Insurance companies in Nigeria ceded 40.7% of their business to foreign reinsurers in the first quarter of 2025, retaining an average of 59.3% of their risks within the local market, The Nation reports.
This was revealed in the latest Insurance Market Performance Bulletin released by the National Insurance Commission (NAICOM). The regulator explained that an insurer’s risk retention level is largely influenced by its financial strength and appetite for risk.
“Despite the economic reforms, the industry demonstrated resilience and confidence by retaining a significant portion of risks in their portfolios,” the report stated.
In the non-life insurance segment, the retention rate dropped to 44.1% due to the prevalence of special risks portfolios, which typically require higher reinsurance coverage.
NAICOM noted that the industry’s overall performance in Q1 2025 showed encouraging signs of stability and adaptability amid ongoing macroeconomic challenges.
The Commission concluded that these statistics underscore the Nigerian insurance sector’s ability to withstand headwinds and continue growing in a reform-driven environment.
