Insurance Sector Records 16.41% Growth In Q2

 Insurance Sector Records 16.41% Growth In Q2

The National Bureau of Statistics has said the insurance sector grew by 16.41 percent in the second quarter of the 2021.

According to the second quarter performance for the finance and insurance sector, the figures, the insurance sector which contracted by 2.08 percent in Q1, 2021; 12.05 per cent in Q4, 2020; 16.54 percent in Q3, 2020; 28.15 percent in Q2, 2020 had earlier recorded 5.64 percent growth in Q1, 2020.

Part of the NBS report read, “The finance and insurance sector consists of the two subsectors, financial institutions and insurance, which accounted for 87.92 per cent and 12.08 per cent of the sector respectively in real terms in Q2 2021.

“As a whole, the financial and insurance services sector grew at -1.86 per cent in nominal terms (year-on-year), with financial institutions growing at -3.93 per cent while insurance recorded a growth rate of 16.41 per cent.

“The overall rate was lower than that in Q2, 2020 by –22.68 per cent points, and by -4.01 per cent points than the preceding quarter. Quarter on quarter growth was -3.45 per cent.

“The sector’s contribution to the aggregate nominal GDP was 3.21 per cent in Q2, 2021, lower than the 3.76 percent it represented a year earlier, and the contribution of 3.25 percent it made in the preceding quarter.”

The report further stated that growth in this sector in real terms fell by 2.48 percent, lower by 20.97 percent points from the rate recorded in the second quarter of 2020 and 2.02 percent points from the rate recorded in the preceding quarter.

In the first half of 2021, it added, growth in financial and insurance services stood at 1.47 percent year on year, compared to 19.63 percent year on year for 2020.

Quarter on quarter growth in real terms fell by 2.18 per cent.

The contribution of finance and insurance to real GDP totalled 3.72 per cent.

This is lower than the four per cent recorded in the second quarter of 2020 by 0.29 percent points, and the 3.77 percent recorded in Q1 2021 by 0.05 percent points.

Kehinde Ogunyale

Freelance Investigative and Data Journalist

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