Top insurance companies listed on the Nigerian Exchange (NGX) paid a combined N288.85 billion in claims in 2025, reflecting a significant 38.17% year-on-year (YoY) increase compared to the N209.05 billion recorded in 2024. AIICO Insurance and AXA Mansard together accounted for over 61% of total claims paid.
The data, compiled by the Nairametrics Research Team from the latest audited financial statements of these companies, captures claims paid across nine key players in the Nigerian insurance sector.
Claims ratios in this analysis are computed as claims paid as a percentage of premiums received. Lasaco Assurance and Mutual Benefits Assurance are excluded from this analysis, as both have yet to release their audited financial statements for the period.
What the data is saying
Growth in claims varied widely across the nine companies. Coronation Insurance recorded the sharpest increase.
- AIICO Insurance remained the largest claims payer, disbursing N95.84 billion in 2025, up 5.79% from N90.59 billion in 2024. It contributed 33.18% of total claims. Its claims ratio improved to 52.43% from 58.00%, as premium volume (N182.80 billion) outpaced claims, indicating stronger underwriting efficiency.
- AXA Mansard paid N81.40 billion in claims, a 28.77% increase from N63.21 billion, representing 28.18% of the total. However, its claims ratio rose to 52.36% from 48.07%, suggesting claims grew faster than premiums (N155.45 billion).
- NEM Insurance posted one of the strongest increases, with claims rising 83.69% to N45.91 billion from N24.99 billion. Despite this, its claims ratio remained relatively low at 28.01%, supported by strong premium volume of N163.92 billion. NEM accounted for 15.89% of total claims.
- Coronation Insurance recorded the most dramatic surge, with claims jumping 363.26% to N32.32 billion from N6.98 billion. Its claims ratio rose sharply to 42.34% from 12.89%, reflecting a significant increase in claims relative to premiums (N76.34 billion). This may reflect one-off large claims or a shift in risk exposure during the year.
- Consolidated Hallmark Insurance paid N12.33 billion in claims, up 36.06% from N9.06 billion. Its claims ratio increased to 38.26%, indicating rising pressure on underwriting margins.
The remaining four insurers, SUNU Assurances, Sovereign Trust, Linkage Assurance, and Guinea Insurance, collectively paid N21.05 billion, accounting for 7.28% of total claims.
SUNU led this group with N8.25 billion in claims, followed by Sovereign Trust at N6.09 billion, which maintained the lowest claims ratio overall at 13.19%. Linkage and Guinea reported N5.95 billion and N758.79 million, respectively.
What this means
The data tells a clear story: the Nigerian insurance industry is under growing financial pressure.
- Claims are costing insurers more to settle than before. To protect their margins, insurers may look to raise premiums. Policyholders should expect to feel that adjustment sooner rather than later.
- For several companies in this analysis, claims are growing faster than premiums. If that gap does not close, profits could take a hit. AXA Mansard and Coronation Insurance are the clearest examples; both saw claims outpace premium growth in 2025.
- Rising claims eat into the profits that fund dividend payments. Investors holding insurance stocks on the NGX should watch whether premium growth is strong enough to keep pace with claims; if it is not, payouts to shareholders could be at risk.
What you should know
In a recent article by Nairametrics, it was reported that NAICOM mandated all insurers and reinsurers to contribute to a newly established Insurance Policyholders’ Protection Fund (IPPF) under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, aimed at safeguarding policyholders against insurer insolvency.
- Insurers are required to contribute 0.25% of their net premium income annually, with payments due by June 30 each year. For 2025, contributions will be prorated to cover the period from July 31 to December 31, with a special submission deadline of May 31, 2026, for IPPF Assessment Returns. Non-compliance risks regulatory sanctions, including licence suspension or cancellation.
- The Fund will be managed by a licensed fund manager with a minimum capital base of N5 billion, with investments restricted to low-risk, liquid instruments — primarily government-backed securities.
- Disbursements will be issued as loans to distressed insurers, subject to strict approval conditions and must be used exclusively to settle valid policyholder claims within 10 working days.
