Nigeria’s insurance industry recorded significant growth in the fourth quarter of 2025, with total gross premiums reaching N2.3 trillion.
- +Nigeria’s insurance industry gross premium hits N2.3 trillion in Q4 2025
The figure marks a 36% quarter-on-quarter increase and a 47.3% year-on-year growth in gross premiums.
The figure marks a 36% quarter-on-quarter increase and a 47.3% year-on-year growth in gross premiums.
This is according to the latest Insurance Market Performance report released by the National Insurance Commission (NAICOM).
The impressive growth was driven primarily by the Oil & Gas sector in the non-life insurance segment and the increasing volume of Annuity funds within the life insurance market.
A closer breakdown of the gross premiums shows that:
This growth highlights the increasing relevance of the insurance industry within Nigeria’s financial ecosystem and signals a growing public trust in the insurance market.
Retention performance in various non-life classes shows strong results across most sectors, except for marine (47%), aviation (30%), and oil & gas (43%), which exhibited lower retention capacities among underwriters.
Despite challenges within the financial services sector, underwriters demonstrated confidence, reflected in strong retention levels overall.
The overall market retention ratio stood at 68.1%, with life insurance recording an impressive 94.1%, while non-life insurance had a retention ratio of 60.3%.
Gross claims for the period rose to N724.7 billion, accounting for 31.5% of the gross premiums written, further demonstrating strong underwriting capacity and effective pricing strategies.
The claims settlement ratio was also notable, with life insurance companies settling 65.5% of claims, while non-life insurers settled 75.5%.
The insurance industry showed profitability during the period, with a net loss ratio of 43.6%. The non-life segment posted a higher net loss ratio of 49.3%, while the life business recorded a more favorable 31.4%.
This indicates a generally positive performance in profitability and underwriting quality, though some insurers reported higher net loss ratios.
Nine insurers posted significantly higher net loss ratios, surpassing the 100% mark, as categorized by company type.
Despite ongoing economic challenges, the insurance sector recorded robust growth in 2025.
According to Agusto & Co. Limited’s 2026 insurance industry report, total insurance revenue surged by 40.8% to N1.9 trillion, and total assets approached the N5 trillion mark, driven by steady growth in investment portfolios.
This performance underscores the resilience of Nigeria’s insurance industry, which continues to strengthen its position as a vital component of the nation’s financial sector.
