Insurance premiums hit N2.3tn as sector gains momentum

Barbara Bako, Abuja.

Nigeria’s insurance industry has recorded a strong growth surge, with gross premium written rising to N2.3 trillion in the fourth quarter of 2025, signalling deepening market activity and improved investor confidence.

The figure represents a 47.3 per cent year-on-year increase, extending the sector’s expansion from 2024 when premiums closed at N1.56 trillion, one of the fastest growth rates in the financial services industry.

Growth in the latest quarter was driven largely by the Oil and Gas segment in non-life insurance and rising annuity products in the life business, reinforcing the dominance of high-value risk coverage and long-term savings products.

Non-life insurance maintained its lead with about 68 per cent of total premiums, while life business accounted for the balance.

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The industry also showed stronger financial capacity, with premium retention rising to 68.1 per cent, while total assets climbed to N4.79 trillion, reflecting steady balance sheet growth.

Claims payouts increased to N724.7 billion, with insurers maintaining solid settlement rates across both life and non-life segments, an indication of improving trust and efficiency in claims processing.

Despite the higher claims, profitability remained stable, with a net loss ratio of 43.6 per cent, suggesting the sector is sustaining underwriting discipline.

However, the report highlighted continued market concentration, with a few large firms controlling a significant share of premiums, especially in the life segment.

With ongoing recapitalisation reforms expected to strengthen operators, analysts say the industry is increasingly positioned to expand penetration and play a bigger role in supporting Nigeria’s economic growth.