Noor Takaful Insurance Limited and its subsidiary, Noor Health Limited, have distributed N427.96 million surplus to participants and enrollees who did not make claims during the 2024 financial year, reinforcing the growing role of mutual insurance models in deepening consumer participation in Nigeria’s insurance market.

The payment, which was disclosed in Lagos at the weekend, comes at a time when the insurance industry is seeking innovative approaches to rebuild public confidence, improve customer value and expand insurance penetration.

The Chairman of Noor Takaful, Ambassador Shuaibu Ahmed, revealed this at the 2024 surplus distribution and claims celebration ceremony.

Ahmed said more than 1,000 participants would receive various amounts under the surplus distribution, with 22 participants of Noor Takaful and two enrollees of Noor Health receiving payments at the ceremony.
He described the distribution as a demonstration of “gratitude, accountability, reflection and celebration of promises made and kept”, stressing that surplus sharing had moved beyond theory to become a practical feature of the company’s operations.

According to him, the growing acceptance of Takaful in Nigeria reflects increasing recognition of the model as a credible alternative to conventional insurance.

“At Noor, however, we believe it is more than just an alternative. We believe it is a better alternative. We say this because Takaful is built around values that are fundamental to how financial protection should work – equity, fairness, mutual responsibility, transparency and shared benefit,” Ahmed said.

The development is significant for the insurance industry because it comes as operators continue to search for ways to improve the value proposition of insurance to customers, particularly in a market where low penetration has remained a major concern.

Unlike conventional insurance, Takaful operates on the principle of cooperation, with participants contributing to a common risk pool from which eligible claims are paid.

Where a surplus remains after claims and other obligations, participants may receive a share in accordance with the applicable rules.