Nigeria’s insurance market has earned fresh confidence as Regency Alliance Insurance Plc reported paying N3.14 billion in claims in the first half of 2025, a 242 per cent surge from the N916.79 million settled during the same period last year, underscoring the industry’s growing strength and reliability.

Industry analysts say the surge in claim payments underscores how a strong culture of meeting obligations is helping insurers to deepen public trust and position the sector as a reliable partner in economic stability.

The unaudited financial statement of the company, published on the Nigerian Exchange, revealed that despite pressure on short-term profits, the insurer maintained solid fundamentals.

Gross premiums grew by nearly 64 per cent to N6.15 billion from N3.76 billion a year earlier, while net investment income rose 13 per cent to N837.98 million.

Total assets also expanded by almost 18 per cent to N22.47 billion.

Market watchers note that the steep rise in claims reflects both Regency Alliance’s increasing underwriting capacity and the sector’s improving ability to honour policyholders’ expectations.

By promptly settling losses, insurers demonstrate the core purpose of insurance, providing financial security when risks materialise.
“Paying claims is the ultimate test of an insurer’s strength,” said a Lagos-based analyst.

“The fact that Regency Alliance could settle over three billion naira in six months shows that the market is maturing and that policyholders can depend on insurers to protect their businesses, homes and assets,” he said.

While claims outgo weighed on profitability, with profit before tax declining to N321.17 million from N911.25 million, and profit after tax easing to N240.2 million from N740.45 million, experts emphasise that fulfilling obligations is vital to sustaining growth.

They argue that every claim settled builds confidence and helps attract new policyholders, fuelling premium expansion across the industry.

The company’s leadership has reiterated its commitment to striking a balance between robust claims management and disciplined underwriting. Strategic pricing, improved risk assessment, and effective reinsurance are expected to help insurers like Regency Alliance manage loss ratios while continuing to grow their customer base.

As Nigeria’s insurance penetration remains relatively low compared to other emerging markets, analysts believe that visible proof of reliability, such as prompt and sizable claims settlements, will accelerate the adoption of insurance solutions by businesses and households.

By paying over N3 billion in just six months, the insurer not only protects clients from financial shocks but also strengthens the reputation of the broader insurance ecosystem as an engine for stability, investment and resilience in the Nigerian economy.