Nigeria Insurance Report

Published 29 July 2015

  • 68 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
$1,295.00
Nigeria Insurance Report

BMI View: In spite of low penetration levels, Nigeria's life and non-life insurance segments are set to grow at high single-digit to double-digit rates through the next years. The country's favourable economic prospects, leading to rising household spending, and rapidly growing population will produce a strong boost in demand for life and non-life products, which will attract more foreign insurance companies and consequently increase the level of competitiveness within both markets . Importantly, however, investors should be mindful of potential challenges which reside mainly in currency movements due to falling oil prices as well as national security issues.

Accounting for roughly 34% of total written insurance premiums, and a penetration rate of 0.1% (ie, life premiums as a percentage of GDP), life insurance is the smaller and relatively more underdeveloped segment of the overall insurance sector. Factors such as low income levels, customers' limited awareness of the benefits of life solutions, and a lack of transparency of the operating practices of some operators have been underlying the segment's sluggish development. Moreover, life insurance providers have had to overcome the lack of trust among the Nigerian consumers, which has hitherto been preventing them from entering into long-term insurance contracts, as well as a low average life expectancy among the Nigerian population - hampering potential demand for traditional life products, such as retirement and life savings products. However, with an annual average growth rate of 13.4% in the coming years, the life market is set to provide significant opportunities for ongoing investment. First and foremost, while the Nigerian 65+ population is insufficiently large to provide sustainable demand for life insurance products, long-term premium growth will be increasingly more carried by the country's growing professional and middle classes. Insurers may target these more affluent groups with...

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Life Premiums Forecast
15
Life Premiums
15
Table: Gross Life Premiums Written (Nigeria 2012-2019)
17
Table: Net Life Premiums Written (Nigeria 2012-2019)
17
Table: Reinsurance Life Premiums Written (Nigeria 2012-2019)
18
Life Insurance Claims
18
Table: Life Insurance Claims (Nigeria 2007-2013)
19
Life Insurers' Assets
19
Table: Assets (Nigeria 2007-2011)
19
Life Insurance Drivers
20
Table: Life Expectancy by Gender (Nigeria 2012-2019)
20
Table: Demographic Breakdown (Nigeria 2012-2019)
21
Non-Life Premiums Forecast
22
Non-Life Premiums
22
Table: Gross Non-Life Premiums Written (Nigeria 2012-2019)
24
Table: Net Non-Life Premiums Written (Nigeria 2012-2019)
24
Non-Life Reinsurance Premiums
25
Table: Reinsurance Non-Life Premiums Written (Nigeria 2012-2019)
26
Non-Life Claims
26
Table: Non-Life Insurance Claims (Nigeria 2007-2014)
27
Table: Non-Life Insurance Claims by Line (Nigeria 2007-2014)
28
Non-Life Insurers' Assets
28
Table: Assets (Nigeria 2007-2014)
29
Non-Life Sub-Sector Forecast
30
Table: Non-Life % Breakdown (Nigeria 2012-2019)
31
Motor and Transport Insurance
31
Table: Motor Vehicle Insurance (Nigeria 2012-2019)
32
Table: Insurance Key Drivers, Autos (Nigeria 2012-2019)
32
Table: Transport Insurance (Nigeria 2012-2019)
33
Table: Insurance Key Drivers, Freight Tonnage (Nigeria 2012-2019)
34
Property Insurance
34
Table: Property Insurance (Nigeria 2012-2019)
35
Personal Accident Insurance
35
Table: Personal Accident Insurance (Nigeria 2012-2019)
36
General Liability Insurance
36
Table: General Liability Insurance (Nigeria 2012-2019)
37
Other Non-Life Insurance
37
Table: Other Non-Life Insurance (Nigeria 2012-2019)
38
Industry Risk Reward Ratings
39
Sub-Saharan Africa Risk/Reward Index
39
Table: Sub-Saharan Africa Insurance Risk/Reward Index
40
Market Overview
42
Life Market Overview
42
Table: Life Market Share, 2011, USDmn (%)
44
Non-Life Market Overview
45
Table: Non-Life Market Share, 2011, USDmn (% of total)
47
Company Profile
49
Leadway Assurance Company
49
Mansard Insurance
52
MMI Holdings
55
Old Mutual
58
Demographic Forecast
60
Demographic Outlook
60
Table: Population Headline Indicators (Nigeria 1990-2025)
61
Table: Key Population Ratios (Nigeria 1990-2025)
61
Table: Urban/Rural Population & Life Expectancy (Nigeria 1990-2025)
62
Table: Population By Age Group (Nigeria 1990-2025)
62
Table: Population By Age Group % (Nigeria 1990-2025)
63
Methodology
65
Industry Forecast Methodology
65
Risk/Reward Index Methodology
68
Table: Indicators
70
Table: Weighting of Indicators
71

The Nigeria Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's Nigeria Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Nigerian insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for Nigeria to test other views - a key input for successful budgeting and strategic business planning in Nigeria's insurance market.
  • Target business opportunities and risks in Nigeria through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
  • Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).

BMI’s Insurance Risk Reward Index

BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Growth Drivers & Risk Management Projections

Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:

  • Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
  • Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
  • Motor: Fleet size by type of vehicle % change y-o-y.
  • Epidemiology: Disease Adjusted Life Years and private health expenditure.

Market Overview & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Sources

The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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