BY NKECHI NAECHE-ESEZOBOR—The Chairman of the Nigerian Insurers Association (NIA), Mr. Kunle Ahmed, has disclosed that Nigeria’s insurance industry recorded a historic Gross Premium Income (GPI) of over ₦2.3 trillion in 2025, underscoring the sector’s resilience and growing contribution to the nation’s economy.
Ahmed made this known during the Association’s 2025 Annual General Meeting (AGM) held in Lagos, where he presented the Chairman’s Statement on the industry’s performance.
According to him, the insurance sector has evolved into a cornerstone of Nigeria’s financial services industry, demonstrating remarkable resilience and adaptability despite a challenging macroeconomic environment.
He explained that the industry’s Gross Premium Income surged year-on-year to exceed ₦2.3 trillion, with the General Insurance business contributing ₦1.57 trillion, driven largely by the retention of high-value Oil and Gas risks and improved enforcement of compulsory Motor and Marine insurance policies.
The Life Insurance segment contributed ₦727.4 billion, supported by growing public awareness of long-term financial planning and sustained demand for Retiree Life Annuity (RLA) products.
Ahmed also revealed that gross claims paid rose to ₦724.7 billion during the year, representing approximately 31.5 per cent of Gross Written Premium. He noted that the increase reflected the industry’s commitment to efficient claims management and improved underwriting practices.
According to him, the non-life insurance segment achieved a claims settlement rate of 75.5 per cent, while the life insurance business recorded a settlement ratio of 65.5 per cent, demonstrating improved operational efficiency and stronger customer confidence.
He emphasized that the industry’s achievements were recorded despite prevailing capital constraints, describing the performance as evidence of the sector’s resilience.
The NIA Chairman stressed that the ongoing recapitalisation exercise remains a strategic priority, as it is expected to strengthen insurers’ financial capacity, bridge existing underwriting gaps, deepen insurance penetration, and enable the industry to absorb larger and more complex risks.
He further disclosed that the industry’s total assets grew by 7.4 per cent to ₦4.8 trillion in 2025 from ₦4.5 trillion recorded in the previous period. Of the total assets, ₦2.6 trillion was attributed to the non-life business, while the life insurance segment accounted for ₦2.2 trillion.
Ahmed attributed the sector’s impressive performance to stronger regulatory enforcement, increased collaboration with law enforcement agencies and state governments to drive compliance with compulsory insurance, and the rapid adoption of digital technologies.
He noted that the integration of InsurTech solutions and digital distribution channels enabled insurers to reach previously underserved markets, reduce operating costs, and improve customer onboarding.
He also highlighted increased local retention of specialized risks through initiatives such as the Energy and Allied Insurance Pool of Nigeria (EAIPN), which has helped retain significant insurance premiums within the domestic economy while reducing reliance on foreign markets.
Ahmed expressed confidence that with sustained reforms, stronger capitalisation, and continued digital innovation, Nigeria’s insurance industry is well-positioned to deepen market penetration and play a greater role in supporting national economic growth.
