Nigeria’s insurance sector hits N2.3tn premiums in Q4 2025 – NAICOM
National Insurance Commission NAICOM
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The Nigerian insurance industry recorded a robust performance in the fourth quarter of 2025, with Gross Premium Written rising to N2.3 trillion, according to the latest Insurance Market Performance Bulletin released by the Research and Statistics Department of the National Insurance Commission.
The Q4, 2025 bulletin attributed the strong growth to ongoing regulatory reforms aimed at deepening market penetration, as well as increased contributions from the Oil & Gas portfolio in the non-life segment and expanding annuity funds within the life insurance sector.
Despite broader macroeconomic headwinds, the industry outperformed national economic growth, with its expansion significantly higher than Nigeria’s estimated 3.9 percent output growth, underscoring the sector’s increasing relevance within the country’s financial services ecosystem.
Non-Life Insurance Dominates Market Share
The non-life insurance segment maintained its dominance, accounting for 68.4 percent of total industry premiums, consistent with its performance in the corresponding period of 2024. The life insurance segment contributed the remaining 31.6 percent.
Within the non-life category, Oil & Gas insurance remained the leading sub-sector, contributing 30.3 percent of total non-life premiums. Fire insurance followed with 20.4 percent, while motor insurance accounted for 16.1 percent.
Other segments also made notable contributions, with miscellaneous insurance representing 11.9 percent, general accident 9.5 percent, marine 8.7 percent, and aviation 3.2 percent of the non-life portfolio.
Life Insurance Growth Driven by Annuity Funds
In the life insurance segment, annuity funds emerged as the dominant driver of premium income, accounting for 44.3 percent of total life premiums—marking a shift from the previous quarter’s trend.
Individual life policies contributed 36.2 percent, while group life insurance accounted for 19.5 percent of life sector premiums during the period under review.
Claims Rise Amid Improved Underwriting Performance
The bulletin also highlighted a rise in gross claims, which increased to N724.7 billion in Q4 2025, representing 31.5 percent of gross premiums written. The development reflects improved claims management practices across the industry and strong underwriting capacity among operators.
According to the report, life insurance claims settlement ratio stood at 65.5 percent, while the non-life segment recorded a higher settlement rate of 75.5 percent of total claims reported during the quarter.
