Insurance Premiums Rises To N2.3trn in 2025 on Oil & Gas, Annuity Growth

Nigeria’s insurance industry recorded gross premiums written (GPW) of N2.3 trillion in the 2025 financial year, up 47.3 per cent year-on-year and 36 per cent quarter-on-quarter, according to the National Insurance Commission’s (NAICOM) Q4 2025 market bulletin.

The non-life segment was propelled by oil and gas, which captured over 30 per cent of premiums and remains the largest risk class. Fire and motor insurance also showed steady demand for asset protection.
In life insurance, annuities drove 44.3 per cent of premiums, fueled by pension reforms as retirees shift savings to guaranteed income streams. Individual life policies gained ground, signaling broader retail adoption.

Premium retention improved to 68.1 per cent overall, with life insurance at 94.1 per cent, reflecting stronger local risk capacity, better pricing, and capital growth. Challenges persist in high-risk areas like marine, aviation, and oil & gas.

Claims payouts reached N724.7 billion (31.5 per cent of premiums), with settlement ratios of 65.5 per cent in life and 75.5 per cent in non-life. Motor, miscellaneous, and accident classes exceeded 80% settlements, boosting policyholder trust.

Net loss ratios held at 43.6 per cent, with life insurance performing strongly, though some firms exceeded 100 per cent, highlighting pricing and capital issues. Market concentration is high in life (top three firms hold 55 per cent), but more dispersed in non-life.
Industry assets grew 7.4 per cent to N4.79 trillion, led by non-life but narrowing the gap with life insurance amid pension-linked expansion.

Analysts view the trends as signs of market deepening amid recapitalisation, energy sector activity, and rising financial literacy. They note the sector’s growing role in economic risk management despite macroeconomic headwinds.

“If reforms tackle capital shortfalls, insurance penetration could rise significantly, aiding Nigeria’s long-term development,” the analysts added.