Oil and gas, fire premium revenues decline have impacted negatively on insurance sub-sector performance amid policy delays, in Q1 2025.
According to the latest release from the National Insurance Commission (NAICOM), gross premium (GP) income across the sector fell dramatically by 51% quarter-on-quarter (q/q) to N769.2 billion in Q1 2025, bringing an abrupt halt to the growth momentum seen in recent quarters.
The downturn is raising concerns across boardrooms and regulatory circles, particularly as it suggests deeper structural or economic challenges that may require urgent intervention.
However, on a more positive note, the year-on-year (y/y) comparison still shows a 63% increase in gross premiums compared to N471.8 billion in Q1 2024, indicating that underlying demand is not entirely lost — even if short-term headwinds are slowing growth.
A breakdown of the figures indicates that both the life and non-life segments of the insurance market suffered major setbacks in the first quarter.
The non-life insurance segment, traditionally- driven by corporate clients and large commercial risk coverages, experienced one of the sharpest hits. Gross premium income in this category dropped to N492.4 billion, compared to a significantly higher N1.1 trillion recorded in Q4 2024.
The decline was largely triggered by plunging revenues in two major sub-categories:
Oil and gas insurance: Premium income fell by 50 percent q/q to N188.7 billion.
Fire insurance: Even more steep, premium income dropped by 61 percent q/q to N91.9 billion.