The Nigerian insurance industry is witnessing a wave of transformation, with regulatory reforms, strategic mergers, and fresh capital injections setting the stage for renewed growth and sectoral evolution.
On July 2, 2025, the National Insurance Commission (NAICOM) granted new licenses to SanlamAllianz Life and General Insurance following the successful merger between Sanlam and Allianz. The licenses, presented in Abuja, mark a significant milestone in the post-merger integration of two major players in the African insurance space.
Speaking at the event, Commissioner for Insurance, Olusegun Omosehin, urged the newly licensed entities to uphold strong corporate governance, maintain financial stability, and ensure prompt claims settlements. He expressed confidence that the merger would strengthen the companies’ operational capacity and positively impact the broader insurance industry.
Market Restructuring and New Entrants
The Sanlam-Allianz merger comes amid other major shake-ups in the industry. In 2024, Endura Investment Global Limited acquired a 24% controlling stake in Standard Alliance Insurance Plc, following the exit of former controlling shareholders, Standard Alliance Investment Limited, led by founding Vice Chairman O’tega Emerhor.
This acquisition led to a rebranding of the company to Fortis Global Insurance, with a new board of directors and a renewed strategic direction. According to resolutions from its June 16, 2025, board meeting, Fortis is expected to restructure into a holding company with standalone subsidiaries for life insurance, general insurance, and investment arms.
Meanwhile, the emPLE Group completed its acquisition of Old Mutual Nigeria in April 2024, taking full ownership of its life and general insurance businesses. The rebranded firm aims to position itself as a leading insurer in Africa, with enhanced service delivery and customer experience.
Insurance Industry Reform Bill: Awaiting Presidential Assent
These industry moves come as the insurance sector awaits Presidential assent to the long-anticipated Insurance Industry Reform Bill, which has already passed both chambers of the National Assembly. Sponsored by Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance & Other Financial Institutions, the bill seeks to repeal outdated laws and establish a unified, modern legal framework for insurance operations in Nigeria.
Key highlights of the bill include:
- New minimum capital requirements:
- Non-life insurance: N25 billion (from N10 billion) or risk-based capital (RBC)
- Life insurance: N15 billion (from N8 billion) or RBC
- Reinsurance: N45 billion (from N20 billion) or RBC
- RBC regime: Insurers must now determine capital adequacy based on their risk exposures—covering insurance, market, credit, and operational risks.
- Regulatory and operational changes:
- Separation of annuity from individual life insurance
- Rebranding “oil & gas” to energy insurance
- Reinforcement of the “no premium, no cover” principle
- New caps on commissions across insurance categories
- Expanded compulsory insurance requirements, including:
- Group life assurance for every employee (penalty: N250,000 per uninsured employee)
- Insurance for buildings under construction with more than one floor
- Insurance for public buildings, government assets and employees
- Mandatory third-party motor insurance and insurance for petrol stations
- Credit life insurance for loans above N10 million
- A new Road Safety and Accident Victims Compensation Fund
Opportunities and Challenges Ahead
Industry analysts say the reform bill, when signed into law, will bring sweeping changes, improving regulatory clarity, boosting capital adequacy, and encouraging consolidation.
Edwin Igbiti, immediate past President of the Chartered Insurance Institute of Nigeria, said the recapitalisation move is long overdue, citing inflation, exchange rates, and other economic pressures. “The new capital requirements will not only strengthen existing players but will also likely trigger mergers and acquisitions, leading to a more robust and competitive industry,” he noted.
Backing this, Deloitte stated in a recent report that the reforms could unlock vast opportunities for Nigerian insurers, improving risk retention, reducing foreign dependency, and enabling deeper economic impact. “Stronger capital positions will allow insurers to underwrite bigger risks and support national development more effectively,” the report said.
In its 2025 Nigerian Insurance Industry Report, Agusto & Co. projected a capital injection of N600 billion into the sector once the bill becomes law. The agency expects a surge in recapitalisation efforts throughout FY 2025, driven by a shift toward the long-delayed risk-based capital regime.
A New Era for Nigerian Insurance
With major players like SanlamAllianz, Fortis Global Insurance, and emPLE Group leading the charge, and regulatory reforms on the horizon, Nigeria’s insurance landscape is entering a new era of transformation.
Industry experts agree that the coming months could be a turning point, setting the foundation for stronger governance, greater innovation, and broader insurance penetration—key pillars needed to support Nigeria’s ambition of becoming a $1 trillion economy by 2030.
