Developments in the insurance industry in Nigeria in 1997

Abstract

This paper reviews developments in the insurance industry in Nigeria in 1997 which showed that the paid-up capital in the sector recorded an increase of 11.3 per cent owing largely to the additional equity capital injected by the joint-venture insurance companies. Similarly, both the income and expenditure profiles in the industry increased during the year under review. The report revealed also that the growth rate of income in the industry exceeded the expenditure rate, as income to expenditure ratio increased to 2.5 per cent from 1.97 per cent between 1996 and 1997. However, the loss and expenses ratio of the non-life insurance companies increased, indicating poor performance in the sub-sector during the year. The assets of the insurance companies increased by 31.4 per cent from its level in 1996. Assets' investment in government securities fell short of the statutory requirement.