Recapitalisation: Insurance Premiums Hit N1.98trn Amid N600bn Fresh Capital Forecast

Nigeria’s insurance sector recorded N1.98 trillion in gross premiums for the first half of 2025, up 54.2 per cent from N813 billion in H1 2024, according to data from the National Insurance Commission (NAICOM).

This figure covers all segments, each showing at least 25 per cent growth.

The increase follows NAICOM’s recapitalisation programme, initiated in 2024, which requires minimum capital hikes of N250 billion for non-life insurers and N150 billion for life insurers by June 2026.

Recall that Agusto & Co estimated that operators will raise approximately N600 billion in new capital by the programme’s end.

Life insurance generated N674.3 billion, a 70.3 per cent year-on-year increase. Aviation and marine insurance reached N185.9 billion, up 79.9 per cent.

Miscellaneous insurance, covering gadgets and personal assets, grew 86.7 per cent to N104.6 billion. Oil and gas insurance produced N443.4 billion, up 25.8 per cent . Fire insurance totalled N246.3 billion (53.3 per cent growth), motor insurance N207 billion (52.5 per cent), and general accident insurance N121.4 billion (49.6 per cent). The growth coincides with Nigeria’s headline inflation rate of 34.6 per cent in mid-2025, per National Bureau of Statistics (NBS) data.

For context, full-year premiums were N1.003 trillion in 2023, N1.56 trillion in 2024, and N1.98 trillion in H1 2025 alone.

This milestone represents a 54.2 per cent surge from the same period in 2024, when it generated N813 billion, signalling a structural shift in the country’s risk landscape.

The breadth of the growth, spanning life, energy, retail, and compliance-driven segments, suggests the surge is not limited to corporate policies traditionally bought by large firms but is increasingly driven by demand from individuals and smaller businesses.

“When inflation eats your savings, and the cost of losing a breadwinner becomes unbearable, life insurance stops being a luxury and starts being survival math,” said Abiodun, an analyst at Intelpoint.

The latest numbers suggest the industry is beginning to experience a behavioural shift driven less by regulation and more by economic realities.

Life insurance leads the surge

The largest contribution came from life insurance, which generated N674.3 billion in premiums, representing a 70.3 per cent increase year-on-year.

With insecurity ramping up in Nigeria, the financial shock of death or long-term illness has become harder to absorb without formal protection, especially as traditional support structures such as extended family networks weaken under economic pressure.

Life insurance, once considered a product for high-income earners, is increasingly being viewed as a financial buffer against unexpected shocks.

Beyond life insurance, some of the fastest growth occurred in segments tied to consumer assets and trade.

Aviation and marine insurance, which covers cargo shipments and maritime risks, expanded 79.9 per cent to N185.9 billion, reflecting strong demand for protection around imports, shipping, and logistics activities.

The miscellaneous insurance segment grew 86.7 per cent to N104.6 billion, making it the fastest-growing category in the market.

The segment includes policies for specialised risks such as gadgets, events, and other personal assets, and it’s an area that appears to be gaining traction as Nigerians increasingly insure items that have become expensive to replace.

Smartphones, laptops, and other electronics now represent significant financial investments for households, sometimes costing several months of income. For many consumers, insurance is becoming a cheaper alternative to replacing those assets outright in the event of loss or damage.

The rise of small businesses and side enterprises has also contributed to demand for coverage for equipment, inventory, and event-related risks.