Insurance Industry: Life Annuity Hits N323Billion

By LOVETH AZODO, Lagos

The National Insurance Commission has stated that the life annuity fund portfolio of the industry recorded ₦322,918,475,660.72 as at the end of second quarter of 2019.

According to the regulator, in a statement signed by its Head, Commissioner for Insurance’ Directorate, Rasaaq ‘Salami stated that the figure represents 17.46percent growth from ₦274,918,556,624.90 as at end of last quarter of 2018.

Continuing, it stated that within the same period under focus, the cumulative total Retiree Life Annuity (RLA) Insurers recorded N323B Growth In life annuity in the second quarter.

“The RLA market has been in existence since the advent of the Contributory Pension Scheme (CPS).”

The RLA portfolio, it stated has so far recorded 73,554 contracts purchased for a total premium of ₦341,615,154,821.14 as at end of second quarter 2019, “this depicts 13.02percent and 6.21percent growth in count and volume, respectively in 2019 from end of fourth quarter of 2018. 6 2019_Q2 8,476

“The growth during the last three years for RLA business has averaged 34.28percent and 35.12percent in count and volume respectively, while RLA fund portfolio growth has averaged 27.46percent notwithstanding the RLA payouts made (i.e. cumulative total payments of ₦122,094,395,111.31 as at end of second quarter 2019),” it stated.

According to the graph presented by the regulator, the difference between the cumulative premium amounts received and fund balance is small (i.e. ₦18,696,679,160.42) compared to the cumulative annuity payouts earlier stated.

It indicated growth in the RLA business and a positive future outlook for the business in Nigeria.

Retiree Life Annuity (RLA) is an insurance product and one of the available retirement benefit options for retirees which can be purchased from a Life Insurance Company licensed by the National Insurance Commission (NAICOM) and authorized to sell RLA under the regulation on retiree life annuity.