Nigeria's Insurance Industry Achieves Robust Growth with Assets Reaching N4.8 Trillion
The Nigerian insurance sector concluded 2025 on a highly positive note, demonstrating significant resilience and an enhanced capacity to bolster economic activities. According to the latest report from the National Insurance Commission (NAICOM), the industry's total assets increased to N4.79 trillion in the fourth quarter of 2025. This represents a substantial quarter-on-quarter growth of 7.4 per cent, up from N4.46 trillion recorded in the third quarter.
Drivers of Asset Expansion
The impressive asset growth was fueled by several key factors, including sustained premium growth, improved underwriting performance, and stronger risk retention across the market. The gross premium written (GPW) climbed to N2.3 trillion during the period under review. This surge was primarily supported by heightened activities in the oil and gas sector, alongside the continued expansion of annuity business within the life insurance segment.
Premium Distribution Across Segments
Non-life insurance maintained its dominant position in the market, accounting for 68.4 per cent of the total premiums. In contrast, life insurance contributed 31.6 per cent. Within the non-life segment, oil and gas underwriting emerged as the largest contributor, representing 30.3 per cent of premiums. This was followed by fire insurance at 20.4 per cent and motor insurance at 16.1 per cent.
In the life insurance segment, annuity business led the way with 44.3 per cent of premiums. Individual life policies accounted for 36.2 per cent, while group life contributed 19.5 per cent. This distribution highlights a growing consumer demand for long-term financial protection products in Nigeria.
Financial Position and Risk Retention
A detailed breakdown of the industry's financial position revealed that non-life insurers held N2.6 trillion of the total assets, whereas life business contributed N2.19 trillion. This indicates a balanced growth trajectory across both segments, underscoring the sector's overall stability.
The industry's confidence continued to strengthen, with overall retention rising to 68.1 per cent. Life insurance posted an exceptionally high retention ratio of 94.1 per cent, while non-life stood at 60.3 per cent. These figures reflect a stronger local capacity to absorb risks, reducing reliance on international reinsurance.
Claims Performance
Claims performance remained robust during the quarter, with gross claims paid increasing to N724.7 billion. This amount represents 31.5 per cent of the total premiums written, demonstrating the industry's commitment to fulfilling its obligations to policyholders amidst the growth phase.
