…as total assets rises to N4.4trn
Nigeria’s insurance industry gross written premium has risen to a record high N1.213 trillion in the second quarter of 2025, indicating a 49.3 percent growth rate compared to the same period in 2024 and a 57.8 percent quarter by quarter increase.
The National Insurance Commission (NAICOM) said the insurance market recorded a notable performance amid macroeconomic challenges in the country, according to the Bulletin of the Insurance Market Performance released by the regulator.
This is as total asset of the industry about N4.4 trillion in the second quarter, compared to the N2.3 trillion reported in the corresponding period of 2024.
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A breakdown of the industry’s financial position revealed a total of N2.5 trillion in assets for Non-Life business while the Life business stood at N1.9 trillion.
Breakdown of the performance shows that ‘The non-life segment retained its relative dominance in the market, contributing 67.2 percent to the total premium pool, mirroring its performance in the corresponding quarter of 2024.
On the other hand, the life Insurance segment accounted for 32.8 percent of all the premiums generated during the same period.
Insights into the non-life segment indicates that the Oil & Gas portfolio remained the major contributor, accounting for 31.2 percent of the total Non-Life premiums during the quarter.
This was followed by Fire Insurance with 18.9 percent and Motor Insurance at 15.8 percent, while General Accident, Miscellaneous, Marine and Aviation portfolios contributed 8.9 percent, 8.9 percent, 8.8 percent and 7.4 percent, respectively.
Analysis of the Life Insurance business which accounted for 32.8.0 percent of the total premium shows that Annuity contributed 41.8 percent, Group Life 29.5 percent, and 28.7 percent of the premium was attributable to the Individual Life business during the quarter.
The industry continued to witness rising claims due to increased public awareness, growing confidence of stakeholders with regards to claims settlement and redress mechanism.
The total claims reported during the period stood at N420.2 billion. Although the total claims reported signifies 34.6 percent of all the premiums generated during the same period, it was a win-win situation for insurers and policyholders as it underpins the underwriting quality and market sustainability.
The aggregate Net claims paid for both life and non-life insurances also stood at N356.5 billion, signifying 85.0 percent of all the claims reported during the period with the Life segment of the market reporting about 88.0 per cent while the non-life segment recorded 83.7per cent.
The proportion of net claims settlement against reported claims in the market was moderate, largely owing to issues of incomplete or delayed documentation of claims reports.
The trend in percentage claims settlement shows that for most insurance classes, the gross claims reported closely align with the net claims paid, indicating minimal variance between the two.
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During the period under review, Aviation Insurance recorded the highest settlement ratio in the non-life segment of the market at 105.4 percent, signifying that more claims were paid during the period under review than the gross claims reported.
That was followed by General Accident (99.8 percent), Miscellaneous (98.5 percent), Motor (97.8 percent), Oil & Gas (82.7 percent), Fire (72.3 percent) and, Marine at 69.7 percent, reporting the least ratio of claims paid to reported claims.
