NSIA Insurance pivots to non-life, pays N18bn claims
NSIA Insurance Limited has declared a strategic pivot to operate exclusively as a specialist non-life insurance provider, while confirming the ceding of its entire life insurance business to CHI Life Assurance Limited.
The announcement was made on Monday during a press conference in Lagos following the company’s 2026 Annual General Meeting, where the Chairman, Dr Adesegun Akin-Olugbade, outlined the firm’s growth agenda and financial performance for the 2025 financial year.
Speaking at the meeting, Akin-Olugbade disclosed that the proposed transfer of its life insurance portfolio to CHI Life Assurance Limited, a subsidiary of Consolidated Hallmark Holdings Plc, had received approval-in-principle from the National Insurance Commission.
The deal, he said, was set for final execution upon concluding remaining legal and regulatory processes.
Akin-Olugbade explained that narrowing its mandate directly aligned with building market leadership where the firm held a strong comparative advantage, particularly in general business and motor lines.
“By so doing, we are able to scale better than what we were doing before because there is no distraction. It is deliberate, and that is where we can scale.
Part of our strategy is to ensure that for every householder in Nigeria, we have an NSIA family,” he stated.
The strategic transition comes alongside significant claims settlement milestones. NSIA Insurance paid N18bn in claims during the 2025 financial year, bringing its cumulative claims payout over the last four years to N47.9bn.
Highlighting the company’s customer-centric claims philosophy, he reiterated its commitment to rapid processing, particularly in motor insurance.
“We are very good when it comes to motor. If you report a claim to us today, we have a team that will inspect that same claim and give you an offer that same day. If signed on time, you also receive your benefit that same day. We are putting the customer before profit,” he noted.
Financially, the underwriter recorded an 18 per cent growth in insurance revenue, hitting N33bn in 2025, up from the previous year. Profit after tax stood at slightly over N2bn, pushing total cumulative PAT over the 2021–2025 period to N9.3bn. Total assets increased to N53bn, while shareholders’ funds grew 74.3 per cent from N13.6bn in 2021 to N23.7bn in 2025.
To align with regulatory requirements and support its specialised growth, shareholders at the AGM ratified the capitalisation of N6bn from retained earnings.
The capitalisation increases NSIA’s issued share capital from N9bn to N15bn through a bonus issue of two new shares for every three shares held. The arrangement strengthens the insurer’s balance sheet without requiring additional cash injection from shareholders, ensuring compliance ahead of recapitalisation mandates under the Insurance Reform Act 2025.
The restructuring reflects a broader trend across the Nigerian insurance industry, where underwriters are increasingly unbundling composite licenses to create dedicated entities for life and general insurance businesses. This unbundling strategy allows operators to optimise capital allocation, comply with stricter solvency regimes, and deepen penetration in high-margin non-life segments such as property, oil and gas, marine, and motor underwriting.
Looking ahead, NSIA Insurance affirmed its commitment to disciplined underwriting, digital innovation, and market penetration across Nigeria’s non-life insurance segment over the next five years.
About Post Author
