Lagos — Nigerian insurance appeared to be on the growth trajectory. 2013 report posted on NAICOM’s website showed the 22 insurance companies that have had their accounts cleared by NAICOM posting a collective gross premium of about N180 billion. Below is the loss ratio chart for 2013. The loss ratio is the ratio of total losses incurred (paid and reserved) in claims plus adjustment expenses divided by the total premiums earned. For example, if an insurance company pays $60 in claims for every $100 in collected premiums, then its loss ratio is 60% with a profit ratio/gross margin of 40% or $40. Some portion of those 40 dollars must pay all operating costs (things such as overhead and payroll), and what is left is the net profit.