Insurance Sector Contracted By 2.08% In Q1

 Insurance Sector Contracted By 2.08% In Q1

Latest data by the National Bureau of Statistics has shown that the insurance sector contracted by 2.08 percent in the first quarter of 2021.

The figures, which were contained in its report on Gross Domestic Product for the first quarter, said the sector accounted for 12.45 per cent of the financial sector during the period under review.

It said, “The financial and insurance services sector consists of the two subsectors, financial institutions and insurance, which accounted for 87.55 per cent and 12.45 per cent of the sector respectively in real terms in Q1 2021.

“The sector grew at 2.15 per cent in nominal terms (year on year), with the growth rate of financial institutions as 2.78 per cent and –2.08 per cent growth rate recorded for Insurance.

“The overall rate was lower than that in Q1 2020 by -21.81 per cent points, but 3.25 per cent points higher than the preceding quarter.

“Quarter-on-quarter growth stood at 6.47 per cent. The sector’s contribution to the aggregate nominal GDP was 3.25 per cent in Q1 2021, lower than the 3.57 percent it represented the previous year, but higher than the contribution of 2.80 per cent in the preceding quarter.”

According to the NBS, in real terms, the financial and insurance services sector grew by –0.46 per cent or –21.26 per cent points lower from the rate recorded in Q1 2020, but 3.16 per cent points higher than the rate recorded in the preceding quarter.

Also the sector’s contribution to real GDP was 3.77 percent.

This is lower than the contribution of 3.81 percent recorded in the first quarter of 2020 by –0.04 per cent points, however, higher than 3.07 per cent recorded in Q4 2020 by 0.70 per cent points.

Kehinde Ogunyale

Freelance Investigative and Data Journalist

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