Insurance companies last year paid claims worth N35.2 billion and raked in premiums worth N117 billion, it was learnt at the weekend.
This was disclosed by the former Chairman, Nigerian Insurers Association, Mr. Ibidapo Balogun at the annual general meeting of the association in Lagos.

He noted that the industry witnessed a major milestone in respect of the successful recapitalisation of the 48 insurance companies, which increased the market capitalisation from N25.9b in 2006 to N206b last year.

He said: "The industry witnessed a major milestone in respect of the successful recapitalisation of 48 insurance companies, whilst the capitalization increased from N25.9 billion in 2006 to N206 billion in 2007. The significance of this transformation is evidenced by the sector becoming the second most active in the capital market. The volume of business written grew from N82billion to N177billion during the year under review.

"This 42 per cent growth is expected to be surpassed in the coming year as the effect of the pension reforms and the Nigerian local content in the oil and gas sector impacts on the performance of the industry.

"During the period under review, the industry paid claims totalling N35.2 billion. This attests to the ability of insurance companies to pay genuine claims promptly and expeditiously."

On measures of enhancing the image of the industry, insurers were committed to having a "better relationship with their regulators and the government. Balogun said: "We have increased the awareness of the public about insurance activities in the economy. Insurance sector activities at the stock exchange have received unprecedented growth and delay in claims settlement has reduced significantly.

"An international insurance summit hosted by the association was acclaimed to be a major success in the awareness campaign and hopefully it will be an annual event. Efforts have begun in upgrading the association’s offices to a befitting edifice to reflect the new insurance industry."

The Managing Director, Custodian and Allied Insurance Plc, Mr. Wole Oshin, as the new chairman of the association. In his acceptance speech, he promised to take the industry to a loftier height.