Ongoing recapitalisation in Nigeria’s insurance industry has pushed the sector to one of its strongest growth performances in recent years, according to new national economic data.
Figures from the National Bureau of Statistics show that the insurance subsector recorded real GDP growth of 20.78 per cent in the third quarter, up from 15.70 per cent in the previous quarter and higher than growth recorded over the last six quarters.
A research note by Credit Direct described the performance as a strong rebound, linking the growth to capital strengthening efforts across the insurance industry.
Data at current basic prices showed that insurance contributed N398.17 billion to GDP in the third quarter. This was lower than the N554.07 billion recorded in the previous quarter but higher than the N267.30 billion posted in the first quarter of 2025.
The subsector has already exceeded its full year performance for 2024, contributing N1.22 trillion so far, compared with N1.18 trillion recorded in the entire 2024 financial year.
The combined finance and insurance sector also showed strong momentum, growing by 40.55 per cent in nominal terms year on year. Insurance alone recorded a nominal growth rate of 32.44 per cent.
In real terms, the finance and insurance sector grew by 19.63 per cent, with its contribution to real GDP rising to 2.65 per cent.
Industry leaders say the growth is being driven by increased economic activity across construction, trade, real estate, and oil and gas.
The Managing Director of Rex Insurance, Ebelechukwu Nwachukwu, said more infrastructure projects and rising business transactions have increased demand for insurance services.
She also said improved claims payment, greater use of digital platforms, and increased public awareness campaigns have helped to rebuild trust and attract more customers.
Meanwhile, the Managing Director of Cornerstone Insurance Plc, Stephen Alangbo, said recapitalisation expectations boosted investor confidence, strengthened company balance sheets, and improved share price performance across the sector.
