Nigeria’s insurance assets rise to N4.8tn on reforms 

Nigeria’s insurance industry strengthened its financial position in 2025, with total assets climbing to N4.8 trillion and gross premium income (GPI) exceeding N2.3 trillion for the first time, reflecting stronger underwriting capacity, regulatory reforms, improved risk retention and accelerating digital transformation across the sector.

The industry’s total assets rose by 7.4 per cent from N4.5 trillion in 2024 to N4.8 trillion in 2025, while gross premium income reached a record N2.3 trillion, marking the strongest performance in the history of Nigeria’s insurance market.

Kunle Ahmed, chairman of the Nigerian Insurers Association (NIA), disclosed the figures during the Association’s 55th Annual General Meeting (AGM), describing 2025 as a landmark year in which the insurance industry consolidated its position as a critical pillar of Nigeria’s financial services sector despite a challenging macroeconomic environment.

According to Ahmed, the industry’s expanding asset base reflects stronger balance sheets, improved capitalisation and growing investor confidence as insurers positioned themselves for the implementation of the Nigerian Insurance Industry Reform Act 2025.

Of the industry’s N4.8 trillion asset base, N2.6 trillion was held by non-life insurance companies, while life insurers accounted for N2.2 trillion, underscoring the growing financial strength of operators across both segments.

He attributed the industry’s record performance to a combination of stronger regulatory enforcement, improved compliance with compulsory insurance policies, increased retention of high-value risks, technological innovation and enhanced underwriting discipline.

“The industry’s growth has been driven by stronger regulatory enforcement, increased collaboration with law enforcement agencies and state governments in implementing compulsory insurance, as well as the rapid deployment of InsurTech solutions and digital distribution channels,” Ahmed said.

Another major growth driver, according to him, was the industry’s increasing ability to retain complex and high-value risks within the domestic market.

The General Insurance business generated N1.57 trillion of the total premium income, largely driven by the retention of oil and gas risks that would previously have been ceded abroad, alongside improved enforcement of compulsory motor and marine insurance.

The Life Insurance segment contributed N727.4 billion, supported by rising public awareness of long-term financial planning and sustained demand for Retiree Life Annuity products.

Ahmed said initiatives such as the Energy and Allied Insurance Pool of Nigeria have significantly strengthened local underwriting expertise in specialised risks, enabling more insurance premiums to remain within the Nigerian economy instead of flowing to foreign markets.

Beyond premium growth, the industry also recorded a notable improvement in claims settlement, paying N724.7 billion in gross claims during the year, equivalent to about 31.5 per cent of gross written premium.

The non-life business achieved a claims settlement rate of 75.5 per cent, while the life segment recorded 65.5 per cent, reflecting improved operational efficiency, stronger claims administration and better risk management practices.

According to Ahmed, the industry’s improved claims experience, particularly within specialised portfolios such as oil and gas, has further strengthened public confidence in insurance despite prevailing capital constraints.

He added that insurers have significantly improved underwriting discipline and adopted more data-driven risk management practices, resulting in healthier balance sheets and stronger financial resilience.

Looking ahead, Ahmed described the ongoing recapitalisation exercise as essential to sustaining the industry’s growth trajectory.

He said stronger capital bases would enhance insurers’ underwriting capacity, improve their ability to absorb large and complex risks and deepen the sector’s contribution to Nigeria’s economic development.

Ahmed identified the enactment of the Nigerian Insurance Industry Reform Act 2025 as the most significant regulatory milestone for the sector in more than two decades.

According to him, the legislation replaces the outdated Insurance Act of 2003 with a modern regulatory framework that strengthens solvency requirements, corporate governance, transparency and policyholder protection.

The new law introduces Risk-Based Supervision and aligns capital requirements with insurers’ risk exposure, a move expected to accelerate recapitalisation, mergers, acquisitions and broader industry restructuring.

Although he acknowledged that the transition could present short-term operational challenges, Ahmed said the reforms would ultimately produce a stronger, more resilient and globally competitive insurance industry.