KEY POINTS
- Nigeria’s insurance industry grew gross premium written 47.3 percent to N2.301 trillion in 2025, outpacing national GDP growth of 3.9 percent
- Non-life insurance led with 68.4 percent of premiums, driven by Oil and Gas at 30.3 percent of the non-life pool
- Claims payment declined 21.7 percent to N724.7 billion, with life insurance settling 65.5 percent and non-life settling 75.5 percent of claims
Nigeria’s insurance industry recorded 47.3 percent year-on-year growth in gross premium written, with Nigeria insurance premiums reaching N2.301 trillion in 2025 from N1.558 trillion in 2024, according to an annual report the National Insurance Commission released on Monday.
NAICOM attributed the performance to strong Oil and Gas business in the non-life segment and growing Annuity fund contributions in life insurance. The industry’s expansion also outpaced national GDP growth of 3.9 percent during the period.
Meanwhile, claims payment declined 21.7 percent to N724.7 billion in 2025 from N926.1 billion in 2024.
Non-life leads; Oil and Gas drives premium growth
Furthermore, the non-life insurance segment continued to dominate, contributing 68.4 percent of the total premium pool. Within that segment, Oil and Gas business led at 30.3 percent of non-life premiums, with Fire Insurance ranking second at 20.4 percent and Motor Insurance at 16.1 percent. Miscellaneous, General Accident, Marine and Aviation businesses accounted for the remainder.
Life insurance contributed 31.6 percent of total Nigeria insurance premiums. Annuity funds led the life segment at 44.3 percent, while Individual Life accounted for 36.2 percent and Group Life 19.5 percent.
Claims declined but settlement ratios held firm
Additionally, the decline in total claims to N724.7 billion, representing 31.5 percent of gross premiums written, reflects improved claims management across the industry. NAICOM described the result as evidence of strong underwriting capacity and effective pricing strategies.
However, settlement ratios remained robust. The life insurance segment achieved a claims settlement ratio of 65.5 percent, while the non-life segment settled 75.5 percent of total claims during the period.
