J
K
Nigeria is most populated country in Africa. With a growth GDP above
7% and a decreasing inflation the country is booming economically speaking. However, Nigeria is over dependent on oil exports (95% of the total exports); it endangers its good economical state and future growth.
In addition, the country is still very poor (84,5% below poverty line) and the wealth remains concentrated in a few people.
K
Despite the war declared by the government against terrorists, the situation is getting worst, the sect Boko Haram strikes the country with violent terrorist attacks and kidnappings.
Nigeria’s dependence on oil exports, the high degree of corruption and the insecurity can also endanger investments. However, its economic growth, the low level of foreign debt and the quality of its banking system are assets for investors. In addition, insurance risks are moderate (for S&P). Its is a very interesting country and economy but still unstable and insecure, especially in the North.
K
Cash before cover country with a strict control of the National Insurance
Commission (NAICOM). Fronting is generally prohibited with therefore low reinsurance cessions.
K
Nigeria is now the first economy in Africa in terms of GDP and has a strong overall economic growth. However, considering GDP per capita
Nigeria is below South Africa and Angola. Its petroleum exports maintain a positive balance of payments. Finally FDI remains high, especially in the mining and oil sectors. Future growth will be linked to oil exports and to modernization and diversification of the global economy to decrease its dependence on oil.
J
The market is growing and is composed by a very important number of players. The market penetration is low regarding other African economic powers. Globally it is an interesting market, one of the biggest in Africa.
Good historical and prospective profitability.
J
Occasional partnership with Leadway with a few accounts. Strong company, leader of the Nigerian market with more than 10% of market share.
Nigeria, as the new economic leader in Africa, cannot be ignored in a global strategy of expansion in Africa. It is still a risky country in which terrorist groups like Boko Haram endanger the security, especially in the North. The insurance market is controlled by a strong regulator and the rule of law seems to be followed in this sector. AXA Corporate Solutions has just started an occasional partnership with a local company: Leadway. It is the leader on the Nigerian market, and the collaboration is stable. Recommendations are to strengthen the partnership and follow up the situation, especially regarding terrorism.

Key country facts
Key country data
Country risk assessment
Insurance
Market
Insurance
Regulation
Local partner analysis
Country- General information (Source: CIA factbook)
LARGEST CITIES:
Lagos
(10.203 million)
Kano
(3.304 million)
POPULATION: 173,9 million inhabitants (7/240 countries)
Change rate 2013 (Oanda) per EUR 224,7 for 1 euro
Ibadan
(2.762 million)
EXPORTS:
MOST IMPORTANT EXPORT
DESTINATIONS:
IMPORTS:
MOST IMPORTANT SOURCES OF
IMPORTS
ABUJA (capital)
(1.857 million)
Exports and imports (Source: AXCO report) petroleum and petroleum products 95%, cocoa, rubber
US
(16.8%)
India
(11.5%)
Netherlands
(8.6%) machinery, chemicals, transport equipment, manufactured goods, food and live animals
China
(18.3%)
US
(10.1%)
India
(5.5%)
Analysis: Nigeria is most populated country in Africa. With a growth GDP above 7% and a decreasing inflation the country is booming economically speaking.
However, Nigeria is over dependent on oil exports (95% of the total exports) and it endangers its good economical state and future growth.
In addition, the country is still very poor (84,5% below poverty line) and the wealth remains concentrated in a few people.
Main contributors to GDP
(CIA
Factbook):
26%
43%
31 % agriculture industry services
Gross domestic product growth (%)
Inflation, average consumer prices
(%)
Population
(million)
Current account balance (% of GDP)
2011
7,4
10,8
160,3
3,5
2012
6,6
12,2
164,8
7,7
2013
6,3
8,5
General overview (Source: IMF and World Bank)
2014 2015
7,1
7,3
7,0
7,0
Quick Facts
GDP per capita (CIA) 2013
Poverty ratio at $2 per day in 2010(World Bank)
Life expectancy (year) (World Bank) in 2012
HDI* (UN) (value/rank)
Next election (Axco)
169,3 173,9 178,7
4,7 4,9 4,0
*: Human Development indicators (including: Life expectancy, GDP per capita and level of education)
2800
84,5%
52,6
0,5/152
2015

