion, general accident N40.870 billion marine and aviation N39.626 billion while life insurance contributes N25.805 billion.

The treasurer’s report read at the meeting by Mr. Bode Akinboye showed that the association posted a surplus of N2,651,134 in the year under review as against a surplus of N4,729,943 in the corresponding period of previous year in its income and expenditure accounts.

Also speaking at the meeting, Mr. Wole Oshin, the association chairman, disclosed that through the collective efforts of the members of the association over the Nigerian content in oil and gas, it has been able to secure the guideline on consortium bidding with the assistance of the National Insurance Commission (NAICOM).

He also revealed that the association has swung into action over the tax waivers given to banks and insurance industry during the last recapitalisation, in which insurance industry did not benefit from during the exercise, adding that the service of Bayo Osipitan & Co had been employed, expressing optimistic in claiming the waiver from the government.

According to Oshin, the association was also working together with NAICOM to achieve the full implementation and compliance with the various provisions of the insurance Act. He stated that the association would improve on its Nigerian content in oil and gas, compulsory insurance of public buildings and enforcement of third party motor vehicle insurance cover, and all other compulsory insurance products that would be in line with the rapid evolving of the industry.