Boosted by Oil & Gas Business, Insurance Sector Posts N2.302tn Gross Premium

Ebere Nwoji

The National Insurance Commission (NAICOM) has said that the insurance sector posted a gross premium income of N2.302 trillion in year 2025.

In its Bulletin of Insurance Industry for Q4 2025, the commission said the sector statistics for the period showed an impressive quarter on quarter market performance.

The premium growth, it said, represents about 36 per cent and 47 .3 per cent year on year (YoY) increase.

According to the commission, within the period under review, the  industry statistics also indicated an increased market retention capacity compared to the prior period.

It said, “It also reflects increased industry size and improved business quality and profitability as well as exceptional performance reflective of the ongoing regulatory measures aimed at fostering market deepening.” 

The commission said the industry’s impressive performance was largely influenced by the Oil & Gas business in the non-life and the growing Annuity funds in the life segments of the market respectively.  

It added, “Indeed, the industry’s performance during the period has recorded many folds higher compared to the national output (3.9 percent underscoring its increasing relevance and structural importance in Nigeria’s financial ecosystem”.

The commission described this as a commendable progress attributing it  to increasing public confidence in the insurance market.

Giving a breakdown of the performance, the commission in the bulletin document said the  non-life insurance segment continued to lead the market, contributing 68.4  percent performance to the total premium pool, following its pattern in the corresponding quarter of 2024 while the Life Insurance business accounted for 31.6 per cent during the period. 

“Insights into the non-life category reveals the Oil & Gas business as leading portfolio, representing 30.3 percent of all the non-life premiums generated. The Fire Insurance followed with a notable position of 20.4 percent share while Motor Insurance accounted for 16.1 percent as Miscellaneous, General Accident, Marine and Aviation businesses also contributed 11.9 percent, 9.5 percent 8.7 percent and 3.2 percent respectively.

“On the other hand, the Life Insurance segment was led by Annuity funds in contrast to the behaviour reported in the prior quarter, contributing about 44.3 percent of all premiums recorded in the business,” NAICOM said.

NAICOM noted that Individual Life business accounted for 36.2 percent while group life contributed 19.5 percent during the quarter under review.

It further said notwithstanding the events within the financial  services sector, underwriters exhibited undoubted certainty and confidence as reflected in the robust retention levels across the  market. 

NAICOM said the  overall market average retention stood at 68.1 per cent with the life business achieving about 94.1 per cent and non -life segment recording a retention ratio of 60.3 per cent during the period.

On the claims ratio in the industry, the commission said the condition of improved  claims management in the industry has contributed to the growth in gross claims reported in the fourth quarter of 2025, which rose to N74.7 billion, representing about 31.5 per cent of te gross premium written during the period.

The commission said the performance highlighted strong underwriting capacity within the market and reflected the effectiveness of insurer’s pricing strategies during the quarter.

“During the period, the Life insurance section recorded a notable claims settlement ratio of 65.5 percent while  the non-life segment achieved a settlement rate of 75.5 percent of total claims reported during the period under review.

“The ratio of net claims paid compared to gross claims reported during the period has demonstrated some strong performance across various business classes”, it said.

In the non-life business, statistics showed that Motor Insurance recorded an outstanding ratio of 88.5 per cent, followed by Miscellaneous at 83.1 per cent while General Accident stood at 81.2 percent. Similarly, Aviation, Fire, Marine and Oil & Gas insurance businesses also reported 80.5 percent 75.0, 68.1, and 61.0 percent claims ratios respectively during the period.