Insurance firms ceded 40.7 per cent of their businesses abroad in Quarter 1, retaining a market average ratio of 59.3 per cent in the country, The Nation has learnt.
This was made known in a Bulletin of the Insurance Market Performance for the first quarter of the year released by the National Insurance Commission (NAICOM).
NAICOM noted that an insurer’s level of risk retention is dependent on its risk appetite as determined by its financial capacity and evaluation of the given business.
According to NAICOM, the industry exhibited strong confidence by retaining a significant share of risks in their portfolios despite the challenges posed by economic reforms.
The report read: “The insurance industry recorded a market average retention ratio of 59.3 per cent.
In the Non-Life segment the proportional retention was comparatively lower owing to the effect of the special risks portfolios thereby it was recorded at about 44.1 per cent precisely.
“The insurance industry regulator maintained that the statistics from the Nigerian Insurance market in the first quarter of 2025 revealed a sustained positive performance indicating yet, its ability to adapt and grow despite the prevailing macroeconomic challenges.”
