Insurance Sector Investment Income Hits N938bn

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Although, the 60 insurance companies in the country have not been fantastic with their investment strategies over the years,

leading to low income yield from investments they have made, there seems to be gradual growth in investment income in the last few years, as investment income of the sector now stood at N938 billion, LEADERSHIP learnt.

The industry investment income, it was learnt, grew by 12 per cent between 2018 and 2019 financial year end, and it is projected to rise to over N1 trillion by the end of 2020 financial year end, even though, the investment climate currently is yielding low returns.Similarly, investigation shows that the income has grown by N215 billion from 2016 when the investment income of insurance sector was N723 billion to N937 billion in 2019 financial year end.

The average yield on 364 days treasury certificates was about 14% in 2018 significantly higher than the industry’s average returns on its investment portfolio.

 

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