National Insurance Commission (NAICOM) has revealed that the Insurance sector life annuity fund portfolio at the end of the second quarter of 2019 stood at about N323 billion.
The information was made available by Mr Rasaq Salami, Head, Commissioner for Insurance Directorate of the NAICOM in a statement on Saturday in Abuja.
Salami said that the figure represented a growth of 17.46 per cent compared to that of 2018 which was N 275 billion.
” Within the same period under focus, the cumulative total Retiree Life Annuity (RLA)
payouts stood above ₦122 billion as at end of the second quarter of 2019,” he said.
According to him, the RLA market has been in existence since the advent of the Contributory Pension Scheme (CPS).
Salami said the RLA portfolio has recorded 73,554 contracts purchased for a total premium of ₦342 billion as at end of the second quarter of 2019.
“This depicts 13.02 per cent and 6.21 per cent growth in count and volume, respectively, ” he said.
The NAICOM spokesman said that the growth during the last three years for RLA business averaged 34.28 per cent and 35.12 per cent in count and volume respectively.
He noted that the RLA fund portfolio growth averaged 27.46 per cent, notwithstanding the RLA cumulative total payments of N122 billion.
“The graph of the annuity payouts, premium receipts and portfolio fund balance depicts a clear representation as the difference between the cumulative premium amounts received and fund balance is small compared to the cumulative annuity payouts earlier stated.
“The above indicates growth in the RLA business and a positive future outlook for the business in Nigeria, ” he said.
RLA is an insurance product and one of the available retirement benefit options for retirees.
The product can be purchased from a Life Insurance Company licensed by the NAICOM and authorised to sell RLA under the regulation of retiree life annuity.