The National Bureau of Statistics (NBS) has reported that the nation’s insurance industry recorded a 6.07 percent growth in the second quarter of this year and accounted for 16.02 percent share of the financial services market.

The Bureau in its latest report on the finance and insurance sector’s performance in the quarter under review, stated that the finance and insurance sector consisted of two sub-sectors, namely the financial institutions and insurance both of which account for 83.98 per cent and 16.02 per cent of the sector respectively in real terms in Q2 2018.

The Bureau stated: “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 in 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”, it added.

According to the agency, the financial institutions activity in the quarter under review reflected that the sector’s total growth in real terms totalled 1.28 percent, representing a decline of -9.18 percent points from the rate recorded in Q2, 2017 and down by –12.03 percent points from the rate recorded in the preceding quarter.

The NBS clarified further that on quarter-on-quarter growth basis, the growth in real terms stood at –3.80 percent and that 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 Bureau reported further that the nation’s GDP growth rate for the Q2 declined from 1.95 percent in Q1 to 1.5 percent.