Nigeria’s Insurance Sector Records N2.3 Trillion Premium in Q4 2025

The Nigerian insurance industry has recorded a 47.3% year-on-year growth rate in Gross Premium Written to N2.30 trillion at the close of the fourth quarter of 2025.

According to the latest performance bulletin for the fourth quarter of 2025 released by the National Insurance Commission, the sector recorded an exceptional 47.3% year-on-year growth rate, underscoring the industry’s increasing relevance within Nigeria’s financial ecosystem and a deepening of public confidence in the market.

The industry’s stellar performance was largely anchored by the Non-Life segment, which contributed 68.4% of the total premium pool. Within this segment, the Oil & Gas business emerged as the dominant force, accounting for 30.3% of all non-life premiums generated. Other significant contributors included Fire insurance at 20.4% and Motor insurance at 16.1%.

On the other hand, the Life Insurance segment, which accounted for 31.6% of the market, was primarily driven by the growth of Annuity funds. Annuities contributed a substantial 44.3% of all premiums recorded in the Life sector, surpassing Individual Life (36.2%) and Group Life (19.5%).

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In terms of commitment to policyholders, the insurance industry in Q4 2025 saw its gross claims rise to N724.7 billion, representing approximately 31.5% of the total premiums written.

Insurers demonstrated strong settlement capabilities, with the Non-Life segment achieving a settlement rate of 75.5%, while the Life segment settled 65.5% of reported claims. Notably, Motor insurance recorded an outstanding settlement ratio of 88.5%, reflecting a high level of underwriting quality and efficiency.

NAICOM added that despite the challenging macroeconomic environment, the sector remained profitable, posting an overall market net loss ratio of 43.6%. The industry’s financial position also strengthened, with total assets reaching N4.79 trillion, a 7.4% expansion from the previous quarter. Of these assets, N2.60 trillion was attributable to Non-Life business, while Life insurance accounted for N2.19 trillion.

NAICOM attributed this “unprecedented” growth to ongoing regulatory measures aimed at market deepening and the effectiveness of insurers’ pricing strategies.

The insurance industry is undergoing a recapitalisation exercise, which market watchers believe would strengthen the industry and deepen insurance penetration in Nigeria.

The Research & Statistics Department of NAICOM, which put together the report, maintained that while market concentration remains with the top 10 life underwriters controlling nearly 90% of their segment, the overall outlook is described as “strong and desirable,” offering a favourable environment for investment and returns.