By Rosemary Iwunze
The insurance industry recorded a 47.3 per cent, Year-on-Year, YoY, growth in Gross Premium Written, GPW, to N2.301 trillion in 2025 from N1.558 trillion recorded in 2024.
According to the insurance industry report released by the The National Insurance Commission, NAICOM, disclosed this in its insurance industry report released yesterday.
The report also showed that claims payment declined by 21.7 per cent to N724.7 billion in 2025 from N926.1billion recorded in 2024.
The report stated: “The year 2025 saw an impressive growth in the Nigerian insurance sector, with Gross Premium Written reaching a remarkable N2.301 billion, an exceptional performance reflective of the ongoing regulatory measures aimed at fostering market deepening. This was largely influenced by the Oil & Gas business in the non-life and the growing Annuity funds in the life segments of the market, respectively.
“Indeed, the industry’s performance during the period has recorded many folds higher compared to the national output (3.9%), underscoring its increasing relevance and structural importance in Nigeria’s financial ecosystem, a commendable progress owing to increasing public confidence in the insurance market.
“The non-life insurance segment continued to lead the market, contributing 68.4% to the total premium pool, following its pattern in the corresponding quarter of 2024 while the Life Insurance business accounted for 31.6% during the period. Insights into the non-life category reveal the Oil & Gas business as leading portfolio, representing 30.3% of all the non-life premiums generated. Fire Insurance followed with a notable position of 20.4% share while Motor Insurance accounted for 16.1% as Miscellaneous, General Accident, Marine and Aviation businesses also contributed 11.9%, 9.5%, 8.7% and 3.2% respectively.
“On the other hand, the Life Insurance segment was led by Annuity funds in contrast to the behaviour reported in the prior quarter, contributing about 44.3% of all premiums recorded in the business. Individual Life business also accounted for 36.2%, while Group Life 19.5% during the quarter under review.
“The condition of improved claims management in the industry has contributed to the growth in gross claims reported in the fourth quarter of 2025, which rose to N724.7 billion, representing about 31.5% of the gross premiums written during the period. This performance highlights a strong underwriting capacity within the market and reflects the effectiveness of insurers’ pricing strategies during the quarter. During the period, the Life Insurance section recorded a notable claims settlement ratio of 65.5%, while the non-life segment achieved a settlement rate of 75.5% of total claims reported during the period under review.”
