Nigeria’s insurance sector premiums surge in 2025

Nigeria’s insurance sector recorded a strong performance in 2025, with Gross Premium Written (GPW) rising by 47.3 percent year-on-year to N2.301 trillion, up from N1.558 trillion in 2024.

According to a report released by the National Insurance Commission, the growth reflects sustained regulatory efforts aimed at deepening the market and boosting confidence in the industry.

The report noted that the sector’s expansion significantly outpaced Nigeria’s overall economic growth rate of 3.9 percent, underscoring its increasing importance within the country’s financial system.

The surge in premiums was largely driven by strong activity in the oil and gas segment within non-life insurance, alongside rising annuity funds in the life insurance category.

Despite the growth in premiums, total claims paid declined by 21.7 percent to N724.7 billion in 2025, compared to N926.1 billion recorded in the previous year.

Non-life insurance continued to dominate the market, accounting for 68.4 percent of total premiums, while life insurance contributed 31.6 percent.

Within the non-life segment, oil and gas remained the largest contributor, making up 30.3 percent of premiums. Fire insurance followed with a 20.4 percent share, while motor insurance accounted for 16.1 percent. Other segments—including miscellaneous, general accident, marine, and aviation—also contributed significantly to overall performance.

In the life insurance segment, annuity funds emerged as the leading driver, accounting for 44.3 percent of total premiums. Individual life policies contributed 36.2 percent, while group life insurance made up 19.5 percent.

The report also highlighted improvements in claims management across the industry. Total claims in 2025 represented 31.5 percent of gross premiums written, reflecting stronger underwriting capacity and more effective pricing strategies by insurers.

Further breakdown showed that life insurance firms recorded a claims settlement ratio of 65.5 percent, while non-life insurers achieved a higher settlement rate of 75.5 percent.

Overall, the industry’s performance points to growing public trust, enhanced regulatory oversight, and a more resilient insurance market capable of supporting Nigeria’s broader economic development.