Nigeria’s insurance industry posted a strong performance in 2025, recording a 47.3 percent year-on-year growth in Gross Premium Written to N2.30 trillion at the end of the fourth quarter, according to the latest bulletin released by the National Insurance Commission (NAICOM).
The regulator described the performance as a reflection of the sector’s growing relevance in the country’s financial system, alongside what it called a steady improvement in public confidence and market participation.
Non-Life insurance drives expansion
A major highlight of the industry’s structure remains the dominance of the Non-Life segment, which contributed 68.4 percent of total premiums during the period under review.
Within this category, Oil & Gas insurance emerged as the leading contributor, accounting for 30.3 percent of Non-Life premiums. It was followed by Fire insurance with 20.4 percent, while Motor insurance contributed 16.1 percent , underscoring the continued importance of asset protection and industrial coverage in the market.
Life insurance boosted by annuity growth
The Life insurance segment, which made up 31.6 percent of the industry’s total premium pool, was largely supported by the performance of annuity products.
Annuities accounted for 44.3 percent of Life sector premiums, outperforming Individual Life policies at 36.2 percent and Group Life at 19.5 percent. This trend points to rising demand for retirement-focused financial products amid growing awareness of long-term financial planning.
Claims rise alongside stronger settlement performance
Despite the strong premium growth, insurers also recorded increased claims obligations. Gross claims rose to N724.7 billion, representing about 31.5 percent of total premiums written.
However, the industry maintained relatively strong claims settlement performance. The Non-Life segment recorded a settlement rate of 75.5 percent, while the Life segment settled 65.5 percent of reported claims.
Motor insurance stood out in claims management efficiency, achieving an 88.5 percent settlement ratio, which NAICOM linked to improved underwriting discipline and operational efficiency among insurers.
Profitability and asset growth remain stable
NAICOM noted that the sector remained profitable despite broader macroeconomic pressures, posting a net loss ratio of 43.6 percent, an indicator that still reflects operational stability within the industry.
Total industry assets also expanded to N4.79 trillion, representing a 7.4 percent increase from the previous quarter. Of this figure, Non-Life insurers accounted for N2.60 trillion, while Life insurers held N2.19 trillion.
Regulatory reforms and recapitalisation support outlook
The commission attributed the industry’s performance to ongoing regulatory reforms aimed at deepening market activity, improving governance standards, and strengthening pricing discipline among operators.
It also highlighted the ongoing recapitalisation exercise as a key factor expected to reshape the industry’s structure, improve capital adequacy, and enhance insurance penetration across the country.
While acknowledging concentration in the Life segment, where the top 10 underwriters control nearly 90 percent of the market, NAICOM’s Research and Statistics Department described the overall outlook as “strong and desirable,” adding that the sector remains attractive for investment and long-term growth.
