As Nigeria’s insurance industry adjusts to stricter capital requirements under the Insurance Reform Act 2025, Mutual Benefits said its N5.94 billion in claims payment in January reinforced the sector’s push to rebuild trust and deepen penetration.

The insurer revealed over the weekend that it paid N3.43 billion under its general (non-life) portfolio, while N2.51 billion was paid under life business.

Managing Director, Mutual Benefits, Olufemi Asenuga, described claims settlement as the ultimate proof of an insurer’s credibility.

“Insurance is built on trust. The ability to settle over N5.9 billion in claims in one month demonstrates not only financial strength but also a deep commitment to policyholders. We do not just issue policies, we stand by promises,” he said.

With recapitalisation expected to raise minimum capital requirements across life and non-life segments, industry stakeholders argued that well-capitalised insurers will be better positioned to boost consumer confidence.

Industry analysts said such strong claims performance aligns with the recapitalisation objectives embedded in the new reform regime, which aims to strengthen insurers’ balance sheets, improve solvency margins and ensure faster settlement of valid claims.

They noted that low insurance penetration in the country has historically been driven by asceticism around claims payment. Demonstrable liquidity and compliance with regulatory capital benchmarks, they say, could help to reverse that perception.

The insurer, which operates across life and general insurance segments, said it remained fully compliant with capital requirements set by the National Insurance Commission (NAICOM).

The January payout, the underwriter added, reflected prudent underwriting standards, disciplined risk management and an efficient claims administration framework.