Nigeria’s insurance industry has recorded strongest quarterly performance on record in Q1 2025, with total premiums surging to N769.2 billion, indicating a 63.4 percent year-on-year increase.
The growth highlights the sector’s resilience amid macroeconomic headwinds and reflects the continued impact of regulatory reforms aimed at deepening market penetration, according to the National Insurance Commission (NAICOM), in its Bulletin of the Insurance Market Performance in the first quarter of 2025.
The performance according to the NAICOM is also an indication of the fulfilling potentials of the market that has come of age, as the industry looks towards technology and the big-data driven policies for expansion.
The non-life segment retained its relative dominance in the market, contributing 64.0 percent to the total premium pool, mirroring its performance in the corresponding quarter of 2024. On the other hand, the life Insurance segment accounted for 36.0 percent of all the premiums generated during the same period.
Insights into the Non-Life segment indicates that the Oil & Gas portfolio remained the major contributor, accounting for 38.3 percent of the total Non-Life premiums during the quarter. This was followed by Fire Insurance with 18.7 percent and Motor Insurance at 15.8 percent.
Meanwhile, the Marine & Aviation, General Accident, and Miscellaneous portfolios contributed 10.9 percent, 9.9 percent, and 6.4 percent respectively.
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Analysis of the life insurance business, which accounted for 36.0 percent of the total premiums show that group life contributed 47.1 percent, annuity business 32.8 percent, and 20.1 percent of the premium was attributable to the individual life business during the quarter.
The report say’s effects of increased public awareness, growing confidence of stakeholders with regards to claims settlement and redress mechanism are seen reflected in the volume of gross claims reported during the first quarter of 2025.
Total claims reported during the period stood at N266 billion. Although the total claims reported signifies just 34.6 percent of all the premiums generated during the same period, it was a win-win situation for insurers and policyholders as it underpins the underwriting quality and market sustainability, the regulator said.
Aggregate net claims paid for both life and non-life insurances also stood at N167.3billion, signifying 62.8 percent of all the claims reported during the period with the life segment of the market reporting about 67.1 per cent, while the non-life segment recorded 60.1 per cent. “The proportion of net claims settlement against reported claims in the market was moderate, largely owing to issues of incomplete or delayed documentation of claims reports, according to NAICOM.
The insurance sector recorded total assets of about N4.2 trillion in the first quarter, representing a 24.9 percent increase compared to the N3.3 trillion reported in the corresponding period of 2024.
A breakdown of the industry’s financial position revealed a total of N2, 732.5 billion in assets for
non – life business, while the life business stood at N1, 433.2 billion.
From the market statistical insights of the first quarter 2025, it is apparent that the insurance industry has demonstrated growth, profitability and resilience amidst operational and macroeconomic challenges, according to NAICOM.
“Furthermore, in cognisance of the ongoing regulatory initiatives including sector-wide digitization, risk-based supervision among other measures, the industry outlook could be adjudged as decidedly positive.”