Nigeria’s insurers paid N307.2 billion in claims in the 2025 financial year, up from N216.9 billion in 2024, representing a 41.6 per cent increase as stronger underwriting activity and rising policy utilisation pushed payouts higher across the industry.
The increase reflects a broad rise in insurance activity, with data from 12 listed insurers showing that claims rose across all companies reviewed, indicating higher obligations to policyholders in line with industry expansion.
The growth in claims aligns with broader expansion in the insurance sector, which recorded N2.3 trillion in gross premiums written in 2025, according to the National Insurance Commission. This reflects sustained demand for insurance products across life and non-life segments.
AIICO Insurance remained the largest claims payer in absolute terms, settling N95.8 billion in claims and other insurance service expenses in 2025, compared to N90.6 billion in 2024. The marginal increase reflects its already high base and wide exposure across multiple insurance lines. AXA Mansard Insurance followed with N81.4 billion in claims, up from N63.2 billion in the previous year, marking one of the strongest increases among the top-tier insurers. This concentration highlights the structural nature of Nigeria’s insurance market, where a small number of large firms handle a disproportionate share of underwriting exposure and claims settlement.
Among mid-tier operators, NEM Insurance recorded one of the strongest increases in claims, which rose to N45.9 billion in 2025 from N25.0 billion in 2024. Coronation Insurance Plc also recorded a rise, with claims increasing to N32.3 billion from N7.0 billion, reflecting a significant shift in its claims profile compared to the previous year. The scale of growth in both firms suggests rising exposure to risk or higher settlement activity, even as industry-wide premium growth continues.
The upward trend in claims was not limited to large and mid-tier firms, as smaller insurers also recorded increases across the board. Prestige Assurance paid N15.5 billion in claims, up from N11.0 billion in 2024, while Veritas Kapital Assurance posted a sharp rise to N10.7 billion from N2.3 billion, one of the steepest proportional increases among all companies reviewed. SUNU Assurances Nigeria Plc reported claims of N8.25 billion, compared to N4.87 billion in the previous year, while Sovereign Insurance Plc paid N6.09 billion, up from N4.01 billion. Linkage Assurance Plc and Universal Insurance Plc also recorded increases, with claims rising to N5.95 billion and N3.63 billion, respectively. At the lower end of the market, International Energy Insurance Plc and Guinea Insurance Plc posted marginal increases, with claims of N759.9 million and N758.8 million, respectively.
The rise in claims payments aligns with NAICOM’s broader industry data showing sustained expansion in Nigeria’s insurance sector. According to the regulator, gross claims in the industry rose to N724.7 billion in 2025, representing about 31.5 percent of total premiums written. The industry also maintained a strong settlement rate of 88.5 percent, indicating continued capacity to meet obligations. The simultaneous rise in both premiums and claims suggests that higher payouts are being driven by increased insurance penetration and deeper market activity, rather than isolated or one-off shocks. This reflects a broader expansion in insurance usage across both corporate and retail segments, as more policies translate into higher claims volumes over time.
Despite this, Nigeria’s insurance industry penetration remains low at 0.4 percent of the gross domestic product (GDP) despite the country’s over 200 million population. With South Africa posting an insurance penetration rate of 11.3 percent, followed by Namibia at 7.4 percent, Morocco at 2.1 percent and Kenya at 1.2 percent, questions continue to mount over why years of reforms in Africa’s most populous nation have failed to translate into stronger insurance uptake. Industry operators say insurance penetration, which is measured as total gross premiums as a share of GDP, remains weak in Nigeria due to low public awareness, widespread mistrust, limited access, and low purchasing power, particularly among households and the informal sector.
NAICOM data shows that non-life insurance remained the dominant segment, accounting for 68.4 percent of total premiums written in 2025. Oil and gas-related coverage continued to play a significant role in driving business volumes within the non-life segment, reflecting the structure of Nigeria’s economy and its exposure to energy-related risks. In the life segment, annuities emerged as the leading product category, accounting for 44.3 percent of premiums. This reflects growing interest in long-term savings and income-based insurance products, ahead of individual and group life policies.
Despite the increase in claims, industry indicators suggest that insurers are still operating within manageable limits. NAICOM reported a net loss ratio of 43.6 percent, indicating that claims remain within a sustainable range relative to premiums earned. Total industry assets also rose to N4.79 trillion, reflecting improved balance sheet strength across operators. This suggests that while claims are rising, they are occurring within a broader context of industry expansion and improving financial capacity. However, the pace of growth varies across firms, with some insurers recording significantly faster increases in claims than others. The sharp rises seen in Coronation Insurance and Veritas Kapital Assurance highlight this divergence, while steady increases among larger players such as AIICO and AXA Mansard reflect more stable claims patterns.
The rise in claims has direct implications for underwriting performance across the sector. While higher claims are a natural outcome of increased insurance activity, the 41.6 percent growth rate suggests that insurers will need to sustain strong premium expansion to preserve underwriting balance. NAICOM noted that industry growth has been supported by regulatory measures aimed at deepening the market and improving pricing discipline. “The unprecedented growth we are witnessing is a direct result of ongoing regulatory measures aimed at market deepening and the effectiveness of insurers’ pricing strategies,” the regulator said.