Key country facts
Current account balance, % GDP
20,00
10,00
0,00
-10,00
-20,00
-30,00
-40,00
2010 2011 2012 2013 2014 2015
Key country data
Country risk assessment
Insurance
Market
Insurance
Regulation
Nigeria
South Africa
Chad
Angola
GDP % Growth, annual
14,00
12,00
10,00
8,00
6,00
4,00
2,00
0,00
2010 2011 2012 2013 2014 2015
Local partner analysis
Source: World Bank
Nigeria
South Africa
Chad
Angola
Foreign direct investment, net inflows
(BoP*, current Mn US$)
External debt stocks, total (DOD, current Mn US$)
10 000,00
8 000,00
6 000,00
4 000,00
2 000,00
0,00
8 554,80
*: Balance of payments
6 048,60
8 841,90
7 101
12 000,00
10 000,00
8 000,00
6 000,00
4 000,00
2 000,00
0,00
2009 2010 2011 2012
6 847,80
2009
7 271,10
2010
9 008,80
2011
10 076,50
2012

Key country facts
Key country data
Country risk assessment
Insurance
Market
Insurance
Regulation
Local partner analysis
Nigeria
South Africa
Chad
Angola
500
450
400
350
300
250
200
150
100
50
0
2009 2010
GDP Current billion US$
2009
169,5
284
9,3
75,5
2010
366,4
363,2
10,7
82,5
2011
413,5
401,8
12,2
104,2
2011 2012
2012
459,6
384,3
12,9
114,1
Nigeria
South Africa
Chad
Angola
GDP per capita current US$
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2009
Nigeria
South Africa
Chad
Angola
2010
2009
1091
5654
814
3989
2011
2010
2294
7137
909
4219
2012
2011
2519
7790
1006
5159
Nigeria
South Africa
Chad
Angola
2012
2722
7352
1035
5482
Analysis : Nigeria is now the first economy in Africa in terms of GDP and has a strong overall economic growth. However, considering GDP per capita Nigeria is below South Africa and Angola. Its petroleum exports maintain a positive balance of payments. Finally FDI remains high, especially in the mining and oil sectors. Future growth will be linked to oil exports and to modernization and diversification of the global economy to decrease its dependence on oil.

Key country facts
Key country data
Country risk assessment
Insurance
Market
Insurance
Regulation
Local partner analysis
COFACE 2013 Transparency International 2013
Country rating D
Rank 144/177
Business climate assessment
Strenghts
Weaknesses
D
• Substantial hydrocarbon resources and considerable agricultural potential
• The most populated country in Africa (162 million)
• Low foreign debt
• Banking sector largely consolidate thanks to the reforms launched in 2009
• Highly dependence on oil revenues (90% of exports, 80% of tax revenues)
• Refining capacity very reduced, resulting in burdensome imports
• Ethnic and religious tensions
• Insecurity, corruption constraining the business environment
• Unemployment, poverty, inadequate health and education systems
Worldwide governance indicators comparison in 2013
(World Bank):
Control of Corruption
Rule of Law
Regulatory Quality
Government Effectiveness
Political Stability and Absence of Violence
Voice and Accountability
Score
Fitch ratings
( 2014-04-11)
BB- (Stable)
Standard &
Poors ’
( 2012-11-07)
BB-
25/100
Moody’s
/
France
Angola
South Africa
Nigeria
Analysis: Despite the war declared by the government against terrorists, the situation is getting worst, the sect Boko Haram strikes the country with violent terrorist attacks and kidnappings.
Nigeria’s dependence on oil exports, the high degree of corruption and the insecurity can also endanger investments. However, its economic growth, the low level of foreign debt and the quality of its banking system are assets for investors.
In addition, insurance risks are moderate (S&P). Its is a very interesting country and economy but still unstable and insecure, especially in the North.
L 0 20 40 60 80 100 J

Key country facts
Key country data
Country risk assessment
Insurance
Market
Country
Nigeria
South Africa
Angola
Market Penetration
%
Non-life (P&C)
Per capita
0,51 6,27
2,05
0,56
150,47
28,75
%
0,68
16,29
0,88
Total
Per capita
8,46
1195
45,17
Insurance
Regulation
Local partner analysis
Source: AXCO
Analysis: the market is growing and is composed by a very important number of players.
The market penetration is low regarding other African economic powers.
Globally it is an interesting market, one of the biggest in Africa.
Good historical and prospective profitability.
Premium in NGN mn
Premium in USD mn
% of total market
Market size
Non-Life
149 042
991,64
74,05%
Total market
201 284,36
1 339,23
100%

