2018: Insurance sector’s growth climbed by 3.82% Q3

The insurance sector grew by 3.82 per cent in the third quarter of 2018 financial period, latest statistics from the National Bureau of Statistics showed.

It stated, “The finance and insurance sector consists of two activities: Financial institutions and insurance, which accounted for 86.30 per cent and 13.70 per cent of the sector respectively in real terms in Q3 2018. As a whole, the sector recorded a growth rate of –2.17 per cent in nominal terms (year on year), with the growth rate of financial institutions as –3.06 per cent and 3.82 per cent growth rate recorded for insurance.”

The overall rate was higher than that of Q3 2017 by 1.71 per cent points, but lower by –5.65 per cent points than the preceding quarter, it stated.

Quarter on Quarter growth was –16.43 per cent. The sector’s contribution to the overall nominal Gross Domestic Product was 2.63 per cent in Q3 2018, lower than the 3.05 per cent it represented a year previous, and lower than the contribution of 3.42 per cent it made in the preceding quarter by -0.42 per cent points and -0.79 per cent points respectively.

Growth in this sector in real terms totalled –4.81 per cent, higher by 1.16 per cent points from the rate recorded in 2017 third quarter and down by –6.08 per cent points from the rate recorded in the preceding quarter.

Quarter on quarter growth in real terms stood at –16.97 per cent. The contribution of finance and insurance to real GDP totalled 2.52 per cent, slightly lower than the contribution of 2.70 per cent recorded in the third quarter of 2017, and lower than 3.31 per cent recorded in the preceding quarter.

According to the second quarter result which was released earlier, the insurance industry  accounted for 16.02 per cent of the financial sector and grew by 6.07 per cent in the second quarter of 2018 financial period.

The NBS stated, “The finance and insurance sector consists of two sub-sectors, the financial institutions and insurance, which account for 83.98 per cent and 16.02 per cent of the sector respectively in real terms in Q2 2018.

“As a whole, the sector grew at 3.49 per cent in nominal terms (year on year), with the growth rate of financial institutions as 3.01 per cent and 6.07 per cent growth rate recorded for insurance. The overall rate was lower than that of Q2 2017 by –14.19 per cent points, and lower by -10.34 per cent points than the preceding quarter.

“Quarter-on-quarter growth was –1.94 per cent. The sector’s contribution to the overall nominal GDP was 3.42 per cent in Q2 2018, lower than the 3.75 per cent in the previous year and lower from the contribution of 3.76 per cent it made in the preceding quarter by -0.33 per cent points and -0.34 per cent points respectively.

Again driven by the financial institutions activity, the growth of the sector in real terms totalled 1.28 per cent, lower by –9.18 per cent points from the rate recorded in 2017 second quarter and down by –12.03 per cent points from the rate recorded in the preceding quarter.

The NBS stated, “Quarter-on-quarter growth in real terms stood at –3.80 per cent. The contribution of finance and insurance to real GDP totalled 3.31 per cent, lower slightly than the contribution of 3.32 per cent recorded in the second quarter of 2017, and lower than 3.55 per cent recorded in the preceding quarter.”

The NBS revealed that the nation’s Gross Domestic Product growth rate for the second quarter of 2018 declined from 1.95 per cent in the first quarter to 1.5 per cent.

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