BY NKECHI NAECHE ESEZOBOR——National Insurance Commission (NAICOM) on Saturday said the Insurance sector life annuity fund portfolio appreciated by 17.46% at the end of second quarter (Q2) 2019 to stand at N323 billion.
This is contained in a statement made available by the Head, Commissioner for Insurance’ Directorate, Rasaaq ‘Salami, that the annuity portfolio grew from N 275 billion in 2018 to N323 billion in 2019 representing 17.46 percent increase.
The statement thus read: “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.”
“The RLA market has been in existence since the advent of the Contributory Pension Scheme (CPS)”.
He explained further that 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 growth according to him during the last three years for RLA business averaged 34.28 per cent and 35.12 per cent in count and volume respectively.
Salami added that the RLA fund portfolio growth averaged 27.46 per cent, notwithstanding the RLA cumulative total payments of N122 billion.
