Insurers retain 59.3% business in Q1, cede 40.7% abroad
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Chuks Udo Okonta
Insurance companies had a market average retention ratio of 59.3 per cent in first quarter 2025, the National Insurance Commission (NAICOM) has said.
NAICOM stated this in its Bulletin of the Insurance Market Performance for first quarter 2025, noting that an insurer’s level of risk retention is typically dependent on its risk appetite as determined by its financial capacity and evaluation of the given business.
According to NAICOM notably during the first quarter, the industry exhibited strong confidence by retaining a significant share of risks within their
portfolios in spite the operational challenges posed by economic reforms.
“The industry recorded a market average retention ratio of 59.3 per cent, suggestive of strong market confidence and sound financial standing especially in the Life business which stood at 86.2 per cent.
In the Non Life segment the proportional
retention was comparatively lower owing to the effect of the special risks portfolios thereby it was recorded at about 44.1 per cent precisely,” it submitted.
The insurance industry regulator maintained that the statistics from the Nigerian Insurance market in the first quarter of 2025 revealed a sustained positive performance indicating yet, its ability to adapt and grow despite the prevailing macroeconomic challenges.
“It recorded a notable growth in premium generation of about seven hundred and sixty-nine (N769.2) billion naira, representing an increase of 63.4 per cent, year-on-year (YoY) and, reflective of the sustained regulatory market deepening measures in the sector,” it said.
NAICOM noted that the industry recorded a gross premium written of N769.2 billion for both life and non-life
businesses during the quarter, the highest ever premium generation in a first quarter period of any year.
“This is also an indication of the fulfilling potentials of the market that has come of age, as the industry looks towards technology and the big-data driven policies for expansion,” it posited.
