The Nigerian insurance industry has reached a watershed moment, recording N2.30tn in Gross Premium Written at the close of the fourth quarter of 2025. This figure represents a 47.3 per cent year-on-year growth, signalling a profound shift in the country’s financial landscape.
According to the latest performance bulletin released by the National Insurance Commission, this growth underscores the “increasing relevance of the sector 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 per cent of the total premium pool. Within this powerhouse segment, the Oil & Gas business emerged as the dominant force, accounting for 30.3 per cent of all non-life premiums generated.
“The unprecedented growth we are witnessing is a direct result of ongoing regulatory measures aimed at market deepening and the effectiveness of insurers’ pricing strategies,” NAICOM stated in the report.
On the Life Insurance side, which accounted for 31.6 per cent of the market, Annuity funds took centre stage.
Contributing 44.3 per cent of all premiums in the Life sector, annuities have officially surpassed Individual Life (36 per cent) and Group Life (19.5 per cent) as the primary growth engine for long-term insurance products.
Despite the massive influx of premiums, the industry faced a significant rise in obligations. Gross claims rose to N724.7bn in Q4 2025, representing approximately 31.5 per cent of the total premiums written.
Insurers demonstrated robust resilience in meeting these obligations. The Non-Life segment achieved a settlement rate of 75.5 per cent, while the Life segment settled 65.5 per cent of reported claims.
“The motor insurance segment, in particular, recorded an outstanding settlement ratio of 88.5 per cent, reflecting a high level of underwriting quality and operational efficiency across the board,” the bulletin highlighted.
Even in a challenging macroeconomic environment, the sector remained profitable, posting an overall market net loss ratio of 43.6 per cent. The industry’s financial position strengthened further, with total assets reaching N4.79tn, a 7.4 per cent expansion from the previous quarter.
However, the report also pointed toward a high level of market concentration. The Research & Statistics Department of NAICOM noted that the top 10 life underwriters currently control nearly 90 per cent of their segment.
“While market concentration remains high, the overall outlook for the industry is strong and desirable, offering a favourable environment for investment and sustainable returns,” NAICOM maintained.
As the industry undergoes a critical recapitalisation exercise, market watchers believe the sector is poised to further deepen insurance penetration, transforming from a peripheral player into a cornerstone of the Nigerian economy.
