The Nigerian insurance industry recorded a 47.3% year-on-year growth rate in gross written premiums to NGN2.30n ($1.71bn) in 2025 from NGN1.56tn in 2024.
According to the “Bulletin of the Insurance Market Performance” for the fourth quarter of 2025, released by the National Insurance Commission, growth was fuelled by the non-life segment, which contributed 68.4% of the total premiums.
In non-life business, the Oil & Gas branch emerged as the dominant force, accounting for 30.3% of all non-life premiums generated. The contributions of the various non-life branches were as follows:
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|
Branch
|
Contribution to total non-life GWP in 2025
|
|
Oil & Gas
|
30.3%
|
|
Fire
|
20.4%
|
|
Motor
|
16.1%
|
|
Miscellaneous
|
11.9%
|
|
General Accident
|
9.5%
|
|
Marine
|
8.7%
|
|
Aviation
|
3.2%
|
|
Total
|
100.0%
|
The life insurance segment, which accounted for 31.6% of the market, was primarily driven by the growth of annuity funds. Annuities contributed a substantial 44.3% of all premiums recorded in the life sector, surpassing Individual Life (36.2%) and Group Life (19.5%).
On the claims side, the insurance industry saw gross claims fall by 7% to NGN724.7bn in 2025 from NGN779.5bn in 2024. The non-life segment showed a settlement rate of 75.5%, while the Life segment settled 65.5% of reported claims.
Premium retention improved to 68.1% overall, with life insurance at 94.1%, reflecting stronger local risk capacity, better pricing, and capital growth. Challenges persist in high-risk areas like marine, aviation, and oil & gas.
NAICOM said in the report that the industry’s performance in 2025 reflected ongoing regulatory actions aimed at fostering market deepening.
The industry’s financial position also strengthened, with total assets reaching NGN4.79 tn as of 31 December 2025, growing by 7.4% compared to 12 months previously.
The average 12-month inflation rate in Nigeria was reported at around 23% in 2025.