Nigeria’s insurance industry delivered a strong performance in the fourth quarter of 2025, recording Gross Premium Written (GPW) of N2.3 trillion, according to the latest Insurance Market Performance Bulletin released by the National Insurance Commission (NAICOM).
The report, published by the commission’s Research and Statistics Department, attributed the impressive growth to ongoing regulatory reforms aimed at deepening market penetration, alongside stronger contributions from the oil and gas portfolio in the non-life segment and expanding annuity funds within the life insurance sector.
Despite macroeconomic challenges, the insurance industry grew faster than the broader economy, outperforming Nigeria’s estimated 3.9 per cent economic growth rate during the period. Analysts say the performance underscores the sector’s growing role in the country’s financial services ecosystem.
The non-life insurance segment remained the dominant contributor to the industry’s premium income, accounting for 68.4 per cent of total premiums in the fourth quarter. This share is consistent with the segment’s performance during the same period in 2024.
Within the non-life category, oil and gas insurance emerged as the largest contributor, accounting for 30.3 per cent of total non-life premiums.
Fire insurance followed with 20.4 per cent, while motor insurance contributed 16.1 per cent.
Other segments also recorded significant contributions, including miscellaneous insurance at 11.9 per cent, general accident at 9.5 per cent, marine insurance at 8.7 per cent, and aviation insurance at 3.2 per cent of the non-life portfolio.
In the life insurance segment, annuity funds played a leading role in premium generation, accounting for 44.3 per cent of total life premiums during the quarter. The figure represents a shift from trends observed in the previous quarter.
Individual life policies contributed 36.2 per cent, while group life insurance accounted for 19.5 per cent of the life sector’s premiums within the review period.
The report also showed an increase in gross claims, which rose to N724.7 billion in the fourth quarter of 2025, representing 31.5 per cent of total gross premiums written.
According to NAICOM, the increase reflects improved claims management practices across the industry and stronger underwriting performance by insurance operators.
The claims settlement ratio in the life insurance segment stood at 65.5 per cent, while the non-life segment recorded a higher settlement rate of 75.5 per cent of reported claims during the quarter.
Industry analysts say the improved claims settlement performance signals growing operational efficiency and strengthening consumer confidence in Nigeria’s insurance market.
