Nigeria’s insurance industry recorded significant growth in the fourth quarter of 2025, with total gross premiums reaching N2.3 trillion.
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.
What the data is saying
A closer breakdown of the gross premiums shows that:
- The life insurance segment generated N727.4 billion, with Annuity funds leading the charge, contributing 44.3% of the premiums.
- Individual life business accounted for 36.2%, while group life contributed 19.5%.
- In the non-life segment, the oil & gas sector generated the largest premium at N476.6 billion (30.3%), followed by fire insurance at N321.1 billion (20.4%), and motor insurance at N252.8 billion (16.1%).
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.
Get up to speed
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%.
More insights
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.
What you should know
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.
