Nigeria Insurance Industry Hits N2.3trn in Q4 2025 as NAICOM Reports 47% Growth

The National Insurance Commission (NAICOM) has reported a remarkable surge in Nigeria’s insurance industry performance, with Gross Premium Written (GPW) rising to N2.301 trillion in the fourth quarter of 2025, marking a 36% quarter-on-quarter growth and an impressive 47.3% year-on-year expansion.
According to the latest bulletin released by NAICOM’s Research and Statistics Department, the industry’s strong performance underscores its growing relevance within Nigeria’s financial system, significantly outpacing the country’s broader economic growth rate of 3.9%.
Strong Premium Growth Across Segments
The report attributes the surge in premium income primarily to robust Oil & Gas underwriting in the non-life segment and the rapid expansion of annuity funds within the life insurance business.
Non-life insurance maintained dominance, contributing 68.4% of total premiums, while life insurance accounted for 31.6%. Within the non-life segment, Oil & Gas emerged as the leading portfolio, followed by Fire and Motor insurance, highlighting the sector’s continued reliance on energy-related risks and asset protection.
In the life segment, annuity products led the market with a 44.3% share, overtaking individual life policies (36.2%) and group life (19.5%), reflecting a growing demand for long-term financial security and retirement planning.
Improved Retention and Market Capacity
The industry demonstrated increased underwriting confidence, with overall premium retention rising to 68.1%. Life insurance recorded an exceptional 94.1% retention rate, while non-life stood at 60.3%, indicating improved local capacity and reduced reliance on foreign reinsurance.
However, some non-life portfolios such as Marine, Oil & Gas, and General Accident still showed relatively lower retention levels, suggesting areas where capacity gaps persist.
Claims Growth Reflects Better Service Delivery
Gross claims rose to N724.7 billion, representing 31.5% of total premiums, a development linked to improved claims management and stronger settlement culture.
Settlement performance remained robust, with non-life insurers paying 75.5% of claims and life insurers settling 65.5%, reinforcing public confidence in the industry.
Motor insurance recorded the highest claims settlement ratio at 88.5%, followed by Miscellaneous and General Accident portfolios, demonstrating improved efficiency across key business lines.
Profitability and Industry Outlook
The industry sustained profitability, with an overall net loss ratio of 43.6%, reflecting sound underwriting practices. Life insurance posted a lower loss ratio of 31.4%, while non-life stood at 49.3%.
Despite a few underperforming firms reporting loss ratios above 100%, the broader market outlook remains strong, supported by improved pricing strategies, operational efficiency, and ongoing regulatory reforms.
Market Concentration and Competitive Landscape
The report highlights moderate concentration within the industry. In the life segment, the top three insurers control 55% of the market, while the top ten account for nearly 90%, indicating significant dominance by major players.
Conversely, the non-life segment showed a more balanced structure, with the top three insurers accounting for 33.3% and the top ten controlling 66.6% of the market.
Expanding Asset Base Signals Growth
Total industry assets grew to N4.79 trillion, representing a 7.4% increase from the previous quarter. Non-life assets stood at N2.60 trillion, while life insurance assets reached N2.19 trillion.
Positive Outlook Amid Economic Challenges
Despite macroeconomic headwinds, NAICOM noted that the industry has demonstrated resilience across key performance indicators—premium growth, claims settlement, profitability, and asset expansion.
The Commission emphasized that ongoing recapitalisation and regulatory reforms are expected to further strengthen the sector, positioning it as a critical pillar in Nigeria’s ambition to achieve a $1 trillion economy.
Overall, the Q4 2025 performance reflects a maturing insurance market, driven by improved public trust, stronger regulatory oversight, and expanding financial inclusion.
Nigeria’s insurance sector records N2.3 trillion premium in Q4 2025, driven by Oil & Gas and annuities, with strong growth, improved claims settlement, and rising market confidence, NAICOM reports.