Insurance sector posts 49.3% rise in gross premium to N1.2tn

The Nigerian insurance industry has recorded a 49.3 per cent growth in Gross Premium Written to N1.21tn at the end of the second quarter of 2025.

This was disclosed in the second quarter Bulletin of the Insurance Market Performance put together by the Research & Statistics Department of the National Insurance Commission.

The first quarter of 2025, the insurance industry posted a gross premium written of N769.2bn across both life and non-life businesses, marking the highest premium ever generated in the first quarter of any year.

In the period under review, the report indicated that Gross Premium Written stood at N1.21tn, indicating a 49.3 per cent growth rate compared to the same period of the prior year and 57.8 per cent quarter-on-quarter.

NAICOM said, “The insurance market achieved a gross premium written of N1,213.7bn, a notable performance amid macroeconomic challenges in the country. Data collected during the period indicates a growth rate of 49.3 per cent, marking a substantial increase even at a period when the national output is still growing at a single digit.”

In terms of market structure, the non-life segment of the industry retained its dominance, as the segment contributed 67.2 per cent to the total premium pool, similar to its performance from the corresponding quarter of 2024.

Analysis of the non-life market showed that the Oil & Gas portfolio remained the major contributor, accounting for 31.2 per cent of the total non-life premiums during the quarter.

This was followed by fire insurance with 18.9 per cent and motor insurance at 15.8 per cent. Meanwhile, the General Accident, Miscellaneous, Marine and Aviation portfolios contributed 8.9 per cent, 8.8 per cent and 7.4 per cent, respectively.

Conversely, the life insurance segment accounted for 32.8 per cent of all premiums generated during the period. The distribution within the Life segment showed that Annuity was the major contributor at 41.8 per cent, followed by Group Life at 29.5 per cent, and Individual Life accounted for the remaining 28.7 per cent of the premium.

The industry’s robust performance extended to its total asset base. The insurance industry recorded total assets of about N4.4tn in the second quarter of 2025, which represents a 19.2 per cent increase compared to the N2.3tnreported during the same period in 2024. The total assets were divided between the non-life business, which stood at N2.49tn, and the life business, which accounted for N1.91tn.

In terms of profitability, the NAICOM report said that during the second quarter of 2025, the market average of the net loss ratio stood at 59.4 per cent, higher than the 55.4 per cent reported in the prior corresponding period.

The net loss ratio in the non-life segment stood at 60.5 per cent, while the life business recorded 57.1 per cent in the same period under review. Overall, the average net loss ratio is above the global comfort range of 40–55 per cent, but not excessively high.

This data suggests that insurers are fairly responsive in paying claims but could face profitability pressure if expenses are high. However, the life segment is healthier and more stable than the non-life segment, leaving more room for profitability.

“In conclusion, the average net loss ratio of 59.4 per cent reflects that the industry is claims responsive but with a tight margin. Notwithstanding the relatively favourable market average, eleven insurers accounted for the reported net loss ratio during the review period. These underwriters recorded net loss ratios of 100 per cent or higher,” the regulator said.

Providing a projection on the industry, NAICOM said, “From the market statistical insights of the second quarter of 2025, it is apparent that the insurance industry has demonstrated growth, profitability and resilience amidst operational and macroeconomic challenges. Furthermore, in cognisance of the ongoing regulatory initiatives, including sector-wide digitisation, risk-based supervision, and recapitalisation, among other measures, the industry outlook could be adjudged as decidedly positive.”