Nigeria’s insurance industry delivered a strong financial performance in the final quarter of 2025, with gross premium written climbing to N2.3 trillion, reflecting a sharp year-on-year expansion and renewed confidence in the sector.
Data released by the National Insurance Commission shows that the industry’s premium growth surged by 47.3 per cent, highlighting increased adoption of insurance products and improved market penetration across the country.
Brandspur Banking News Desk reports that the surge was largely powered by the non-life insurance segment, which accounted for the majority share of total premiums, driven by heightened activity in key industries.
The oil and gas segment emerged as a major contributor within the non-life category, reinforcing its role as a critical pillar of insurance revenue generation in Nigeria’s evolving financial landscape.
On the life insurance side, annuity products gained significant traction, overtaking other policy categories to become the dominant source of premium inflows within the segment.
Industry data indicates that annuities outperformed both individual and group life policies, signalling a shift in consumer preference towards long-term financial security and retirement-focused products.
Despite the impressive premium growth, claims obligations also rose during the period, with total payouts reaching over N700 billion, representing a substantial share of industry earnings.
However, insurers maintained strong claims settlement performance, particularly within the non-life segment, where a high percentage of claims were successfully processed, reflecting operational efficiency and improved underwriting standards.
Motor insurance stood out with one of the highest settlement ratios, demonstrating enhanced service delivery and responsiveness to policyholders.
The sector also recorded growth in its asset base, with total industry assets approaching N5 trillion, underscoring improved financial strength and capital positioning.
While the market continues to expand, regulators flagged concerns over concentration levels, noting that a small group of leading firms still dominate a significant portion of the life insurance segment.
Nevertheless, the outlook for the industry remains positive, supported by ongoing regulatory reforms, recapitalisation efforts, and increased investor interest.
Analysts believe the current growth trajectory positions the insurance sector as an increasingly important contributor to Nigeria’s broader economic development, with potential to deepen financial inclusion and support long-term investment across key industries.
