Nigeria’s insurance industry has seen its gross premiums climb to N2.3 trillion in the fiscal year 2025. This significant growth was propelled by robust business from the oil and gas sector, a surge in annuity uptake, and improved risk retention by local underwriters.
The performance indicates a maturing market with enhanced capacity to manage large-ticket risks and bolster long-term financial security. It also underscores the growing importance of the insurance sector within Nigeria's financial system.
Data from the National Insurance Commission (NAICOM) revealed that Gross Premium Written (GPW) experienced a 36 percent quarter-on-quarter increase and a substantial 47.3 percent year-on-year jump. This expansion was detailed in the fourth quarter 2025 Bulletin of the Insurance market.
The Oil & Gas sector was the primary driver in the non-life segment, accounting for over 30 percent of total non-life premiums. Fire and motor insurance also showed sustained demand, reflecting the need for corporate asset protection and retail coverage.
In the life insurance segment, annuity products were the leading contributors, making up 44.3 percent of all premiums. This trend highlights a structural shift, influenced by pension reforms, as retirees increasingly opt for annuity products to secure guaranteed income streams. Individual life policies also saw increased traction.
The dual growth in corporate risk underwriting and long-term savings products suggests a market that is gradually deepening across both institutional and retail segments.
The industry's premium retention rate improved to 68.1 percent, with the life insurance sector achieving a remarkable 94.1 percent retention. This indicates growing confidence among insurers to retain risks domestically rather than ceding them to reinsurers. This trend is attributed to enhanced capital buffers, more disciplined pricing strategies, and improved technical capabilities.
However, weaker retention in marine, aviation, and Oil & Gas segments continues to point towards capital constraints in these high-risk areas.
Claims paid out by the industry amounted to N724.7 billion, representing 31.5 percent of the total premiums. Settlement ratios remained strong, with life insurance at 65.5 percent and non-life at 75.5 percent. The increase in claims paid suggests improved claims management processes, greater policyholder confidence, and more active utilization of insurance products. Motor, miscellaneous, and general accident segments reported settlement ratios exceeding 80 percent.
Meanwhile, the National Insurance Commission (NAICOM) is focusing on staff welfare and merit-based reforms to enhance its regulatory performance. The commission aims to strengthen oversight of the insurance industry by investing in training, career development, and improved workplace standards.
NAICOM stated that these initiatives are crucial for building a disciplined, productive, and motivated workforce aligned with its strategic objectives. The commission emphasizes a transparent and merit-based approach to human resource management, fostering a culture of fairness, productivity, mutual respect, and accountability.
