Nigeria’s insurance industry records N2.3tn premium, assets hit N4.8tn in 2025

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The Nigerian insurance industry delivered a robust performance in 2025, with Gross Premium Income (GPI) rising above ₦2.3 trillion, reflecting its expanding contribution to the financial services sector and broader economic stability.

This was disclosed by the Chairman of the Nigerian Insurers Association (NIA), Mr. Kunle Ahmed, during the presentation of the industry’s performance report at the 55th Annual General Meeting in Lagos for the year ended 31 December 2025.

According to the report, growth was evenly supported by both the life and non-life segments. The General Insurance business contributed ₦1.57 trillion, driven largely by increased retention of high-value risks in the oil and gas sector, alongside stricter enforcement of compulsory insurance policies, particularly in motor and marine insurance lines. These regulatory and market-driven improvements helped deepen penetration in core commercial segments.

The Life Insurance segment recorded ₦727.4 billion in gross premium income, supported by rising awareness of long-term financial planning among Nigerians. Products such as Retiree Life Annuity (RLA) continued to gain traction, reflecting growing confidence in retirement-focused insurance solutions.

On the claims side, the industry reported gross claims of ₦724.7 billion, representing approximately 31.5 percent of total gross written premium for the year. The association attributed this increase to improved claims management frameworks and more disciplined underwriting practices across operators.

Operational efficiency also improved within the period. Non-life insurers recorded a 75.5 percent claims settlement rate, while life insurers achieved 65.5 percent. According to the NIA, these outcomes demonstrate strengthened governance, enhanced operational discipline, and growing confidence in the sector, even amid prevailing capital constraints.

Mr. Ahmed also emphasised the importance of the ongoing recapitalisation exercise, describing it as a strategic priority aimed at strengthening the financial capacity of insurers. He noted that the initiative is expected to bridge existing capacity gaps, improve risk retention capabilities, and support the industry’s long-term objective of deeper market penetration.

He further revealed that the industry’s total assets expanded by 7.4 percent to ₦4.8 trillion, up from ₦4.5 trillion in the previous period. Of this figure, ₦2.6 trillion was held by non-life insurers, while ₦2.2 trillion was accounted for by life insurance operators.

Mr. Ahmed said the steady asset growth underscores the sector’s resilience and its ability to sustain value creation despite a challenging macroeconomic environment, adding that a stronger capital base would position the industry as a more effective driver of economic stability and risk management in Nigeria.