In the first half of 2026, insurers operating on the [Nigerian Exchange Limited (NGX)](https://www.ngxgroup.com) paid out N346.87 billion in claims, a marginal 0.1 percent increase over the same period in 2025, even though gross premium income fell.
The total gross premium written (GPW) for the 18 listed insurers declined to N579.25 billion from N590.20 billion a year earlier, representing a 1.8 percent drop. The companies involved include AIICO Insurance, Axa Mansard, Consolidated Hallmark Insurance, Cornerstone Insurance, Coronation Insurance, Custodian Investment, Guinea Insurance, International Energy Insurance, Lasaco Assurance, Linkage Assurance, Mutual Benefits, Nem Insurance, Prestige Insurance, Regency Assurance, Sovereign Trust Insurance, SUNU Assurances, Universal, and Veritas Kapital Assurance.
**What were the claim payments?**
The claim payouts rose to N346.87 billion, up 0.1 percent YoY, despite the premium contraction, indicating that a larger share of premium income was consumed by claims.
**How did premiums change?**
GPW slipped to N579.25 billion, down N10.95 billion from the previous year’s figure, reflecting weaker premium generation across the sector.
**What did industry experts say?**
Olumide Fatogun, Managing Director of Boof Insurance Brokers, observed that the modest rise in the claims‑to‑premium ratio could become material if the trend continues. He warned, “There is a need for insurers to sustain premium growth while maintaining disciplined underwriting and claims management. This becomes particularly important as the industry moves into the post‑recapitalisation era, with stronger capital requirements expected to translate into greater capacity to underwrite risks and improve policyholders’ confidence in insurance.”
**What is the impact of recapitalisation?**
According to the [National Insurance Commission (NAICOM)](https://www.naicom.gov.ng), the recapitalisation exercise has mobilised roughly N1.079 trillion, combining fresh capital and existing funds to bolster insurers’ financial standing. However, questions remain whether this infusion will lead to enhanced underwriting capacity, faster claims settlement, higher domestic risk retention, and broader insurance coverage.
The data suggest that while insurers earned less premium income during the period, their obligations to settle claims continued to climb, albeit modestly, putting pressure on underwriting margins as the sector adapts to new capital requirements.