Nigerian Exchange (NGX) listed insurance companies paid a combined N288.85 billion in claims in 2025. This represents a significant 38.17% year-on-year increase compared to the N209.05 billion recorded in 2024. AIICO Insurance and AXA Mansard were the largest payers, together accounting for over 61% of the total claims disbursed.
The data, compiled from the audited financial statements of nine key players in the Nigerian insurance sector, excludes Lasaco Assurance and Mutual Benefits Assurance as they have yet to release their audited financial statements for the period.
AIICO Insurance remained the largest claims payer, disbursing N95.84 billion in 2025, an increase of 5.79% from N90.59 billion in 2024. This constituted 33.18% of the total claims paid. AIICO's claims ratio improved to 52.43% from 58.00%, as its premium volume of N182.80 billion outpaced claims, indicating stronger underwriting efficiency.
AXA Mansard paid N81.40 billion in claims, marking a 28.77% increase from N63.21 billion in the prior year. This represented 28.18% of the total claims. However, its claims ratio rose to 52.36% from 48.07%, suggesting that claims grew faster than premiums, which stood at N155.45 billion.
NEM Insurance posted one of the strongest increases, with claims rising 83.69% to N45.91 billion from N24.99 billion. Despite this substantial rise, its claims ratio remained relatively low at 28.01%, supported by a strong premium volume of N163.92 billion. NEM accounted for 15.89% of the total claims paid.
Coronation Insurance recorded the most dramatic surge in claims, jumping 363.26% to N32.32 billion from N6.98 billion in 2024. Its claims ratio also rose sharply to 42.34% from 12.89%. This increase in claims relative to premiums (N76.34 billion) may reflect one-off large claims or a shift in risk exposure during the year.
Consolidated Hallmark Insurance paid N12.33 billion in claims, up 36.06% from N9.06 billion. Its claims ratio increased to 38.26%, indicating rising pressure on underwriting margins.
The remaining four insurers, SUNU Assurances, Sovereign Trust, Linkage Assurance, and Guinea Insurance, collectively paid N21.05 billion, accounting for 7.28% of total claims. SUNU led this group with N8.25 billion in claims, followed by Sovereign Trust at N6.09 billion, which maintained the lowest claims ratio overall at 13.19%. Linkage and Guinea reported N5.95 billion and N758.79 million, respectively.
The increasing cost of claims settlement suggests that insurers may need to raise premiums to protect their margins, potentially impacting policyholders. For companies like AXA Mansard and Coronation Insurance, claims are growing faster than premiums, which could affect profitability if this trend continues.
Rising claims can also impact dividend payments to shareholders. Investors in insurance stocks on the NGX should monitor premium growth to ensure it keeps pace with claims, as insufficient growth could put shareholder payouts at risk.
In related news, the Nigerian Insurance Industry Reform Act (NIIRA) 2025 mandated all insurers and reinsurers to contribute to a newly established Insurance Policyholders’ Protection Fund (IPPF), aimed at safeguarding policyholders against insurer insolvency.
