Developments in the insurance industry in Nigeria in 1999

Abstract

This report indicates that the size of Nigeria s insurance industry shrank in 1999, according to a survey conducted by CBN. The development was sequel to the exit of some insurance companies that could not fulfill the recapitalisation requirement by the National Insurance Commission (NA/COM). However, paid-up capital in the industry increased by 7.1 per cent in 1999, owing to the additional equity capital injected into the joint-venture insurance companies. Aggregate income and expenditure in the industry increased, although expenditure grew faster during the year under review. The investments of the insurance companies declined by 11.2 per cent. from its level in 1998 and they were concentrated in stocks, bonds and shares. The survey showed that the insurance companies performed poorly in 1999.