April 14, (THEWILL) — Nigeria’s insurance industry recorded a strong 47.3 percent year-on-year growth in Gross Premium Written (GPW), rising to ₦2.301 trillion in 2025 from ₦1.558 trillion in 2024, according to the National Insurance Commission (NAICOM).
In its latest industry report, NAICOM attributed the robust performance to sustained regulatory reforms, increased market confidence, and strong contributions from key segments, particularly Oil & Gas and annuity businesses.
The report, however, showed that total claims paid declined by 21.7 percent to ₦724.7 billion in 2025, compared to ₦926.1 billion in 2024.
NAICOM noted that the sector’s growth significantly outpaced Nigeria’s 3.9 percent economic expansion, underscoring the industry’s rising importance within the financial system.
A breakdown of performance shows that the non-life segment maintained dominance, contributing 68.4 percent of total premiums, while life insurance accounted for 31.6 percent. Within non-life business, Oil & Gas led with a 30.3 percent share, followed by Fire Insurance at 20.4 percent and Motor Insurance at 16.1 percent. Other contributors included Miscellaneous, General Accident, Marine, and Aviation.
In the life segment, annuity funds emerged as the leading driver, contributing 44.3 percent of premiums. Individual Life and Group Life businesses followed with 36.2 percent and 19.5 percent, respectively.
Despite the drop in total claims, the industry recorded improved claims efficiency. Claims settled in 2025 represented 31.5 percent of total premiums, with settlement ratios of 65.5 percent for life insurance and 75.5 percent for non-life business, reflecting stronger underwriting capacity and better pricing strategies.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
