Nigeria’s insurance sector witnessed significant expansion in 2025, with Gross Premium Written rising by 47.3 percent year on year to N2.301 trillion, up from N1.558 trillion recorded in 2024.
This was disclosed in a report released by the National Insurance Commission, which highlighted improved market performance driven by regulatory reforms and increased public confidence in insurance services.
According to the report, the strong growth was largely supported by the Oil and Gas segment within non life insurance, as well as rising annuity funds in the life insurance category. The industry’s performance far exceeded Nigeria’s overall economic growth rate of 3.9 percent, underscoring its growing importance in the financial system.
Despite the surge in premiums, claims payments declined by 21.7 percent to N724.7 billion in 2025, compared to N926.1 billion in 2024. Analysts attribute this to improved claims management and more effective underwriting strategies across the sector.
The non life insurance segment remained dominant, contributing 68.4 percent of total premiums. Within this category, Oil and Gas led with 30.3 percent, followed by Fire Insurance at 20.4 percent and Motor Insurance at 16.1 percent. Other segments including Miscellaneous, General Accident, Marine and Aviation also contributed significantly.
On the life insurance side, 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 strong claims settlement ratios, with the life insurance segment recording 65.5 percent and non life achieving 75.5 percent. These figures reflect improved efficiency and reliability in claims processing.
Overall, the industry’s robust performance signals increasing trust among policyholders and a strengthening insurance culture in Nigeria.
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