Annuity provided the largest chunk of premium income, amounting to N77.77 billion, representing 48 per cent of total earnings to Life Insurance companies in 2017.
Data obtained from the Nigerian Insurers Association (NIA) revealed that Life Insurers earned N44.58 billion, 28 per cent from group life policy and N39.27 billion from individual life business.
A breakdown of net written premium earned by some companies showed that Leadway Assurance Company Limited, posted N56.17 billion; Custodian Life Assurance Limited, N7.71 billion; FBNInsurance Limited, N6.76 billion; AIICO Insurance Plc, N3.22 billion; and ARM Life Plc, N2.71 billion.
However, the crisis that rocked annuity business in 2017, may have affected the net written premium income as life operators as they were mandated to open operational accounts with Pension Fund Administrators (PFCs).
According to the National Pension Commission (PenCom), after the embargo was lifted, it approved a total of 5,243 applications for annuity plan in third quarter 2017, and the 5,243 retirees paid annuity premium of N27.74 billion to life insurance companies.
Recall that PenCom, had in November 2016, mandated life insurers to stop annuity business for three months and within the period, transfer their annuity assets to PFCs.
According to PenCom, the decision to move annuity assets from life insurers to PFCs is to ensure consistency with Pension Reform Act (PRA) 2014 and strengthen the processing of administration of retirement benefits.