Insurance companies in the country, are recording huge volume business, thanks to the recapitalisation and consolidation carried out in the sector. The companies were able to pull an aggregate gross premium of N90 billion in last year, over 18 per cent better than the previous year.

Mr. Ibidolapo Balogun, Chairman of Nigerian Insurance Association (NIA), Mr Ibidolapo Balogun, said this at the association’s 36th annual general meeting in Lagos.

Said he: "The industry paid claims totaling N33.58 billion last year as against, N29.16 billion two year ago. An increase of 15.2 per cent during the year under review, while the percentage increase in premium income was 16.4 per cent."

He noted that, the consolidation in the industry has raised the level of investors’ awareness and interest in the sector, to an all time high, stressing that the industry witnessed an influx of new corporate investors especially banks and individuals.

"This influx coupled with inflow of Direct Foreign Investment (DFI) to the tune of over N15 billion increased market capitalisation from N30 billion to N200 billion. It is expected that the additional funds will be utilised to expand branch network, develop information technology and attract quality workforce," he said.

Balogun stressed that the financial services sector reforms continued with members companies sourcing for funds to meet the capital level prescribed for insurance and reinsurance companies by the Federal Government.

He said the association engaged the national insurance commission to ensure that members companies met the new capital requirements in a less expensive and less cumbersome way, and to ensure the success of the reform and consolidation programme.

According to him, a steering committee comprising insurers and representatives of the commission was set up for the purpose of deliberating on issues regarding the compliance by insurers with the exercise, noting that from the deliberations, NAICOM, was involved in issuing an addendum to the guideline which included payment of proceeds of funds raised from both private placement and public offers into an escrow account in the Central Bank of Nigeria.

The industry recapitalisation ended on February 28, with the approval in principle for 71 companies comprising of 43 general business insurers, 26 life business insurers and two reinsurance.