Insurers grow income by 46.7% to N1.27 billion

The Nigerian Insurers Association (NIA) says its total income rose by 46.7 per cent to N1.272 billion in the 2025 financial year.
The honorary treasurer of NIA, Babatunde Fajemirokun, disclosed this during the association’s 55th annual general meeting held on Tuesday in Lagos.
Mr Fajemirokun attributed the growth to higher earnings from investment income, rental income, annual membership subscriptions, surplus from training programmes and other revenue-generating activities.
According to him, the association’s total income increased from N866.7 million in 2024 to N1.272 billion in 2025.
He said investment income more than doubled from N95.5 million in 2024 to N195.4 million in 2025, representing a 104.5 per cent increase.
He noted that surplus from the Technical Competency Retreat rose by 116.7 per cent from N32.6 million to N70.6 million during the period under review.
Mr Fajemirokun said income from leasing NIA House increased by 86.7 per cent to N180.3 million from N96.5 million recorded in 2024.
“Annual membership subscriptions also grew by 23.02 per cent from N366.4 million to N450.7 million, while revenue from other activities, including home hire services and sales of the association’s Statistical Digest, also improved significantly.
“Total expenditure rose by 15.6 per cent to N862.3 million in 2025 from N746 million in 2024.
“This attributes the increase to higher costs associated with industry programmes, technical competency initiatives, entertainment, policy advocacy, donations, AGM expenses, Abuja office rent, governing council activities and insurance of the association’s assets,” he said
According to him, the increase reflects the prevailing inflationary environment in the country.
Mr Fajemirokun said the association’s total assets grew by 46.9 per cent to N4.509 billion as of Dec. 31, 2025, compared with N3.070 billion in the previous year.
He explained that the increase was driven by higher cash equivalents arising from funds held in trust and the surplus recorded during the year.
Earlier, the outgoing chairman of NIA, Kunle Ahmed, said the insurance industry’s gross premium income (GPI) surpassed N2.3 trillion in 2025, marking a historic milestone for the sector.
Mr Ahmed noted that the feat represented a significant year-on-year increase, reflecting the industry’s expanding capacity and market reach.
According to him, the growth was driven by strong performances across both the general and life insurance segments.
He said the general insurance business accounted for N1.57 trillion of the total premium income, due to the strategic retention of high-value risks in the oil and gas sector and the enforcement of compulsory insurance policies, particularly motor and marine insurance.
Mr Ahmed said the life insurance business contributed N727.4 billion to the total GPI, attributing the performance to increased public awareness of long-term financial planning and sustained demand for Retiree Life Annuity (RLA) products.
The NIA chairman also said gross claims paid by the industry rose to N724.7 billion during the period, representing about 31.5 per cent of the Gross Written Premium (GWP) for the year.
He said the increase reflected the industry’s commitment to improving claims management, robust underwriting capacity and more effective pricing of insurance risks.
Mr Ahmed further said operational efficiency remained strong, with the non-life insurance segment recording a claims settlement rate of 75.5 per cent of total reported claims, while the life insurance segment achieved a settlement ratio of 65.5 per cent.
He noted that the improvements were particularly evident in specialised portfolios such as oil and gas insurance, adding that the achievements reflected growing market confidence and enhanced claims administration.
Mr Ahmed said the milestones were recorded despite prevailing capital constraints, underscoring the resilience of the Nigerian insurance industry.
“The industry maintained its upward growth trajectory in terms of its financial position, with total assets expanding by 7.4 per cent to reach an aggregate of N4.8 trillion, up from N4.5 trillion in the preceding quarter,” he said.
Also, Austin Ebose, the managing director of Anchor Insurance, was elected honorary treasurer, and Olamide Olajolo, the managing director of Coronation Insurance, was appointed assistant honorary treasurer.
Yetunde Ilori congratulated the newly elected chairperson and commended the financial results for the 2025 financial year.
“Thank you for the good job done, and we welcome new innovations from the new leadership,” she said.
The house unanimously ratified Ebelechukwu Nwachukwu as the 27th chairperson of the association, and confirmed the election of the deputy chairman, Babatunde Fajemirokun.
Other council members are Tunde Mimiko, managing director of SanlamAllianz Life Insurance Nigeria; Niyi Onifade, managing director of Heirs Insurance; Dr Adaobi Nwakuche, managing director of Veritas Kapital Assurance; Olakekan Oyinlade, managing director of emPLE General Insurance; and Samuel Ogbodu, managing director of SUNU Assurances.
(NAN)
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