Industry’s Asset Base Rose to ₦4.79 trillion.
By LOVETH AZODO, Lagos
Nigeria’s insurance industry delivered a strong performance in 2025, with gross premium written rising to ₦2.302 trillion, reinforcing the sector’s growing relevance within the country’s financial system and signalling improved market confidence amid ongoing reforms.
Latest data from the National Insurance Commission (NAICOM) show the industry recorded a 36 per cent quarter-on-quarter growth and a 47.3 per cent year-on-year expansion in the fourth quarter, driven largely by robust activity in the Oil and Gas segment and sustained growth in annuity business within the life insurance market.
The non-life segment maintained its dominance, contributing 68.4 per cent of total premium income, with Oil and Gas accounting for the largest share of the portfolio. Fire and Motor insurance lines also posted significant contributions, while marine, aviation and general accident businesses supported overall market expansion.
In the life segment, annuity business emerged as the leading driver, ahead of individual and group life policies.
Industry claims rose in line with premium growth, with total claims reported at ₦724.7 billion, representing 31.5 per cent of gross premiums. Settlement performance remained strong across both segments, with non-life insurers recording a 75.5 per cent settlement ratio and life business posting 65.5 per cent, reflecting improved underwriting discipline and a more responsive claims environment.
Profitability indicators also remained stable, as the industry recorded an average net loss ratio of 43.6 per cent, with the life segment showing stronger margins compared to non-life operators. However, pockets of inefficiency persist, with a number of insurers reporting loss ratios above 100 per cent, highlighting areas that may require closer regulatory oversight.
Market structure analysis showed a relatively balanced distribution in the non-life segment, where the top three insurers accounted for about one-third of total premiums, while the life segment remained more concentrated, with a handful of operators controlling a significant share of the market.
The industry’s asset base also strengthened during the period, rising to ₦4.79 trillion, reflecting a 7.4 per cent increase from the previous quarter. Analysts say the steady growth in assets, alongside improved premium generation and claims performance, points to a more resilient and maturing insurance market.
NAICOM noted that the sector’s performance comes despite prevailing macroeconomic pressures, underscoring its resilience and capacity to support economic activity. With recapitalisation efforts and broader reforms underway, the industry is expected to deepen penetration, strengthen risk absorption capacity and play a more strategic role in Nigeria’s drive towards long-term economic growth.
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