Nigeria’s insurance industry recorded gross premiums written (GPW) of N2.3 trillion in the 2025 financial year, representing a 47.3 per cent year-on-year increase and a 36 per cent rise quarter-on-quarter, according to the Q4 2025 market bulletin released by the National Insurance Commission.
Growth in the non-life segment was largely driven by the oil and gas sector, which accounted for over 30 per cent of total premiums and remained the dominant risk class. Fire and motor insurance lines also sustained steady demand, reflecting continued emphasis on asset protection.
Within the life insurance segment, annuity products contributed 44.3 per cent of premiums, supported by ongoing pension reforms that are encouraging retirees to convert savings into guaranteed income streams. Individual life policies also gained traction, indicating rising adoption among retail customers.
Premium retention across the industry improved to 68.1 per cent, with life insurance recording a notably high retention rate of 94.1 per cent. This performance reflects enhanced domestic risk capacity, improved pricing frameworks, and stronger capitalisation, although challenges persist in high-risk segments such as marine, aviation, and oil and gas.
Claims payouts totalled N724.7 billion, representing 31.5 per cent of gross premiums. Settlement ratios stood at 65.5 per cent for life insurance and 75.5 per cent for non-life business. Notably, motor, miscellaneous, and accident insurance classes recorded settlement rates exceeding 80 per cent, reinforcing policyholder confidence in the sector.
The industry’s net loss ratio remained stable at 43.6 per cent, with the life segment delivering particularly strong performance. However, some operators recorded loss ratios above 100 per cent, underscoring ongoing challenges related to pricing discipline and capital adequacy. Market concentration remains significant in the life segment, where the top three firms control approximately 55 per cent of the market, while the non-life segment is more fragmented.
Total industry assets grew by 7.4 per cent to N4.79 trillion, driven primarily by non-life business, although the gap between life and non-life segments continues to narrow amid pension-driven expansion.
Analysts interpret these trends as evidence of deepening market maturity, supported by recapitalisation efforts, increased activity in the energy sector, and improving financial literacy. Despite prevailing macroeconomic challenges, the insurance industry is increasingly positioned as a critical component of Nigeria’s risk management framework.
They added that addressing capital constraints through ongoing reforms could significantly boost insurance penetration and contribute to Nigeria’s long-term economic development.
