In the fourth quarter of 2025, the Nigerian insurance market saw a capital flight of N734.274 billion, holding on to N1,567.5 trillion, which represents 68.1 per cent of the total gross premium of N2,301.8 trillion for the period.
Capital flight in this context refers to the portion of the gross premium sent to foreign insurers due to the local market’s limited ability to handle the risks.
Breakdown of the loss to the market shows it recorded N270.709 billion in oil and gas, while the balance, N463.565 billion, was from the other classes of business.
The industry’s Fourth Quarter Performance Report, prepared by the National Insurance Commission (NAICOM), was released on Monday and contains these details.
“The overall market average retention stood at 68.1 per cent, with the Life business achieving about 94.1 per cent and the non-life segment recording a retention ratio of 60.3 per cent during the period”, noted NAICOM in the report computed by its Research and Statistics Department.
In the period, Oil and gas and annuity businesses proved decisive for the market, contributing a total of N796.656 billion of the N2.301 trillion gross premium recorded.
Breakdown of the N796.656 billion gross premium from the two classes of business shows N476.6 billion came from oil and gas, while N320.056 billion came from annuity, a unit of Life business.
Out of the N476.6 billion earned from the oil and gas sector, N270.709 billion left the country by way of capital flight, leaving just N205.8912 billion in the Nigerian economy, despite more than twenty years of efforts to boost the market’s capacity to retain earnings in this industry.
Of the N49.8 billion pooled as premium from the aviation businesses contracted in the fourth quarter, only N14.9 billion was retained in the market, with the balance, N34.9 billion, going to foreign economies.
The report noted that the “retention performance across various classes in the non-life segment reveals that most classes achieved above-average positions except for Marine (47%), Aviation (30%), and Oil & Gas (43%) businesses, which demonstrated notable low retention capacity among the underwriters”.
Data from the sector regulator show that the N2,301 trillion recorded was 36 per cent higher than the figure for the third quarter, representing about a 47.3 per cent growth rate over the corresponding quarter of 2024.
The report stated the non-life insurance segment continued to lead the market, contributing 68.4 per cent to the total premium pool, following its pattern in the corresponding quarter of 2024, while the Life Insurance business accounted for 31.6 per cent during the period. Insights into the non-life category reveals the Oil & Gas business as leading portfolio, representing 30.3 per cent of all the non-life premiums generated.
The Fire Insurance followed with at a notable position of 20.4 per cent share while Motor Insurance accounted for 16.1 per cent as Miscellaneous, General Accident, Marine and Aviation businesses also contributed 11.9 per cent, 9.5 per ceng, 8.7 per cent and 3.2 per cent respectively.
In the period, the industry administered N724.7 billion claims, representing 31.5 per cent of the N2.301 trillion gross premium, and reflecting the pricing strategies of the operators.
During the period, the Life Insurance section recorded a notable claims settlement ratio of 65.5 per cent, while the non-life segment achieved a settlement rate of 75.5 per cent of total claims reported during the period under review.
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