In Q4 2025, Nigeria’s insurance industry grew steadily and showed stronger financial performance.
NAICOM reported that insurers increased gross premiums to ₦2.3 trillion during the period.
This result reflected a 36% quarter-on-quarter rise and a 47.3% year-on-year increase.
Strong Premium Growth
Strong activity in oil and gas and life insurance markets drove this growth.
Life insurers generated ₦727.4 billion in total premiums during the quarter.
Annuity funds led the segment with 44.3% of total life premiums recorded.
In addition, individual life contributed 36.2%, while group life added 19.5%.
Meanwhile, the non-life segment expanded mainly through oil and gas insurance.
Oil and gas insurers produced ₦476.6 billion, or 30.3% of non-life premiums.
Fire insurance followed with ₦321.1 billion, while motor insurance reached ₦252.8 billion.
Market Retention And Claims
However, retention performance varied across marine, aviation, and oil and gas lines.
Marine insurers retained 47%, aviation firms retained 30%, and oil and gas retained 43%.
Despite these gaps, insurers maintained stable confidence across the market.
Overall, the industry achieved a 68.1% market retention ratio.
Notably, life insurers retained 94.1%, showing strong internal capacity.
In contrast, non-life insurers recorded 60.3% retention across their operations.
Meanwhile, insurers raised gross claims to ₦724.7 billion during the period.
Read Also: Unity Bank Ramps Up Green Economy, Climate Tech Funding
This figure represented 31.5% of total premiums written across the market.
As a result, insurers processed higher claims due to increased business activity.
Life insurers settled 65.5% of claims, while non-life insurers settled 75.5%.
Nigeria Insurance Profitability And Industry Outlook
Furthermore, the market recorded a net loss ratio of 43.6%.
Life insurers performed better with a 31.4% net loss ratio.
However, non-life insurers posted a higher 49.3% net loss ratio.
Nine insurers crossed 100% loss ratios, signalling financial pressure in those firms.
Nevertheless, the sector remained resilient despite broader economic challenges.
Additionally, Agusto & Co. reported that insurers grew revenue by 40.8% to ₦1.9 trillion.
At the same time, insurers expanded total assets closer to ₦5 trillion through investments.
Overall, Nigeria’s insurance industry strengthened its position in the financial system.
