Joseph Inokotong, Abuja
NIGERIAN insurance industry life annuity fund portfolio has risen to N322,918,475,660.72 as at the end of second quarter (Q2) of 2019.
This represents a growth of 17.46 per cent from N274,918,556,624.90 recorded at end of Q4, 2018.
During the same period under review, the cumulative total RLA payouts stood at N122,094,395,111.31.019.
The RLA market has been in existence since the commencement of the Contributory Pension Scheme (CPS).
over the period, Nigeria’s RLA portfolio recorded 73,554 contracts purchased for a total premium of N341,615,154,821.14 as at end of Q2, 2019.
This represents 13.02 per cent and 6.21 per cent growth in count and volume, respectively in 2019 from end of Q4, 2018.
The National Insurance Commission (NAICOM), made these details known at the weekend in Abuja through a statement by its
Head, Commissioner for Insurance’ Directorate, Rasaaq ‘Salami.
According to the regulator “the growth during the last three years for RLA business averaged 34.28 percent and 35.12 percent in count and volume respectively, while RLA fund portfolio growth has averaged 27.46 percent notwithstanding the RLA payouts made (i.e. cumulative total payments of N122,094,395,111.31 as at end of second quarter 2019)”.
From the graph presented by the regulator, the difference between the cummulative premium amounts received and fund balance is small at ( N18,696,679,160.42) 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 NAICOM and authorised to sell RLA under the regulation on retiree life annuity.