National Insurance Commission (NAICOM) has released the report on the Retiree Life Annuity for 2nd quarter of 2020. The report shows that the Industry value for Retiree Life Annuity as at 30 June 2020 is N463 Billion. Below is the full report for your perusal;
Retiree Life Annuity: An Overview of Q2, 2020.
The Retiree Life Annuity (RLA) depict marginal growth during the period under review. The RLA portfolio so far has recorded 83,917 contracts purchased for a total premium of ₦376,585,316,488.84 as at end of Q2, 2020. This depicts 2.69% and 1.58% growth in count and volume, respectively in Q2, 2020 from end of Q1, 2020. While the industry fund portfolio grew by 15.34% from ₦401,513,860,403.49 in Q1, 2020 to ₦463,104,007,353.66 at the end of Q2, 2020.
The growth (i.e. YoY) during the last three years for RLA business averaged 25.45% in volume, while RLA fund portfolio growth has averaged 37.22% notwithstanding the RLA payouts made (i.e. cumulative total payments of ₦167,209,437,755.05 as at end of Q2, 2020).
The graph of the annuity payouts, premium receipts and portfolio fund balance depicts a clear representation with the fund balance (i.e. ₦463,104,007,353.66) being higher than the cumulative premium amounts received (i.e. ₦376,585,316,488.84) notwithstanding the cumulative annuity payouts earlier stated.
Further analysis (as shown below) of the periodical increments in the cumulative premium amounts received and RLA fund portfolio respectively, depicts the growth rate for premium receipts is receding while the growth rate for the portfolio fund balance is volatile. This could be attributed to the volatility in interest rate.
The above indicates growth in the RLA business and a positive future outlook for the business in Nigeria.
Retiree Life Annuity can be purchased from a Life Insurance Company licensed by the National Insurance Commission (NAICOM) and authorize to sell RLA under the regulation on retiree life annuity.