Manny Ita –
Top Nigerian listed insurers on the Nigerian Exchange (NGX) paid a total of N288.85 billion in claims in 2025, marking a 38.17% increase from the N209.05 billion recorded in 2024. AIICO Insurance and AXA Mansard together accounted for more than 61% of the total claims paid.
The data, compiled from audited financial statements of nine major insurance firms, shows rising pressure across the sector as claims payouts continue to grow faster in several cases than premium income.
AIICO Insurance remained the largest claims payer, disbursing N95.84 billion in 2025, a 5.79% increase from N90.59 billion in 2024. It alone contributed 33.18% of total industry claims. Despite the rise, its claims ratio improved to 52.43% from 58.00%, supported by stronger premium growth of N182.80 billion, indicating improved underwriting efficiency.
AXA Mansard followed closely with N81.40 billion in claims, up 28.77% from N63.21 billion the previous year. It accounted for 28.18% of total claims. However, its claims ratio worsened to 52.36% from 48.07%, as claims growth outpaced premium income, which stood at N155.45 billion.
NEM Insurance recorded one of the strongest performances in terms of growth, with claims rising 83.69% to N45.91 billion from N24.99 billion. Despite this sharp increase, its claims ratio remained relatively low at 28.01%, supported by robust premium earnings of N163.92 billion. NEM contributed 15.89% of total industry claims.
Coronation Insurance posted the most dramatic jump, with claims rising 363.26% to N32.32 billion from N6.98 billion. Its claims ratio surged to 42.34% from 12.89%, reflecting a significant shift in risk exposure relative to premiums of N76.34 billion.
Consolidated Hallmark Insurance reported claims of N12.33 billion, up 36.06% from N9.06 billion, with its claims ratio increasing to 38.26%, signaling rising pressure on profitability.
The remaining four insurers—SUNU Assurances, Sovereign Trust Insurance, Linkage Assurance, and Guinea Insurance—collectively paid N21.05 billion, representing 7.28% of total claims.
Among them, SUNU Assurances led with N8.25 billion, followed by Sovereign Trust Insurance at N6.09 billion, which recorded the lowest claims ratio at 13.19%. Linkage Assurance and Guinea Insurance posted N5.95 billion and N758.79 million respectively.
Overall, the industry data highlights increasing financial pressure as claims continue to rise across the sector. In several cases, claims are growing faster than premiums, potentially squeezing profit margins if the trend continues.
AXA Mansard and Coronation Insurance were the clearest examples of this imbalance, with both recording faster claims growth than premium expansion in 2025.
Rising claims also have implications for investors, as higher payout obligations can reduce earnings available for dividends. Analysts note that sustained premium growth will be critical for insurers to maintain profitability and shareholder returns going forward.