Key country facts
Key country data
Country risk assessment
Insurance
Market
Insurance
Regulation
Local partner analysis: BODI
Fronting: In terms of the Insurance and Reinsurance Guidelines issued by the National Insurance Commission (NAICOM) in May 2006 fronting is forbidden in respect of: fire insurance and reinsurance business, motor insurance and reinsurance business, liability insurance and reinsurance business, life insurance and reinsurance business, accident insurance and reinsurance business, such other insurance and reinsurance and business as the commission may from time to time prescribe.
Cash before cover: YES, under the terms of the National Insurance
Commission (NAICOM) Guidelines on Insurance Premium Collection
and Remittance (NAICOM/CFI/DC/G/12/12) of 1 January 2013, all insurance covers should be provided strictly on a 'no premium no cover' basis.
Control of exchange: NA
Pools: NA
Non-admitted insurance: Non-admitted insurance is not permitted because the law provides that insurance must be purchased from locally authorized insurers. There are no exceptions specified in the legislation to the general prohibition on non-admitted placements, other than permission may be sought from the regulator to effect such a placement.
Compulsory insurance: third party motor insurance, builders' liability, property owners' liability and healthcare providers' professional indemnity cover
Premium taxes: NA
Retentions: There are no statutory limitations on retention levels.
Insurance legislation: Insurance Act, No 1 of 2003 repealed and replaced Insurance Decree, No 2 of 1997. The legislation deals with, amongst other things, the registration and operation of insurers and insurance intermediaries. The act applies to both life and nonlife classes
Regulator: National Insurance Commission (NAICOM)
It is part of the Federal Ministry of Finance and was formed in accordance with National Insurance Commission Decree, No 1,
1997. It also sets standards for the conduct of insurance business, approving premium and commission rates and regulating transactions between insurers and reinsurers both inside and outside of Nigeria. The commissioner has power to wind up, put into receivership or withdraw licenses from offending companies.
Analysis: Cash before cover country with a strict control of the
National Insurance Commission (NAICOM). Fronting is generally prohibited with therefore low reinsurance cessions.

Key country facts
Key country data
Country risk assessment
Insurance
Market
Insurance
Regulation
SOURCE:
Local partner analysis
Founded in 1970, Leadway Assurance Company Ltd - Leadway is a composite insurer.
Leadway is 81% Nigerian-owned and 19% owned by the International Finance Corporation.
In 2010 the company had a non-life market share of 10.35% and a life market share of
5.06%.
3 policies with Leadway today
Rating by AM Best: B-
A composite company underwriting all classes of insurance business.
The Company has enjoyed a steady growth in premium Income and total assets, which currently stands at over N 30.5 billion (Thirty billion five hundred million naira) and N 66.3 billion (sixty six billion, three hundred million naira) respectively as at December 31, 2012.
2012
Turnover (M of NGN)
36920,5
Turnover (M€)
164
Combined ratio
42,3%
Net Result (M€)
57,9
ROE
109%
Assets (M€)
295
Invest /
Assets
21%
Equity /
Premim
32%
Reserve /
Premium
7%
Analysis : Occasional partnership with Leadway with a few accounts. Strong company, leader of the Nigerian market with more than 10% of market share.

Gross domestic product, constant prices (Percent change)
Annual percentages of constant price GDP are year-on-year changes; the base year is country-specific . Expenditure-based GDP is total final expenditures at purchasers’ prices (including the f.o.b. value of exports of goods and services), less the f.o.b. value of imports of goods and services. [SNA 1993]
Inflation, average consumer prices (Percent change)
Annual percentages of average consumer prices are year-on-year changes.
Unemployment rate (Percent of total labor force)
Unemployment rate can be defined by either the national definition, the ILO harmonized definition, or the OECD harmonized definition. The
OECD harmonized unemployment rate gives the number of unemployed persons as a percentage of the labor force (the total number of people employed plus unemployed).
Current account balance (Percent of GDP)
Current account is all transactions other than those in financial and capital items. The major classifications are goods and services, income and current transfers. The focus of the BOP is on transactions (between an economy and the rest of the world) in goods, services, and income. The current account balance is defined by the sum of the value of imports of goods and services plus net returns on investments abroad, minus the value of exports of goods and services, where all these elements are measured in the domestic currency.
GNI Index (GNI per capita, Atlas method current US$)
GNI per capita (formerly GNP per capita) is the gross national income, converted to U.S. dollars using the World Bank Atlas method, divided by the midyear population. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad